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What changed in Republic Services's 10-K — 2022 vs 2023

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Paragraph-level year-over-year comparison of Republic Services's 2022 and 2023 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2023 report.

+384 added−371 removedSource: 10-K (2024-02-29) vs 10-K (2023-02-23)

Top changes in Republic Services's 2023 10-K

384 paragraphs added · 371 removed · 323 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWe work hard to remain a company where the best people, with exceptional talents and diverse backgrounds, can thrive and foster a culture of caring where people feel respected, supported and encouraged to bring their best selves to work every day. 5 Table of Contents We are dedicated to driving our people and talent agenda, which includes (1) representing the diversity of the communities we serve and sustaining a safe and inclusive culture, (2) maintaining a highly engaged workforce, (3) developing our talent through learning and development experiences and (4) offering rewards that attract and retain the best workforce.
Biggest changeWe are dedicated to driving our people and talent agenda, which includes (1) representing the diversity of the communities we serve and sustaining a safe and inclusive culture, (2) maintaining a highly engaged workforce, (3) developing our talent through learning and development experiences and (4) offering rewards that attract and retain the best workforce.
Market Position Our goal is to develop the best vertically integrated market position to enable us to build density and improve returns. We strive to have leading market position in each of the markets we serve, or have a clear path toward how we will achieve a leading market position over time.
Market Position Our goal is to develop the best vertically integrated market position to enable us to build density and improve returns. We strive to have a leading market position in each of the markets we serve, or have a clear path toward how we will achieve a leading market position over time.
US Ecology is a leading provider of environmental solutions, offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste. For services that we don’t provide, we fulfill demand through our alliance partnerships while maintaining the customer facing relationship. To help ensure a consistent customer experience, we invested in our customer service capabilities and our centralized Customer Experience function.
US Ecology is a leading provider of environmental solutions, offering treatment, recycling and disposal of hazardous, non-hazardous and specialty waste. For services that we don’t provide, we fulfill demand through our alliance partnerships while maintaining the customer facing relationship. To help ensure a consistent customer experience, we have invested in our customer service capabilities and our centralized Customer Experience function.
Fleet Electrification We believe we are taking a leadership position in electric technology innovation for our recycling and solid waste collection fleet. This is a critical step toward reducing our environmental impact through lower fleet emissions. We believe it will also improve our total cost of ownership while providing a competitive advantage in certain communities.
Fleet Electrification We believe we are taking a leadership position in electric technology innovation for our recycling and waste collection fleet. This is a critical step toward reducing our environmental impact through lower fleet emissions. We believe it will also improve our total cost of ownership while providing a competitive advantage in certain communities.
Every Day . This approach of developing standardized processes with rigorous controls and tracking allows us to leverage our scale and deliver durable operational excellence. The Republic Way is the key to harnessing the best of what we do as operators and translating that across all facets of our business.
Everywhere. Every Day . This approach of developing standardized processes with rigorous controls and tracking allows us to leverage our scale and deliver durable operational excellence. The Republic Way is the key to harnessing the best of what we do as operators and translating that across all facets of our business.
We are partnering with multiple manufacturers to pilot electric-powered recycling and solid waste trucks. As electric vehicle technology continues to develop, we expect to further deploy electrification to our fleet. Standardized Maintenance Based on an industry trade publication, we operate the fifth largest vocational fleet in the United States.
We are partnering with multiple manufacturers to pilot electric-powered recycling and waste trucks. As electric vehicle technology continues to develop, we expect to further deploy electrification to our fleet. Standardized Maintenance Based on an industry trade publication, we operate the fifth largest vocational fleet in the United States.
We believe that our products and services are valuable to our customers and essential for long-term sustainability. We further believe our focus and commitment to sustainability allows us to attract and retain the best talent, win more customers, increase customer loyalty and, ultimately, drive higher revenue and profits.
We believe that our products and services are valuable to our customers and essential for long-term sustainability. We further believe our focus on and commitment to sustainability allows us to attract and retain the best talent, win more customers, increase customer loyalty and, ultimately, drive higher revenue and profits.
Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and solid waste business operating primarily in geographic areas located in the western United States.
Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States.
We review key progress metrics such as representation, engagement and turnover and regularly report on these metrics to our Board of Directors. This level of reporting holds all of our leaders accountable for the continued growth and development of our people.
We review key progress metrics such as engagement and turnover and regularly report on these metrics to our Board of Directors. This level of reporting holds all of our leaders accountable for the continued growth and development of our people.
Within our recycling and solid waste business, we prioritize investments in market verticals with above average growth rates and higher return profiles. Environmental solutions remains fragmented which provides consolidation opportunities to drive scale.
Within our recycling and waste business, we prioritize investments in market verticals with above average growth rates and higher return profiles. Environmental solutions remains fragmented which provides consolidation opportunities to drive scale.
Group 2 is our recycling and solid waste business operating primarily in geographic areas located in the southeastern and mid-western United States and the eastern seaboard of the United States. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada.
Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States and Canada. Group 3 is our environmental solutions business operating in geographic areas located across the United States and Canada.
External Growth • Acquisitions and Public-Private Partnerships - Our acquisition growth strategy focuses primarily on acquiring privately held recycling and solid waste companies and environmental solutions businesses that complement our existing business platform.
External Growth • Acquisitions and Public-Private Partnerships - Our acquisition growth strategy focuses primarily on acquiring privately held recycling and waste companies and environmental solutions businesses that complement our existing business platform.
We believe using CNG vehicles provides us with a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment. Although upfront capital costs are higher, using CNG vehicles reduces our overall fleet operating costs through lower fuel expenses. As of December 31, 2022, we operated 45 CNG fueling stations.
We believe using CNG vehicles provides us with a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment. Although upfront capital costs are higher, using CNG vehicles reduces our overall fleet operating costs through lower fuel expenses. As of December 31, 2023, we operated 45 CNG fueling stations.
Republic drivers have won 72% of the Driver of the Year awards issued for the large truck category since 2009. In addition, our best drivers are recognized and rewarded with competing in our National Road-EO competition. • Analyze Together: We analyze real-time data to make short- and long-term decisions and identify opportunities for improvement.
Republic drivers have won 70% of the Driver of the Year awards issued for the large truck category since 2009. In addition, our best drivers are recognized and rewarded with competing in our National Road-EO competition. • Analyze Together: We analyze real-time data to make short- and long-term decisions and identify opportunities for improvement.
Over the past 10 years, our safety performance (based on OSHA recordable rates) has been 35% better than the industry average. Our Think, Choose, Live slogan encapsulates our everyday safety messaging to our employees to: Think about what you are doing, Choose the safe answer and Live to go home to your family.
Over the past 10 years, our safety performance (based on OSHA recordable rates) has been 33% better than the industry average. Our Think, Choose, Live slogan encapsulates our everyday safety messaging to our employees to: Think about what you are doing, Choose the safe answer and Live to go home to your family.
Refer to our Sustainability Report for our progress toward our 2030 sustainability goals, and refer to our full suite of climate-related sustainability reporting for updates regarding our progress toward our climate goals, including Task Force on Climate-Related Financial Disclosures (TCFD), SASB, Global Reporting Initiative (GRI) and CDP Climate Change, all of which can be found at investor.republicservices.com/sustainability.
Refer to our Sustainability Report for our progress toward our 2030 sustainability goals, and refer to our full suite of climate-related sustainability reporting for updates regarding our progress toward our climate goals, including the Task Force on Climate-Related Financial Disclosures (TCFD), SASB, Global Reporting Initiative (GRI) and CDP Climate Change, all of which can be found at republicservices.com/sustainability/reporting.
Through landfill and fleet innovation, recycling and circularity of key materials and renewable energy production, we are committed to environmentally responsible operations that increase our efficiency as well as our ability to partner with customers to create a more sustainable world.
Through landfill and fleet innovation, recycling and circularity of key materials and renewable energy production, we are committed to continuous development of environmentally responsible operations that increase our efficiency as well as our ability to partner with customers to create a more sustainable world.
Fleet Automation Approximately 76% of our residential routes have been converted to automated single-driver trucks. By converting our residential routes to automated service, we reduce labor costs, improve driver productivity, decrease emissions and create a safer work environment for our employees.
Fleet Automation Approximately 77% of our residential routes have been converted to automated single-driver trucks. By converting our residential routes to automated service, we reduce labor costs, improve driver productivity, decrease emissions and create a safer work environment for our employees.
Our Executive Leadership team sponsors these programs, providing visibility and support for the career advancement of our high-potential talent across the organization. Since the beginning of these programs in 2017, 78 leaders have graduated into leadership positions.
Our Executive Leadership team sponsors these programs, providing visibility and support for the career advancement of our high-potential talent across the organization. Since the beginning of these programs in 2017, 84 leaders have graduated into leadership positions.
We are committed to an efficient capital structure and maintaining our investment grade credit ratings on our senior debt, which was rated BBB+ by Standard & Poor’s Ratings Services, BBB+ by Fitch Ratings, Inc. and Baa2 by Moody’s Investors Service, Inc. Such ratings have allowed us, and should continue to allow us, to readily access capital markets at competitive rates.
We are committed to an efficient capital structure and maintaining our investment grade credit ratings on our senior debt, which was rated BBB+ by Standard & Poor’s Ratings Services, A- by Fitch Ratings, Inc. and Baa1 by Moody’s Investors Service, Inc. Such ratings have allowed us, and should continue to allow us, to readily access capital markets at competitive rates.
In addition, by securing long-term agreements, we are better able to help ensure we earn an appropriate return on the capital deployed. 2 Table of Contents • Price Increases - We seek to secure price increases necessary to offset increased costs, improve our operating margins and earn an appropriate return on our substantial investments in vehicles, equipment, landfills, transfer stations, recycling centers and other post-collection infrastructure. • Expansion of Recycling Capabilities - Based on the most recent United States Environmental Protection Agency (EPA) data, approximately 32% of municipal solid waste is recycled and/or composted.
In addition, by securing long-term agreements, we are better able to help ensure we earn an appropriate return on the capital deployed. 2 Table of Contents • Price Increases - We seek to secure price increases necessary to offset increased costs, improve our operating margins and earn an appropriate return on our substantial investments in vehicles, equipment, recycling centers, transfer stations, TSDFs, deep well injection facilities, landfills, and other post-collection infrastructure. • Expansion of Recycling Capabilities - Based on the most recent United States Environmental Protection Agency (EPA) data, approximately 32% of municipal solid waste is recycled and/or composted.
We have found that these programs and experiences help ensure that the next generation of leaders build the necessary skills and experiences to be successful in their roles today and in the future. We continue to leverage innovative training methods using mixed mediums to deliver trainings and instruction to our employees across the country.
We have found that these programs and experiences help ensure that the next generation of leaders build the necessary skills and experiences to be successful in their roles today and in the future. 6 Table of Contents We continue to leverage innovative training methods using mixed mediums to deliver trainings and instruction to our employees across the country.
Inclusion and Diversity We believe the composite strength of our employees’ ideas, built on their unique experiences and backgrounds, is essential to our ability to meet and anticipate our customers’ needs. We are proud of the diversity of our front-line workforce, as it closely represents the demographics of the communities we serve.
Inclusion and Diversity We believe the composite strength of our employees’ ideas, built on their unique experiences and backgrounds, is essential to our ability to meet and anticipate our customers’ needs. We are proud of the diversity of our frontline workforce, as it closely represents the demographics of the communities we serve.
We realize synergies from consolidating businesses into our existing operations, whether through acquisitions or public-private partnerships, which allows us to reduce capital expenditures and expenses associated with truck routing, personnel, fleet maintenance, inventories and back-office administration. Operating Model Our operating model allows us to deliver a consistent, high-quality service to all our customers through the Republic Way: One Way. Everywhere.
We realize synergies from consolidating businesses into our existing operations, whether through acquisitions or public-private partnerships, which allows us to reduce capital expenditures and expenses associated with truck routing, personnel, fleet maintenance, inventories and back-office administration. 3 Table of Contents Operating Model Our operating model allows us to deliver a consistent, high-quality service to all our customers through the Republic Way: One Way.
Dividends In July 2022, our Board of Directors approved an increase in the quarterly dividend to $0.495 per share, which represents an increase of approximately 8% over the prior year. Over the last five years, our dividends have increased at a compounded annual growth rate of 5.7%.
Dividends In July 2023, our Board of Directors approved an increase in the quarterly dividend to $0.535 per share, which represents an increase of approximately 8% over the prior year. Over the last five years, our dividends have increased at a compounded annual growth rate of 5.7%.
We are relentless in our focus to improve representation of diverse groups across all levels of the Company. Our commitment to inclusion and diversity starts at the top of our organization, as outlined in our Mission of Supporting an Inclusive Culture (MOSAIC), established in 2013 and supported by the MOSAIC Council.
We continue to improve representation of diverse groups across all levels of the Company. Our commitment to inclusion and diversity starts at the top of our organization, as outlined in our Mission of Supporting an Inclusive Culture (MOSAIC), established in 2013 and supported by the MOSAIC Council.
Our goal is to create market-specific, vertically integrated operations typically consisting of one or more collection operations, transfer stations, landfills and recycling centers. Where appropriate, we seek to obtain permits to build transfer stations, recycling centers and landfills that would vertically integrate our waste services or expand the service areas for our existing disposal sites.
Our goal is to create market-specific, vertically integrated operations typically consisting of one or more collection operations, recycling centers, transfer stations, TSDFs, deep well injection facilities, and landfills. Where appropriate, we seek to obtain permits to build transfer stations, recycling centers and landfills that would vertically integrate our waste services or expand the service areas for our existing disposal sites.
Additionally, communities using automated vehicles generally have higher participation rates in recycling programs, thereby complementing our initiative to expand our recycling capabilities. Compressed Natural Gas (CNG) Vehicles Approximately 20% of our recycling and solid waste collection fleet operates on CNG and approximately 17% of our replacement recycling and solid waste vehicle purchases during 2022 were CNG vehicles.
Additionally, communities using automated vehicles generally have higher participation rates in recycling programs, thereby complementing our initiative to expand our recycling capabilities. Compressed Natural Gas (CNG) Vehicles Approximately 20% of our recycling and waste collection fleet operates on CNG and approximately 13% of our replacement recycling and waste vehicle purchases during 2023 were CNG vehicles.
Our leadership programs are a critical part of growing our people. We remain focused on attracting, hiring and developing early career leaders. Our rotational training and development programs, including our General Manager Acceleration Program (GMAP) and Leadership Trainee Program, help us attract, develop and advance a diverse and talented pool of individuals from across our organization.
We remain focused on attracting, hiring and developing early career leaders. Our rotational training and development programs, including our General Manager Acceleration Program (GMAP) and Leadership Trainee Program, help us attract, develop and advance a diverse and talented pool of individuals from across our organization.
Key elements of our operating model are our 3 Table of Contents organizational structure, safety, fleet automation, compressed natural gas vehicles, fleet electrification and standardized maintenance.
Key elements of our operating model are our organizational structure, safety, fleet automation, compressed natural gas vehicles, fleet electrification and standardized maintenance.
We are engaged in 73 landfill gas-to-energy and other renewable energy projects and had post-closure responsibility for 128 closed landfills.
We are engaged in 76 landfill gas-to-energy and other renewable energy projects and had post-closure responsibility for 126 closed landfills.
We support inclusion and connectivity for our diverse populations through our Business Resource Groups (BRG) and focus on the involvement of our field locations in all of our BRGs, including Women of Republic, VALOR (Veterans, Advocacy, Learning, Outreach and Recruiting), UNIDOS and the Black Employee Network (BEN). In January 2023, we also launched a new LGBTQ+ BRG.
We support inclusion and connectivity for our diverse populations through our Business Resource Groups (BRG) and focus on the involvement of our field locations in all of our BRGs, including Women of Republic, VALOR (Veterans, Advocacy, Learning, Outreach and Recruiting), UNIDOS and the Black Employee Network.
Additionally, our MBA intern program, with 24 participants since 2019, introduces 6 Table of Contents strong talent to the organization and is a path of opportunity into the GMAP program.
Additionally, our MBA intern program, with 35 participants since 2019, introduces strong talent to the organization and is a path of opportunity into the GMAP program.
On a quarterly basis, our Board of Directors reviews the intrinsic value of our stock and the parameters around which we repurchase our shares. Refer to
On a quarterly basis, our Board of Directors reviews the parameters around which we repurchase our shares. Refer to
These tools reinforce to our customers that they can rely on us to handle their recycling and waste service needs in a way that is easy and convenient for them. • Our website and mobile app are online account management tools, allowing customers access to their accounts and our services. 7 Table of Contents • Our e-commerce sales channel allows customers to secure services on a real-time basis, provides capabilities to meet our customers' evolving buying preferences and provides a lower cost sales channel.
These tools reinforce to our customers that they can rely on us to handle their recycling and waste service needs in a way that is easy and convenient for them. • Our website and mobile app are online account management tools, allowing customers access to their accounts and our services. • Our e-commerce sales channel allows customers to secure services on a real-time basis, provides capabilities to meet our customers' evolving buying preferences and provides a lower cost sales channel. 7 Table of Contents We are leveraging technology to digitally connect our customers, drivers, dispatchers, supervisors and trucks via our "RISE" dispatch platform and in-cab technology.
With a goal of reaching all leaders through this program, approximately 650 leaders completed this training in 2022, with approximately 2,150 more slated in 2023. Targeted development experiences support the growth of people in key roles, including Driver Training, Technician Training, Supervisor Training, Sales Acceleration and General Manager Onboarding, among others.
With a goal of reaching all leaders through this program, approximately 1,000 leaders completed this training in 2023, with approximately 1,000 more slated to participate in 2024. Targeted development experiences support the growth of people in key roles, including Driver Training, Technician Training, Supervisor Training, Sales Acceleration and General Manager Onboarding, among others.
As a key player in the circular economy, we are strategically focused on expanding recycling volume through innovative material handling processes and programs to help our customers achieve their goals related to sustainability and environmentally sound waste practices while also generating an appropriate return.
As a key player in the circular economy, we are strategically focused on expanding recycling volume through innovative material handling processes and programs to help our customers achieve their goals related to sustainability and environmentally sound waste practices while also generating an appropriate return. In 2023, we completed construction at our first Polymer Center in Las Vegas, Nevada.
As of December 31, 2022, our average fleet age in years, by line of business, was as follows: Approximate Number of Vehicles Approximate Average Age Residential 7,200 7.6 Small-container 5,100 7.0 Large-container 4,600 9.2 Total 16,900 7.9 OneFleet, our standardized vehicle maintenance program, enables us to use best practices for fleet management, truck care and maintenance.
As of December 31, 2023, our average fleet age in years, by line of business, was as follows: Approximate Number of Vehicles Approximate Average Age Residential 7,200 7.6 Small-container 5,300 7.1 Large-container 4,700 9.2 Total 17,200 7.9 OneFleet, our standardized vehicle maintenance program, enables us to use best practices for fleet management, truck care and maintenance.
We believe the total addressable North American environmental services market in which we operate generates approximately $107 billion of annual revenue, which includes the $78 billion United States and Canada recycling and solid waste industry and $29 billion of the broader environmental solutions industry.
We believe the total addressable North American environmental services market in which we operate generates approximately $114 billion of annual revenue, which includes the $83 billion United States and Canada recycling and waste industry and $31 billion of the broader environmental solutions industry.
With the roll-out of this technology we are improving productivity through more real-time routing information and data visualization tools, increasing customer connectivity and enabling automated service verification communications and enhancing the employee experience by providing better tools and technology designed around employee interaction. The rollout of the "RISE" in-cab technology enhancements across our collection fleet will continue through 2023.
With the roll-out of this technology we are improving productivity through more real-time routing information and data visualization tools, increasing customer connectivity and enabling automated service verification communications and enhancing the employee experience by providing better tools and technology designed around employee interaction.
Our ambitious 2030 goals are aligned with the UN Sustainable Development Goals (1) and our greenhouse gas reduction goal is aligned with The Paris Agreement, an international treaty on climate change adopted in 2015. Each goal is aligned with one of the Company's elements of sustainability.
Our ambitious 2030 goals are aligned with the UN Sustainable Development Goals (1) and our greenhouse gas reduction goal is aligned with The Paris Agreement. Each goal is aligned with one of the Company's elements of sustainability.
Our approximately 40,000 full-time employees are a critical component in successfully executing our strategy and running our operations.
Our approximately 41,000 full-time employees are a critical component in successfully executing our 5 Table of Contents strategy and running our operations.
We believe these programs provide the fundamental skills necessary to be successful across roles. Additionally, to meet the specific needs of the business, we opened a comprehensive Technical Training Institute in April 2021 where we train and develop our technicians. We have had 98 participants in the course so far.
We believe these programs provide the fundamental skills necessary to be successful across roles. Additionally, to meet the specific needs of the business, we opened a comprehensive Technical Training Institute in April 2021 where we train and develop our technicians. Our leadership programs are a critical part of growing our people.
These capabilities include – (1) customer zeal, (2) digital and (3) sustainability. Customer Zeal The goal of customer zeal is to drive customer loyalty by offering differentiated products and services specifically designed to meet our customers’ needs. We believe this increases customer satisfaction and willingness to pay for a higher value service.
These capabilities include – (1) customer zeal, (2) digital and (3) sustainability. Customer Zeal The goal of customer zeal is to drive customer loyalty by offering differentiated products and services specifically designed to meet our customers’ needs.
Our employee engagement score was 85 in 2022, which is above national benchmarks by five points. Approximately 97% of our employees participated in the engagement survey process in April and October 2022, which represented an all-time high participation rate and is more than 20% higher than the national benchmark.
Our employee engagement score was 86 in 2023, which is above a national benchmark by seven points. Approximately 99% of our employees participated in the engagement survey process in October 2023, which represented an all-time high participation rate and is 24% higher than the national benchmark.
We operate across the United States and Canada through 353 collection operations, 233 transfer stations, 71 recycling centers, 206 active landfills, 3 treatment, recovery and disposal facilities, 20 treatment, storage and disposal facilities (TSDF), 6 salt water disposal wells and 7 deep injection wells.
We operate across the United States and Canada through 364 collection operations, 246 transfer stations, 74 recycling centers, 207 active landfills, 3 treatment, recovery and disposal facilities, 22 treatment, storage and disposal facilities (TSDF), 6 salt water disposal wells, 12 deep injection wells, and 1 polymer center.
We’re also working with equipment manufacturers to incorporate safety elements such as seat belt alarms, blind spot awareness, lane departure alarms and other potentially lifesaving equipment in our fleet. 4 Table of Contents We believe our Safety Amplified program will provide additional benefits for our Company and stakeholders including: • further strengthening relationships within the communities we service; • enhancing customer trust; • streamlining operational processes and increasing productivity; • delivering a reputational advantage, including positioning our Company as an employer-of-choice; • building and sustaining a safety culture in all areas of our business; and • contributing to employee engagement.
We believe our Safety Amplified program provides additional benefits for our Company and stakeholders including: • further strengthening relationships within the communities we service; • enhancing customer trust; • streamlining operational processes and increasing productivity; • delivering a reputational advantage, including positioning our Company as an employer-of-choice; • building and sustaining a safety culture in all areas of our business; and • contributing to employee engagement.
We are also leveraging technology to digitally connect our customers, drivers, dispatchers, supervisors and trucks via our "RISE" dispatch platform and in-cab technology. We are utilizing an agile iterative approach to the development and multi-year roll-out of this technology to ensure durable adoption and an appropriate return on our investment.
We are utilizing an agile iterative approach to the development and multi-year roll-out of this technology to ensure durable adoption and an appropriate return on our investment.
(1) We have aligned our 2030 goals with the following UN Sustainable Development Goals: (8) Decent Work and Economic Growth, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production and (13) Climate Action. (2) Data points used 2017 as the baseline year.
(1) We have aligned our 2030 goals with the following UN Sustainable Development Goals: (3) Good Health and Well-being, (7) Affordable Clean Energy, (8) Decent Work and Economic Growth, (10) Reduced Inequalities, (11) Sustainable Cities and Communities, (12) Responsible Consumption and Production and (13) Climate Action. (2) Targets are relative to the 2017 baseline year.
Customer Zeal is a cultural commitment to enable and empower our employees to own their role in the customer experience.
We believe our value proposition increases customer loyalty and willingness to pay for our differentiated offerings. Customer zeal is a cultural commitment to enable and empower our employees to own their role in the customer experience.
Digital The goal of our digital priority is to allow us to provide a consistent experience across our business while enabling our customers to do business with us through more channels and with better access to information.
Digital The goal of prioritizing our digital capabilities is to allow us to provide a consistent experience across our business. We believe investments in our digital platforms enable our customers to do business with us through more channels and with better access to information, ultimately driving increased customer loyalty.
In 2022, we announced the development of our first Polymer Center, a vertical integration that will advance circularity for plastics and help us manage the plastics stream from curbside collection to delivery of recycled content for consumer packaging.
The Polymer Center is a vertical integration that will advance circularity for plastics and help us manage the plastics stream from curbside collection to delivery of recycled content for consumer packaging. The Polymer Center will enable us to produce food-grade drop-in substitutes for virgin plastics, while allowing us to expand recycling of plastics across North America.
Our approach to paying for performance supports our focus on pay equity. Our compensation packages are designed to provide employees with a stable and livable wage and growth potential.
Our commitment to paying market competitive wages enables us to attract and hire talent all across the country, including an expansion of many opportunities to work remotely. Our approach to paying for performance supports our focus on pay equity. Our compensation packages are designed to provide employees with a stable and livable wage and growth potential.
Our Board of Directors’ Sustainability & Corporate Responsibility Committee has oversight responsibility with respect to our sustainability performance, our corporate responsibilities, our role as a socially responsible organization and our enterprise risks, including environmental, climate related risks and opportunities and reputational risks.
Our elements, Safety, Talent, Climate Leadership and Communities, are deeply integrated into our business and anchor our ambitious 2030 sustainability goals. Our Board of Directors’ Sustainability & Corporate Responsibility Committee has oversight responsibility with respect to our sustainability performance, our corporate responsibilities and our role as a socially responsible organization.
Share repurchases under the current program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws.
In October 2023, our Board of Directors approved a $3.0 billion share repurchase authorization effective starting January 1, 2024, and extending through December 31, 2026. Share repurchases under the current program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws.
We are committed to maintaining a work environment where people of all backgrounds feel valued and safe to share their perspectives. Employee Engagement We believe an engaged workforce is a key element of our success as engaged employees deliver better customer service and are more productive.
In January 2023, we launched a new BRG called PRISM in support of the LGBTQ+ community. Employee Engagement We believe an engaged workforce is a key element of our success as engaged employees deliver better customer service and are more productive.
We remain committed to expanding employee participation in learning programs that are relevant to our business strategy and contribute to career advancement for our employees. As we continue to grow as a Company, we are investing in new technology and tools so employees can do their jobs safely and effectively, while providing day-to-day stability and professional development.
We remain committed to expanding employee participation in learning programs that are relevant to our business strategy and contribute to career advancement for our employees. Compensation and Benefits We offer compensation and benefits that help improve our employees' overall financial, physical and emotional wellbeing, as well as recognize hard work with opportunities to grow.
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The Polymer Center will enable us to produce food-grade drop-in substitutes for virgin plastics, while allowing us to expand recycling of plastics across North America.
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In 2023, we announced the development of Blue Polymers, a joint-venture with Ravago JV Holdings, LLC, creating vertical integration that will further advance circularity by acquiring all olefins produced by the Polymer Centers to further process and manufacture custom blended pellets for food-grade and non-food-grade packaging.
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In 2022, we continued our focus on providing programs and virtual events to advance awareness, education and connectivity across our workforce. Our well-attended “Let’s Talk” series aimed at furthering our employees' understanding and empathy related to the topic of inclusion and diversity.
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We’re also 4 Table of Contents working with equipment manufacturers to incorporate safety elements such as seat belt alarms, blind spot awareness, lane departure alarms and other potentially lifesaving equipment in our fleet.
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In conjunction with this series, we have held multiple "Let's Connect" sessions, providing an opportunity for employees across an array of intersectionalities to share their unique experiences and perspectives directly with our CEO. We will continue to offer opportunities to help our employees conduct courageous and authentic conversations with one another.
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We work hard to remain a company where the best people, with exceptional talents and diverse backgrounds, can thrive and foster a culture of caring where people feel respected, supported and encouraged to bring their best selves to work every day.
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Compensation and Benefits We offer compensation and benefits that help improve our employees' overall financial, physical and emotional wellbeing, as well as recognize hard work with opportunities to grow. Our commitment to paying market competitive wages enables us to attract and hire talent all across the country, including an expansion of many opportunities to work remotely.
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We offer a broad set of environmental services across the United States and Canada as the sole provider, which we believe sets us apart in the industry. Customers appreciate our track record of safe and environmentally compliant operations, with the expertise to manage complex waste streams.
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Our elements, Safety, Talent, Climate Leadership and Communities, are deeply integrated into our business and anchor our ambitious 2030 sustainability goals.
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We are also in the early stages of deploying advanced technology on recycling and waste collection routes that utilizes cameras to identify recycling contamination and overfilled containers. We expect this technology will reduce recycling contamination over time and drive incremental revenue.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

43 edited+9 added−3 removed124 unchanged
Biggest changeExcept to the extent required by applicable law or regulation, we undertake no obligation to update or publish revised forward-looking statements to reflect events or circumstances after the date of this Annual Report on Form 10-K and the documents incorporated by reference, as the case may be, or to reflect the occurrence of unanticipated events. 20 Table of Contents Risks Related to Our Business and Operations The environmental services industry is highly competitive and includes competitors that may have greater financial and operational resources, flexibility to reduce prices or other competitive advantages that could make it difficult for us to compete effectively.
Biggest changeExcept to the extent required by applicable law or regulation, we undertake no obligation to update or publish revised forward-looking statements to reflect events or circumstances after the date of this Annual Report on Form 10-K and the documents incorporated by reference, as the case may be, or to reflect the occurrence of unanticipated events.
The costs of providing for pension benefits and related funding requirements are subject to changes in pension fund values and fluctuating actuarial assumptions and may have a material adverse effect on our financial condition, results of operations and cash flows.
The costs of providing for pension benefits and related funding requirements are subject to changes in pension fund values and fluctuating actuarial assumptions and may have a material adverse effect on our consolidated financial condition, results of operations and cash flows.
Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are: • general economic and market conditions, including inflation and changes in fuel, interest rates, labor, risk, health insurance and other variable costs that generally are not within our control, and our exposure to credit and counterparty risk; • fluctuations in prices for recycled commodities that we sell to customers; • our ability to integrate the operations of US Ecology into our operations and to realize the intended benefits of such acquisition • whether our estimates and assumptions concerning critical accounting issues are correct or appropriate, including estimates and assumptions concerning selected balance sheet accounts, income tax accounts, final capping, closure, post-closure and remediation costs, available airspace, projected costs and expenses related to our landfills and property and equipment, fair values of acquired assets and liabilities assumed in our acquisitions and labor, fuel rates and economic and inflationary trends; • competition and demand for services in the environmental services industry; • price increases to our customers, which may not be adequate to offset the impact of increased costs, including labor, third-party disposal and fuel and may cause us to lose volume; • our ability to manage growth and execute our growth strategy; 19 Table of Contents • our compliance with, and future changes in, environmental and flow control regulations and our ability to obtain approvals from regulatory agencies in connection with operating and expanding our landfills; • the impact on us of our substantial indebtedness, including on our ability to obtain financing on acceptable terms to finance our operations and growth strategy and to operate within the limitations imposed by financing arrangements; • our ability to retain our investment grade ratings for our debt; • our dependence on key personnel; • our dependence on large, long-term collection, transfer and disposal contracts; • the capital intensive nature of our business, which may consume cash in excess of cash flow from operations; • exposure to liabilities or losses, to the extent not adequately covered by insurance, which could result in substantial expenses; • risks associated with undisclosed liabilities of acquired businesses; • risks associated with pending and future legal proceedings, including litigation, audits or investigations brought by or before any governmental body; • severe weather conditions, including those brought about by climate change, which could impair our financial results by causing increased costs, loss of revenue, reduced operational efficiency or disruptions to our operations; • compliance with existing and future legal and regulatory requirements, including changes relating to PFAS and other chemicals of emerging concern and limitations or bans on disposal of certain types of wastes or on the transportation of waste, which could limit our ability to conduct or grow our business, increase our costs to operate or require additional capital expenditures; • our ability to achieve reduction in our greenhouse gas emissions and our other sustainability goals; • safety and operational risks, including the risk of personal injury to our employees or third parties; • potential increases in our costs if we are required to provide additional funding to any multiemployer pension plan to which we contribute or if a withdrawal event (including our voluntary withdrawal, which we consider from time to time, or the mass withdrawal of all contributing employers from any underfunded multiemployer pension plan) occurs with respect to any such plan; • the negative impact on our operations of union organizing campaigns, work stoppages or labor shortages; • the negative effect that trends toward requiring recycling, waste reduction at the source and prohibiting the disposal of certain types of wastes could have on volumes of waste going to landfills; • changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies; • the impact of United States and international tax laws and regulations on our business; • risks related to interruptions and breaches of our information technology systems that could adversely affect, or temporarily disable, all or a portion of our operations or have a negative effect on our infrastructure; • the negative impact that a cyber-security incident could have on our business and our relationships with customers and employees; and • acts of war, riots or terrorism, including the continuing war on terrorism, as well as actions taken or to be taken by the United States or other governments as a result of further acts or threats of terrorism and the impact of these acts on economic, financial and social conditions in the United States.
Among the factors that could cause actual results to differ materially from the expectations expressed in the forward-looking statements are: • general economic and market conditions, including inflation and changes in fuel, interest rates, labor, risk, health insurance and other variable costs that generally are not within our control, and our exposure to credit and counterparty risk; • fluctuations in prices for recycled commodities that we sell to customers; • whether our estimates and assumptions concerning critical accounting issues are correct or appropriate, including estimates and assumptions concerning selected balance sheet accounts, income tax accounts, final capping, closure, post-closure and remediation costs, available airspace, projected costs and expenses related to our landfills and property and equipment, fair values of acquired assets and liabilities assumed in our acquisitions and labor, fuel rates and economic and inflationary trends; • competition and demand for services in the environmental services industry; • price increases to our customers, which may not be adequate to offset the impact of increased costs, including labor, third-party disposal and fuel and may cause us to lose volume; • our ability to manage growth and execute our growth strategy; • our compliance with, and future changes in, environmental and flow control regulations and our ability to obtain approvals from regulatory agencies in connection with operating and expanding our landfills and other facilities; • the impact on us of our substantial indebtedness, including on our ability to obtain financing on acceptable terms to finance our operations and growth strategy and to operate within the limitations imposed by financing arrangements; • our ability to retain our investment grade ratings for our debt; • our dependence on key personnel; • our dependence on large, long-term collection, transfer and disposal contracts; • the capital intensive nature of our business, which may consume cash in excess of cash flow from operations; • exposure to liabilities or losses, to the extent not adequately covered by insurance, which could result in substantial expenses; • risks associated with undisclosed liabilities of acquired businesses; 20 Table of Contents • risks associated with pending and future legal proceedings, including litigation, audits or investigations brought by or before any governmental body; • severe weather conditions, including those brought about by climate change, which could impair our financial results by causing increased costs, loss of revenue, reduced operational efficiency or disruptions to our operations; • compliance with existing and future legal and regulatory requirements, including changes relating to PFAS and other chemicals of emerging concern and limitations or bans on disposal of certain types of wastes or on the transportation of waste, which could limit our ability to conduct or grow our business, increase our costs to operate or require additional capital expenditures; • our ability to achieve reduction in our greenhouse gas emissions and our other sustainability goals; • safety and operational risks, including the risk of personal injury to our employees or third parties; • potential increases in our costs if we are required to provide additional funding to any multiemployer pension plan to which we contribute or if a withdrawal event (including our voluntary withdrawal, which we consider from time to time, or the mass withdrawal of all contributing employers from any underfunded multiemployer pension plan) occurs with respect to any such plan; • the negative impact on our operations of union organizing campaigns, work stoppages or labor shortages; • the negative effect that trends toward requiring recycling, waste reduction at the source and prohibiting the disposal of certain types of wastes could have on volumes of waste going to landfills; • changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies; • the impact of United States and international tax laws and regulations on our business; • risks related to interruptions and breaches of our information technology systems that could adversely affect, or temporarily disable, all or a portion of our operations or have a negative effect on our infrastructure; • the negative impact that a cyber-security incident could have on our business and our relationships with customers and employees; and • acts of war, riots or terrorism, including the continuing war on terrorism, as well as actions taken or to be taken by the United States or other governments as a result of further acts or threats of terrorism and the impact of these acts on economic, financial and social conditions in the United States.
Risks Related to our Legal and Regulatory Environment We are subject to costly environmental regulations and flow-control regulations that may affect our operating margins, restrict our operations and subject us to additional liability.
Risks Related to our Legal and Regulatory Environment We are subject to costly environmental and flow-control regulations and requirements that may affect our operating margins, restrict our operations and subject us to additional liability.
We use information technology and operational technology assets, including computer and information networks, in substantially all aspects of our business operations. We also use mobile devices, social networking and other online activities to connect with our employees and our customers. Such uses give rise to cyber security risks, including security breach, espionage, system disruption, theft and inadvertent release of information.
We use information technology and operational technology assets, including computer and information networks, in substantially all aspects of our business operations. We also use mobile devices, social networking and other online activities to connect with our employees and our customers. Such uses give rise to cybersecurity risks, including security breach, espionage, system disruption, theft and inadvertent release of information.
Significant items requiring management to make subjective or complex judgments that are inherently uncertain include the recoverability of long-lived assets, the depletion and amortization of landfill development costs, accruals for final capping, closure and post-closure costs, valuation allowances for accounts receivable and deferred tax assets, liabilities for potential litigation, claims and assessments and liabilities for environmental remediation, multiemployer pension plans, employee benefit plans, deferred taxes, uncertain tax positions, insurance and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition.
Significant items requiring management to make subjective or complex judgments that are inherently uncertain include the recoverability of long-lived assets, the depletion 27 Table of Contents and amortization of landfill development costs, accruals for final capping, closure and post-closure costs, valuation allowances for accounts receivable and deferred tax assets, liabilities for potential litigation, claims and assessments and liabilities for environmental remediation, multiemployer pension plans, employee benefit plans, deferred taxes, uncertain tax positions, insurance and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition.
At current participation rates, we believe a twenty-cent per gallon change in the price of diesel fuel changes our fuel recovery fee by approximately $31 million. A substantial rise or drop in fuel costs could materially affect our revenue and cost of operations.
At current participation rates, we believe a twenty-cent per gallon change in the price of diesel fuel changes our fuel recovery fee by approximately $36 million. A substantial rise or drop in fuel costs could materially affect our revenue and cost of operations.
The execution of our plans and achievement of our goals are subject to risks and uncertainties, including our ability to develop, obtain, license or scale the innovations, technologies and modeling and measurement tools that may be necessary to achieve our plans and the availability, cost and benefits of materials and infrastructure associated with our sustainability projects, such as our CNG vehicles, fleet electrification, recycling, circularity of key materials, landfill gas-to-energy and other renewable energy projects.
The execution of our plans and achievement of our goals are subject to risks and uncertainties, including our ability to develop, obtain, license or scale the innovations, technologies and modeling and measurement tools that may be necessary to achieve our plans and the availability, cost and 24 Table of Contents benefits of materials and infrastructure associated with our sustainability projects, such as our CNG vehicles, fleet electrification, recycling, circularity of key materials, landfill gas-to-energy and other renewable energy projects.
We may be subject to work stoppages and other workforce effects, which could increase our operating costs and disrupt our operations. As of December 31, 2022, approximately 23% of our workforce was covered by collective bargaining agreements.
We may be subject to work stoppages and other workforce effects, which could increase our operating costs and disrupt our operations. As of December 31, 2023, approximately 23% of our workforce was covered by collective bargaining agreements.
If our capping, closure, post-closure or remediation costs exceed the amounts accrued, or if such accruals are required to be accelerated, this could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. Alternatives to landfill disposal could reduce our disposal volumes and cause our revenues and operating results to decline.
If our capping, closure, post-closure or remediation costs exceed the amounts accrued, or if such accruals are required to be accelerated, this could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. 23 Table of Contents Alternatives to landfill disposal could reduce our disposal volumes and cause our revenues and operating results to decline.
In addition, increasing governmental and societal attention to sustainability matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, human capital, management and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report.
In addition, increasing governmental and societal attention to sustainability matters, including expanding mandatory and voluntary reporting, diligence and disclosure on topics such as climate change, waste production, water usage, talent management and risk oversight, could expand the nature, scope and complexity of matters that we are required to control, assess and report.
If a greater percentage of our workforce becomes union-represented, our consolidated financial condition, results of operations and cash flows could be adversely impacted due to the potential for increased operating costs. 23 Table of Contents We may not be able to achieve reduction of our greenhouse gas emissions and our other sustainability goals.
If a greater percentage of our workforce becomes union-represented, our consolidated financial condition, results of operations and cash flows could be adversely impacted due to the potential for increased operating costs. We may not be able to achieve reduction of our greenhouse gas emissions and our other sustainability goals.
A significant judgment against us, the loss of a significant permit or license, or the imposition of a significant fine could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. We establish accruals for our estimates of the costs associated with lawsuits, regulatory, governmental and other legal proceedings. We could underestimate such accruals.
A significant judgment against us or settlement, the loss of a significant permit or license, or the imposition of a significant fine could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. We establish accruals for our estimates of the costs associated with lawsuits, regulatory, governmental and other legal proceedings.
Our financial results may suffer if we are not able to develop or license emerging technologies, or if a competitor obtains exclusive rights to an emerging technology that disrupts the current methods used in the environmental services industry. A cyber security incident could negatively impact our business and our relationships with customers.
Our financial results may suffer if we are not able to develop or license emerging technologies, or if a competitor obtains exclusive rights to an emerging technology that disrupts the current methods used in the environmental services industry. A cybersecurity incident could negatively impact our business and our relationships with customers.
From time to time, our competitors reduce their prices in an effort to expand their market share. Contractual, general economic or market-specific conditions also may limit our ability to raise prices. For example, many of our contracts have price adjustment provisions that are tied to an index such as the consumer price index.
From time to time, our competitors reduce their prices in an effort to expand their market share. Contractual, general economic or market-specific conditions also may limit our ability to 29 Table of Contents raise prices. For example, many of our contracts have price adjustment provisions that are tied to an index such as the consumer price index.
We try to minimize our exposure to such liabilities by conducting due diligence, by obtaining indemnification from each seller of the acquired companies, by deferring payment of a portion of the purchase price as security for the indemnification, by obtaining representations and warranties insurance and by acquiring only specified 27 Table of Contents assets.
We try to minimize our exposure to such liabilities by conducting due diligence, by obtaining indemnification from each seller of the acquired companies, by deferring payment of a portion of the purchase price as security for the indemnification, by obtaining representations and warranties insurance and by acquiring only specified assets.
If we fail to assess and identify cyber security risks associated with acquisitions and new initiatives, we may become increasingly vulnerable to such risks. Additionally, while we have implemented measures to prevent security breaches and cyber incidents, our preventive measures and incident response efforts may not be entirely effective.
If we fail to assess and identify cybersecurity threats associated with acquisitions and new initiatives, we may become increasingly vulnerable to such threats. Additionally, while we have implemented measures to prevent security breaches and cyber incidents, our preventive measures and incident response efforts may not be entirely effective.
In connection with our strategy to grow through acquisitions and to pursue new initiatives that improve our operations and cost structure, we are also expanding and improving our information technologies, resulting in a larger technological presence and corresponding exposure to cyber security risk.
In connection with our strategy to grow through acquisitions and to pursue new initiatives that improve our operations and cost structure, we are also expanding and improving our information technologies, resulting in a larger technological presence and corresponding exposure to cybersecurity risk.
If any of these factors force us to alter our growth strategy, our growth prospects could be adversely affected. Businesses we acquire may have undisclosed liabilities. Our due diligence investigations of acquisition candidates may fail to discover certain undisclosed liabilities.
If any of these factors force us to alter our growth strategy, our growth prospects could be adversely affected. 28 Table of Contents Businesses we acquire may have undisclosed liabilities. Our due diligence investigations of acquisition candidates may fail to discover certain undisclosed liabilities.
We could incur charges to income, which could be material, if landfill and transfer station site development projects or expansion projects are not completed, or certain other events occur. In accordance with the accounting principles generally accepted in the United States of America (U.S. GAAP), we capitalize certain expenditures relating to development, expansion and other projects.
We could incur charges to income, which could be material, if landfill and transfer station site development projects or expansion projects are not completed, or certain other events occur. In accordance with the accounting principles generally accepted in the United States of America (U.S.
Although we have entered into hedging agreements to help offset volatility in recycled commodity prices in the past, we may not enter into these agreements in the future. Acute and chronic weather events, including those brought about by climate change, may limit our operations and increase the costs of collection, transfer, disposal and other environmental services we provide.
Although we have entered into hedging agreements to help offset volatility in recycled commodity prices in the past, we may not enter into these agreements in the future. 22 Table of Contents Acute and chronic weather events, including those brought about by climate change, may adversely impact our operations and increase the costs of collection, transfer, disposal and other environmental services we provide.
Climate change and other sustainability matters are embedded in our core value and vision. As part of our strategic long-term plans to address sustainability, we are committed to reducing our absolute Scope 1 and Scope 2 greenhouse gas emissions 35% by 2030 among other sustainability goals.
Climate change and other sustainability matters are embedded in our core value and vision. As part of our strategic long-term plans to address sustainability, among other sustainability goals, we are committed to reducing our absolute Scope 1 and Scope 2 greenhouse gas emissions 35% by 2030 relative to the 2017 baseline year.
The loss of the services of key employees and officers, whether through resignation or other causes, or the inability to attract additional qualified personnel, could have a material adverse effect on our consolidated financial condition, results of operations, cash flows and growth prospects.
Our future success depends on the continued contributions of several key employees and officers. The loss of the services of key employees and officers, whether through resignation or other causes, or the inability to attract additional qualified personnel, could have a material adverse effect on our consolidated financial condition, results of operations, cash flows and growth prospects.
In 2022, for example, the COVID-19 pandemic, inflation, the Ukraine-Russia conflict, United States -China relations, monetary policy changes, and the resulting increases in interest rates have negatively impacted the economy, disrupted supply chains and created significant volatility and disruption of financial markets.
In recent years, for example, the COVID-19 pandemic, inflation, the Ukraine-Russia conflict, United States -China relations, the Israel-Gaza conflict, monetary policy changes, and the resulting increases in interest rates negatively impacted the economy, disrupted supply chains and created significant volatility and disruption of financial markets.
Due to contractual or market factors, we may not be able to offset increased fuel costs resulting from such volatility through fuel recovery fees. Our fuel costs were $631.1 million in 2022, or 4.7% of revenue, compared to $383.0 million in 2021, or 3.4% of revenue.
Due to contractual or market factors, we may not be able to offset increased fuel costs resulting from such volatility through fuel recovery fees. Our fuel costs were $541.6 million in 2023, or 3.6% of revenue, compared to $631.1 million in 2022, or 4.7% of revenue.
We could underestimate such costs and our financial obligations for capping, closure, post-closure or remediation costs could exceed the amounts accrued or amounts otherwise receivable pursuant to trust funds established for this purpose.
We establish accruals for the estimated costs associated with capping, closure, post-closure and remediation obligations. We could underestimate such costs and our financial obligations for capping, closure, post-closure or remediation costs could exceed the amounts accrued or amounts otherwise receivable pursuant to trust funds established for this purpose.
Weakness in the United States economy may expose us to credit risk for amounts due from governmental entities, large national accounts, industrial customers and others. Weakness in the United States economy, including contractions caused by the COVID-19 pandemic, reduces the amount of taxes collected by various governmental entities. We provide services to a number of these entities, including numerous municipalities.
Weakness in the United States economy may expose us to credit risk for amounts due from governmental entities, large national accounts, industrial customers and others. Weakness in the United States economy can reduce the amount of taxes collected by various governmental entities. We provide services to a number of these entities, including numerous municipalities.
Significant price fluctuations or increased operating costs may affect our consolidated financial condition, results of operations 21 Table of Contents and cash flows. In 2022, approximately 81% of our recycling center volume was fiber based and included OCC, ONP and other mixed paper.
Significant price fluctuations or increased operating costs may affect our consolidated financial condition, results of operations and cash flows. In 2023, approximately 82% of our recycling center volume was fiber based and included OCC, ONP and other mixed paper.
Such shortfalls could result in significant unanticipated charges to income. 25 Table of Contents Changes to federal renewable fuel policies could affect our financial performance in that sector as a renewable fuel producer and impact our projected future investments. We are engaged in 73 landfill gas-to-energy and other renewable energy projects.
We could underestimate such accruals. Such shortfalls could result in significant unanticipated charges to income. Changes to federal renewable fuel policies could affect our financial performance in that sector as a renewable fuel producer and impact our projected future investments. We are engaged in 76 landfill gas-to-energy and other renewable energy projects.
If we do not appropriately estimate landfill capping, closure, post-closure and remediation costs, our financial condition and results of operations may be adversely affected. A landfill must be closed and capped, and post-closure maintenance commenced, once the landfill's permitted capacity is reached and additional capacity is not authorized. Further, we undertake remediation activities at some of our solid waste facilities.
If we do not appropriately estimate landfill capping, closure, post-closure and remediation costs, our consolidated financial condition and results of operations may be adversely affected. A landfill must be closed and capped, and post-closure maintenance commenced, once the landfill's permitted capacity is reached and additional capacity is not authorized.
As of December 31, 2022, we had approximately $12 billion in principal value of debt and finance leases outstanding.
As of December 31, 2023, we had approximately $13 billion in principal value of debt and finance leases outstanding.
We participate in multiemployer pension plans that generally provide retirement benefits to participants of contributing employers. We do not administer these plans and generally are not represented on the boards of trustees of these plans. The Pension Protection Act enacted in 2006 (the PPA) requires under-funded pension plans to improve their funding ratios.
We do not administer these plans and generally are not represented on the boards of trustees of these plans. The Pension Protection Act enacted in 2006 (the PPA) requires under-funded pension plans to improve their funding ratios.
The liabilities recorded for items such as these may not be adequate to cover the costs we ultimately will face. 26 Table of Contents Our obligation to fund multiemployer pension plans to which we contribute, or our withdrawal from such plans, may have an adverse effect on us.
The liabilities recorded for items such as these may not be adequate to cover the costs we ultimately will face. Our obligation to fund multiemployer pension plans to which we contribute, or our withdrawal from such plans, may have an adverse effect on us. We participate in multiemployer pension plans that generally provide retirement benefits to participants of contributing employers.
However, we may not be able to obtain indemnification or insurance coverage, and such indemnification or insurance coverage obtained may not be enforceable, collectible or sufficient in amount, scope or duration to fully offset any undisclosed liabilities arising from our acquisitions. Risks Related to Technology and Intellectual Property Our strategy includes an increasing dependence on technology in our operations.
However, we may not be able to obtain indemnification, insurance coverage or other security, and such indemnification, insurance coverage or other security obtained may not be enforceable, collectible or sufficient in amount, scope or duration to fully offset any undisclosed liabilities arising from our acquisitions.
If any of our key technology fails, our business could be adversely affected. Our operations are increasingly dependent on technology. Our information technology systems are critical to our ability to drive profitable growth through differentiation, continue the implementation of standardized processes and deliver a consistent customer experience.
Our information technology systems are critical to our ability to drive profitable growth through differentiation, continue the implementation of standardized processes and deliver a consistent customer experience.
We have significant financial obligations relating to capping, closure, post-closure and remediation costs at our existing owned or operated landfills, and will have material financial obligations with respect to any future owned or operated landfills. We establish accruals for the estimated costs associated with capping, closure, post-closure and remediation 22 Table of Contents obligations.
Further, we undertake remediation activities at some of our solid waste facilities. We have significant financial obligations relating to capping, closure, post-closure and remediation costs at our existing owned or operated landfills, and will have material financial obligations with respect to any future owned or operated landfills.
With regard to greenhouse gas emissions from our landfills, on July 14, 2016, the EPA issued amendments to its regulations that require large landfills that commenced construction, reconstruction or modification on or after July 17, 2014 to capture additional landfill gas to reduce emissions of methane and certain non-methane gases, which are recognized as greenhouse gases.
These standards and further federal efforts to curtail greenhouse gas emissions and to increase the fuel efficiency of light-duty and heavy-duty vehicles could have a material adverse effect on our consolidated financial condition, results of operations and cash flows. 25 Table of Contents With regard to greenhouse gas emissions from our landfills, on July 14, 2016, the EPA issued amendments to its regulations that require large landfills that commenced construction, reconstruction or modification on or after July 17, 2014 to capture additional landfill gas to reduce emissions of methane and certain non-methane gases, which are recognized as greenhouse gases.
As a result, we may be 28 Table of Contents unable to offset increases in costs, improve our operating margins and obtain adequate investment returns through price increases. Price increases also might cause us to lose volume to lower-cost competitors.
As a result, we may be unable to offset increases in costs, improve our operating margins and obtain adequate investment returns through price increases. Price increases also might cause us to lose volume to lower-cost competitors. The loss of key personnel could have a material adverse effect on our consolidated financial condition, results of operations, cash flows and growth prospects.
On August 16, 2016, the EPA and the NHTSA issued additional regulations that would impose more stringent standards for heavy-duty vehicles through model-year 2027.
On August 16, 2016, the EPA and the NHTSA issued additional regulations that would impose more stringent standards for heavy-duty vehicles through model-year 2027. For further discussion, see Item 1. Business – Regulation – Federal Regulation – The Clean Air Act , in this Annual Report on Form 10-K.
For example, we incur costs to defend against litigation brought by government agencies and private parties who allege we are in violation of our permits and applicable environmental laws and regulations, or who assert claims alleging nuisance, environmental damage, personal injury or property damage.
Further, the possible outcomes or resolutions to these matters could include adverse judgments, fines or settlements, any of which could require substantial payments and adversely affect our consolidated financial condition, results of operations and cash flows. 26 Table of Contents For example, we incur costs to defend against litigation brought by government agencies and private parties who allege we are in violation of our permits and applicable environmental laws and regulations, or who assert claims alleging nuisance, environmental damage, personal injury or property damage.
Our ability to obtain solid waste volume for our landfills also may be limited by the fact that some major collection operations also own or operate landfills to which they send their waste. In certain markets in which we do not own or operate a landfill, our collection operations may have difficulty competing effectively.
Further, many counties and municipalities that operate their own collection and disposal facilities have the benefits of tax revenue and greater opportunities for tax-exempt financing. Our ability to obtain solid waste volume for our landfills also may be limited by the fact that some major collection operations also own or operate landfills to which they send their waste.
We principally compete with large national waste management companies, numerous municipalities and numerous regional and local companies. Competition for collection accounts is typically based on the quality of services, ease of doing business and/or price. Competition for disposal business is primarily based on geographic location, quality of operations and price.
Competition for collection accounts is typically based on the quality of services, ease of doing business and/or price. Competition for disposal business is primarily based on geographic location, quality of operations and price. One of our competitors may have greater financial and operational resources than we do.
These standards and further federal efforts to curtail greenhouse gas emissions and to 24 Table of Contents increase the fuel efficiency of light-duty and heavy-duty vehicles could have a material adverse effect on our consolidated financial condition, results of operations and cash flows.
Both direct and indirect costs associated with compliance with this and other greenhouse gas legislation could have a material adverse effect on our consolidated financial condition, results of operations and cash flows, including material increases to our capital or operating costs related to matters such as infrastructure upgrades or increased fuel costs.
Removed
One of our competitors may have greater financial and operational resources than we do. Further, many counties and municipalities that operate their own collection and disposal facilities have the benefits of tax revenue and greater opportunities for tax-exempt financing.
Added
Risks Related to Our Business and Operations The environmental services industry is highly competitive and includes competitors that may have greater financial and operational resources, flexibility to reduce prices or other competitive advantages that could make it difficult for us to compete effectively. We principally compete with large national waste management companies, numerous municipalities and numerous regional and local companies.
Removed
Further, the possible outcomes or resolutions to these matters could include adverse judgments, fines or settlements, any of which could require substantial payments and adversely affect our consolidated financial condition, results of operations and cash flows.
Added
In certain markets in which we do not own or operate a landfill, our collection operations may have difficulty competing effectively. We are also subject to risks associated with contracts awarded by municipalities and other entities through competitive bidding.
Removed
The loss of key personnel could have a material adverse effect on our consolidated financial condition, results of operations, cash flows and growth prospects. Our future success depends on the continued contributions of several key employees and officers.
Added
For example, we may not be the successful bidder, we may need to lower our price in order to win or retain a contract, and our competitors may have lower financial 21 Table of Contents expectations that permit them to reduce their prices in order to win a contract.
Added
GAAP), we capitalize certain expenditures relating to the development and expansion of landfills, transfer stations and other projects.
Added
Further, under certain municipal and other agreements, we are subject to landfill diversion requirements that if not met, subject us to liquidated damages and other costs and expenses, the result of which could adversely affect our business, reputation and operating margins.
Added
In Canada, the federal Greenhouse Gas Pollution Pricing Act imposes a carbon pricing system for industry in provinces and territories that have not implemented carbon pricing systems of their own or, in the opinion of the federal government, have implemented carbon pricing systems that do not align with the federal benchmark requirements.
Added
This federal system imposes a carbon levy to the sale of fuel and sets out an output-based pricing system that applies to industrial emitters that meet certain criteria set out in the statute and its regulations, which creates a price incentive for industrial emitters to reduce greenhouse gas emissions by establishing a regulatory trading system for industry.
Added
The carbon levy on fuel is administered by the Canada Revenue Agency and is a carbon tax that applies to the sale of 22 different types of fuel as set out in the statute and its regulations. As of 2024, the Fuel Charge is $80 per ton of CO2e and will increase to $170 per ton by 2030.
Added
Risks Related to Technology and Intellectual Property Our strategy includes an increasing dependence on technology in our operations. If any of our key technology fails, our business could be adversely affected. Our operations are increasingly dependent on technology.

Item 2. Properties

Properties — owned and leased real estate

2 edited+0 added−0 removed1 unchanged
Biggest changeIn the aggregate, our active solid waste landfills total 116,858 acres, including 40,400 permitted acres. We are engaged in 73 landfill gas-to-energy and other renewable energy projects and had post-closure responsibility for 128 closed landfills. We believe that our property and equipment are adequate for our current needs. 29 Table of Contents
Biggest changeIn the aggregate, our active solid waste landfills total 118,010 acres, including 40,659 permitted acres. 31 Table of Contents We are engaged in 76 landfill gas-to-energy and other renewable energy projects and had post-closure responsibility for 126 closed landfills. We believe that our property and equipment are adequate for our current needs.
As of December 31, 2022, we operated across the United States and Canada through 353 collection operations, 233 transfer stations, 71 recycling centers, 206 active landfills, 3 treatment, recovery and disposal facilities, 20 treatment, storage and disposal facilities (TSDF), 6 salt water disposal wells and 7 deep injection wells.
As of December 31, 2023, we operated across the United States and Canada through 364 collection operations, 246 transfer stations, 74 recycling centers, 207 active landfills, 3 treatment, recovery and disposal facilities, 22 treatment, storage and disposal facilities (TSDF), 6 salt water disposal wells and 12 deep injection wells.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

13 edited+1 added−0 removed12 unchanged
Biggest changeShare repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws.
Biggest changeIn October 2023, our Board of Directors approved a $3.0 billion share repurchase authorization effective starting January 1, 2024 and extending through December 31, 2026. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws.
We have determined such disclosure threshold to be $1,000,000. We have no matters to disclose in accordance with that requirement. ITEM 4. MINE SAFETY DISCLOSURES None. 30 Table of Contents PART II ITEM 5.
We have determined such disclosure threshold to be $1,000,000. We have no matters to disclose in accordance with that requirement. ITEM 4. MINE SAFETY DISCLOSURES None. 32 Table of Contents PART II ITEM 5.
Recent Sales of Unregistered Securities There were no sales of unregistered securities during the three months ended December 31, 2022. 31 Table of Contents Performance Graph The following graph compares the performance of our common stock to the Standard & Poor’s 500 Stock Index (S&P 500 Index) and the Dow Jones Waste & Disposal Services Index (DJ W&DS Index).
Recent Sales of Unregistered Securities There were no sales of unregistered securities during the three months ended December 31, 2023. 33 Table of Contents Performance Graph The following graph compares the performance of our common stock to the Standard & Poor’s 500 Stock Index (S&P 500 Index) and the Dow Jones Waste & Disposal Services Index (DJ W&DS Index).
As of December 31, 2022, there were no repurchased shares pending settlement. (b) The total number of shares purchased as part of the publicly announced program were all purchased pursuant to the October 2020 authorization.
As of December 31, 2023, there were no repurchased shares pending settlement. (b) The total number of shares purchased as part of the publicly announced program were all purchased pursuant to the October 2020 authorization.
As used in the immediately following paragraph, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with self-insured employee health care costs, are discussed in Note 7, Other Liabilities, to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K; and (2) environmental remediation liabilities, which totaled $487.5 million at December 31, 2022 and which are discussed in Note 8, Landfill and Environmental Costs, to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K .
As used in the immediately following paragraph, the term legal proceedings refers to litigation and similar claims against us and our subsidiaries, excluding: (1) ordinary course accidents, general commercial liability and workers' compensation claims, which are covered by insurance programs, subject to customary deductibles, and which, together with self-insured employee health care costs, are discussed in Note 7, Other Liabilities, to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K; and (2) environmental remediation liabilities, which totaled $485.4 million at December 31, 2023 and which are discussed in Note 8, Landfill and Environmental Costs, to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K .
Used with permission. All rights reserved. Copyright 1980-2023. Index data: Copyright Standard and Poor's, Inc. Used with permission. All rights reserved. Index data: Copyright Dow Jones, Inc. Used with permission. All rights reserved.
Used with permission. All rights reserved. Copyright 1980-2024. Index data: Copyright Standard and Poor's, Inc. Used with permission. All rights reserved. Index data: Copyright Dow Jones, Inc. Used with permission. All rights reserved.
We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $9 million relating to our outstanding legal proceedings as of December 31, 2022.
We accrue for legal proceedings when losses become probable and reasonably estimable. We have recorded an aggregate accrual of approximately $18 million relating to our outstanding legal proceedings as of December 31, 2023.
The graph covers the period from December 31, 2017 to December 31, 2022 and assumes that the value of the investment in our common stock and in each index was $100 as of December 31, 2017 and that all dividends were reinvested.
The graph covers the period from December 31, 2018 to December 31, 2023 and assumes that the value of the investment in our common stock and in each index was $100 as of December 31, 2018 and that all dividends were reinvested.
If we had used the high ends of such ranges, our aggregate potential liability would be approximately $7 million higher than the amount recorded as of December 31, 2022.
If we had used the high ends of such ranges, our aggregate potential liability would be approximately $11 million higher than the amount recorded as of December 31, 2023.
As of December 31, 2022, we were in compliance with those financial covenants.
As of December 31, 2023, we were in compliance with those financial covenants.
Issuer Purchases of Equity Securities The following table provides information relating to our purchases of shares of our common stock during the three months ended December 31, 2022: Total Number of Shares Purchased (a) Average Price Paid per Share (a) Total Number of Shares Purchased as Part of Publicly Announced Program (b) Dollar Value of Shares that May Yet Be Purchased Under the Program (c) October 1 – 31 — $ — — $ 1,544,347,714 November 1 – 30 — $ — — $ 1,544,347,714 December 1 – 31 — $ — — $ 1,544,347,714 — — (a) In October 2020, our Board of Directors approved a $2.0 billion share repurchase authorization effective starting January 1, 2021 and extending through December 31, 2023.
Issuer Purchases of Equity Securities The following table provides information relating to our purchases of shares of our common stock during the three months ended December 31, 2023: Total Number of Shares Purchased (a) Average Price Paid per Share (a) (d) Total Number of Shares Purchased as Part of Publicly Announced Program (b) Dollar Value of Shares that May Yet Be Purchased Under the Program (c) (d) October 1 – 31 500,160 $ 142.69 500,160 $ 1,282,578,751 November 1 – 30 — $ — — $ 1,282,578,751 December 1 – 31 — $ — — $ 1,282,578,751 500,160 500,160 (a) In October 2020, our Board of Directors approved a $2.0 billion share repurchase authorization effective starting January 1, 2021 and extending through December 31, 2023.
There were 520 holders of record of our common stock at February 7, 2023, which does not include beneficial owners for whom Cede & Co. or others act as nominees. In October 2022, our Board of Directors declared a regular quarterly dividend of $0.495 per share for shareholders of record on January 3, 2023.
There were 490 holders of record of our common stock at February 13, 2024, which does not include beneficial owners for whom Cede & Co. or others act as nominees. In January 2024, our Board of Directors declared a regular quarterly dividend of $0.535 per share for shareholders of record on January 2, 2024.
Indexed Returns for the Years Ended December 31, 2017 2018 2019 2020 2021 2022 Republic Services, Inc. $ 100.00 $ 108.84 $ 137.80 $ 150.94 $ 221.92 $ 208.24 S&P 500 Index $ 100.00 $ 95.62 $ 125.72 $ 148.85 $ 191.58 $ 156.88 DJ W&DS Index $ 100.00 $ 100.11 $ 135.25 $ 144.12 $ 201.48 $ 190.59 Note: Prepared by Zacks Investment Research, Inc.
Indexed Returns for the Years Ended December 31, 2018 2019 2020 2021 2022 2023 Republic Services, Inc. $ 100.00 $ 126.61 $ 138.67 $ 203.89 $ 191.32 $ 247.98 S&P 500 Index $ 100.00 $ 131.49 $ 155.68 $ 200.37 $ 164.08 $ 207.21 DJ W&DS Index $ 100.00 $ 135.09 $ 143.96 $ 201.25 $ 190.37 $ 224.24 Note: Prepared by Zacks Investment Research, Inc.
Added
(d) The average price paid per share, total repurchase costs and approximate maximum dollar value of the shares that may yet be purchased under the plans or programs exclude a 1% excise tax.

Item 4. Mine Safety Disclosures

Mine Safety Disclosures — required of mining issuers

1 edited+0 added−0 removed0 unchanged
Biggest changeItem 4. Mine Safety Disclosures 30 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31 Item 6. [Reserved] 32 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 33 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 59 Item 8.
Biggest changeItem 4. Mine Safety Disclosures 32 PART II Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 34 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 35 Item 7A. Quantitative and Qualitative Disclosures About Market Risk 61 Item 8.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

49 edited+18 added−6 removed129 unchanged
Biggest changeOther Services Other revenue consists primarily of National Accounts revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling services are subcontracted to local operators. Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. Competition We operate in a competitive industry.
Biggest changeConsequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. Competition We operate in a competitive industry. Competition in the environmental services industry comes from a few other large, national publicly-owned companies, several regional publicly- and privately-owned companies and thousands of small privately-owned companies.
Hodges oversees marketing, communications, product development, customer engagement and revenue management for the Company. Prior to joining Republic, Ms. Hodges spent 15 years in leadership roles for Dell Technologies, most recently serving as Senior Vice President of North America Marketing and the Global Executive Briefing Program. Before joining Dell, Ms. Hodges worked as a consultant for McKinsey & Company.
Hodges oversees marketing, communications, product development, customer engagement and revenue management for the Company. Prior to joining Republic, Ms. Hodges spent 15 years in leadership roles for Dell Technologies, most recently serving as Senior Vice President of North America Marketing and the Global Customer Briefing Program. Before joining Dell, Ms. Hodges worked as a consultant for McKinsey & Company.
We offer a wide array of products and services with a proven track record in safety, compliance and environmental stewardship. Recycling & Solid Waste Services We have a strong, national, vertically-integrated operating platform that allows us to compete more effectively and efficiently in the local markets in which we operate.
We offer a wide array of products and services with a proven track record in safety, compliance and environmental stewardship. Recycling & Waste Services We have a strong, national, vertically-integrated operating platform that allows us to compete more effectively and efficiently in the local markets in which we operate.
Operating and other permits, licenses and other approvals generally are required for landfills and transfer stations, recycling centers, certain solid waste collection vehicles, fuel storage tanks and other equipment and facilities that we own or operate. These permits are subject to denial, revocation, modification and renewal in certain circumstances.
Operating and other permits, licenses and other approvals generally are required for landfills and transfer stations, recycling centers, certain waste collection vehicles, fuel storage tanks and other equipment and facilities that we own or operate. These permits are subject to denial, revocation, modification and renewal in certain circumstances.
In addition, we cooperate with and support initiatives at the federal and state level in support of legislation that encourages sustainable practices including the production and use of renewable, low-carbon fuels and electricity and the processing of recyclables and organics. We have long been a leader in sustainability as it relates to environmental services and expect to maintain this reputation.
In addition, we cooperate with and support initiatives at the federal and state level in support of legislation that encourages sustainable practices including the production and use of renewable, low-carbon fuels and electricity and the processing of recyclables and organics. We have long been a leader in sustainability as it relates to environmental services and strive to maintain this reputation.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities for repurchase authority remaining as of December 31, 2022. Shareholder Value We are committed to creating long-term shareholder value by generating consistent earnings and cash flow growth while continually improving returns on invested capital.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities for repurchase authority remaining as of December 31, 2023. Shareholder Value We are committed to creating long-term shareholder value by generating consistent earnings and cash flow growth while continually improving returns on invested capital.
We also operate recycling centers in markets where diversion of waste is a priority, customers are willing to pay for the service and we can earn an appropriate return on our investment. 10 Table of Contents Collection Services We provide residential, small-container and large-container collection services through 353 collection operations.
We also operate recycling centers in markets where diversion of waste is a priority, customers are willing to pay for the service and we can earn an appropriate return on our investment. 10 Table of Contents Collection Services We provide residential, small-container and large-container collection services through 364 collection operations.
Where appropriate, we seek to achieve a high rate of internalization by controlling material streams from the point of collection through recycling processing or disposal. During the year ended December 31, 2022, approximately 68% of the total solid waste volume we collected was disposed at landfills we own or operate (internalization).
Where appropriate, we seek to achieve a high rate of internalization by controlling material streams from the point of collection through recycling processing or disposal. During the year ended December 31, 2023, approximately 68% of the total solid waste volume we collected was disposed at landfills we own or operate (internalization).
Other governments may enact similar regulations in the future. These regulations may cause a decline in volumes of waste delivered to our landfills or transfer stations and may increase our costs of disposal, thereby adversely affecting our operations and our financial results. We are engaged in 73 landfill gas-to-energy and other renewable energy projects.
Other governments may enact similar regulations in the future. These regulations may cause a decline in volumes of waste delivered to our landfills or transfer stations and may increase our costs of disposal, thereby adversely affecting our operations and our financial results. We are engaged in 76 landfill gas-to-energy and other renewable energy projects.
We have systems in place designed to assist with monitoring and maintaining compliance with the ownership requirements of the Jones Act. All of our offshore vessels are subject to either United States or international safety and classification standards and sometimes both.
We have compliance mechanisms in place designed to assist with monitoring and maintaining compliance with the ownership requirements of the Jones Act. All of our offshore vessels are subject to either United States or international safety and classification standards and sometimes both.
In addition, states may adopt groundwater protection programs under the Clean Water Act or the Safe Drinking Water Act that could affect the manner in which our landfills monitor and control their waste management activities. Furthermore, if development at any of our facilities alters or affects wetlands, we may be required to secure permits before such development starts.
In addition, states may adopt groundwater protection programs under the Clean Water Act or the Safe Drinking Water Act that could affect the manner in which our landfills monitor and control their waste management activities. 15 Table of Contents Furthermore, if development at any of our facilities alters or affects wetlands, we may be required to secure permits before such development starts.
We also receive rebates when we dispose of recycled commodities at third-party processing facilities. As consumer demand for recycling services has increased, we have met that demand by integrating recycling components across our collection service offerings. Our goal is to provide a complete material stream management solution to our customers in a vertically integrated, environmentally sustainable way.
We also receive rebates when we dispose of recycled commodities at third-party processing facilities. We have met increased consumer demand for recycling services by integrating recycling components across our collection service offerings. Our goal is to provide a complete material stream management solution to our customers in a vertically integrated, environmentally sustainable way.
Compliance with existing and future legal and regulatory requirements, including changes relating to per- and 13 Table of Contents polyfluoroalkyl substances (commonly referred to as PFAS) and other chemicals of emerging concern, and limitations or bans on disposal of certain types of wastes or on the transportation of waste, could increase our costs to operate or require additional capital expenditures.
Compliance with existing and future legal and regulatory requirements, including changes relating to per- and polyfluoroalkyl substances (commonly referred to as PFAS) and other chemicals of emerging concern, and limitations or bans on disposal of certain types of wastes or on the transportation of waste, could increase our costs to operate or require additional capital expenditures.
We provide essential recycling and solid waste collection and disposal services in the communities we serve and our operations can be adversely affected by periods of inclement or severe weather and natural disasters, which could increase the volume of material collected under our existing contracts (without corresponding compensation), delay the collection and disposal of material, reduce the volume of material delivered to our disposal sites or delay the construction or expansion of our landfill sites and other facilities and may increase with the physical impacts of climate change.
We provide essential environmental services in the communities we serve and our operations can be adversely affected by periods of inclement or severe weather and natural disasters, which could increase the volume of material collected under our existing contracts (without corresponding compensation), delay the collection and disposal of material, reduce the volume of material delivered to our disposal sites or delay the construction or expansion of our landfill sites and other facilities and may increase with the physical impacts of climate change.
In 2007, however, the United States Supreme Court upheld the right of a local government to direct the flow of solid waste to a publicly-owned and publicly- 17 Table of Contents operated waste facility. A number of county and other local jurisdictions have enacted ordinances or other regulations restricting the free movement of solid waste across jurisdictional boundaries.
In 2007, however, the United States Supreme Court upheld the right of a local government to direct the flow of solid waste to a publicly-owned and publicly-operated waste facility. A number of county and other local jurisdictions have enacted ordinances or other regulations restricting the free movement of solid waste across jurisdictional boundaries.
Additionally, laws and regulations restricting the disposal of certain waste in solid waste landfills, including yard waste, food waste, newspapers, beverage containers, unshredded tires, lead-acid batteries, electronic wastes and household appliances, have been adopted in several states and are being considered in others.
Additionally, laws and regulations restricting the disposal of certain waste in solid waste landfills, including yard waste, food waste, newspapers, beverage containers, unshredded tires, 16 Table of Contents lead-acid batteries, electronic wastes and household appliances, have been adopted in several states and are being considered in others.
We may choose not to continue to maintain the insurance should market conditions in the insurance industry make such coverage cost prohibitive. 18 Table of Contents Accruals for deductibles are based on claims filed and actuarial estimates of claims development and claims incurred but not reported.
We may choose not to continue to maintain the insurance should market conditions in the insurance industry make such coverage cost prohibitive. Accruals for deductibles are based on claims filed and actuarial estimates of claims development and claims incurred but not reported.
In 2021, the EPA issued a rule further setting the standards for model years 2023 to 2026, making them more stringent; that rule has also been challenged in court. In August 2011, the EPA and the NHTSA finalized standards for heavy-duty trucks, including solid waste collection 15 Table of Contents vehicles and tractor trailers, for model years 2014 through 2018.
In 2021, the EPA issued a rule further setting the standards for model years 2023 to 2026, making them more stringent; that rule has also been challenged in court. In August 2011, the EPA and the NHTSA finalized standards for heavy-duty trucks, including solid waste collection vehicles and tractor trailers, for model years 2014 through 2018.
Subject to limited exceptions, the Jones Act requires that vessels engaged in United States coastwise trade be owned and operated by United States citizens within the meaning of the Jones Act, be built in and registered under the laws of the United States and manned by predominantly United States Citizen crews.
Subject to limited exceptions, the Jones Act requires that vessels engaged in United States coastwise trade be owned and operated by United States citizens within the meaning of the Jones Act, be built in and 17 Table of Contents registered under the laws of the United States and manned by predominantly United States Citizen crews.
In addition, the EPA has established a National Priorities List of sites at which hazardous substances have been, or are threatened to be, released and which require investigation or cleanup. 14 Table of Contents CERCLA liability is strict liability.
In addition, the EPA has established a National Priorities List of sites at which hazardous substances have been, or are threatened to be, released and which require investigation or cleanup. CERCLA liability is strict liability.
We provide temporary collection services on a contractual basis with terms ranging from a single pickup to one-year or longer. Transfer Services We own or operate 233 transfer stations. Revenue at our transfer stations is primarily generated by charging tipping or disposal fees, which accounted for approximately 5% of our revenue during 2022.
We provide temporary collection services on a contractual basis with terms ranging from a single pickup to one-year or longer. Transfer Services We own or operate 246 transfer stations. Revenue at our transfer stations is primarily generated by charging tipping or disposal fees, which accounted for approximately 5% of our revenue during 2023.
We are investing in innovative recycling technology and have expanded our organics operations to help customers meet their diversion goals. We processed 1.0 million and sold 0.3 million tons of organic materials, respectively, from our recycling centers in 2022. Changing market demand for recycled commodities causes volatility in commodity prices.
We are investing in innovative recycling technology and have expanded our organics operations to help customers meet their diversion goals. We processed 1.1 million and sold 0.2 million tons of organic materials, respectively, from our recycling centers in 2023. Changing market demand for recycled commodities causes volatility in commodity prices.
Approximately 81% of our total recycling center volume is fiber based and includes OCC, ONP and other mixed paper. During 2022, we processed and sold 2.0 million tons, excluding glass and organics, from our recycling centers. An additional 2.0 million tons were collected by us and delivered to third parties.
Approximately 82% of our total recycling center volume is fiber based and includes OCC, ONP and other mixed paper. During 2023, we processed and sold 2.0 million tons, excluding glass and organics, from our recycling centers. An additional 2.0 million tons were collected by us and delivered to third parties.
We continue to invest in proven technologies to control costs and to simplify and streamline recycling for our customers. For example, robotics and advanced sorting equipment, such as disk screens, magnets and optical sorters, identifies and separates different kinds of paper, metals, plastics and other materials to increase efficiency and maximize our recycling efforts.
We continue to invest in proven technologies to control costs and to simplify and streamline recycling for our customers. For example, robotics and advanced sorting equipment, such as disk screens, magnets and optical sorters, identify and separate different kinds of paper, metals, plastics and other materials to increase efficiency and maximize our recycling efforts.
We are also subject to the International Ship and Port Facility Security Code (ISPFS Code), an amendment to the International Convention for the Safety of Life at Sea (SOLAS) as implemented in the Maritime Transportation and Security Act of 2002 to align United States regulations with those of SOLAS and the ISPS Code.
We are also subject to a number of safety, security and environmental laws and regulations, including the International Ship and Port Facility Security Code (ISPFS Code), an amendment to the International Convention for the Safety of Life at Sea (SOLAS) as implemented in the Maritime Transportation and Security Act of 2002 to align United States regulations with those of SOLAS and the ISPS Code.
Recycling Processing Services We own or operate 71 recycling centers. These centers generate revenue through the and sale of old corrugated containers (OCC), old newsprint (ONP), aluminum, glass and other materials, which accounted for approximately 3% of our total revenue during 2022.
Recycling Processing Services We own or operate 74 recycling centers. These centers generate revenue through the processing and sale of old corrugated containers (OCC), old newsprint (ONP), aluminum, glass and other materials, which accounted for approximately 2% of our total revenue during 2023.
Landfill Services We own or operate 206 active landfills. Our landfill tipping fees charged to third parties accounted for approximately 11% of our revenue during 2022. As of December 31, 2022, we had estimated permitted acres of 40,400 and estimated total available disposal capacity of 5.0 billion in-place cubic yards.
Landfill Services We own or operate 207 active landfills. Our landfill tipping fees charged to third parties accounted for approximately 11% of our revenue during 2023. As of December 31, 2023, we had estimated permitted acres of 40,659 and estimated total available disposal capacity of 5.1 billion in-place cubic yards.
Ellingsen was an attorney at Steptoe & Johnson LLP from 1996 to 2001 and at Bryan Cave LLP from 1993 to 1996. Ms. Ellingsen serves on the Boards of Directors of Bunker Hill Group, Nebraska Distributing Company and Daseke, Inc. Amanda Hodges was named Executive Vice President, Chief Marketing Officer in November 2020. In this role, Ms.
Ellingsen was an attorney at Steptoe & Johnson LLP from 1996 to 2001 and at Bryan Cave LLP from 1993 to 1996. Ms. Ellingsen serves on the Board of Directors of Daseke, Inc. Amanda Hodges was named Executive Vice President, Chief Marketing Officer in November 2020. In this role, Ms.
In 2022, approximately 9% of our revenue was derived from environmental solutions. Waste Treatment & Disposal We own or operate 6 active hazardous waste landfills, 9 active energy waste landfills, 3 treatment, recovery and disposal facilities, 20 treatment, storage and disposal facilities, 6 salt water disposal wells and 7 deep injection wells.
In 2023, approximately 11% of our revenue was derived from environmental solutions. Waste Treatment & Disposal We own or operate 6 active hazardous waste landfills, 9 active energy waste landfills, 3 treatment, recovery and disposal facilities, 22 treatment, storage and disposal facilities, 6 salt water disposal wells and 12 deep injection wells.
In 2022, approximately 69% of our total revenue was derived from our collection business, of which approximately 20% of our total revenue related to residential services, approximately 29% related to small-container services and approximately 20% related to large-container services.
In 2023, approximately 69% of our total revenue was derived from our collection business, of which approximately 19% of our total revenue related to residential services, approximately 30% related to small-container services and approximately 20% related to large-container services.
RCRA establishes a framework for regulating the handling, transportation, treatment, storage and disposal of hazardous and non-hazardous solid waste, and requires states to develop programs to ensure the safe disposal of solid waste in sanitary landfills.
RCRA establishes a framework for regulating the handling, transportation, treatment, storage and disposal of hazardous and non-hazardous solid waste, and requires states to develop programs to ensure the safe disposal of solid waste in sanitary landfills. 14 Table of Contents Subtitle C of RCRA establishes a framework for regulating the disposal of hazardous waste, and Subtitle D of RCRA establishes a framework for regulating the disposal of municipal solid waste.
We make such materials available as soon as reasonably practicable after we electronically submit them to the SEC.
We make such materials available as soon as reasonably practicable after 19 Table of Contents we electronically submit them to the SEC.
Regulations under Subtitle D currently include minimum comprehensive solid waste management criteria and guidelines, including location restrictions, facility design and operating criteria, final capping, closure and post-closure requirements, financial assurance standards, groundwater monitoring requirements and corrective action standards.
Regulations under Subtitle C set requirements for hazardous waste generators, transporters and treatment, storage and disposal facilities. Regulations under Subtitle D currently include minimum comprehensive solid waste management criteria and guidelines, including location restrictions, facility design and operating criteria, final capping, closure and post-closure requirements, financial assurance standards, groundwater monitoring requirements and corrective action standards.
In August 2021, the EPA announced its intent to move forward with a Clean Trucks Plan, which would involve setting emissions standards for model years 2027 and beyond and the EPA released a proposed rule on March 28, 2022. • The Occupational Safety and Health Act of 1970 (OSHA).
In August 2021, the EPA announced its intent to move forward with a Clean Trucks Plan, which would involve setting emissions standards for model years 2027 and beyond; the EPA released a proposed rule on March 28, 2022 and issued a final rule on December 20, 2022.
Our ability to maintain and increase prices in certain markets may be impacted by our competitors’ pricing policies. This may have an effect on our future revenue and profitability. Seasonality and Severe Weather Our operating revenues tend to be somewhat higher in the summer months, primarily due to higher volumes of construction and demolition waste.
This may have an effect on our future revenue and profitability. 13 Table of Contents Seasonality and Severe Weather Our operating revenues tend to be somewhat higher in the summer months, primarily due to higher volumes of construction and demolition waste.
Maritime Regulations Our Group 3 operations own and use 37 vessels registered under the United States flag. Accordingly, we are subject to various United States federal, state and local statutes and regulations governing the ownership, operation and maintenance of our vessels.
Accordingly, we are subject to various United States federal, state and local statutes and regulations governing the ownership, operation and maintenance of our vessels.
These statutes and regulations regulate the generation, collection, characterization, transport, storage, treatment, recovery and disposal of hazardous wastes, establish the requirements for waste management facilities and govern actual or potential releases of contaminants in the environment, such as air emissions and soil, groundwater and surface water contamination issues. 16 Table of Contents Hazardous waste transporters are required to hold a permit to operate under the provincial regulations and are also subject to the safety and reporting requirements of the Canadian Transportation of Dangerous Goods Act, 1992.
These statutes and regulations regulate the generation, collection, characterization, documentation, transport, storage, treatment, recovery and disposal of hazardous wastes, establish the requirements for waste management facilities and waste transportation systems and govern actual or potential releases of contaminants in the environment, such as air emissions and soil, groundwater and surface water contamination issues.
Regulations with respect to hazardous waste are particularly relevant for our Group 3 reportable segment that provides treatment, recycling and disposal of hazardous waste. In order to comply with these regulations, we must incur substantial capital expenditures relating to our vehicles, landfills, transfer stations, recycling centers and in connection with our capping, closure, post-closure and environmental remediation activities.
In order to comply with these regulations, we must incur substantial capital expenditures relating to our vehicles, landfills, transfer stations, recycling centers and other assets, and in connection with our capping, closure, post-closure and environmental remediation activities.
These services include industrial cleaning and maintenance, retail services, lab pack, site remediation, equipment cleaning and maintenance services, specialty equipment rental, transportation and emergency response. 12 Table of Contents As an integral part of our services, we employ highly trained staff and operate a network of service centers that characterize, package and collect hazardous and non-hazardous wastes from customers and transport such wastes to and between our facilities for treatment or bulking for shipment to final disposal locations.
As an integral part of our services, we employ highly trained staff and operate a network of service centers that characterize, package and collect hazardous and non-hazardous wastes from customers and transport such wastes to and between our facilities for treatment or bulking for shipment to final disposal locations. 12 Table of Contents Sustainability Innovation We are uniquely positioned to offer products and services to address the complex sustainability needs of our customers.
These municipalities may have financial advantages due to the availability of tax revenue and greater opportunities for tax-exempt financing. We compete for collection accounts primarily based on our product offering, quality of service and price. From time-to-time, our competitors reduce the price of their services in an effort to expand market share or to win a competitively bid municipal contract.
In any given market, competitors may have larger operations and greater resources. In addition, we compete with municipalities that maintain material collection or disposal operations. These municipalities may have financial advantages due to the availability of tax revenue and greater opportunities for tax-exempt financing. We compete for collection accounts primarily based on our product offering, quality of service and price.
Climate and Sustainability Trends Jurisdictions have been updating climate policies toward the goal of reporting and reducing greenhouse gas (GHG) emissions through a broad range of sustainability initiatives. We believe reducing our impact on the planet and improving the quality of life of its inhabitants are the right things to do, and have continually committed to heightened emissions reduction goals.
We believe reducing our impact on the planet and improving the quality of life of its inhabitants are the right things to do, and have committed to heightened emissions reduction goals.
DelGhiaccio served as Vice President, Investor Relations from 2012 to 9 Table of Contents 2014, progressed to Senior Vice President, Finance from 2014 to 2017 and then to Senior Vice President, Business Transformation in 2017. Prior to his time at Republic, Mr. DelGhiaccio was a senior consultant with Arthur Andersen. Catharine D.
He was named Executive Vice President and Chief Transformation Officer in June 2019. Before that, Mr. DelGhiaccio served as Vice President, Investor Relations from 2012 to 2014, progressed to Senior Vice President, Finance from 2014 to 2017 and then to Senior Vice President, Business Transformation in 2017. Prior to his time at Republic, Mr.
Liddell serves on the Board of Directors of The Kristine Pettoni Foundation. Tim Stuart was named Executive Vice President, Chief Operating Officer in May 2019. Prior to his current role, Mr.
Bales serves on the Board of Directors of RB Global, Inc. Gregg Brummer was named Executive Vice President, Chief Operating Officer in August 2023. Prior to his current role, Mr.
There is a market for RINs and, as we and/or our partners produce RFS-compliant renewable fuel, RINs are generated and sold to parties purchasing such RINs to achieve compliance with the RFS program.
There is a market for RINs and, as we and/or our partners produce RFS-compliant renewable fuel, RINs are generated and sold to parties purchasing such RINs to achieve compliance with the RFS program. 18 Table of Contents Climate and Sustainability Trends Jurisdictions have been updating climate policies toward the goal of reporting and reducing greenhouse gas (GHG) emissions through a broad range of sustainability initiatives.
We also have responsibility for 128 closed landfills, for which we have associated closure and post-closure obligations. Environmental Solutions We have the capabilities to address the complex sustainability needs of our customers.
To satisfy future disposal demand, we are seeking to expand permitted capacity at certain landfills; however, all proposed or future expansions may not be permitted. We also have responsibility for 126 closed landfills, for which we have associated closure and post-closure obligations. Environmental Solutions We have the capabilities to address the complex environmental and sustainability needs of our customers.
Ellingsen was named Executive Vice President, Chief Legal Officer, Chief Ethics & Compliance Officer and Corporate Secretary in June 2016. Ms. Ellingsen joined the Company as Corporate Counsel in August 2001 and has experience in a variety of roles of increasing responsibility.
DelGhiaccio worked in the audit practice of Arthur Andersen. Mr. DelGhiaccio serves on the Board of Directors of Aramark. Catharine D. Ellingsen was named Executive Vice President, Chief Legal Officer, Chief Ethics & Compliance Officer and Corporate Secretary in June 2016. Ms. Ellingsen has over 20 years of experience with Republic in a variety of roles of increasing responsibility.
Stuart served as Executive Vice President, Operations from January 2016 to May 2019, where he was responsible for maximizing field performance, executing the operating plan and achieving financial and operational results across the Company. Mr. Stuart has over 20 years of experience in the waste industry.
Brummer served as Senior Vice President, Operations from June 2019 to August 2023 where he was responsible for maximizing field performance, ensuring superior service delivery, executing the operating plan, and achieving financial and 9 Table of Contents operational results across the Company. Mr. Brummer joined the Company in January 2014 as Area President, a role he held until June 2019.
Bales serves on the Board of Directors of Insurance Auto Auctions, Inc. Brian DelGhiaccio was named Executive Vice President, Chief Financial Officer in June 2020. Mr. DelGhiaccio has over 20 years of experience in a variety of roles of increasing responsibility. He was named Executive Vice President and Chief Transformation Officer in June 2019. Before that, Mr.
Prior to joining the Company, Mr. Brummer was a Regional Vice President as well as General Manager at BlueLinx Corporation and held various leadership positions at Georgia Pacific Corporation. Brian DelGhiaccio was named Executive Vice President, Chief Financial Officer in June 2020. Mr. DelGhiaccio has over 20 years of experience in a variety of roles of increasing responsibility.
The use of landfill gas provides economic and environmental benefits, including reducing greenhouse gas emissions through the capture and use of methane. As of December 31, 2022, we operated 73 landfill gas and renewable energy projects. The majority of these projects were developed and are owned by a third party.
As of December 31, 2023, we operated 76 landfill gas-to- energy projects. The majority of these projects were developed and are owned by a third party, where we earn a royalty based on renewable energy sold. We have more than 50 landfill gas-to-renewable natural gas (RNG) projects in development that are expected to begin operation in the coming years.
Removed
Katrina Liddell was named Executive Vice President, Chief Commercial Officer in June 2021. In this role, she is responsible for leading the Company’s Sales organization, which includes Field Sales, National Accounts, Manufacturing and Environmental Services and Municipal Services. She also oversees the Customer Resource Centers. Prior to joining the Company, Ms.
Added
Courtney Rodriguez was named Executive Vice President, Chief Human Resources Officer in March 2023. In this role, she is responsible for all aspects of the Company’s talent strategy, including talent acquisition and retention, learning and development, and total rewards. Prior to joining Republic, Ms. Rodriguez served as Senior Vice President, Global HR, for Dell Technologies.
Removed
Liddell held the role of President, Global Forwarding and Expedite for XPO Logistics Inc., a global transportation and contract logistics company. Before joining XPO, Ms. Liddell spent 14 years with Johnson Controls International, where she held senior leadership roles in enterprise account management, vertical market development, operations, product development and customer relations. Ms.
Added
She has over 20 years of HR experience, including frontline, customer operations, culture transformation and M&A support. Ms. Rodriguez started her career in finance as a senior auditor for Arthur Andersen before moving to Dell as a financial analyst.
Removed
He previously served as the Company’s East Region President from September 2013 to January 2016. He joined Republic in April 2006 as Director of Operations and has held a variety of roles with the Company, including Area President, Vice President of Customer Experience and Region Vice President.
Added
These services include industrial cleaning and maintenance, retail services, lab pack, site remediation, equipment cleaning and maintenance services, specialty equipment rental, transportation and emergency response.
Removed
To satisfy future disposal demand, we are seeking to expand permitted capacity at certain landfills; however, all proposed or future expansions may not be permitted. Republic is committed to harnessing landfill gas, the natural byproduct of decomposing waste, and converting it to energy.
Added
Our sustainability innovation product and service offerings include operations that allow for greater material circularity and support decarbonization. Demand for post-consumer content in consumer packaging and low carbon energy alternatives continues to increase. We are able to invest independently or through joint ventures to create solutions for the evolving marketplace.
Removed
Competition in the environmental services industry comes from a few other large, national publicly-owned companies, several regional publicly- and privately-owned companies and thousands of small privately-owned companies. In any given market, competitors may have larger operations and greater resources. In addition, we compete with municipalities that maintain material collection or disposal operations.
Added
Circularity In 2023, we completed construction at our first Polymer Center in Las Vegas, Nevada. The Polymer Center represents the first time a single U.S. company will manage the plastics stream through an integrated process from curbside collection of recycled material to production and delivery of high-quality recycled content for consumer packaging.
Removed
Subtitle C of RCRA establishes a framework for regulating the disposal of hazardous waste, and Subtitle D of RCRA establishes a framework for regulating the disposal of municipal solid waste. Regulations under Subtitle C set requirements for hazardous waste generators, transporters and treatment, storage and disposal facilities.
Added
Rigid plastics – polyethylene terephthalate (PET), high-density polyethylene (HDPE) and polypropylene (PP) – collected from residential and commercial customers and sorted at local recycling facilities will be delivered to the Polymer Center for secondary processing.
Added
The facility is expected to produce more than 100 million pounds per year of recycled plastic, including 100% post-consumer PET flake delivered to the food-grade marketplace to enable bottle-to-bottle circularity. In addition, HDPE and PP packaging such as detergent jugs or butter tubs, which today are collected in multicolored bundles, can be separated by plastic type and color.
Added
We anticipate opening at least three more centers to provide national coverage and further drive circularity, with the Indianapolis Polymer Center construction scheduled to be completed in late 2024. In 2023, we announced the creation of Blue Polymers, LLC, a joint venture with Ravago, creating vertical integration that will further advance circularity in the plastics industry.
Added
The Blue Polymers facilities will utilize recycled HDPE and PP from our Polymer Centers to create custom recycled resins for consumer packaging and other applications. The process is expected to convert HDPE and PP into fully formulated products for use in both food-grade and non-food-grade sustainable applications.
Added
Four Blue Polymers facilities are planned to open over the next four years, beginning in 2025. Once operational, these facilities are expected to produce a combined 300 million pounds per year of recycled plastics.
Added
Products are expected to include custom-blended and compounded materials for individual customers to help them achieve their sustainability goals and comply with federal, state or local requirements for recycled content. Decarbonization Our customers are increasingly looking for decarbonization solutions, and Republic is leveraging our network of landfills to meet that need.
Added
Republic is committed to harnessing landfill gas, a natural byproduct of decomposing waste, and converting it to energy. More than 87% of our landfill acreage is covered by gas collection systems. Collecting and converting landfill gas into renewable energy provides economic and environmental benefits, including reducing fugitive greenhouse gas emissions.
Added
The majority of the development portfolio is part of a joint venture with Archaea Energy, a bp company, in which Republic is a minority equity owner. RNG is a low-carbon, pipeline-quality fuel that’s fully interchangeable with fossil fuel-derived natural gas; it can be used as a transportation fuel in commercial fleets, including our own.
Added
We also are producing renewable energy at our landfills through solar projects we host at eight sites, which generate clean electricity for local communities. Other Services Other revenue consists primarily of National Accounts revenue generated from nationwide or regional contracts in markets outside our operating areas where the associated material handling services are subcontracted to local operators.
Added
From time-to-time, our competitors reduce the price of their services in an effort to expand market share or to win a competitively bid municipal contract. Our ability to maintain and increase prices in certain markets may be impacted by our competitors’ pricing policies.
Added
Regulations with respect to hazardous waste are particularly relevant for our Group 3 reportable segment that provides treatment, recycling and disposal of hazardous waste.
Added
In 2023, NHTSA released proposed rules for 2027-2032 light-duty vehicles and 2030-2035 heavy-duty pickups and vans, and EPA released a proposed rule for 2027-2032 light and medium duty vehicles. • The Occupational Safety and Health Act of 1970 (OSHA).
Added
Hazardous waste transporters are required to hold permits to operate under the provincial statutes and regulations and are also subject to safety documentation and reporting requirements under provincial law and the federal Transportation of Dangerous Goods Act, 1992. Maritime Regulations Our Group 3 operations own and use 37 vessels registered under the United States flag.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

149 edited+28 added−34 removed120 unchanged
Biggest changeProperty and Equipment The following tables reflect the activity in our property and equipment accounts for the year ended December 31, 2022 (in millions of dollars): Gross Property and Equipment Balance as of December 31, 2021 Capital Additions Retirements Acquisitions, Net of Divestitures Non-Cash Additions for Asset Retirement Obligations Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2022 Land $ 694.9 $ 2.4 $ (1.7) $ 85.0 $ — $ — $ (0.9) $ 779.7 Landfill development costs 8,539.6 14.5 — 590.4 60.1 20.2 349.4 9,574.2 Vehicles and equipment 8,576.9 759.6 (272.6) 300.0 — — 101.4 9,465.3 Buildings and improvements 1,508.4 57.9 (10.0) 126.9 — — 21.4 1,704.6 Construction-in-progress - landfill 279.3 390.9 — 38.6 — — (350.5) 358.3 Construction-in-progress - other 182.9 338.0 (0.2) (1.1) — — (161.0) 358.6 Total $ 19,782.0 $ 1,563.3 $ (284.5) $ 1,139.8 $ 60.1 $ 20.2 $ (40.2) $ 22,240.7 Accumulated Depreciation, Amortization and Depletion Balance as of December 31, 2021 Additions Charged to Expense Retirements Acquisitions, Net of Divestitures Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2022 Landfill development costs $ (4,625.6) $ (440.1) $ — $ (1.6) $ 5.7 $ 2.7 $ (5,058.9) Vehicles and equipment (5,231.6) (735.9) 265.7 7.6 — 14.3 (5,679.9) Buildings and improvements (692.7) (79.4) 6.9 0.6 — 6.7 (757.9) Total $ (10,549.9) $ (1,255.4) $ 272.6 $ 6.6 $ 5.7 $ 23.7 $ (11,496.7) 47 Table of Contents The following tables reflect the activity in our property and equipment accounts for the year ended December 31, 2021 (in millions of dollars): Gross Property and Equipment Balance as of December 31, 2020 Capital Additions Retirements Acquisitions, Net of Divestitures Non-Cash Additions for Asset Retirement Obligations Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2021 Land $ 633.4 $ 32.7 $ (3.9) $ 16.6 $ — $ — $ 16.1 $ 694.9 Landfill development costs 7,991.7 6.5 — 65.5 46.7 58.9 370.3 8,539.6 Vehicles and equipment 8,119.0 651.0 (385.2) 109.3 — — 82.8 8,576.9 Buildings and improvements 1,402.5 24.8 (6.9) 20.9 0.5 — 66.6 1,508.4 Construction-in-progress - landfill 303.8 358.5 — — — — (383.0) 279.3 Construction-in-progress - other 107.4 240.2 — 5.3 — — (170.0) 182.9 Total $ 18,557.8 $ 1,313.7 $ (396.0) $ 217.6 $ 47.2 $ 58.9 $ (17.2) $ 19,782.0 Accumulated Depreciation, Amortization and Depletion Balance as of December 31, 2020 Additions Charged to Expense Retirements Acquisitions, Net of Divestitures Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2021 Landfill development costs $ (4,249.5) $ (369.4) $ — $ 0.5 $ (7.2) $ — $ (4,625.6) Vehicles and equipment (4,953.4) (665.4) 376.3 — — 10.9 (5,231.6) Buildings and improvements (628.7) (68.9) 5.0 0.3 — (0.4) (692.7) Total $ (9,831.6) $ (1,103.7) $ 381.3 $ 0.8 $ (7.2) $ 10.5 $ (10,549.9) Liquidity and Capital Resources Cash and Cash Equivalents The following is a summary of our cash and cash equivalents and restricted cash and marketable securities balances as of December 31: 2022 2021 Cash and cash equivalents $ 143.4 $ 29.0 Restricted cash and marketable securities 127.6 139.0 Less: restricted marketable securities (56.7) (62.4) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 214.3 $ 105.6 Our restricted cash and marketable securities include, among other things, restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills, and restricted cash and marketable securities related to our insurance obligations and restricted cash related to proceeds from the issuance of tax-exempt bonds that will be used to fund qualifying landfill-related expenditures in the Commonwealth of Pennsylvania.
Biggest changeProperty and Equipment The following tables reflect the activity in our property and equipment accounts for the year ended December 31, 2023 (in millions of dollars): Gross Property and Equipment Balance as of December 31, 2022 Capital Additions Retirements Acquisitions, Net of Divestitures Non-Cash Additions for Asset Retirement Obligations Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2023 Land $ 779.7 $ 4.1 $ (2.4) $ 95.5 $ — $ — $ 1.2 $ 878.1 Landfill development costs 9,574.2 9.0 (13.5) (137.7) 61.4 40.2 377.6 9,911.2 Vehicles and equipment 9,465.3 748.7 (347.5) 160.6 — — 204.8 10,231.9 Buildings and improvements 1,704.6 77.8 (13.8) 63.2 — — 90.1 1,921.9 Construction-in-progress - landfill 358.3 440.0 — (38.6) — — (409.3) 350.4 Construction-in-progress - other 358.6 455.8 — 28.0 — — (288.8) 553.6 Total $ 22,240.7 $ 1,735.4 $ (377.2) $ 171.0 $ 61.4 $ 40.2 $ (24.4) $ 23,847.1 Accumulated Depreciation, Amortization and Depletion Balance as of December 31, 2022 Additions Charged to Expense Retirements Acquisitions, Net of Divestitures Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2023 Landfill development costs $ (5,058.9) $ (466.2) $ 13.5 $ — $ (5.1) $ 0.5 $ (5,516.2) Vehicles and equipment (5,679.9) (812.4) 336.7 5.9 — 2.0 (6,147.7) Buildings and improvements (757.9) (88.5) 7.0 — — 7.1 (832.3) Total $ (11,496.7) $ (1,367.1) $ 357.2 $ 5.9 $ (5.1) $ 9.6 $ (12,496.2) 48 Table of Contents The following tables reflect the activity in our property and equipment accounts for the year ended December 31, 2022 (in millions of dollars): Gross Property and Equipment Balance as of December 31, 2021 Capital Additions Retirements Acquisitions, Net of Divestitures Non-Cash Additions for Asset Retirement Obligations Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2022 Land $ 694.9 $ 2.4 $ (1.7) $ 85.0 $ — $ — $ (0.9) $ 779.7 Landfill development costs 8,539.6 14.5 — 590.4 60.1 20.2 349.4 9,574.2 Vehicles and equipment 8,576.9 759.6 (272.6) 300.0 — — 101.4 9,465.3 Buildings and improvements 1,508.4 57.9 (10.0) 126.9 — — 21.4 1,704.6 Construction-in-progress - landfill 279.3 390.9 — 38.6 — — (350.5) 358.3 Construction-in-progress - other 182.9 338.0 (0.2) (1.1) — — (161.0) 358.6 Total $ 19,782.0 $ 1,563.3 $ (284.5) $ 1,139.8 $ 60.1 $ 20.2 $ (40.2) $ 22,240.7 Accumulated Depreciation, Amortization and Depletion Balance as of December 31, 2021 Additions Charged to Expense Retirements Acquisitions, Net of Divestitures Adjustments for Asset Retirement Obligations Impairments, Transfers and Other Adjustments Balance as of December 31, 2022 Landfill development costs $ (4,625.6) $ (440.1) $ — $ (1.6) $ 5.7 $ 2.7 $ (5,058.9) Vehicles and equipment (5,231.6) (735.9) 265.7 7.6 — 14.3 (5,679.9) Buildings and improvements (692.7) (79.4) 6.9 0.6 — 6.7 (757.9) Total $ (10,549.9) $ (1,255.4) $ 272.6 $ 6.6 $ 5.7 $ 23.7 $ (11,496.7) Liquidity and Capital Resources Cash and Cash Equivalents The following is a summary of our cash and cash equivalents and restricted cash and marketable securities balances as of December 31: 2023 2022 Cash and cash equivalents $ 140.0 $ 143.4 Restricted cash and marketable securities 163.6 127.6 Less: restricted marketable securities (76.1) (56.7) Cash, cash equivalents, restricted cash and restricted cash equivalents $ 227.5 $ 214.3 Our restricted cash and marketable securities include amounts pledged to regulatory agencies and governmental entities as financial guarantees of our performance under certain collection, landfill and transfer station contracts and permits, and relating to our final capping, closure and post-closure obligations at our landfills as well as restricted cash and marketable securities related to our insurance obligations.
For additional detail regarding our lease obligations, see Note 10, Leases , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K. Acquisitions Our acquisition growth strategy focuses primarily on acquiring privately held recycling and solid waste companies and environmental solutions businesses that complement our existing business platform.
For additional detail regarding our lease obligations, see Note 10, Leases , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K. Acquisitions Our acquisition growth strategy focuses primarily on acquiring privately held recycling and waste companies and environmental solutions businesses that complement our existing business platform.
(Gain) loss on Business Divestitures and Impairments, Net We strive to have a leading market position in each of the markets we serve, or have a clear path on how we will achieve a leading market position over time.
Gain on Business Divestitures and Impairments, Net We strive to have a leading market position in each of the markets we serve, or have a clear path on how we will achieve a leading market position over time.
For additional discussion and detail regarding our income taxes, see Note 11, Income Taxes , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K. 42 Table of Contents Reportable Segments Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3.
For additional discussion and detail regarding our income taxes, see Note 11, Income Taxes , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K. 43 Table of Contents Reportable Segments Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3.
We discuss in more detail various factors that could cause actual results to differ from expectations in Part I, Item 1A, Risk Factors in this Annual Report on Form 10-K. For further discussion regarding our results of operations for the year ended December 31, 2021 as compared to the year ended December 31, 2020, refer to Part II, Item 7.
We discuss in more detail various factors that could cause actual results to differ from expectations in Part I, Item 1A, Risk Factors in this Annual Report on Form 10-K. For further discussion regarding our results of operations for the year ended December 31, 2022 as compared to the year ended December 31, 2021, refer to Part II, Item 7.
For totals as well as further detail regarding our reportable segments and the adjustments used to calculate gross Adjusted EBITDA, net Adjusted EBITDA and adjusted EBITDA margin for each segment, see Note 15, Segment Reporting , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
For totals as well as further detail regarding our reportable segments and the adjustments used to calculate gross Adjusted EBITDA for each segment, see Note 15, Segment Reporting , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
(net income – Republic) and diluted earnings per share as noted in the following table (in millions, except per share data). Additionally, see our Results of Operations section of this Management's Discussion and Analysis of Financial Condition and Results of Operations for a discussion of other items that impacted our earnings during the years ended December 31, 2022 and 2021.
(net income – Republic) and diluted earnings per share as noted in the following table (in millions, except per share data). Additionally, see our Results of Operations section of this Management's Discussion and Analysis of Financial Condition and Results of Operations for a discussion of other items that impacted our earnings during the years ended December 31, 2023 and 2022.
For additional detail regarding our debt and known contractual and other obligation, see Note 9, Debt, and Note 19, Commitments and Contingencies , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
For additional detail regarding our debt and known contractual and other obligations, see Note 9, Debt, and Note 19, Commitments and Contingencies , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
These estimates are subject to uncertainty attributable to: • Incident rates, including frequency and severity and other actuarial assumptions could change causing our current and future actuarially determined obligations to change, which would be reflected in our consolidated statements of income in the period in which such adjustment is known. • Recorded reserves may not be adequate to cover the future payment of claims.
These estimates are subject to uncertainty attributable to: • Incident rates, including frequency and severity and other actuarial assumptions could change causing our current and future actuarially determined obligations to change, which would be reflected in our consolidated statements of income in the period in which such adjustment is known. 60 Table of Contents • Recorded reserves may not be adequate to cover the future payment of claims.
We do not expect a material increase in financial assurance requirements during 2023, although the mix of Financial Assurance Instruments may change. These Financial Assurance Instruments are issued in the normal course of business and are not classified as indebtedness.
We do not expect a material increase in financial assurance requirements during 2024, although the mix of Financial Assurance Instruments may change. These Financial Assurance Instruments are issued in the normal course of business and are not classified as indebtedness.
In addition, maturity acceleration on the Credit Facility constitutes an event of default under our other debt and derivative instruments, including our senior notes, and, therefore, our senior notes would also be subject to acceleration of maturity. If such 52 Table of Contents acceleration were to occur, we would not have sufficient liquidity available to repay the indebtedness.
In addition, maturity acceleration on the Credit Facility constitutes an event of default under our other debt and derivative instruments, including our senior notes, and, therefore, our senior notes would also be subject to acceleration of maturity. If such acceleration were to occur, we would not have sufficient liquidity available to repay the indebtedness.
Denial or revocation of a permit could impair the recorded value of the landfill asset. • Actions by neighboring parties, private citizen groups or others to oppose our efforts to obtain, maintain or expand permits could result in denial, revocation or suspension of a permit, which could adversely impact the economic viability of the landfill and could impair the recorded value of the landfill.
Denial or revocation of a permit could impair the recorded value of the landfill asset. 56 Table of Contents • Actions by neighboring parties, private citizen groups or others to oppose our efforts to obtain, maintain or expand permits could result in denial, revocation or suspension of a permit, which could adversely impact the economic viability of the landfill and could impair the recorded value of the landfill.
The per-ton rate is calculated by dividing the sum of each of the recorded retirement obligation asset’s net book value and expected future additions to the retirement obligation asset by the remaining disposal capacity. A per-ton rate is determined for each separate capping event based on the disposal capacity relating to that event.
The per-ton rate is calculated by dividing the sum of each of the recorded retirement obligation asset’s net book 58 Table of Contents value and expected future additions to the retirement obligation asset by the remaining disposal capacity. A per-ton rate is determined for each separate capping event based on the disposal capacity relating to that event.
Group 1 is our recycling and solid waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and solid waste business operating primarily in geographic areas located in the southeastern and mid-western United States and the eastern seaboard of the United States.
Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada.
Landfill retirement obligations are capitalized as the related liabilities are recognized and amortized using the units-of-consumption method over the airspace consumed within the capping event or the airspace consumed within the entire landfill, depending on the nature of the obligation. All obligations are initially measured at 56 Table of Contents estimated fair value.
Landfill retirement obligations are capitalized as the related liabilities are recognized and amortized using the units-of-consumption method over the airspace consumed within the capping event or the airspace consumed within the entire landfill, depending on the nature of the obligation. All obligations are initially measured at estimated fair value.
We perform a comprehensive review of our environmental obligations annually and also review changes in facts and circumstances associated with these obligations at least quarterly. See our Results of Operations section in this Management's Discussion and 58 Table of Contents Analysis of Financial Condition and Results of Operations for discussion on our remediation adjustments.
We perform a comprehensive review of our environmental obligations annually and also review changes in facts and circumstances associated with these obligations at least quarterly. See our Results of Operations section in this Management's Discussion and Analysis of Financial Condition and Results of Operations for discussion on our remediation adjustments.
The financial assurance requirements for capping, closure and post-closure costs may be associated with a portion of the landfill or the entire landfill. Generally, states require a third-party engineering specialist to determine the estimated capping, closure and post-closure costs that are used to determine the required amount of financial assurance for a landfill.
The financial assurance requirements for capping, closure and post-closure costs may be associated with a portion of the landfill 55 Table of Contents or the entire landfill. Generally, states require a third-party engineering specialist to determine the estimated capping, closure and post-closure costs that are used to determine the required amount of financial assurance for a landfill.
Changes in the assets result in changes to the amortization rates which are applied prospectively, except for fully incurred capping events and closed 57 Table of Contents landfills, where the changes are recorded immediately in results of operations since the associated disposal capacity has already been consumed.
Changes in the assets result in changes to the amortization rates which are applied prospectively, except for fully incurred capping events and closed landfills, where the changes are recorded immediately in results of operations since the associated disposal capacity has already been consumed.
Future minimum payments under unconditional purchase commitments consist primarily of (1) disposal related agreements, which include fixed or minimum royalty payments, host agreements and take-or-pay and put-or-pay agreements and (2) other obligations including committed capital expenditures and consulting service agreements.
Future minimum payments under unconditional purchase commitments consist primarily of (1) disposal related agreements, which include fixed or minimum royalty payments, host agreements and take-or-pay and put-or-pay 50 Table of Contents agreements and (2) other obligations including committed capital expenditures and consulting service agreements.
In the case of an "elevated ratio period", which may be elected by us if one or more acquisitions during a fiscal quarter involve aggregate consideration in excess of $200.0 million (the Trigger Quarter), the total debt to EBITDA ratio may not exceed 4.25 to 1.00 during the Trigger Quarter and each of the following three fiscal quarters.
In the case of an "elevated ratio period", which may be elected by us if one or more acquisitions during a fiscal quarter involve aggregate consideration in excess of $200.0 million (the Trigger Quarter), the total debt to EBITDA ratio may not exceed 4.25 to 1.00 during the Trigger Quarter and for the three fiscal quarters thereafter.
Accruals for deductibles or retentions are based on claims filed and actuarial estimates of claims development and claims incurred but not reported. As of December 31, 2022 and 2021, our insurance reserves were $502.6 million and $497.4 million, respectively. Changes in these estimates may be sensitive to changes in the frequency, severity and settlement amount of claims.
Accruals for deductibles or retentions are based on claims filed and actuarial estimates of claims development and claims incurred but not reported. As of December 31, 2023 and 2022, our insurance reserves were $565.4 million and $502.6 million, respectively. Changes in these estimates may be sensitive to changes in the frequency, severity and settlement amount of claims.
We have noted examples of the estimates that are subject to uncertainty in the accounting for these areas below. 54 Table of Contents Landfill Accounting Landfill operating costs are treated as period expenses and are not discussed further in this section.
We have noted examples of the estimates that are subject to uncertainty in the accounting for these areas below. Landfill Accounting Landfill operating costs are treated as period expenses and are not discussed further in this section.
If we are unsuccessful in obtaining permits for probable expansion disposal capacity, or the disposal capacity for which we obtain approvals is less than what was estimated, both our estimated total costs and disposal capacity will be reduced, which generally increases the rates we charge for landfill amortization and capping, closure and post-closure accruals.
If we are unsuccessful in 59 Table of Contents obtaining permits for probable expansion disposal capacity, or the disposal capacity for which we obtain approvals is less than what was estimated, both our estimated total costs and disposal capacity will be reduced, which generally increases the rates we charge for landfill amortization and capping, closure and post-closure accruals.
For these landfills, the following table reflects changes in capacity and remaining capacity, as measured in cubic yards of airspace as of December 31, 2022.
For these landfills, the following table reflects changes in capacity and remaining capacity, as measured in cubic yards of airspace as of December 31, 2023.
We secure significant landfill assets through business acquisitions and value them at the time of acquisition based on fair value. Amortization rates are also influenced by site-specific engineering and cost factors.
We secure significant landfill assets through business acquisitions and 57 Table of Contents value them at the time of acquisition based on fair value. Amortization rates are also influenced by site-specific engineering and cost factors.
In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $500.0 million outstanding at any one time (the Commercial Paper Cap). In August 2022, the Commercial Paper Cap was increased to $1.0 billion.
In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $500.0 million outstanding at any one time (the Commercial Paper Cap). In August 2022, the Commercial Paper Cap was increased to $1.0 billion, and in October 2023, was subsequently increased to $1.5 billion.
Capping, closure and post-closure liabilities are recorded in layers and discounted using our credit-adjusted risk-free rate in effect at the time the obligation is incurred (4.2% in 2022 and 3.4% in 2021 ).
Capping, closure and post-closure liabilities are recorded in layers and discounted using our credit-adjusted risk-free rate in effect at the time the obligation is incurred (5.3% in 2023 and 4.2% in 2022 ).
These state net operating loss carryforwards expire at various times between 2023 and 2042. We believe that it is more likely than not that the benefit from some of our state net operating loss carryforwards will not be realized due to limitations on these loss carryforwards in certain states.
These state net operating loss carryforwards expire at various times between 2024 and 2043. We believe that it is more likely than not that the benefit from some of our state net operating loss carryforwards will not be realized due to limitations on these loss carryforwards in certain states.
Our total expected investment, excluding non-depletable land, estimated to be $15.6 billion, or $3.11 per cubic yard, is used in determining our depletion and amortization expense based on airspace consumed using the units-of-consumption method.
Our total expected investment, excluding non-depletable land, estimated to be $15.9 billion, or $3.12 per cubic yard, is used in determining our depletion and amortization expense based on airspace consumed using the units-of-consumption method.
Amortization of Other Intangible Assets Expenses for amortization of other intangible assets were $53.9 million, or 0.4% of revenue, for the year ended December 31, 2022, compared to $33.3 million, or 0.3% of revenue, for 2021. Amortization expense increased due to additional assets acquired as a result of our business acquisitions.
Amortization of Other Intangible Assets Expenses for amortization of other intangible assets were $66.3 million, or 0.4% of revenue, for the year ended December 31, 2023, compared to $53.9 million, or 0.4% of revenue, for 2022. Amortization expense increased due to additional assets acquired as a result of our business acquisitions.
Amortization of Other Assets Our other assets primarily relate to the prepayment of fees and capitalized implementation costs associated with cloud-based hosting arrangements. Expenses for amortization of other assets were $52.1 million, or 0.4%, for the year ended December 31, 2022, compared to $40.5 million, or 0.4% revenue, for 2021.
Amortization of Other Assets Our other assets primarily relate to the prepayment of fees and capitalized implementation costs associated with cloud-based hosting arrangements. Expenses for amortization of other assets were $66.7 million, or 0.5% of revenue, for the year ended December 31, 2023, compared to $52.1 million, or 0.4% of revenue, for 2022.
Derivative Instruments and Hedging Relationships Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt.
Interest is payable semi-annually. 54 Table of Contents Derivative Instruments and Hedging Relationships Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt.
As of December 31, 2022, we recorded a quarterly dividend payable of $156.4 million to shareholders of record at the close of business on January 3, 2023, which was paid on January 13, 2023. Debt and other long-term obligations Debt repayments may include purchases of our outstanding indebtedness in the secondary market or otherwise.
As of December 31, 2023, we recorded a quarterly dividend payable of $168.3 million to shareholders of record at the close of business on January 2, 2024, which was paid on January 13, 2024. Debt and other long-term obligations Debt repayments may include purchases of our outstanding indebtedness in the secondary market or otherwise.
During 2022 and 2021, we received $50.6 million and $46.3 million from business divestitures, respectively. We intend to finance capital expenditures and acquisitions through cash on hand, restricted cash held for capital expenditures, cash flows from operations, our revolving credit facilities and tax-exempt bonds and other financings.
During 2023 and 2022, we received $6.4 million and $50.6 million from business divestitures, respectively. We intend to finance capital expenditures and acquisitions through cash on hand, restricted cash held for capital expenditures, cash flows from operations, our revolving credit facilities and tax-exempt bonds and other financings.
As of December 31, 2022 and 2021, our asset retirement obligations related to capping, closure and post-closure were $1,786.4 million and $1,507.3 million, respectively. Changes in these estimates may be sensitive to changes in available airspace, cost estimates, inflation, our credit-adjusted, risk-free interest rate and applicable regulations.
As of December 31, 2023 and 2022, our asset retirement obligations related to capping, closure and post-closure were $1,937.2 million and $1,786.4 million, respectively. Changes in these estimates may be sensitive to changes in available airspace, cost estimates, inflation, our credit-adjusted, risk-free interest rate and applicable regulations.
In addition, cash paid for interest was $311.5 million and $249.4 million, excluding net swap settlements for our fixed to floating interest rate swaps, for 2022 and 2021, respectively. We use cash flows from operations to fund capital expenditures, acquisitions, dividend payments, debt repayments and share repurchases.
In addition, cash paid for interest was $422.9 million and $311.5 million, excluding net swap settlements for our fixed to floating interest rate swaps, for 2023 and 2022, respectively. We use cash flows from operations to fund capital expenditures, acquisitions, dividend payments, debt repayments and share repurchases.
The average price for recycled commodities, excluding glass and organics for 2022 was $170 per ton compared to $187 per ton for 2021. Changing market demand for recycled commodities causes volatility in commodity prices.
The average price for recycled commodities, excluding glass and organics for 2023 was $117 per ton compared to $170 per ton for 2022. Changing market demand for recycled commodities causes volatility in commodity prices.
Our cost estimates are inflated to the period of performance using an estimate of inflation, which is updated annually and is based upon the ten year average consumer price index (1.9% in 2022 and 1.7% in 2021).
Our cost estimates are inflated to the period of performance using an estimate of inflation, which is updated annually and is based upon the ten year average consumer price index (2.0% in 2023 and 1.9% in 2022).
The volume increase in our landfill line of business is primarily attributable to increased special waste, construction and demolition, and solid waste volumes. • Recycling processing and commodity sales decreased revenue by 0.6% primarily due to a decrease in overall commodity prices as compared to 2021.
The volume increase in our landfill line of business is primarily attributable to increased special waste and solid waste volumes, partially offset by a decrease in volume in our construction and demolition line of business. • Recycling processing and commodity sales decreased revenue by 0.5% primarily due to a decrease in overall commodity prices as compared to 2022.
Accretion Expense Accretion expense was $89.6 million, or 0.7% of revenue, and $82.7 million, or 0.7% of revenue, for the years ended December 31, 2022 and 2021, respectively. Accretion expense increased in aggregate dollars due to acquired asset retirement obligations.
Accretion Expense Accretion expense was $97.9 million, or 0.7% of revenue, and $89.6 million, or 0.7% of revenue, for the years ended December 31, 2023 and 2022, respectively. Accretion expense increased in aggregate dollars due to acquired asset retirement obligations.
Uncommitted Credit Facility In January 2022, we entered into a $200.0 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility), which replaced the prior $135.0 million uncommitted credit facility. The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties.
Credit Facilities Uncommitted Credit Facility In January 2022, we entered into a $200.0 million unsecured uncommitted revolving credit facility (the Uncommitted Credit Facility). The Uncommitted Credit Facility bears interest at an annual percentage rate to be agreed upon by both parties.
On May 2, 2022 , we completed the acquisition of US Ecology using proceeds from the Term Loan Facility and borrowings under the Credit Facility. We had $1.0 billion in borrowings outstanding under the Term Loan Facility as of December 31, 2022.
On May 2, 2022 , we completed the acquisition of US Ecology using proceeds from the Term Loan Facility and borrowings under the Credit Facility. We had $500.0 million and $1.0 billion of borrowings outstanding under the Term Loan Facility as of December 31, 2023 and 2022, respectively.
We also measure changes in average yield and core price as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue to determine the effectiveness of our pricing strategies. 37 Table of Contents The following table reflects average yield and core price as a percentage of related-business revenue for the years ended December 31, 2022 and 2021: Years Ended December 31, 2022 2021 As a % of Related Business Average yield 5.7 % 3.1 % Core price 7.3 % 5.3 % During 2022, we experienced the following changes in our revenue as compared to 2021: • Average yield increased revenue by 5.2% due to positive pricing changes in all our collection and disposal lines of business. • The fuel recovery fee program, which mitigates our exposure to increases in fuel prices, increased revenue by 2.6%, primarily due to an increase in fuel prices compared to 2021 and an increase in the total revenue subject to the fuel recovery fees. • Volume increased revenue by 2.4% during 2022 as compared to 2021 primarily due to volume growth in our landfill and all our collection lines of business, partially offset by a decrease in volume in our transfer line of business.
We also measure changes in average yield and core price as a percentage of related-business revenue, defined as total revenue excluding recycled commodities, fuel recovery fees and environmental solutions revenue to determine the effectiveness of our pricing strategies. 38 Table of Contents The following table reflects average yield, core price and volume as a percentage of related-business revenue for the years ended December 31, 2023 and 2022: Years Ended December 31, 2023 2022 As a % of Related Business Average yield 7.3 % 5.7 % Core price 8.9 % 7.3 % Volume 0.7 % 2.6 % During 2023, we experienced the following changes in our revenue as compared to 2022: • Average yield increased revenue by 6.1% due to positive pricing changes in all our collection and disposal lines of business. • The fuel recovery fee program, which mitigates our exposure to increases in fuel prices, decreased revenue by 0.2%, primarily due to a decrease in fuel prices compared to 2022, partially offset by an increase of total revenue subject to the fuel recovery fees. • Volume increased revenue by 0.5% during 2023 as compared to 2022 primarily due to volume growth in our landfill and our small container collection lines of business, partially offset by a decrease in volume in our large container and residential collections lines of business and our transfer line of business.
We continue to invest in value-enhancing acquisitions in existing markets. We expect to invest at least $500 million in acquisitions in 2023. Dividend Payments In October 2022 , our Board of Directors approved a quarterly dividend of $0.495 per share. Aggregate cash dividends declared were $603.4 million for the year ended December 31, 2022.
We continue to invest in value-enhancing acquisitions in existing markets. We expect to invest at least $500 million in acquisitions in 2024. Dividend Payments In October 2023 our Board of Directors approved a quarterly dividend of $0.535 per share. Aggregate cash dividends declared were $650.0 million for the year ended December 31, 2023.
Changes in assets and liabilities, net of effects from business acquisitions and divestitures, decreased our cash flow from operations by $231.0 million in 2022, compared to a decrease of $94.0 million during the same period in 2021, primarily as a result of the following: • Our accounts receivable, exclusive of the change in allowance for doubtful accounts and customer credits, increased $198.8 million during 2022, due to the timing of billings net of collections, compared to a $135.4 million increase in the same period in 2021.
Changes in assets and liabilities, net of effects from business acquisitions and divestitures, decreased our cash flow from operations by $90.6 million in 2023, compared to a decrease of $231.0 million during the same period in 2022, primarily as a result of the following: • Our accounts receivable, exclusive of the change in allowance for doubtful accounts and customer credits, increased $71.3 million during 2023, due to the timing of billings net of collections, compared to a $198.8 million increase in the same period in 2022.
As of December 31, 2022, our environmental liabilities totaled $487.5 million, of which $57.4 million was short-term. For additional detail regarding our asset retirement obligations and environmental liabilities, see Note 8, Landfill and Environmental Costs , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
As of December 31, 2023, our environmental liabilities totaled $485.4 million, of which $69.2 million was short-term. For additional detail regarding our asset retirement obligations and environmental liabilities, see Note 8, Landfill and Environmental Costs , of the notes to our audited consolidated financial statements in Part II, Item 8 of this Annual Report on Form 10-K.
It also includes transfer and disposal costs representing tipping fees paid to third party disposal facilities and transfer stations; maintenance and repairs relating to our vehicles, equipment and containers, including related labor and benefit costs; transportation and subcontractor costs, which include costs for independent haulers that transport our waste to disposal facilities and costs for local operators that provide waste handling services associated with our National Accounts in markets outside our standard operating areas; fuel, which includes the direct cost of fuel used by our vehicles, net of fuel tax credits; disposal fees and taxes, consisting of landfill taxes, host community fees and royalties; landfill operating costs, which includes financial assurance, leachate disposal, remediation charges and other landfill maintenance costs; risk management costs, which include insurance premiums and claims; cost of goods sold, which includes material costs paid to suppliers; and other, which includes expenses such as facility operating costs, equipment rent and gains or losses on sale of assets used in our operations. 38 Table of Contents The following table summarizes the major components of our cost of operations for the years ended December 31, 2022 and 2021 (in millions of dollars and as a percentage of revenue): 2022 2021 Labor and related benefits $ 2,702.9 20.0 % $ 2,324.4 20.6 % Transfer and disposal costs 992.9 7.3 865.8 7.7 Maintenance and repairs 1,228.4 9.1 1,048.8 9.3 Transportation and subcontract costs 1,086.5 8.0 779.5 6.9 Fuel 631.1 4.7 383.0 3.4 Disposal fees and taxes 342.3 2.5 336.6 3.0 Landfill operating costs 283.2 2.1 258.9 2.3 Risk management 321.4 2.4 261.6 2.3 Other 616.0 4.6 479.1 4.2 Subtotal 8,204.7 60.7 6,737.7 59.7 US Ecology, Inc. acquisition integration and deal costs 0.3 — — — Total cost of operations $ 8,205.0 60.7 % $ 6,737.7 59.7 % These cost categories may change from time to time and may not be comparable to similarly titled categories presented by other companies.
It also includes transfer and disposal costs representing tipping fees paid to third party disposal facilities and transfer stations; maintenance and repairs relating to our vehicles, equipment and containers, including related labor and benefit costs; transportation and subcontractor costs, which include costs for independent haulers that transport our waste to disposal facilities and costs for local operators that provide waste handling services associated with our National Accounts in markets outside our standard operating areas; fuel, which includes the direct cost of fuel used by our vehicles, net of fuel tax credits; disposal fees and taxes, consisting of landfill taxes, host community fees and royalties; landfill operating costs, which includes financial assurance, leachate disposal, remediation charges and other landfill maintenance costs; risk management costs, which include insurance premiums and claims; and other, which includes expenses such as facility operating costs, equipment rent and gains or losses on the sale of assets used in our operations. 39 Table of Contents The following table summarizes the major components of our cost of operations for the years ended December 31, 2023 and 2022 (in millions of dollars and as a percentage of revenue): 2023 2022 Labor and related benefits $ 2,993.9 20.0 % $ 2,702.9 20.0 % Transfer and disposal costs 1,056.3 7.1 992.9 7.3 Maintenance and repairs 1,388.3 9.3 1,228.4 9.1 Transportation and subcontract costs 1,171.0 7.8 1,086.5 8.0 Fuel 541.6 3.6 631.1 4.7 Disposal fees and taxes 347.9 2.3 342.3 2.5 Landfill operating costs 333.0 2.2 283.2 2.1 Risk management 385.2 2.6 321.4 2.4 Other 725.0 4.9 616.0 4.6 Subtotal 8,942.2 59.8 8,204.7 60.7 US Ecology, Inc. acquisition integration and deal costs — — 0.3 — Total cost of operations $ 8,942.2 59.8 % $ 8,205.0 60.7 % These cost categories may change from time to time and may not be comparable to similarly titled categories presented by other companies.
Changes in engineering estimates typically include modifications to the available disposal capacity of a landfill based on a refinement of the capacity calculations resulting from updated information. 44 Table of Contents Available Airspace As of December 31, 2022 , we owned or operated 206 active landfills with total available disposal capacity estimated to be 5.0 billion in-place cubic yards.
Changes in engineering estimates typically include modifications to the available disposal capacity of a landfill based on a refinement of the capacity calculations resulting from updated information. 45 Table of Contents Available Airspace As of December 31, 2023 , we owned or operated 207 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards.
Borrowings under the Credit Facility mature in August 2026. As permitted by the Credit Facility, we have the right to request two one-year extensions of the maturity date, but none of the lenders are committed to participate in such extension.
As permitted by the Credit Facility, we have the right to request two one-year extensions of the maturity date, but none of the lenders are committed to participate in such extension.
Asset Retirement Obligations and Environmental Liabilities We have future obligations for final capping, closure and post-closure costs with respect to the landfills we own or operate as set forth in applicable landfill permits. As of December 31, 2022, our future obligations for final capping, closure and post-closure costs totaled $1.8 billion, of which $75.2 million was short-term.
Asset Retirement Obligations and Environmental Liabilities We have future obligations for final capping, closure and post-closure costs with respect to the landfills we own or operate as set forth in applicable landfill permits. As of December 31, 2023, our future obligations for final capping, closure and post-closure costs totaled $1.9 billion, of which $72.4 million was short-term.
Cash Flows Used in Investing Activities The most significant items affecting the comparison of our cash flows used in investing activities for 2022 and 2021 are summarized below: • Capital expenditures during 2022 were $1,454.0 million as compared to $1,316.3 million for 2021. • Proceeds from sales of property and equipment during 2022 were $32.8 million as compared to $19.5 million for 2021. • During 2022 and 2021, we used $3,038.5 million and $1,221.7 million, respectively, for acquisitions and investments, net of cash acquired, including the cash used for the acquisition of US Ecology.
Cash Flows Used in Investing Activities The most significant items affecting the comparison of our cash flows used in investing activities for 2023 and 2022 are summarized below: • Capital expenditures during 2023 were $1,631.1 million as compared to $1,454.0 million for 2022. • Proceeds from sales of property and equipment during 2023 were $29.2 million as compared to $32.8 million for 2022. • During 2023 and 2022, we used $2,065.3 million and $3,038.5 million, respectively, for acquisitions and investments, net of cash acquired, including the cash used for the acquisition of US Ecology in 2022.
The following table summarizes our restricted cash and marketable securities as of December 31: 2022 2021 Financing proceeds $ — $ 12.4 Capping, closure and post-closure obligations 39.1 42.4 Insurance 88.5 84.2 Total restricted cash and marketable securities $ 127.6 $ 139.0 48 Table of Contents Material Cash Requirements and Intended Uses of Cash We expect existing cash, cash equivalents, restricted cash and marketable securities, cash flows from operations and financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter for the foreseeable future.
The following table summarizes our restricted cash and marketable securities as of December 31: 2023 2022 Capping, closure and post-closure obligations 43.2 39.1 Insurance 120.4 88.5 Total restricted cash and marketable securities $ 163.6 $ 127.6 49 Table of Contents Material Cash Requirements and Intended Uses of Cash We expect existing cash, cash equivalents, restricted cash and marketable securities, cash flows from operations and financing activities to continue to be sufficient to fund our operating activities and cash commitments for investing and financing activities for at least the next 12 months and thereafter for the foreseeable future.
We have not reduced the liabilities we have recorded for recoveries from other potentially responsible parties or insurance companies. As of December 31, 2022 and 2021, we had $487.5 million and $454.9 million of environmental liabilities, respectively.
We have not reduced the liabilities we have recorded for recoveries from other potentially responsible parties or insurance companies. As of December 31, 2023 and 2022, we had $485.4 million and $487.5 million of environmental liabilities, respectively.
Our net income attributable to Republic Services, Inc. was $1,487.6 million, or $4.69 per diluted share for 2022, compared to $1,290.4 million, or $4.04 per diluted share, for 2021. During 2022 and 2021, we recorded a number of charges, other expenses and benefits that impacted our pre-tax income, tax impact, net income attributable to Republic Services, Inc.
Our net income attributable to Republic Services, Inc. was $1,731.0 million, or $5.47 per diluted share, for 2023, compared to $1,487.6 million, or $4.69 per diluted share, for 2022. During 2023 and 2022, we recorded a number of charges, other expenses and benefits that impacted our pre-tax income, tax impact, net income attributable to Republic Services, Inc.
Cash Flows Used in Financing Activities The most significant items affecting the comparison of our cash flows used in financing activities for 2022 and 2021 are summarized below: • We issued no senior notes during 2022. During 2021, we issued $700.0 million of senior notes for cash proceeds, net of discounts and fees, of $692.3 million.
Cash Flows Used in Financing Activities The most significant items affecting the comparison of our cash flows used in financing activities for 2023 and 2022 are summarized below: • During 2023, we issued $2,200.0 million of senior notes for cash proceeds, net of discounts and fees, of $2,172.3 million. We issued no senior notes during 2022.
Investment in Landfills As of December 31, 2022, we expect to spend an estimated additional $10.7 billion on existing landfills, primarily related to cell construction and environmental structures, over their remaining lives.
Investment in Landfills As of December 31, 2023, we expect to spend an estimated additional $11.2 billion on existing landfills, primarily related to cell construction and environmental structures, over their remaining lives.
Obligations associated with final capping, closure and post-closure are also capitalized and amortized on a units-of-consumption basis as airspace is consumed. Cost and airspace estimates are developed at least annually by engineers. Landfill Development Costs As of December 31, 2022 and 2021, we had net landfill development costs of $4,515.3 million and $3,914.0 million, respectively.
Obligations associated with final capping, closure and post-closure are also capitalized and amortized on a units-of-consumption basis as airspace is consumed. Cost and airspace estimates are developed at least annually by engineers. Landfill Development Costs As of December 31, 2023 and 2022, we had net landfill development costs of $4,745.4 million and $4,873.6 million, respectively.
As of December 31, 2022, the remaining authorized purchase capacity under our October 2020 repurchase program was $1.5 billion. Summary of Cash Flow Activity The major components of changes in cash flows for 2022 and 2021 are discussed in the following paragraphs.
As of December 31, 2023, the remaining authorized purchase capacity under our October 2023 repurchase program was $3.0 billion. Summary of Cash Flow Activity The major components of changes in cash flows for 2023 and 2022 are discussed in the following paragraphs.
Net proceeds of notes payable and long-term debt were $2,164.6 million during 2022, compared to net payments of $150.2 million in 2021. For a more detailed discussion, see the Financial Condition section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations. • During 2022, we repurchased 1.6 million shares of our stock for $203.5 million.
Net payments of notes payable and long-term debt were $1,189.7 million during 2023, compared to net proceeds of $2,164.6 million in 2022. For a more detailed discussion, see the Financial Condition section of this Management’s Discussion and Analysis of Financial Condition and Results of Operations. • During 2023, we repurchased 1.8 million shares of our stock for $261.8 million.
During the year ended December 31, 2022, we incurred $77.3 million of acquisition integration and deal costs in connection with the acquisition of US Ecology, which included certain costs to close the acquisition and integrate the business, including stock compensation expense for unvested awards at closing as well as severance and change-in-control payments.
In 2023 and 2022, we incurred acquisition integration and deal costs of $33.5 million and $77.3 million, respectively, in connection with the acquisition of US Ecology, which included certain costs to close the acquisition and integrate the business, including stock compensation expense for unvested awards at closing as well as severance and change-in-control payments.
As of December 31, 2022, 13 of our landfills met all of our criteria for including their probable expansion airspace in their total available disposal capacity. At projected annual volumes, these 13 landfills have an estimated remaining average site life of 32 years, including probable expansion airspace. The average estimated remaining life of all of our landfills is 58 years.
As of December 31, 2023, 14 of our landfills met all of our criteria for including their probable expansion airspace in their total available disposal capacity. At projected annual volumes, these 14 landfills have an estimated remaining average site life of 52 years, including probable expansion airspace. The average estimated remaining life of all of our landfills is 57 years.
Income taxes paid in 2022 and 2021 reflected benefits from tax credits from our continuing investments in solar energy. • Our accounts payable increased $106.4 million during 2022 compared to a $113.8 million increase during 2021, due to the timing of payments. 50 Table of Contents • Cash paid for capping, closure and post-closure obligations was $64.6 million during 2022 compared to $59.6 million for 2021.
Income taxes paid in 2023 and 2022 reflected benefits from tax credits from our continuing investments in renewable energy. 51 Table of Contents • Our accounts payable increased $82.8 million during 2023 compared to a $106.4 million increase during 2022, due to the timing of payments. • Cash paid for capping, closure and post-closure obligations was $60.8 million during 2023 compared to $64.6 million for 2022.
The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $1.0 billion through increased commitments from existing lenders or the addition of new lenders.
The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $1.0 billion through increased commitments from existing lenders or the addition of new lenders. In October 2023, we completed an upsize of the Credit Facility to $3.5 billion.
GAAP, provide an understanding of operational activities before the financial impact of certain items. We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period.
We use these measures, and believe investors will find them helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate impact on our results for a particular period.
We expect to receive between $1.65 billion to $1.67 billion of property and equipment, net of proceeds from the sale of property and equipment, in 2023. We lease property and equipment in the ordinary course of business under various lease agreements.
We expect to receive between $1.760 billion to $1.800 billion of property and equipment, net of proceeds from the sale of property and equipment, in 2024. We lease property and equipment in the ordinary course of business under various lease agreements.
The following table summarizes our cash flow from operating activities, investing activities and financing activities for the years ended December 31, 2022 and 2021 (in millions of dollars): 2022 2021 Net cash provided by operating activities $ 3,190.0 $ 2,786.7 Net cash used in investing activities $ (4,423.0) $ (2,466.1) Net cash provided by (used in) financing activities $ 1,344.2 $ (329.2) Cash Flows Provided by Operating Activities The most significant items affecting the comparison of our operating cash flows for 2022 and 2021 are summarized below.
The following table summarizes our cash flow from operating activities, investing activities and financing activities for the years ended December 31, 2023 and 2022 (in millions of dollars): 2023 2022 Net cash provided by operating activities $ 3,617.8 $ 3,190.0 Net cash used in investing activities $ (3,666.8) $ (4,423.0) Net cash provided by (used in) financing activities $ 61.9 $ 1,344.2 Cash Flows Provided by Operating Activities The most significant items affecting the comparison of our operating cash flows for 2023 and 2022 are summarized below.
As of December 31, 2022, our credit ratings were BBB+, Baa2 and BBB+ by Standard & Poor’s Ratings Services, Moody’s Investors Service and Fitch Ratings, Inc., respectively.
As of December 31, 2023, our credit ratings were BBB+, Baa1 and A- by Standard & Poor’s Ratings Services, Moody’s Investors Service and Fitch Ratings, Inc., respectively.
The most significant lease obligations are for real property and equipment specific to our industry, including property operated as a landfill or transfer station and operating equipment. As of December 31, 2022, the amount of total future lease payments under operating and finance leases was $335.0 million and $430.3 million, respectively.
The most significant lease obligations are for real property and equipment specific to our industry, including property operated as a landfill or transfer station and operating equipment. As of December 31, 2023, the amount of total future lease payments under operating and finance leases was $290.4 million and $433.6 million, respectively.
The following table summarizes our selling, general and administrative expenses for the years ended December 31, 2022 and 2021 (in millions of dollars and as a percentage of revenue): 2022 2021 Salaries and related benefits $ 937.9 7.0 % $ 844.4 7.5 % Provision for doubtful accounts 41.5 0.3 19.9 0.2 Other 397.9 2.9 309.5 2.7 Subtotal 1,377.3 10.2 1,173.8 10.4 Accelerated vesting of compensation expense for CEO transition — — 22.0 0.2 US Ecology, Inc. acquisition integration and deal costs 77.0 0.6 — — Total selling, general and administrative expenses $ 1,454.3 10.8 % $ 1,195.8 10.6 % These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies.
The following table summarizes our selling, general and administrative expenses for the years ended December 31, 2023 and 2022 (in millions of dollars and as a percentage of revenue): 2023 2022 Salaries and related benefits $ 1,050.4 7.0 % $ 937.9 7.0 % Provision for doubtful accounts 53.2 0.4 41.5 0.3 Other 471.6 3.1 397.9 2.9 Subtotal 1,575.2 10.5 1,377.3 10.2 US Ecology, Inc. acquisition integration and deal costs 33.5 0.2 77.0 0.6 Total selling, general and administrative expenses $ 1,608.7 10.7 % $ 1,454.3 10.8 % These cost categories may change from time to time and may not be comparable to similarly titled categories used by other companies.
The increase in cash paid for capping, closure and post-closure obligations is primarily due to the timing of capping and post-closure payments at certain of our landfill sites. • Cash paid for remediation obligations was $2.4 million lower during 2022 compared to 2021.
The decrease in cash paid for capping, closure and post-closure obligations is primarily due to the timing of capping and post-closure payments at certain of our landfill sites. • Cash paid for remediation obligations was $0.2 million higher during 2023 compared to 2022.
Balance as of December 31, 2021 New Expansions Undertaken Landfills Acquired, Net of Divestitures Permits Granted / New Sites, Net of Closures Airspace Consumed Changes in Engineering Estimates Balance as of December 31, 2022 Cubic yards (in millions): Permitted airspace 4,826.7 — 75.2 3.3 (85.0) (3.4) 4,816.8 Probable expansion airspace 186.0 14.6 — (3.1) — — 197.5 Total cubic yards (in millions) 5,012.7 14.6 75.2 0.2 (85.0) (3.4) 5,014.3 Number of sites: Permitted airspace 198 — 10 (2) 206 Probable expansion airspace 11 3 — (1) 13 The following table reflects changes in capacity and remaining capacity for these landfills, as measured in cubic yards of airspace, as of December 31, 2021 .
Balance as of December 31, 2021 New Expansions Undertaken Landfills Acquired, Net of Divestitures Permits Granted / New Sites, Net of Closures Airspace Consumed Changes in Engineering Estimates Balance as of December 31, 2022 Cubic yards (in millions): Permitted airspace 4,826.7 — 75.2 3.3 (85.0) (3.4) 4,816.8 Probable expansion airspace 186.0 14.6 — (3.1) — — 197.5 Total cubic yards (in millions) 5,012.7 14.6 75.2 0.2 (85.0) (3.4) 5,014.3 Number of sites: Permitted airspace 198 — 10 (2) 206 Probable expansion airspace 11 3 — (1) 13 Total available disposal capacity represents the sum of estimated permitted airspace plus an estimate of probable expansion airspace.
As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods. 40 Table of Contents The most significant items affecting our selling, general and administrative expenses during 2022 as compared to 2021 are summarized below: • Salaries and related benefits increased in aggregate dollars primarily due to higher wages, benefits and other payroll related items resulting from annual merit increases, offset, in part, by lower management incentive expenses.
As such, you should take care when comparing our selling, general and administrative expenses by cost component to those of other companies and of ours for prior periods. 41 Table of Contents The most significant items affecting our selling, general and administrative expenses during 2023 as compared to 2022 are summarized below: • Salaries and related benefits increased primarily due to higher wages and benefits resulting from annual merit increases as well as higher management incentive expense as a result of outperforming our annual incentive metrics.
Commercial Paper Program In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed the Commercial Paper Cap.
Commercial Paper Program In May 2022, we entered into a commercial paper program for the issuance and sale of unsecured commercial paper in an aggregate principal amount not to exceed $500.0 million outstanding at any one time (the Commercial Paper Cap).
We have other expansion opportunities that are not included in our total available airspace because they do not meet all of our criteria for treatment as probable expansion airspace. 45 Table of Contents The following table reflects the estimated operating lives of our active landfill sites based on available and probable disposal capacity using current annual volumes as of December 31, 2022: Number of Sites without Probable Expansion Airspace Number of Sites with Probable Expansion Airspace Total Sites Percent of Total 0 to 5 years 23 — 23 11.2 % 6 to 10 years 20 — 20 9.7 11 to 20 years 27 4 31 15.0 21 to 40 years 51 4 55 26.7 41+ years 72 5 77 37.4 Total 193 13 206 100.0 % Final Capping, Closure and Post-Closure Costs As of December 31, 2022, accrued final capping, closure and post-closure costs were $1,786.4 million, of which $75.2 million were current and $1,711.2 million were long-term as reflected in our consolidated balance sheets in accrued landfill and environmental costs included in Part II, Item 8 of this Annual Report on Form 10-K.
We have other expansion opportunities that are not included in our total available airspace because they do not meet all of our criteria for treatment as probable expansion airspace. 46 Table of Contents The following table reflects the estimated operating lives of our active landfill sites based on available and probable disposal capacity using current annual volumes as of December 31, 2023: Number of Sites without Probable Expansion Airspace Number of Sites with Probable Expansion Airspace Total Sites Percent of Total 0 to 5 years 21 — 21 10.1 % 6 to 10 years 22 — 22 10.6 11 to 20 years 31 5 36 17.4 21 to 40 years 50 4 54 26.1 41+ years 69 5 74 35.8 Total 193 14 207 100.0 % Final Capping, Closure and Post-Closure Costs As of December 31, 2023, accrued final capping, closure and post-closure costs were $1,937.2 million, of which $72.4 million were current and $1,864.8 million were long-term as reflected in our consolidated balance sheets in accrued landfill and environmental costs included in Part II, Item 8 of this Annual Report on Form 10-K.
In 2023, we expect to incur restructuring charges of approximately $20 million, primarily related to the redesign of our customer billing and asset management software systems. Substantially all of these restructuring charges will be recorded in our corporate entities and other segment. (Gain) loss on business divestitures and impairments, net.
In 2024, we expect to incur restructuring charges of approximately $35 million, primarily related to the redesign of our customer billing and asset management software systems. Substantially all of these restructuring charges will be recorded in our corporate entities and other segment.
Dividends paid were $592.9 million and $552.6 million in 2022 and 2021, respectively. • During 2022 and 2021, cash paid for purchase price holdback releases and contingent purchase price related to acquisitions was $9.6 million and $21.3 million, respectively.
Dividends paid were $638.1 million and $592.9 million in 2023 and 2022, respectively. • During 2023 and 2022, cash paid for purchase price holdback releases and contingent purchase price related to acquisitions was $19.6 million and $9.6 million, respectively.
At our option, borrowings under the Credit Facility bear interest at a Base Rate, a daily floating London Interbank Offered Rate (LIBOR), or a Eurodollar Rate, plus a current applicable margin of 0.910% based on our Debt Ratings (all as defined in the Credit Facility agreement).
Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR plus a current applicable margin of 0.910% based on our Debt Ratings (all as defined in the Credit Facility agreement).
Cash paid for income taxes was $185 million and $300 million for 2022 and 2021, respectively.
Cash paid for income taxes was $343 million and $185 million for 2023 and 2022, respectively.
Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. 36 Table of Contents The following table reflects our revenue by service line for the years ended December 31, 2022 and 2021 (in millions of dollars and as a percentage of revenue): 2022 2021 Collection: Residential $ 2,642.6 19.5 % $ 2,452.8 21.7 % Small-container 3,945.7 29.2 3,417.7 30.3 Large-container 2,701.1 20.0 2,355.6 20.8 Other 53.9 0.4 52.1 0.5 Total collection 9,343.3 69.1 8,278.2 73.3 Transfer 1,574.5 1,490.0 Less: intercompany (849.8) (814.4) Transfer, net 724.7 5.4 675.6 6.0 Landfill 2,681.7 2,516.6 Less: intercompany (1,131.9) (1,092.8) Landfill, net 1,549.8 11.5 1,423.8 12.6 Environmental solutions 1,262.1 242.4 Less: intercompany (53.9) (19.5) Environmental solutions, net 1,208.2 8.9 222.9 2.0 Other: Recycling processing and commodity sales 359.3 2.7 420.5 3.7 Other non-core 326.0 2.4 274.0 2.4 Total other 685.3 5.1 694.5 6.1 Total revenue $ 13,511.3 100.0 % $ 11,295.0 100.0 % The following table reflects changes in components of our revenue, as a percentage of total revenue, for the years ended December 31, 2022 and 2021: 2022 2021 Average yield 5.2 % 2.9 % Fuel recovery fees 2.6 0.8 Total price 7.8 3.7 Volume 2.4 3.8 Change in workdays (0.1) (0.1) Recycling processing and commodity sales (0.6) 1.1 Environmental solutions 0.5 (0.1) Total internal growth 10.0 8.4 Acquisitions / divestitures, net 9.6 2.8 Total 19.6 % 11.2 % Core price 6.7 % 5.0 % Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage.
Consequently, substantially all of this revenue is offset with related subcontract costs, which are recorded in cost of operations. 37 Table of Contents The following table reflects our revenue by service line for the years ended December 31, 2023 and 2022 (in millions of dollars and as a percentage of revenue): 2023 2022 Collection: Residential $ 2,822.7 18.9 % $ 2,642.6 19.5 % Small-container 4,438.4 29.7 3,945.7 29.2 Large-container 2,922.4 19.5 2,701.1 20.0 Other 69.4 0.4 53.9 0.4 Total collection 10,252.9 68.5 9,343.3 69.1 Transfer 1,699.1 1,574.5 Less: intercompany (933.7) (849.8) Transfer, net 765.4 5.1 724.7 5.4 Landfill 2,885.4 2,681.7 Less: intercompany (1,206.0) (1,131.9) Landfill, net 1,679.4 11.2 1,549.8 11.5 Environmental solutions 1,701.4 1,262.1 Less: intercompany (76.5) (53.9) Environmental solutions, net 1,624.9 10.9 1,208.2 8.9 Other: Recycling processing and commodity sales 312.3 2.1 359.1 2.7 Other non-core 329.6 2.2 326.2 2.4 Total other 641.9 4.3 685.3 5.1 Total revenue $ 14,964.5 100.0 % $ 13,511.3 100.0 % The following table reflects changes in components of our revenue, as a percentage of total revenue, for the years ended December 31, 2023 and 2022: 2023 2022 Average yield 6.1 % 5.2 % Fuel recovery fees (0.2) 2.6 Total price 5.9 7.8 Volume 0.5 2.4 Change in workdays — (0.1) Recycling processing and commodity sales (0.5) (0.6) Environmental solutions 0.1 0.5 Total internal growth 6.0 10.0 Acquisitions / divestitures, net 4.8 9.6 Total 10.8 % 19.6 % Core price 7.4 % 6.7 % Average yield is defined as revenue growth from the change in average price per unit of service, expressed as a percentage.
In recognition of this risk, as of December 31, 2022, we have provided a valuation allowance of approximately $42 million.
In recognition of this risk, as of December 31, 2023, we have provided a valuation allowance of $43.4 million.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeExpected Maturity Date 2023 2024 2025 2026 2027 Thereafter Total Fair Value as of December 31, 2022 Fixed rate debt: Amount outstanding (in millions) $ 311.8 $ 910.4 $ 860.6 $ 508.9 $ 658.5 $ 5,212.8 $ 8,463.0 $ 7,638.5 Variable rate debt: Amount outstanding (in millions) $ 144.2 $ 20.7 $ 1,000.0 $ 1,331.8 $ — $ 942.5 $ 3,439.2 $ 3,430.2 The fixed and variable rate debt amounts above exclude the remaining non-cash discounts, premiums and adjustments to fair value totaling $116.7 million.
Biggest changeExpected Maturity Date 2024 2025 2026 2027 2028 Thereafter Total Fair Value as of December 31, 2023 Fixed rate debt: Amount outstanding (in millions) $ 911.6 $ 864.5 $ 511.0 $ 660.6 $ 811.4 $ 6,622.2 $ 10,381.3 $ 9,886.0 Variable rate debt: Amount outstanding (in millions) $ 20.7 $ 500.0 $ 874.9 $ — $ 30.0 $ 1,012.5 $ 2,438.1 $ 2,573.0 The fixed and variable rate debt amounts above exclude the remaining non-cash discounts, premiums and adjustments to fair value totaling $129.7 million.
We have historically entered into multiple swap agreements designated as cash flow hedges to manage exposure to fluctuations in interest rates on our variable rate debt. 59 Table of Contents The table below provides information about certain of our market-sensitive financial instruments and constitutes a forward-looking statement.
We have historically entered into multiple swap agreements designated as cash flow hedges to manage exposure to fluctuations in interest rates on our variable rate debt. The table below provides information about certain of our market-sensitive financial instruments and constitutes a forward-looking statement.
Changes in market supply and demand for recycled commodities causes volatility in commodity prices. In prior periods, we have entered into derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities. As of December 31, 2022, we had no recycling commodity hedges in place.
Changes in market supply and demand for recycled commodities causes volatility in commodity prices. In prior periods, we have entered into derivative instruments such as swaps and costless collars designated as cash flow hedges to manage our exposure to changes in prices of these commodities. As of December 31, 2023, we had no recycling commodity hedges in place.
Fuel Price Risk Fuel costs represent a significant operating expense. When economically practical, we may enter into new fuel hedges, renew contracts, or engage in other strategies to mitigate market risk. As of December 31, 2022, we had no fuel hedges in place.
Fuel Price Risk Fuel costs represent a significant operating expense. When economically practical, we may enter into new fuel hedges, renew contracts, or engage in other strategies to mitigate market risk. As of December 31, 2023, we had no fuel hedges in place.
Offsetting these changes in fuel expense would result in changes in our fuel recovery fee charged to our customers. At current participation rates, we believe a twenty-cent per gallon change in the price of diesel fuel would change our fuel recovery fee by approximately $31 million per year.
Offsetting these changes in fuel expense would result in changes in our fuel recovery fee charged to our customers. At current participation rates, we believe a twenty-cent per gallon change in the price of diesel fuel would change our fuel recovery fee by approximately $36 million per year.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Interest Rate Risk Our major market risk exposure of our financial instruments is changing interest rates in the United States and fluctuations in LIBOR or, following the termination of LIBOR, SOFR. We intend to manage interest rate risk through the use of a combination of fixed and floating rate debt.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Interest Rate Risk Our major market risk exposure of our financial instruments is changing interest rates in the United States and fluctuations in SOFR. We intend to manage interest rate risk through the use of a combination of fixed and floating rate debt.
We also are susceptible to increases in fuel recovery fees from our vendors. Our fuel costs were $631.1 million during 2022, or 4.7% of revenue, compared to $383.0 million, or 3.4% of revenue, during 2021. Commodities Price Risk We market recovered materials such as old corrugated containers and old newsprint from our recycling centers.
We also are susceptible to increases in fuel recovery fees from our vendors. 61 Table of Contents Our fuel costs were $541.6 million during 2023, or 3.6% of revenue, compared to $631.1 million, or 4.7% of revenue, during 2022. Commodities Price Risk We market recovered materials such as old corrugated containers and old newsprint from our recycling centers.
At current volumes and mix of materials, we believe a $10 change in the price of recycled commodities would change both annual revenue and operating income by approximately $10 million. Revenue from recycling processing and commodity sales during the years ended December 31, 2022 and 2021 was $359.3 million and $420.5 million, respectively. 60 Table of Contents
At current volumes and mix of materials, we believe a $10 per ton change in the price of recycled commodities would change both annual revenue and operating income by approximately $10 million. Revenue from recycling processing and commodity sales during the years ended December 31, 2023 and 2022 was $312.3 million and $359.1 million, respectively. 62 Table of Contents
As of December 31, 2022, we had $3,349.1 million of floating rate debt including floating interest rate swap contracts. If interest rates increased or decreased by 100 basis points on our variable rate debt, annualized interest expense and net cash payments for interest would increase or decrease by approximately $33 million.
As of December 31, 2023, we had $2,232.2 million of principal floating rate debt and interest rate swap contracts with a notional value of $350.0 million. If interest rates increased or decreased by 100 basis points on our variable rate debt, annualized interest expense and net cash payments for interest would increase or decrease by approximately $20 million.

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