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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________________________________________________ 
FORM 10-Q
 _________________________________________________________
(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024         
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                     
Commission File Number: 1-14267
_________________________________________________________ 
REPUBLIC SERVICES, INC.
(Exact name of registrant as specified in its charter)
_________________________________________________________ 
Delaware65-0716904
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
18500 North Allied Way85054
Phoenix,Arizona
(Address of principal executive offices)(Zip Code)

Registrant’s telephone number, including area code: (480627-2700
_________________________________________________________ 

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.01 per shareRSGNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
þ
Accelerated filer
¨
Smaller reporting company
Non-accelerated filer
¨
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  þ
As of April 23, 2024, the registrant had outstanding 314,932,459 shares of Common Stock, par value $0.01 per share (excluding treasury shares of 6,314,460).


REPUBLIC SERVICES, INC.
INDEX
 
Item 1.
Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023
Unaudited Consolidated Statement of Income for the Three Months Ended March 31, 2024 and 2023
Unaudited Consolidated Statement of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023
Unaudited Consolidated Statement of Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023
Unaudited Consolidated Statement of Cash Flows for the Three Months Ended March 31, 2024 and 2023
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds, and Issuer Purchases of Equity Securities
Item 3.
Item 4.
Item 5.
Item 6.

2

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

REPUBLIC SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
(in millions, except per share data)
March 31,December 31,
20242023
 (Unaudited) 
ASSETS
Current assets:
Cash and cash equivalents$91.6 $140.0 
Accounts receivable, less allowance for doubtful accounts and other of $82.6 and $83.2, respectively
1,763.0 1,768.4 
Prepaid expenses and other current assets419.0 472.6 
Total current assets2,273.6 2,381.0 
Restricted cash and marketable securities143.3 163.6 
Property and equipment, net11,310.5 11,350.9 
Goodwill15,852.3 15,834.5 
Other intangible assets, net482.6 496.2 
Other assets1,319.4 1,183.9 
Total assets$31,381.7 $31,410.1 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$1,179.2 $1,411.5 
Notes payable and current maturities of long-term debt1,431.9 932.3 
Deferred revenue472.2 467.3 
Accrued landfill and environmental costs, current portion141.2 141.6 
Accrued interest106.2 104.1 
Other accrued liabilities995.2 1,171.5 
Total current liabilities4,325.9 4,228.3 
Long-term debt, net of current maturities11,400.1 11,887.1 
Accrued landfill and environmental costs, net of current portion2,306.5 2,281.0 
Deferred income taxes and other long-term tax liabilities, net1,577.6 1,526.8 
Insurance reserves, net of current portion348.4 348.8 
Other long-term liabilities602.6 594.6 
Commitments and contingencies
Stockholders’ equity:
Preferred stock, par value $0.01 per share; 50 shares authorized; none issued
  
   Common stock, par value $0.01 per share; 750 shares authorized; 321.2 and 320.7 issued including shares held in treasury, respectively
3.2 3.2 
Additional paid-in capital2,916.0 2,900.8 
Retained earnings8,717.9 8,433.9 
Treasury stock, at cost; 6.3 and 6.1 shares, respectively
(812.0)(783.5)
Accumulated other comprehensive loss, net of tax(5.3)(12.1)
Total Republic Services, Inc. stockholders’ equity10,819.8 10,542.3 
Non-controlling interests in consolidated subsidiary0.8 1.2 
Total stockholders’ equity10,820.6 10,543.5 
Total liabilities and stockholders’ equity$31,381.7 $31,410.1 
The accompanying notes are an integral part of these statements.
3


REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share data)
 
Three Months Ended March 31,
 20242023
Revenue$3,861.7 $3,581.1 
Expenses:
Cost of operations2,283.2 2,169.5 
Depreciation, amortization and depletion399.2 358.7 
Accretion26.6 24.1 
Selling, general and administrative414.0 379.2 
Restructuring charges5.9 5.5 
Operating income732.8 644.1 
Interest expense(139.3)(126.7)
Loss on extinguishment of debt (0.2)
(Loss) income from unconsolidated equity method investments(8.7)1.0 
Interest income1.5 1.4 
Other income, net12.6 2.5 
Income before income taxes598.9 522.1 
Provision for income taxes145.2 138.2 
Net income453.7 383.9 
Net loss attributable to non-controlling interests in consolidated subsidiary
0.1  
Net income attributable to Republic Services, Inc.$453.8 $383.9 
Basic earnings per share attributable to Republic Services, Inc. stockholders:
Basic earnings per share$1.44 $1.21 
Weighted average common shares outstanding315.3 316.7 
Diluted earnings per share attributable to Republic Services, Inc. stockholders:
Diluted earnings per share$1.44 $1.21 
Weighted average common and common equivalent shares outstanding
315.7 317.1 
Cash dividends per common share$0.535 $0.495 
The accompanying notes are an integral part of these statements.(income)

4

REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(in millions)
 
 Three Months Ended March 31,
 20242023
Net income$453.7 $383.9 
Other comprehensive income (loss), net of tax
Hedging activity:
Realized income reclassified into earnings(2.1)(2.6)
Unrealized gain5.1 5.2 
Pension activity:
 Change in funded status of pension plan obligations
 0.2 
Foreign currency activity:
Unrealized gain on foreign currency translation3.8  
Other comprehensive income, net of tax6.8 2.8 
Comprehensive income460.5 386.7 
Comprehensive loss attributable to non-controlling interests0.1  
Comprehensive income attributable to Republic Services, Inc.$460.6 $386.7 
The accompanying notes are an integral part of these statements.

5

REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(in millions)

Republic Services, Inc. Stockholders’ Equity
Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive Loss, Net of TaxNon-controlling
Interests In Consolidated Subsidiary
SharesAmountSharesAmountTotal
Balance as of December 31, 2023
320.7 $3.2 $2,900.8 $8,433.9 (6.1)$(783.5)$(12.1)$1.2 $10,543.5 
Net income (loss)— — — 453.8 — — — (0.1)453.7 
Other comprehensive income— — — — — — 6.8 — 6.8 
Cash dividends declared— — — (168.5)— — — — (168.5)
Issuances of common stock0.5 — 3.2 — (0.2)(28.5)— — (25.3)
Stock-based compensation— — 12.0 (1.3)— — — — 10.7 
Distributions paid— — — — — — — (0.3)(0.3)
Balance as of March 31, 2024321.2 $3.2 $2,916.0 $8,717.9 (6.3)$(812.0)$(5.3)$0.8 $10,820.6 

Republic Services, Inc. Stockholders’ Equity
Common StockAdditional Paid-In CapitalRetained EarningsTreasury StockAccumulated Other Comprehensive Loss, Net of TaxNon-controlling
Interests In Consolidated Subsidiary
SharesAmountSharesAmountTotal
Balance as of December 31, 2022
320.3 $3.2 $2,843.2 $7,356.3 (4.2)$(504.6)$(12.1)$0.8 $9,686.8 
Net income— — — 383.9 — — — — 383.9 
Other comprehensive income— — — — — — 2.8 — 2.8 
Cash dividends declared— — — (156.5)— — — — (156.5)
Issuances of common stock0.3 — 2.9 — (0.1)(13.9)— — (11.0)
Stock-based compensation— — 12.3 (1.0)— — — — 11.3 
Balance as of March 31, 2023
320.6 $3.2 $2,858.4 $7,582.7 (4.3)$(518.5)$(9.3)$0.8 $9,917.3 
The accompanying notes are an integral part of these statements.
6

REPUBLIC SERVICES, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
 Three Months Ended March 31,
 20242023
Cash provided by operating activities:
Net income$453.7 $383.9 
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, amortization, depletion and accretion425.8 382.8 
Non-cash interest expense22.0 24.7 
Stock-based compensation11.2 11.6 
Deferred tax provision47.5 14.5 
Provision for doubtful accounts, net of adjustments7.3 7.8 
Loss on extinguishment of debt 0.2 
Gain on disposition of assets and asset impairments, net(0.1)(3.8)
Loss (gain) from unconsolidated equity method investments8.7 (1.0)
Other non-cash items(0.1)(1.6)
Change in assets and liabilities, net of effects from business acquisitions and divestitures:
Accounts receivable(1.1)(3.3)
Prepaid expenses and other assets18.1 87.2 
Accounts payable(1.2)(71.1)
Capping, closure and post-closure expenditures(8.9)(8.8)
Remediation expenditures(9.8)(11.6)
Other liabilities(161.6)(126.2)
Proceeds for retirement of certain hedging relationships 2.4 
Cash provided by operating activities811.5 687.7 
Cash used in investing activities:
Purchases of property and equipment(514.5)(378.6)
Proceeds from sales of property and equipment2.4 6.0 
Cash used in acquisitions and investments, net of cash and restricted cash acquired(166.3)(290.9)
Cash paid for business divestitures (0.7)
Purchases of restricted marketable securities(12.0)(4.5)
Sales of restricted marketable securities11.5 4.4 
Other 11.0 
Cash used in investing activities(678.9)(653.3)
Cash used in financing activities:
Proceeds from credit facilities and notes payable, net of fees6,436.8 6,675.5 
Proceeds from issuance of senior notes, net of discount and fees 1,183.6 
Payments of credit facilities and notes payable(6,440.8)(7,729.5)
Issuances of common stock, net(25.3)(11.0)
Cash dividends paid(168.3)(156.4)
Distributions paid to non-controlling interests in consolidated subsidiary(0.3) 
Contingent consideration payments(3.3)(4.2)
Cash used in financing activities(201.2)(42.0)
Effect of foreign exchange rate changes on cash(0.5) 
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents(69.1)(7.6)
Cash, cash equivalents, restricted cash and restricted cash equivalents at beginning of period227.5 214.3 
Cash, cash equivalents, restricted cash and restricted cash equivalents at end of period$158.4 $206.7 
The accompanying notes are an integral part of these statements.
7

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION
Republic Services, Inc., a Delaware corporation, and its consolidated subsidiaries (also referred to collectively as Republic, the Company, we, us, or our), is one of the largest providers of environmental services in the United States, as measured by revenue. Our senior management evaluates, oversees and manages the financial performance of our operations through three field groups, referred to as Group 1, Group 2 and Group 3. Group 1 is our recycling and waste business operating primarily in geographic areas located in the western United States. Group 2 is our recycling and waste business operating primarily in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada. Group 3 is our environmental solutions business operating primarily in geographic areas located across the United States and Canada. These groups represent our reportable segments, which each provide integrated environmental services, including but not limited to collection, transfer, recycling, and disposal.
The unaudited consolidated financial statements include the accounts of Republic Services, Inc. and its wholly owned and majority owned subsidiaries in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). We account for investments in entities in which we do not have a controlling financial interest under the equity method of accounting or, for investments that do not meet the criteria to be accounted for under the equity method, we reflect these investments at their fair value when it is readily determinable. If fair value is not readily determinable, we use an alternative measurement approach. All material intercompany accounts and transactions have been eliminated in consolidation.
We have prepared these unaudited consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information related to our organization, significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. In the opinion of management, these financial statements include all adjustments that, unless otherwise disclosed, are of a normal recurring nature and necessary for a fair presentation of the financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results you can expect for a full year. You should read these financial statements in conjunction with our audited consolidated financial statements and notes thereto appearing in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
For comparative purposes, certain prior year amounts have been reclassified to conform to the current year presentation and are not material to our consolidated financial statements. All dollar amounts in tabular presentations are in millions, except per share amounts and unless otherwise noted.
Management’s Estimates and Assumptions
In preparing our financial statements, we make numerous estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. We must make these estimates and assumptions because certain information we use is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing our financial statements, the more critical and subjective areas that deal with the greatest amount of uncertainty relate to our accounting for our long-lived assets, including recoverability, landfill development costs and final capping, closure and post-closure costs; our valuation allowances for accounts receivable and deferred tax assets; our liabilities for potential litigation, claims and assessments; our liabilities for environmental remediation, multiemployer pension plans, employee benefit plans, deferred taxes, uncertain tax positions and insurance reserves; and our estimates of the fair values of assets acquired and liabilities assumed in any acquisition. Each of these items is discussed in more detail in our description of our significant accounting policies in Note 2, Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Our actual results may differ significantly from our estimates.
New Accounting Pronouncements
Accounting Standards Updates Issued but not yet Adopted
Climate-Related Disclosures
In March 2024, the SEC adopted Final Rule 33-11275 and 34-99678 - The Enhancement and Standardization of Climate-Related Disclosures for Investors. The rules require registrants to provide standardized disclosures related to material climate-related risks, governance and risk management strategies, and the financial impact of severe weather events and material Scope 1 and 2 greenhouse gas emissions. The rules require implementation in phases between 2025 and 2033. In April 2024, the SEC announced that it would voluntarily stay its final climate disclosure rules pending judicial review. The Company is currently evaluating the impact of the rules on its future consolidated financial statements.
8

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative
In October 2023, the FASB issued ASU 2023-06 to modify the disclosure or presentation requirements of a variety of topics, which will allow users to more easily compare entities subject to the SEC's existing disclosures with those entities that were not previously subject to the SEC's requirements, and to align the requirements in the FASB accounting standard codification with the SEC's regulations. The Company is currently evaluating the provisions of the amendments and the impact on its future consolidated financial statements.
Improvements to Reportable Segment Disclosures
In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07). ASU 2023-07 improves the reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods beginning after December 14, 2024. We are currently assessing the effect this guidance may have on our consolidated financial statements.
Improvements to Income Tax Disclosures
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (ASU 2023-09). ASU 2023-09 requires entities to provide additional information in the rate reconciliation and additional disclosures about income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. We are currently assessing the effect this guidance may have on our consolidated financial statements.
2. BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES
Acquisitions
We acquired various environmental services businesses during the three months ended March 31, 2024 and 2023. The aggregate purchase price paid for these business acquisitions and the allocations of the aggregate purchase price follows:
20242023
Purchase price:
Cash used in acquisitions, net of cash acquired of $0.8 and $9.5, respectively
$41.0 $221.9 
Holdbacks
 2.2 
Total$41.0 $224.1 
Allocated as follows:
Accounts receivable
$1.8 $14.2 
Prepaid expenses 0.8 
Property and equipment
20.6 31.6 
Inventory
0.1 0.9 
Accounts payable
(0.4)(5.3)
Deferred revenue
(0.2) 
Deferred income tax liabilities(1.3)(9.2)
Other liabilities
(0.2)(3.7)
Fair value of tangible assets acquired and liabilities assumed20.4 29.3 
Excess purchase price to be allocated$20.6 $194.8 
Excess purchase price allocated as follows:
Other intangible assets
$4.2 $23.4 
Goodwill
16.4 171.4 
Total allocated$20.6 $194.8 
Certain of the purchase price allocations are preliminary and based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. For the acquisitions that closed during the three months ended March 31, 2024, we expect that a majority of the goodwill and intangible assets recognized as a result of these acquisitions will not be deductible for tax purposes.
These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided.
9

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


In November 2023, we acquired all of the issued and outstanding capital stock or other ownership interests of Advanced Chemical Transport LLC (ACT). ACT's environmental solutions operations are primarily located in the western United States and provide us with additional growth opportunities in our environmental solutions line of business. The purchase price allocation is preliminary and remains subject to revision as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary allocation of purchase price, including the value assigned to tangible and intangible assets acquired, is based on the best estimates of management and is subject to revision based on the final valuations. We expect our final valuations to be completed in the fourth quarter of 2024.
In December 2023, we acquired all of the issued and outstanding membership and other equity interests of Central Texas Refuse, LLC and an affiliate thereof (CTR). CTR's vertically integrated recycling and waste services operations are located in and around Austin, Texas and provide us with the opportunity to re-enter the high growth Austin market. The purchase price allocation is preliminary and remains subject to revision as additional information is obtained about the facts and circumstances that existed at the valuation date. The preliminary allocation of purchase price, including the value assigned to tangible and intangible assets acquired as well as certain landfill and environmental liabilities assumed, is based on the best estimates of management and is subject to revision based on the final valuations. We expect our final valuations to be completed in the fourth quarter of 2024.
Investments
In 2024, we acquired a non-controlling equity interest in a joint venture with a landfill gas-to-energy developer to construct a renewable natural gas project at one of our landfill locations in Illinois. As of March 31, 2024, we had contributed $29 million in the joint venture. The investment is accounted for under the equity method of accounting.
In 2024 and 2023, we acquired non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code. In exchange for our non-controlling interests, we made capital contributions of $87.3 million and $1.5 million, which were recorded to other assets in our March 31, 2024 and 2023 consolidated balance sheets, respectively. During the three months ended March 31, 2024, we decreased the carrying value of these investments by $9.2 million and during the three months ended March 31, 2023, we increased the carrying value of these investments by $1.3 million, as a result of cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements. Additionally, our tax provisions reflect benefits of approximately $8 million for the three months ended March 31, 2024 due to the tax credits related to these investments, compared to no benefits for the three months ended March 31, 2023. For further discussion of the income tax benefits, refer to Note 11, Income Taxes, in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2023.
Restructuring Charges
During the three months ended March 31, 2024 and 2023, we incurred restructuring charges of $5.9 million and $5.5 million, respectively. These charges related to the redesign of our asset management, and customer and order management software systems. During the three months ended March 31, 2024 and 2023, we paid $5.7 million and $5.0 million, respectively, related to these restructuring efforts.
3. GOODWILL AND OTHER INTANGIBLE ASSETS, NET
Goodwill
A summary of the activity and balances in goodwill accounts by reporting segment follows:
Balance as of December 31, 2023
AcquisitionsDivestituresAdjustments to Acquisitions and Other
Balance as of March 31, 2024
Group 1$7,312.4 $1.2 $ $1.0 $7,314.6 
Group 26,445.5 0.3  0.3 6,446.1 
Group 32,076.6 14.9  0.1 2,091.6 
Total$15,834.5 $16.4 $ $1.4 $15,852.3 
Adjustments to acquisitions during the three months ended March 31, 2024 primarily related to changes in our valuation of tangible assets acquired and certain environmental liabilities assumed as a result of obtaining new information regarding the acquisitions that closed in 2023.
10

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


Other Intangible Assets, Net
Other intangible assets, net, include values assigned to customer relationships, non-compete agreements and trade names, and are amortized over periods ranging from 1 to 15 years. A summary of the activity and balances by intangible asset type follows:
 Gross Intangible AssetsAccumulated Amortization
 
Balance as of December 31, 2023
Acquisitions
Adjustments
and Other
Balance as of March 31, 2024
Balance as of December 31, 2023
Additions Charged to Expense
Adjustments
and Other
Balance as of March 31, 2024
Other Intangible Assets, Net as of March 31, 2024
Customer relationships
$631.7 $3.3 $ $635.0 $(165.7)$(15.3)$ $(181.0)$454.0 
Non-compete agreements
30.4 0.9  31.3 (15.7)(1.5) (17.2)14.1 
Other intangible assets
23.2   23.2 (7.7)(1.0) (8.7)14.5 
Total$685.3 $4.2 $ $689.5 $(189.1)$(17.8)$ $(206.9)$482.6 
4. OTHER ASSETS
Prepaid Expenses and Other Current Assets
A summary of prepaid expenses and other current assets as of March 31, 2024 and December 31, 2023 follows:
20242023
Prepaid expenses$124.3 $123.0 
Inventories101.4 97.3 
Other non-trade receivables73.5 63.2 
Income taxes receivable47.4 126.3 
Reinsurance receivable35.4 35.4 
Prepaid fees for cloud-based hosting arrangements, current24.6 17.0 
Derivative and hedging assets5.1 4.2 
Other current assets7.3 6.2 
Total$419.0 $472.6 
Other Assets
A summary of other assets as of March 31, 2024 and December 31, 2023 follows:
20242023
Investments$584.2 $469.4 
Operating right-of-use lease assets228.9 238.1 
Deferred compensation plan119.6 112.7 
Reinsurance receivable91.8 92.1 
Derivative and hedging assets87.9 74.1 
Deferred contract costs and sales commissions82.1 82.5 
Prepaid fees and capitalized implementation costs for cloud-based hosting arrangements79.9 67.6 
Amounts recoverable for capping, closure and post-closure obligations22.5 21.9 
Deferred financing costs3.3 3.6 
Other19.2 21.9 
Total$1,319.4 $1,183.9 
11

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


5. OTHER LIABILITIES
Other Accrued Liabilities
A summary of other accrued liabilities as of March 31, 2024 and December 31, 2023 follows:
     20242023
Accrued payroll and benefits$225.5 $350.5 
Insurance reserves, current215.0 216.6 
Accrued dividends168.5 168.3 
Accrued fees and taxes167.8 182.9 
Operating right-of-use lease liabilities, current53.0 54.8 
Ceded insurance reserves, current35.4 35.4 
Accrued professional fees and legal settlement reserves19.5 17.9 
Derivative and hedging liabilities7.2 8.3 
Other103.3 136.8 
Total$995.2 $1,171.5 
Other Long-Term Liabilities
A summary of other long-term liabilities as of March 31, 2024 and December 31, 2023 follows:
20242023
Operating right-of-use lease liabilities$185.8 $194.9 
Deferred compensation plan liability122.1 114.7 
Ceded insurance reserves91.8 92.1 
Derivative and hedging liabilities86.0 71.3 
Contingent purchase price and acquisition holdbacks59.3 59.1 
Withdrawal liability - multiemployer pension funds19.5 19.6 
Other38.1 42.9 
Total$602.6 $594.6 
6. LANDFILL AND ENVIRONMENTAL COSTS
As of March 31, 2024, we owned or operated 207 active landfills with total available disposal capacity estimated to be 5.1 billion in-place cubic yards. Additionally, we had post-closure responsibility for 126 closed landfills.
Accrued Landfill and Environmental Costs
A summary of accrued landfill and environmental liabilities as of March 31, 2024 and December 31, 2023 follows:
20242023
Landfill final capping, closure and post-closure liabilities$1,967.9 $1,937.2 
Environmental remediation479.8 485.4 
Total accrued landfill and environmental costs2,447.7 2,422.6 
Less: current portion(141.2)(141.6)
Long-term portion$2,306.5 $2,281.0 
12

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


Final Capping, Closure and Post-Closure Costs
The following table summarizes the activity in our asset retirement obligation liabilities, which includes liabilities for final capping, closure and post-closure, for the three months ended March 31, 2024 and 2023:
20242023
Asset retirement obligation liabilities, beginning of year$1,937.2 $1,786.4 
Non-cash additions14.3 15.0 
Asset retirement obligation adjustments(1.3)(8.4)
Payments(8.9)(8.8)
Accretion expense26.6 24.1 
Asset retirement obligation liabilities, end of period1,967.9 1,808.3 
Less: current portion(72.4)(73.9)
Long-term portion$1,895.5 $1,734.4 
We review annually, in the fourth quarter, and update as necessary, our estimates of asset retirement obligation liabilities. However, if there are significant changes in the facts and circumstances related to a site during the year, we will update our assumptions prospectively in the period that we know all the relevant facts and circumstances and make adjustments as appropriate.
Landfill Operating Expenses
In the normal course of business, we incur various operating costs associated with environmental compliance. These costs include, among other things, leachate treatment and disposal, methane gas and groundwater monitoring, systems maintenance, interim cap maintenance, costs associated with the application of daily cover materials, and the legal and administrative costs of ongoing environmental compliance. These costs are expensed as cost of operations in the periods in which they are incurred.
Environmental Remediation Liabilities
We accrue for remediation costs when they become probable and can be reasonably estimated. There can sometimes be a range of reasonable estimates of the costs associated with remediation of a site. In these cases, we use the amount within the range that constitutes our best estimate. If no amount within the range appears to be a better estimate than any other, we use the amount that is at the low end of such range. It is reasonably possible that we will need to adjust the liabilities recorded for remediation to reflect the effects of new or additional information, to the extent such information impacts the costs, timing or duration of the required actions. If we used the reasonably possible high ends of our ranges, our aggregate potential remediation liability as of March 31, 2024 would be approximately $375 million higher than the amount recorded. Future changes in our estimates of the cost, timing or duration of the required actions could have a material adverse effect on our consolidated financial position, results of operations and cash flows.
The following table summarizes the activity in our environmental remediation liabilities for the three months ended March 31, 2024 and 2023:
20242023
Environmental remediation liabilities, beginning of year$485.4 $487.5 
Payments(9.8)(11.6)
Accretion expense (non-cash interest expense)4.2 4.6 
Environmental remediation liabilities, end of period479.8 480.5 
Less: current portion(68.8)(61.3)
Long-term portion$411.0 $419.2 
Bridgeton Landfill. During the three months ended March 31, 2024, we paid $2.4 million related to management and monitoring of the remediation area for our closed Bridgeton Landfill in Missouri. We continue to work with state and federal regulatory agencies on our remediation efforts. From time to time, this may require us to modify our future operating timeline and procedures, which could result in changes to our expected liability. As of March 31, 2024, the remediation liability recorded for this site was $71.2 million, of which approximately $11 million is expected to be paid during the remainder of 2024.
13

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


West Lake Landfill Superfund Site. Our subsidiary Bridgeton Landfill, LLC is one of several currently designated Potentially Responsible Parties for the West Lake Landfill Superfund site (West Lake) in Missouri. On September 27, 2018, the United States Environmental Protection Agency (EPA) issued a Record of Decision Amendment for West Lake that includes a total undiscounted cost estimate of $229 million over a four to five year design and construction timeline. On March 11, 2019, the EPA issued special notice letters under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA) to Bridgeton Landfill, LLC and the other currently designated Potentially Responsible Parties to initiate negotiations to implement the remedy. At this time we are neither able to predict the final design of that remedy, nor estimate how much of the future response costs of the site our subsidiary may agree or be required to pay. During any subsequent administrative proceedings or litigation, our subsidiary will vigorously contest liability for the costs of remediating radiologically-impacted materials generated on behalf of the federal government during the Manhattan Project and delivered to the site by an Atomic Energy Commission licensee and its subcontractor. Currently, we believe we are adequately reserved for our expected remediation liability. However, subsequent events related to remedy design, divisibility, or allocation may require us to modify our expected remediation liability.
14

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


7. DEBT
The carrying value of our credit facilities, finance leases and long-term debt as of March 31, 2024 and December 31, 2023 is listed in the following table, and is adjusted for the fair value of interest rate swaps, unamortized discounts, deferred issuance costs and the unamortized portion of adjustments to fair value recorded in purchase accounting. Original issue discounts, deferred issuance costs, and adjustments to fair value recorded in purchase accounting are amortized to interest expense over the term of the applicable instrument using the effective interest method.
  March 31, 2024December 31, 2023
MaturityInterest RatePrincipalAdjustmentsCarrying ValuePrincipalAdjustmentsCarrying Value
Credit facilities:
Uncommitted Credit Facility
Variable$24.2 $ $24.2 $ $ $ 
$3.5 billion - August 2026
Variable162.9  162.9 297.1  297.1 
Term LoanVariable500.0  500.0 500.0  500.0 
Commercial PaperVariable509.0 (0.7)508.3 496.0 (0.7)495.3 
Senior notes:
August 20242.500900.0 (0.7)899.3 900.0 (1.2)898.8 
March 20253.200500.0 (0.7)499.3 500.0 (0.9)499.1 
November 20250.875350.0 (1.1)348.9 350.0 (1.2)348.8 
July 20262.900500.0 (1.5)498.5 500.0 (1.6)498.4 
November 20273.375650.0 (2.3)647.7 650.0 (2.5)647.5 
May 20283.950800.0 (8.4)791.6 800.0 (8.9)791.1 
April 20294.875750.0 (6.9)743.1 750.0 (6.9)743.1 
March 20302.300600.0 (4.4)595.6 600.0 (4.5)595.5 
February 20311.450650.0 (6.0)644.0 650.0 (6.2)643.8 
February 20321.750750.0 (5.2)744.8 750.0 (5.4)744.6 
March 20332.375700.0 (6.3)693.7 700.0 (6.5)693.5 
December 20335.000650.0 (9.3)640.7 650.0 (8.9)641.1 
April 20345.000800.0 (10.5)789.5 800.0 (10.7)789.3 
March 20356.086181.9 (11.3)170.6 181.9 (11.5)170.4 
March 20406.200399.9 (3.2)396.7 399.9 (3.3)396.6 
May 20415.700385.7 (4.7)381.0 385.7 (4.7)381.0 
March 20503.050400.0 (6.8)393.2 400.0 (6.8)393.2 
Debentures:
September 20357.400148.1 (28.5)119.6 148.1 (28.8)119.3 
Tax-exempt:
2024 - 2054
3.700 - 4.900
1,389.1 (9.3)1,379.8 1,289.1 (8.5)1,280.6 
Finance leases:
2024 - 2063
0.806 - 9.750
259.0 — 259.0 251.3 — 251.3 
Total Debt$12,959.8 $(127.8)12,832.0 $12,949.1 $(129.7)12,819.4 
Less: current portion
(1,431.9)(932.3)
Long-term portion$11,400.1 $11,887.1 
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. Borrowings under the Uncommitted Credit Facility can be used for working capital, letters of credit, and other general corporate purposes. The agreement governing our Uncommitted Credit Facility requires us to comply with certain covenants.
15

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


The Uncommitted Credit Facility may be terminated by either party at any time. As of March 31, 2024, we had $24.2 million of borrowings outstanding under our Uncommitted Credit Facility. As of December 31, 2023, we had no borrowings outstanding under our Uncommitted Credit Facility.
The Credit Facility
In August 2021, we entered into a $3.0 billion unsecured revolving credit facility (as amended, the Credit Facility). 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 extensions. The Credit Facility also includes a feature that allows us to increase availability, at our option, by an aggregate amount of up to $1.0 billion through increased commitments from existing lenders or the addition of new lenders. In October 2023, we completed an upsize of the Credit Facility to $3.5 billion.
In February 2023, we entered into Amendment No. 1 to the Credit Facility to add our subsidiary, USE Canada Holdings, Inc. (the Canadian Borrower), as an additional borrower under the Credit Facility, and provided that the aggregate of (i) all loans to the Canadian Borrower and (ii) all loans denominated in Canadian dollars cannot exceed $500.0 million (the Canadian Sublimit). In October 2023, we entered into Amendment No. 2 to the Credit Facility which increased the Canadian Sublimit to $1.0 billion. The Canadian Sublimit is part of, and not in addition to, the aggregate commitments under the Credit Facility.
Borrowings under the Credit Facility in United States dollars bear interest at a Base Rate, a daily floating SOFR or a term SOFR plus a current applicable margin of 0.910% based on our Debt Ratings (all as defined in the Credit Facility agreement). The Canadian dollar-denominated loans bear interest based on the Canadian Prime Rate or the Canadian Dollar Offered Rate plus a current applicable margin of 0.910% based on our Debt Ratings. As of March 31, 2024 and December 31, 2023, C$220.6 million and C$201.5 million, respectively, were outstanding against the Canadian Sublimit. The weighted average interest rate for borrowings outstanding as of March 31, 2024 was 6.225%.
The Credit Facility is subject to facility fees based on applicable rates defined in the Credit Facility agreement and the aggregate commitment, regardless of usage. The Credit Facility can be used for working capital, capital expenditures, acquisitions, letters of credit and other general corporate purposes. The Credit Facility agreement requires us to comply with financial and other covenants. We may pay dividends and repurchase common stock if we are in compliance with these covenants.
We had $162.9 million and $297.1 million of borrowings outstanding under the Credit Facility as of March 31, 2024 and December 31, 2023, respectively. We had $332.8 million and $336.5 million of letters of credit outstanding under the Credit Facility as of March 31, 2024 and December 31, 2023, respectively. We also had $508.3 million and $495.3 million of principal borrowings outstanding (net of related discount on issuance) under the commercial paper program as of March 31, 2024 and December 31, 2023, respectively. As a result, availability under our Credit Facility was $2,495.3 million and $2,371.2 million as of March 31, 2024 and December 31, 2023, respectively.
Term Loan Facility
On April 29, 2022, we entered into a $1.0 billion term loan facility (the Term Loan Facility). The Term Loan Facility will mature on April 29, 2025 and bears interest at a base rate or a forward-looking SOFR, plus an applicable margin based on our debt ratings. The weighted average interest rate for borrowings outstanding as of March 31, 2024 was 6.227%. We may prepay, without penalty, all or any part of the borrowings under the Term Loan Facility at any time.
We had $500.0 million of borrowings outstanding under the Term Loan Facility as of both March 31, 2024 and December 31, 2023.
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). In October 2023, the Commercial Paper Cap was increased to $1.5 billion. The weighted average interest rate for borrowings outstanding as of March 31, 2024 was 5.483% with a weighted average maturity of 18 days.
We had $509.0 million and $496.0 million in aggregate principal amount of commercial paper issued and outstanding under the program as of March 31, 2024 and December 31, 2023, respectively. In the event of a failed re-borrowing, we currently have availability under our Credit Facility to fund the commercial paper program until it is re-borrowed successfully. Accordingly, we have classified these borrowings as long-term in our consolidated balance sheet as of March 31, 2024.
16

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


Senior Notes
In March 2023, we issued $400.0 million of 4.875% senior notes due 2029 (the Existing 2029 Notes) and $800.0 million of 5.000% senior notes due 2034 (the 2034 Notes, and together, the Notes). We used the proceeds from the Notes for general corporate purposes, including the repayment of a portion of amounts outstanding under the Uncommitted Credit Facility, the Commercial Paper Program, the Credit Facility, and the Term Loan Facility. As a result of the Term Loan Facility repayment, we incurred a non-cash loss on the early extinguishment of debt related to the ratable portion of unamortized deferred issuance costs of $0.2 million.
In December 2023, we issued an additional $350.0 million of 4.875% senior notes due 2029 (the New 2029 Notes, and together with the Existing 2029 Notes, the 2029 Notes). After giving effect to the issuance of the New 2029 Notes, $750.0 million in aggregate principal amount of the 2029 Notes is outstanding. The New 2029 Notes are fungible with the Existing 2029 Notes, and taken together, the 2029 Notes are treated as a single series.
In December 2023, we also issued $650.0 million of 5.000% senior notes due 2033 (the 2033 Notes). The proceeds of the New 2029 Notes and the 2033 Notes were used for general corporate purposes, including the repayment of a portion of amounts outstanding under the Uncommitted Credit Facility, the Commercial Paper Program, the Credit Facility, and the Term Loan Facility.
Our senior notes and debentures are general unsecured and unsubordinated obligations and rank equally with our other unsecured obligations.
Interest Rate Swap and Lock Agreements
Our ability to obtain financing through the capital markets is a key component of our financial strategy. Historically, we have managed risk associated with executing this strategy, particularly as it relates to fluctuations in interest rates, by using a combination of fixed and floating rate debt. From time to time, we also have entered into interest rate swap and lock agreements to manage risk associated with interest rates, either to effectively convert specific fixed rate debt to a floating rate (fair value hedges), or to lock interest rates in anticipation of future debt issuances (cash flow hedges).
Cash Flow Hedges
We have historically entered into multiple swap agreements designated as cash flow hedges to manage exposure to fluctuations in interest rates in anticipation of planned future issuances of senior notes. Upon the expected issuance of senior notes, we terminate the interest rate locks and settle with our counterparties. These transactions are accounted for as cash flow hedges.
The fair value of our interest rate locks is determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy).
During the three months ended March 31, 2023, we recognized an unrealized gain in other comprehensive loss of $1.7 million, net of tax, related to terminated interest rate locks issued in conjunction with the issuance of our 5.000% Notes in March 2023. As of March 31, 2024 and December 31, 2023, our previously terminated interest rate locks were recorded as components of accumulated other comprehensive loss of $15.0 million and $15.9 million, respectively, net of tax. The effective portion of the interest rate locks is amortized as an adjustment to interest expense over the life of the issued debt using the effective interest method. For the three months ended March 31, 2024 and 2023, we recognized losses, net of tax, of $0.9 million and $1.0 million, respectively. Over the next 12 months, we expect to amortize $2.0 million, net of tax, from accumulated other comprehensive loss to interest expense as a yield adjustment of our senior notes.
In connection with our acquisition of US Ecology, in the second quarter of 2022, we acquired and novated a floating-to-fixed interest rate swap agreement (the 2022 Interest Rate Swap) with an initial effective date of March 6, 2020, an initial notional amount of $500 million relative to our Term Loan Facility and an initial fair value of $29.1 million. The initial fair value is reclassified into earnings as non-cash interest expense on a systematic basis over the life of the interest rate swap. As of March 31, 2024, the 2022 Interest Rate Swap has a notional value of $340 million. The interest rate swap matures in November 2026. The goal was to reduce overall borrowing costs. We pay interest at a fixed interest rate of 0.832% and receive interest at floating rates based on changes in SOFR. The interest rate swap is designated as a cash flow hedge. Changes in the fair value of the interest rate swap are recorded as a component of accumulated other comprehensive loss and are recognized in interest expense in the period in which the payment is settled.
The fair value of our floating-to-fixed swap is determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy). As of March 31, 2024 and December 31, 2023, the 2022 Interest Rate Swap was recorded at its fair value of $25.6 million and $24.3 million, respectively, and is included in other assets in our consolidated balance sheets.
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REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)


For the three months ended March 31, 2024 and 2023, we recognized unrealized gains of $5.1 million and $3.5 million, respectively, in accumulated other comprehensive income for the 2022 Interest Rate Swap. As of March 31, 2024 and December 31, 2023, the 2022 Interest Rate Swap was recorded as a gain within accumulated other comprehensive loss of $6.4 million and $4.3 million, respectively, net of tax. The effective portion of the 2022 Interest Rate Swap is amortized as an adjustment to interest expense over the life of the instrument using the effective interest method. For the three months ended March 31, 2024 and 2023, we recognized gains, net of tax, of $3.0 million and $3.6 million, respectively, related to this amortization. Over the next 12 months, we expect to amortize approximately $5 million, net of tax, from accumulated other comprehensive loss as an offset to interest expense in the period in which payments are settled.
For further detail regarding the effect of our cash flow hedging on interest expense, refer to Note 11, Financial Instruments, of the notes to our unaudited consolidated financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Derivative Contracts
Contemporaneously with the issuance of our 2.300% Notes in February 2020, we amended interest rate lock agreements with an aggregate notional value of $550.0 million, extending the mandatory maturity date from 2020 to 2030, and dedesignated them as cash flow hedges (2020 Extended Interest Rate Locks). Contemporaneously with the issuance of our 2.500% Notes in August 2019, we amended interest rate lock agreements with an aggregate notional value of $375.0 million, extending the mandatory maturity date from 2019 to 2024, and dedesignated them as cash flow hedges (2019 Extended Interest Rate Locks and collectively with the 2020 Extended Interest Rate Locks, the Extended Interest Rate Locks). There was no ineffectiveness recognized in the termination of these cash flow hedges. In addition, we entered into offsetting interest rate swaps to offset future exposures to fair value fluctuations of the Extended Interest Rate Locks (2019 Offsetting Interest Rate Swap and the 2020 Offsetting Interest Rate Swap, or collectively the Offsetting Interest Rate Swaps). The fair value of these free-standing derivatives was determined using standard valuation models with assumptions about interest rates being based on those observed in underlying markets (Level 2 in the fair value hierarchy).
As of March 31, 2024 and December 31, 2023, the fair value of the Extended Interest Rate Locks were assets of $67.4 million and $54.0 million, respectively, which were included in prepaid and other current assets and other assets in our consolidated balance sheets. As of March 31, 2024 and December 31, 2023, the fair value of the Offsetting Interest Rate Swaps were liabilities of $87.8 million and $78.2 million, respectively, which were included in other accrued liabilities and other long-term liabilities in our consolidated balance sheets.
For the three months ended March 31, 2024, we recognized a gain of $13.6 million on the change in fair value of the Extended Interest Rate Locks with an offsetting loss of $13.6 million on the change in fair value of the Offsetting Interest Rate Swaps. For the three months ended March 31, 2023, we recognized a loss of $9.8 million on the change in fair value of the Extended Interest Rate Locks with an offsetting gain of $8.7 million on the change in fair value of the Offsetting Interest Rate Swaps. The changes in fair value were recorded directly in earnings as an adjustment to interest expense in our consolidated statements of income.
Tax-Exempt Financings
As of March 31, 2024 and December 31, 2023, we had $1,379.8 million and $1,280.6 million, respectively, of certain variable rate tax-exempt financings outstanding, with maturities ranging from 2024 to 2054 and from 2024 to 2053, respectively.
In both March 2024 and September 2023, the California Municipal Finance Authority issued, for our benefit, $100 million of Solid Waste Disposal Revenue Bonds each. The proceeds from the issuances, after deferred issuance costs, were used to fund the acquisition, construction, improvement, installation, and/or equipping of certain solid waste disposal facilities located within California. The initial remarketing period for these tax-exempt financings is 10 years. Our remaining tax-exempt financings are remarketed either quarterly or semiannually by remarketing agents to effectively maintain a variable yield. The holders of the bonds can put them back to the remarketing agents at the end of each interest period. If the remarketing agents are unable to remarket our bonds, the remarketing agents can put the bonds to us. In the event of a failed remarketing, we currently have availability under our Credit Facility to fund these bonds until they are remarketed successfully. Accordingly, we classified these borrowings as long-term in our consolidated balance sheets as of March 31, 2024 and December 31, 2023.
Finance Leases
As of March 31, 2024 and December 31, 2023, we had finance lease liabilities of $259.0 million and $251.3 million, respectively, with maturities ranging from 2024 to 2063 for both periods.
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REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

8. INCOME TAXES
Our effective tax rate, exclusive of non-controlling interests, for the three months ended March 31, 2024 and 2023 was 24.2% and 26.5%, respectively. Our effective tax rate for the three months ended March 31, 2024 reflected benefits from investments in renewable energy assets qualifying for tax credits under Section 48 of the Internal Revenue Code.
For the three months ended March 31, 2024 and 2023, net cash paid for income taxes was $7.8 million and $7.7 million, respectively.
We have deferred tax assets related to state net operating loss carryforwards. We provide a partial valuation allowance due to uncertainty surrounding the future utilization of these carryforwards in the taxing jurisdictions where the loss carryforwards exist. When determining the need for a valuation allowance, we consider all positive and negative evidence, including recent financial results, scheduled reversals of deferred tax liabilities, projected future taxable income and tax planning strategies. The realization of our deferred tax asset for state loss carryforwards ultimately depends upon the existence of sufficient taxable income in the appropriate state taxing jurisdictions in future periods. The weight given to the positive and negative evidence is commensurate with the extent such evidence can be objectively verified. We continue to regularly monitor both positive and negative evidence in determining the ongoing need for a valuation allowance. As of March 31, 2024, the valuation allowance associated with our state loss carryforwards was $43.6 million.
We are subject to income tax in the United States, as well as income tax in multiple state and foreign jurisdictions. Our compliance with income tax rules and regulations is periodically audited by taxing authorities. These authorities may challenge the positions taken in our tax filings. Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of these examinations. Our federal statute of limitations is closed through 2019. In addition, we are currently under state examination or administrative review in various jurisdictions for tax years 2012 through 2021.
We believe the recorded liabilities for uncertain tax positions are adequate. However, a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position, results of operations and cash flows. As of March 31, 2024, we are unable to estimate the resolution of our gross unrecognized benefits over the next 12 months.
We recognize interest and penalties as incurred within the provision for income taxes in the consolidated statement of income. As of March 31, 2024, we accrued a liability for penalties of $0.3 million and a liability for interest (including interest on penalties) of $14.2 million related to our uncertain tax positions.
9. STOCK REPURCHASES, DIVIDENDS AND EARNINGS PER SHARE
Available Shares
We currently have approximately 11.3 million shares of common stock reserved for future grants under the Republic Services, Inc. 2021 Stock Incentive Plan.
Stock Repurchases
In October 2023, our Board of Directors approved a $3.0 billion share repurchase authorization effective January 1, 2024 and extending through December 31, 2026. Share repurchases under the program may be made through open market purchases or privately negotiated transactions in accordance with applicable federal securities laws. While the Board of Directors has approved the program, the timing of any purchases, the prices and the number of shares of common stock to be purchased will be determined by our management, at its discretion, and will depend upon market conditions and other factors. On a quarterly basis, our Board of Directors reviews the intrinsic value of our stock and the parameters around which we repurchase our shares. The share repurchase program may be extended, suspended or discontinued at any time.
During both the three months ended March 31, 2024 and 2023, there were no shares repurchased and as of both March 31, 2024 and 2023, no repurchased shares pending settlement. As of March 31, 2024, the remaining authorized purchase capacity under our October 2023 repurchase program was $3.0 billion.
Dividends
In February 2024, our Board of Directors approved a quarterly dividend of $0.535 per share. Cash dividends declared were $168.5 million for the three months ended March 31, 2024. As of March 31, 2024, we recorded a quarterly dividend payable of $168.5 million to shareholders of record at the close of business on April 2, 2024.

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REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

Earnings per Share
Basic earnings per share is computed by dividing net income attributable to Republic Services, Inc. by the weighted average number of common shares (including vested but unissued restricted stock units and performance stock units) outstanding during the period. Diluted earnings per share is based on the combined weighted average number of common shares and common share equivalents outstanding, which include, where appropriate, the unvested restricted stock units (RSUs) and the unvested performance stock units (PSUs) at the expected attainment levels. We use the treasury stock method in computing diluted earnings per share.
Earnings per share for the three months ended March 31, 2024 and 2023 are calculated as follows (in thousands, except per share amounts):
Three Months Ended March 31,
 20242023
Basic earnings per share:
Net income attributable to Republic Services, Inc.$453,794 $383,852 
Weighted average common shares outstanding315,294 316,712 
Basic earnings per share$1.44 $1.21 
Diluted earnings per share:
Net income attributable to Republic Services, Inc.$453,794 $383,852 
Weighted average common shares outstanding315,294 316,712 
Effect of dilutive securities:
Unvested RSU awards125 75 
Unvested PSU awards
274 355 
Weighted average common and common equivalent shares outstanding
315,693 317,142 
Diluted earnings per share$1.44 $1.21 
During the three months ended March 31, 2024 and 2023, there were no antidilutive securities outstanding and less than 0.1 million antidilutive securities outstanding, respectively.
10. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS BY COMPONENT
A summary of changes in accumulated other comprehensive loss, net of tax, by component, for the three months ended March 31, 2024 follows:
Cash Flow HedgesDefined Benefit Pension ItemsForeign Currency TranslationTotal
Balance as of December 31, 2023
$(11.6)$8.9 $(9.4)$(12.1)
Other comprehensive income before reclassifications5.1  3.8 8.9 
Amounts reclassified from accumulated other comprehensive loss(2.1)  (2.1)
Net current period other comprehensive income3.0  3.8 6.8 
Balance as of March 31, 2024
$(8.6)$8.9 $(5.6)$(5.3)
20

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

A summary of reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2024 and 2023 follows:
Three Months Ended March 31,
20242023
Details about Accumulated Other Comprehensive Loss ComponentsAmount Reclassified from Accumulated Other Comprehensive LossAffected Line Item in the Statement where Net Income is Presented
Gain (loss) on cash flow hedges:
Terminated interest rate locks$(1.2)$(1.4)Interest expense
2022 interest rate swap4.0 4.9 Interest expense
Total before tax2.8 3.5 
Tax provision(0.7)(0.9)
Total income reclassified into earnings, net of tax$2.1 $2.6 

11. FINANCIAL INSTRUMENTS
The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three months ended March 31, 2024 and 2023 follows (in millions):
Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments
Three Months Ended March 31,
20242023
Interest ExpenseInterest Expense
Total amount of expense line items presented in the consolidated statements of income in which the effects of hedging relationships and derivative instruments are recorded$(139.3)$(126.7)
The effects of cash flow hedging relationships in Subtopic 815-20:
(Loss) gain on cash flow hedging relationships:
Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax:
Interest rate swap locks$(0.9)$(1.0)
2022 interest rate swap$3.0 $3.6 
The effects of derivative instruments not in Subtopic 815-20:
Gain (loss) on free-standing derivative instruments:
Interest rate contract:
Net gain (loss) on change in fair value of free-standing derivative instruments$ $(1.1)
Fair Value Measurements
In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate.
21

REPUBLIC SERVICES, INC.
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - (CONTINUED)

The carrying value for certain of our financial instruments, including cash, accounts receivable, current investments, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. As of March 31, 2024 and December 31, 2023, our assets and liabilities that are measured at fair value on a recurring basis include the following:
March 31, 2024
 Fair Value
 Carrying AmountTotalQuoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market mutual funds$44.1 $44.1 $44.1 $ $ 
Bonds - restricted cash and marketable securities and other assets
76.8 76.8  76.8  
Derivative and hedging assets - prepaid and other current assets and other assets93.0 93.0  93.0  
Total assets$213.9 $213.9 $44.1 $169.8 $ 
Liabilities:
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities$93.2 $93.2 $ $93.2 $ 
Contingent consideration - other accrued liabilities and other long-term liabilities
63.7 63.7   63.7 
Total liabilities$156.9 $156.9 $ $93.2 $63.7 
December 31, 2023
 Fair Value
 Carrying AmountTotalQuoted
Prices in
Active
Markets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Assets:
Money market mutual funds$43.1 $43.1 $43.1 $ $ 
Bonds - restricted cash and marketable securities and other assets
76.3 76.3