(Mark One) |
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þ
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934. |
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For the quarterly period ended June 30, 2009 | ||||
OR |
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o
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OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934. |
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For the transition period from to |
DELAWARE | 65-0716904 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |
18500 NORTH ALLIED WAY PHOENIX, ARIZONA (Address of principal executive offices) |
85054 (Zip code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
2
ITEM 1. | FINANCIAL STATEMENTS. |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
(Unaudited) | ||||||||
ASSETS |
||||||||
Current Assets |
||||||||
Cash and cash equivalents |
$ | 67.6 | $ | 68.7 | ||||
Accounts receivable, net of allowance for doubtful accounts of $56.2 and $65.7
as of June 30, 2009 and December 31, 2008, respectively |
913.5 | 945.5 | ||||||
Prepaid expenses and other current assets |
136.7 | 174.7 | ||||||
Deferred tax assets |
135.1 | 136.8 | ||||||
Total Current Assets |
1,252.9 | 1,325.7 | ||||||
Restricted cash and marketable securities |
259.3 | 281.9 | ||||||
Property and equipment, net |
6,612.9 | 6,738.2 | ||||||
Goodwill, net |
10,539.5 | 10,521.5 | ||||||
Other intangible assets, net |
529.7 | 564.1 | ||||||
Other assets |
252.1 | 490.0 | ||||||
Total Assets |
$ | 19,446.4 | $ | 19,921.4 | ||||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
Current Liabilities |
||||||||
Accounts payable |
$ | 462.9 | $ | 564.0 | ||||
Notes payable and current maturities of long-term debt |
327.3 | 504.0 | ||||||
Deferred revenue |
352.5 | 359.9 | ||||||
Accrued landfill and environmental costs, current portion |
165.2 | 233.4 | ||||||
Accrued interest |
107.9 | 107.7 | ||||||
Other accrued liabilities |
770.5 | 796.8 | ||||||
Total Current Liabilities |
2,186.3 | 2,565.8 | ||||||
Long-term debt, net of current maturities |
6,768.5 | 7,198.5 | ||||||
Accrued landfill and environmental costs, net of current portion |
1,282.1 | 1,197.1 | ||||||
Deferred income taxes and other long-term tax liabilities |
1,235.1 | 1,239.9 | ||||||
Self-insurance reserves, net of current portion |
301.8 | 234.5 | ||||||
Other long-term liabilities |
179.0 | 203.1 | ||||||
Commitments and Contingencies |
||||||||
Stockholders Equity |
||||||||
Preferred stock, par value $0.01 per share; 50.0 shares authorized; none issued |
| | ||||||
Common stock; par value $0.01 per share; 750.0 shares authorized; 393.9 and
393.4 shares issued, including shares held in treasury, as of June 30, 2009
and December 31, 2008, respectively |
3.9 | 3.9 | ||||||
Additional paid-in capital |
6,274.7 | 6,260.1 | ||||||
Retained earnings |
1,671.9 | 1,477.2 | ||||||
Treasury stock, at cost (14.9 shares as of June 30, 2009 and December 31, 2008) |
(457.2 | ) | (456.7 | ) | ||||
Accumulated other comprehensive loss, net of tax |
(1.4 | ) | (3.1 | ) | ||||
Total Republic Services, Inc. Stockholders Equity |
7,491.9 | 7,281.4 | ||||||
Noncontrolling Interests |
1.7 | 1.1 | ||||||
Total Stockholders Equity |
7,493.6 | 7,282.5 | ||||||
Total Liabilities and Stockholders Equity |
$ | 19,446.4 | $ | 19,921.4 | ||||
3
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenue |
$ | 2,066.1 | $ | 827.5 | $ | 4,126.6 | $ | 1,606.7 | ||||||||
Expenses: |
||||||||||||||||
Cost of operations |
1,226.9 | 577.5 | 2,435.6 | 1,054.0 | ||||||||||||
Depreciation, amortization and depletion |
218.6 | 76.2 | 440.5 | 149.6 | ||||||||||||
Accretion |
21.9 | 4.5 | 45.2 | 8.9 | ||||||||||||
Selling, general and administrative |
215.8 | 83.7 | 433.3 | 166.4 | ||||||||||||
Gain on disposition of assets, net |
(150.1 | ) | | (145.2 | ) | | ||||||||||
Restructuring charges |
12.3 | | 43.6 | | ||||||||||||
Operating income |
520.7 | 85.6 | 873.6 | 227.8 | ||||||||||||
Interest expense |
(150.5 | ) | (21.1 | ) | (304.1 | ) | (42.5 | ) | ||||||||
Interest income |
.5 | 2.5 | 1.3 | 5.3 | ||||||||||||
Other income, net |
1.3 | .7 | 1.6 | .9 | ||||||||||||
Income before income taxes |
372.0 | 67.7 | 572.4 | 191.5 | ||||||||||||
Provision for income taxes |
145.8 | 27.0 | 232.9 | 74.7 | ||||||||||||
Net income |
226.2 | 40.7 | 339.5 | $ | 116.8 | |||||||||||
Less: Net Income Attributable to
Noncontrolling Interests |
(.3 | ) | | (.6 | ) | | ||||||||||
Net Income Attributable to Republic Services, Inc. |
$ | 225.9 | $ | 40.7 | $ | 338.9 | $ | 116.8 | ||||||||
Basic Earnings Per Share Attributable to Republic
Services, Inc. Stockholders: |
||||||||||||||||
Basic earnings per share |
$ | .60 | $ | .22 | $ | .89 | $ | .64 | ||||||||
Weighted average common shares outstanding |
379.2 | 182.0 | 379.1 | 182.7 | ||||||||||||
Diluted Earnings Per Share Attributable to
Republic Services, Inc. Stockholders: |
||||||||||||||||
Diluted earnings per share |
$ | .59 | $ | .22 | $ | .89 | $ | .63 | ||||||||
Weighted average common and common equivalent
shares outstanding |
379.9 | 183.9 | 379.9 | 184.5 | ||||||||||||
Cash dividends per common share |
$ | .19 | $ | .17 | $ | .38 | $ | .34 | ||||||||
4
Republic Services, Inc. Stockholders Equity | ||||||||||||||||||||||||||||||||
Common | Accumulated | |||||||||||||||||||||||||||||||
Stock | Additional | Other | ||||||||||||||||||||||||||||||
Shares, | Par | Paid-In | Retained | Treasury | Comprehensive Loss, | Noncontrolling | ||||||||||||||||||||||||||
Net | Value | Capital | Earnings | Stock | Net of Tax | Interests | Total | |||||||||||||||||||||||||
Balance as of December 31, 2008 |
378.5 | $ | 3.9 | $ | 6,260.1 | $ | 1,477.2 | $ | (456.7 | ) | $ | (3.1 | ) | $ | 1.1 | $ | 7,282.5 | |||||||||||||||
Net income |
| | | 338.9 | | | .6 | 339.5 | ||||||||||||||||||||||||
Cash dividends declared |
| | | (144.1 | ) | | | | (144.1 | ) | ||||||||||||||||||||||
Issuances of common stock |
.5 | | 7.8 | | | | | 7.8 | ||||||||||||||||||||||||
Stock-based compensation |
| | 6.8 | (.1 | ) | | | | 6.7 | |||||||||||||||||||||||
Purchases of common stock for
treasury |
| | | | (.5 | ) | | | (.5 | ) | ||||||||||||||||||||||
Change in value of derivative
instruments, net of tax |
| | | | | 1.7 | | 1.7 | ||||||||||||||||||||||||
Balance as of June 30, 2009 |
379.0 | $ | 3.9 | $ | 6,274.7 | $ | 1,671.9 | $ | (457.2 | ) | $ | (1.4 | ) | $ | 1.7 | $ | 7,493.6 | |||||||||||||||
Six Months Ended | ||||
June 30, 2009 | ||||
Net income |
$ | 339.5 | ||
Change in value of derivative instruments, net of tax of $1.1 million |
1.7 | |||
Comprehensive income |
341.2 | |||
Less: Comprehensive income attributable to noncontrolling interests |
(.6 | ) | ||
Comprehensive income attributable to Republic Services, Inc. |
$ | 340.6 | ||
5
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Cash Provided by Operating Activities: |
||||||||
Net income |
$ | 339.5 | $ | 116.8 | ||||
Net income attributable to noncontrolling interests |
(.6 | ) | | |||||
Adjustments to reconcile net income to cash provided by operating activities: |
||||||||
Depreciation and amortization of property and equipment |
260.2 | 96.3 | ||||||
Landfill depletion and amortization |
145.3 | 50.1 | ||||||
Amortization of intangible and other assets |
35.0 | 3.2 | ||||||
Accretion |
45.2 | 8.9 | ||||||
Non-cash interest expense debt |
50.6 | | ||||||
Non-cash interest expense other |
23.3 | | ||||||
Restructuring and synergy related charges |
26.4 | | ||||||
Stock-based compensation |
6.8 | 6.7 | ||||||
Deferred tax provision |
6.0 | 14.8 | ||||||
Provision for doubtful accounts, net of adjustments |
9.4 | 3.2 | ||||||
Income tax benefit from stock option exercises |
.5 | 1.5 | ||||||
Asset impairments |
1.8 | | ||||||
Gain on divested assets |
(152.9 | ) | | |||||
Other non-cash items |
(.1 | ) | .8 | |||||
Change in assets and liabilities, net of effects from business
acquisitions and divestures: |
||||||||
Accounts receivable |
24.6 | (24.4 | ) | |||||
Prepaid expenses and other assets |
22.5 | (8.2 | ) | |||||
Accounts payable and accrued liabilities |
(106.9 | ) | (9.7 | ) | ||||
Cash payments for restructuring and synergy related charges |
(33.2 | ) | | |||||
Capping, closure and post-closure payments |
(33.2 | ) | (4.0 | ) | ||||
Remediation payments |
(26.8 | ) | (18.1 | ) | ||||
Other liabilities |
37.3 | 73.6 | ||||||
Cash Provided by Operating Activities |
680.7 | 311.5 | ||||||
Cash Provided by (Used in) Investing Activities: |
||||||||
Purchases of property and equipment |
(355.1 | ) | (165.4 | ) | ||||
Proceeds from sales of property and equipment |
16.7 | 3.3 | ||||||
Cash used in business acquisitions, net of cash acquired |
(.1 | ) | (12.2 | ) | ||||
Cash proceeds from divestitures, net of cash divested |
424.2 | | ||||||
Change in restricted cash and marketable securities |
22.7 | (12.8 | ) | |||||
Other |
| (.2 | ) | |||||
Cash Provided by (Used in) Investing Activities |
108.4 | (187.3 | ) | |||||
Cash Used in Financing Activities: |
||||||||
Proceeds from notes payable and long-term debt |
679.5 | 167.0 | ||||||
Payments of notes payable and long-term debt |
(1,333.5 | ) | (116.5 | ) | ||||
Issuances of common stock |
7.8 | 14.9 | ||||||
Excess income tax benefit from stock option exercises |
.5 | 2.8 | ||||||
Purchases of common stock for treasury |
(.5 | ) | (138.4 | ) | ||||
Cash dividends paid |
(144.0 | ) | (62.7 | ) | ||||
Cash Used in Financing Activities |
(790.2 | ) | (132.9 | ) | ||||
Decrease in Cash and Cash Equivalents |
(1.1 | ) | (8.7 | ) | ||||
Cash and Cash Equivalents at Beginning of Period |
68.7 | 21.8 | ||||||
Cash and Cash Equivalents at End of Period |
$ | 67.6 | $ | 13.1 | ||||
6
7
8
9
Allocation | Allocation | |||||||||||||||||||
at | Allocation at | at | ||||||||||||||||||
December | December | June | ||||||||||||||||||
5, 2008 | Adjustments | 31, 2008 | Adjustments | 30, 2009 | ||||||||||||||||
Current assets |
$ | 910.8 | $ | (.9 | ) | $ | 909.9 | $ | 7.2 | $ | 917.1 | |||||||||
Landfill development costs |
2,600.0 | | 2,600.0 | | 2,600.0 | |||||||||||||||
Other property and equipment |
2,256.8 | 1.9 | 2,258.7 | 10.8 | 2,269.5 | |||||||||||||||
Goodwill |
9,006.3 | (.8 | ) | 9,005.5 | 39.6 | 9,045.1 | ||||||||||||||
Other intangible assets |
541.0 | | 541.0 | | 541.0 | |||||||||||||||
Other assets |
226.6 | (1.1 | ) | 225.5 | (6.8 | ) | 218.7 | |||||||||||||
Current liabilities |
(1,336.3 | ) | | (1,336.3 | ) | (42.5 | ) | (1,378.8 | ) | |||||||||||
Capping, closure and post-closure liabilities |
(813.1 | ) | | (813.1 | ) | (6.4 | ) | (819.5 | ) | |||||||||||
Environmental liabilities |
(208.1 | ) | | (208.1 | ) | (1.1 | ) | (209.2 | ) | |||||||||||
Deferred income taxes and other long-term tax liabilities |
(774.1 | ) | 0.9 | (773.2 | ) | (.6 | ) | (773.8 | ) | |||||||||||
Other long-term liabilities |
(906.9 | ) | | (906.9 | ) | .5 | (906.4 | ) | ||||||||||||
Total purchase price |
$ | 11,503.0 | $ | | $ | 11,503.0 | $ | .7 | $ | 11,503.7 | ||||||||||
10
Fair Value of | ||||||||
Other | ||||||||
Intangible | Useful Life | |||||||
Assets | (in years) | |||||||
Customer relationships |
$ | 420.0 | 10 | |||||
Franchise agreements |
60.0 | 9 | ||||||
Other municipal agreements |
30.0 | 3 | ||||||
Non-compete agreements |
1.0 | 2 | ||||||
Tradenames |
30.0 | 5 | ||||||
Total |
$ | 541.0 | ||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Prepaid expenses and other current assets |
$ | 3.8 | $ | 17.5 | ||||
Other assets |
54.3 | 285.1 | ||||||
Total assets |
$ | 58.1 | $ | 302.6 | ||||
Accrued liabilities |
$ | 1.8 | $ | 3.1 | ||||
Other long-term liabilities |
2.2 | 31.0 | ||||||
Total liabilities |
$ | 4.0 | $ | 34.1 | ||||
11
Balance at | Balance at | |||||||||||||||
December 31, | Additions/ | June 30, | ||||||||||||||
Restructuring Charges | 2008 | Adjustments | Payments | 2009 | ||||||||||||
Severance & other termination benefits |
$ | 12.5 | $ | 24.3 | $ | (8.7 | ) | $ | 28.1 | |||||||
Relocation |
17.9 | 2.1 | (7.2 | ) | 12.8 | |||||||||||
Total |
$ | 30.4 | $ | 26.4 | $ | (15.9 | ) | $ | 40.9 | |||||||
Balance at | Balance at | |||||||||||||||
December 31, | Additions/ | June 30, | ||||||||||||||
Accrued Liabilities Related to Allied | 2008 | Adjustments | Payments | 2009 | ||||||||||||
Severance & other termination benefits |
$ | 22.6 | $ | 6.5 | $ | (17.3 | ) | $ | 11.8 | |||||||
Balance at | Balance | |||||||||||||||
December 31, | Payments / | June 30, | ||||||||||||||
2008 | Additions | Amortization | 2008 | |||||||||||||
Lease exit costs |
$ | | $ | 5.9 | $ | (1.1 | ) | $ | 4.8 | |||||||
Unfavorable contracts |
33.3 | 15.4 | (3.1 | ) | 45.6 | |||||||||||
Total |
$ | 33.3 | $ | 21.3 | $ | (4.2 | ) | $ | 50.4 | |||||||
12
June 30, | December 31, | |||||||
2009 (1) | 2008 (1) | |||||||
Other land |
$ | 439.2 | $ | 464.4 | ||||
Non-depletable landfill land |
157.1 | 169.3 | ||||||
Landfill development costs |
4,146.3 | 4,126.3 | ||||||
Vehicles and equipment |
3,593.2 | 3,432.3 | ||||||
Buildings and improvements |
717.6 | 706.0 | ||||||
Construction-in-progress landfill |
170.1 | 76.2 | ||||||
Construction-in-progress other |
19.7 | 26.3 | ||||||
9,243.2 | 9,000.8 | |||||||
Less:
Accumulated depreciation, depletion and amortization |
||||||||
Landfill development costs |
(1,144.5 | ) | (1,004.2 | ) | ||||
Vehicles and equipment |
(1,361.0 | ) | (1,147.3 | ) | ||||
Buildings and improvements |
(124.8 | ) | (111.1 | ) | ||||
(2,630.3 | ) | (2,262.6 | ) | |||||
Property and equipment, net |
$ | 6,612.9 | $ | 6,738.2 | ||||
(1) | Property and equipment, net excludes assets classified as held for sale of $21.8 million and $214.1 million as of June 30, 2009 and December 31, 2008, respectively. |
Balance at | Adjustments to | Balance at | ||||||||||||||||||
December 31, | Adjustments to | Assets | June 30, | |||||||||||||||||
Regions | 2008 | Acquisitions (1) | Divestitures | Held for Sale | 2009 | |||||||||||||||
Eastern |
$ | 2,772.5 | $ | 5.8 | $ | (14.3 | ) | $ | 9.3 | $ | 2,773.3 | |||||||||
Midwest |
2,083.8 | 5.5 | | (.3 | ) | 2,089.0 | ||||||||||||||
Southern |
2,715.6 | 7.5 | (28.9 | ) | 22.3 | 2,716.5 | ||||||||||||||
Western |
2,949.6 | 11.1 | | | 2,960.7 | |||||||||||||||
Total |
$ | 10,521.5 | $ | 29.9 | $ | (43.2 | ) | $ | 31.3 | $ | 10,539.5 | |||||||||
(1) | Adjustments to acquisitions include a $9.7 million adjustment for deferred taxes pertaining to prior years acquisitions in accordance with SFAS 109. |
Balance at | Balance at | |||||||||||
December 31, | Adjustments to | June 30, | ||||||||||
Regions | 2007 | Acquisitions | 2008 | |||||||||
Eastern |
$ | 510.0 | $ | .3 | $ | 510.3 | ||||||
Midwest |
374.1 | .4 | 374.5 | |||||||||
Southern |
340.7 | (.5 | ) | 340.2 | ||||||||
Western |
330.9 | | 330.9 | |||||||||
Total |
$ | 1,555.7 | $ | .2 | $ | 1,555.9 | ||||||
13
Gross Intangible Assets | Accumulated Amortization | Net | ||||||||||||||||||||||||||
Balance at | Balance at | Balance at | Balance at | Intangibles | ||||||||||||||||||||||||
December 31, | June 30, | December 31, | Amortization | June 30, | at June 30, | |||||||||||||||||||||||
2008 | Acquisitions | 2009 | 2008 | Expense | 2009 | 2009 | ||||||||||||||||||||||
Eastern |
$ | 139.3 | $ | | $ | 139.3 | $ | (5.6 | ) | $ | (7.2 | ) | $ | (12.8 | ) | $ | 126.5 | |||||||||||
Midwest |
97.7 | | 97.7 | (5.6 | ) | (5.3 | ) | (10.9 | ) | 86.8 | ||||||||||||||||||
Southern |
126.7 | 0.1 | 126.8 | (4.5 | ) | (7.3 | ) | (11.8 | ) | 115.0 | ||||||||||||||||||
Western |
220.7 | 0.1 | 220.8 | (35.0 | ) | (11.6 | ) | (46.6 | ) | 174.2 | ||||||||||||||||||
Corporate |
31.0 | | 31.0 | (0.6 | ) | (3.2 | ) | (3.8 | ) | 27.2 | ||||||||||||||||||
Total |
$ | 615.4 | $ | 0.2 | $ | 615.6 | $ | (51.3 | ) | $ | (34.6 | ) | $ | (85.9 | ) | $ | 529.7 | |||||||||||
Gross Intangible Assets | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Balance at | Balance at | Balance at | Balance at | Intangibles | ||||||||||||||||||||||||||||
December 31, | Other | June 30, | December 31, | Amortization | June 30, | at June 30, | ||||||||||||||||||||||||||
2007 | Acquisitions | Additions | 2008 | 2007 | Expense | 2008 | 2008 | |||||||||||||||||||||||||
Eastern |
$ | 6.3 | $ | | $ | | $ | 6.3 | $ | (3.8 | ) | $ | (0.3 | ) | $ | (4.1 | ) | $ | 2.2 | |||||||||||||
Midwest |
6.8 | | | 6.8 | (3.8 | ) | (0.5 | ) | (4.3 | ) | 2.5 | |||||||||||||||||||||
Southern |
4.6 | | | 4.6 | (2.9 | ) | (0.3 | ) | (3.2 | ) | 1.4 | |||||||||||||||||||||
Western |
49.6 | 6.6 | 0.3 | 56.5 | (30.3 | ) | (1.4 | ) | (31.7 | ) | 24.8 | |||||||||||||||||||||
Total |
$ | 67.3 | $ | 6.6 | $ | 0.3 | $ | 74.2 | $ | (40.8 | ) | $ | (2.5 | ) | $ | (43.3 | ) | $ | 30.9 | |||||||||||||
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Landfill final capping, closure and post-closure liabilities |
$ | 1,073.3 | $ | 1,040.6 | ||||
Remediation |
374.0 | 389.9 | ||||||
1,447.3 | 1,430.5 | |||||||
Less: Current portion |
(165.2 | ) | (233.4 | ) | ||||
Long-term portion |
$ | 1,282.1 | $ | 1,197.1 | ||||
14
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Asset retirement obligation liabilities, beginning of year |
$ | 1,040.6 | $ | 277.7 | ||||
Non-cash asset additions |
17.1 | 9.3 | ||||||
Increase due to acquisition |
5.4 | | ||||||
SFAS 143 adjustments |
(.1 | ) | | |||||
Payments |
(33.2 | ) | (4.0 | ) | ||||
Accretion expense |
45.2 | 8.9 | ||||||
Other adjustments |
1.2 | | ||||||
Adjustments to liabilities related to assets held for sale |
(2.9 | ) | | |||||
Asset retirement obligation liabilities, end of period |
1,073.3 | 291.9 | ||||||
Less: Current portion |
(99.8 | ) | (19.9 | ) | ||||
Long-term portion |
$ | 973.5 | $ | 272.0 | ||||
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Remediation liabilities, beginning of year |
$ | 389.9 | $ | 67.5 | ||||
Increase due to acquisition |
.9 | | ||||||
Other additions charged to expense |
| 68.0 | ||||||
Payments |
(26.8 | ) | (18.1 | ) | ||||
Accretion expense |
10.0 | | ||||||
Remediation liabilities, end of period |
374.0 | 117.4 | ||||||
Less: Current portion |
(65.4 | ) | (21.5 | ) | ||||
Long-term portion |
$ | 308.6 | $ | 95.9 | ||||
15
Debt Balance at | ||||||||
June 30, 2009 | December 31, 2008 | |||||||
$1.0 billion Revolver due 2012 |
$ | | $ | | ||||
$1.75 billion Revolver due 2013, Eurodollar and Base Rate borrowings |
388.0 | 665.0 | ||||||
Receivables secured loans |
300.0 | 400.0 | ||||||
7.125% senior notes due 2009 |
| 99.3 | ||||||
6.50% senior notes due 2010 |
335.5 | 333.2 | ||||||
5.75% senior notes due 2011 |
374.1 | 371.1 | ||||||
6.375% senior notes due 2011 |
261.3 | 257.7 | ||||||
6.75% senior notes due 2011 |
461.1 | 464.2 | ||||||
7.875% senior notes due 2013 |
425.1 | 422.4 | ||||||
6.125% senior notes due 2014 |
374.9 | 370.5 | ||||||
7.375% senior notes due 2014 |
365.3 | 363.5 | ||||||
7.25% senior notes due 2015 |
536.0 | 531.7 | ||||||
7.125% senior notes due 2016 |
522.7 | 518.7 | ||||||
6.875% senior notes due 2017 |
650.1 | 645.7 | ||||||
9.25% debentures due 2021 |
93.0 | 92.8 | ||||||
6.086% senior notes due 2035 |
249.2 | 249.1 | ||||||
7.40% debentures due 2035 |
266.4 | 266.0 | ||||||
4.25% senior subordinated convertible debentures due 2034 |
207.8 | 201.3 | ||||||
Tax-exempt bonds and other tax-exempt financings; fixed and
floating interest rates ranging from .30% to 8.25% maturities
ranging from 2010 to 2037 |
1,142.8 | 1,308.2 | ||||||
Other debt unsecured and secured by real property, equipment and
other assets; interest rates ranging from 5.90% to 11.90% maturing
through 2042 |
142.5 | 142.1 | ||||||
Total debt |
7,095.8 | 7,702.5 | ||||||
Less: Current portion |
(327.3 | ) | (504.0 | ) | ||||
Long-term portion |
$ | 6,768.5 | $ | 7,198.5 | ||||
16
17
18
Consolidated Statement of | Gain (Loss) on Swap | Gain (Loss) on Fixed-Rate Debt | ||||||||||||||||||||||||||||||
Income Classification | Three and Six Months Ended June 30, | Three and Six Months Ended June 30, | ||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
Interest Expense |
$ | 2.0 | $ | 4.4 | $ | .8 | $ | 2.2 | $ | (2.0 | ) | $ | (4.4 | ) | $ | (.8 | ) | $ | (2.2 | ) |
19
20
21
Six Months Ended June 30, | ||||||||
2009 | 2008 | |||||||
Expected volatility |
28.7 | % | 23.2 | % | ||||
Risk-free interest rate |
1.4 | % | 2.4 | % | ||||
Dividend yield |
3.7 | % | 2.2 | % | ||||
Expected life (in years) |
4.2 | 4.1 | ||||||
Contractual life (in years) |
7.0 | 7.0 | ||||||
Expected forfeiture rate |
3.0 | % | 3.0 | % |
Weighted Average | ||||||||||||||||
Weighted Average | Remaining | Aggregate | ||||||||||||||
Number | Exercise | Contractual Term | Intrinsic | |||||||||||||
of Shares | Price | (Years) | Value | |||||||||||||
Outstanding at December 31, 2008 |
18.7 | $ | 23.57 | |||||||||||||
Granted |
.2 | 17.13 | ||||||||||||||
Exercised |
(.4 | ) | 15.84 | $ | 2.5 | |||||||||||
Cancelled |
(1.5 | ) | 26.79 | |||||||||||||
Outstanding at June 30, 2009 |
17.0 | 23.38 | 5.3 | $ | 44.9 | |||||||||||
Exercisable at June 30, 2009 |
13.1 | $ | 23.35 | 5.0 | $ | 41.5 | ||||||||||
Number of Deferred | Weighted- | Weighted- | ||||||||||||||
Stock Units and | Average | Average | Aggregate | |||||||||||||
Restricted | Grant Date | Remaining | Intrinsic | |||||||||||||
Stock | Fair Value per | Contractual | Value | |||||||||||||
(In Thousands) | Share | Term (Years) | (In Millions) | |||||||||||||
Unissued at December 31, 2008 |
255.6 | $ | 23.43 | |||||||||||||
Granted |
481.4 | 23.89 | ||||||||||||||
Vested and Issued |
(15.9 | ) | 22.60 | |||||||||||||
Cancelled |
(31.9 | ) | 23.50 | |||||||||||||
Unissued at June 30, 2009 |
689.2 | $ | 23.77 | 1.4 | $ | 16.8 | ||||||||||
Vested and unissued at June 30, 2009 |
76.3 | $ | 25.87 | |||||||||||||
22
23
24
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Basic earnings per share: |
||||||||||||||||
Net income attributable to Republic Services, Inc. |
$ | 225,900 | $ | 40,700 | $ | 338,900 | $ | 116,800 | ||||||||
Weighted average common shares outstanding |
379,169 | 182,006 | 379,095 | 182,708 | ||||||||||||
Basic earnings per share |
$ | .60 | $ | .22 | $ | .89 | $ | .64 | ||||||||
Diluted earnings per share: |
||||||||||||||||
Net income attributable to Republic Services, Inc. |
$ | 225,900 | $ | 40,700 | $ | 338,900 | $ | 116,800 | ||||||||
Weighted average common shares outstanding |
379,169 | 182,006 | 379,095 | 182,708 | ||||||||||||
Effect of dilutive securities: |
||||||||||||||||
Options to purchase common stock |
759 | 1,862 | 792 | 1,765 | ||||||||||||
Unvested restricted stock awards |
4 | 3 | 3 | 2 | ||||||||||||
Weighted average common and common equivalent shares outstanding |
379,932 | 183,871 | 379,890 | 184,475 | ||||||||||||
Diluted earnings per share |
$ | .59 | $ | .22 | $ | .89 | $ | .63 | ||||||||
Antidilutive securities not included in the diluted earnings per share calculations: |
||||||||||||||||
Senior subordinated convertible debentures |
5,207 | | 5,207 | | ||||||||||||
Options to purchase common stock |
11,592 | 1,764 | 12,114 | 1,811 |
Notional Amount | |||||||||||||
Inception Date | Commencement Date | Termination Date | (in Gallons per Month) |
Contract Price per Gallon |
|||||||||
September 22, 2008
|
January 1, 2009 | December 31, 2011 | 150,000 | $ | 4.1600 - 4.1700 | ||||||||
March 17, 2008
|
January 5, 2009 | December 31, 2012 | 50,000 | 3.7200 | |||||||||
March 17, 2008
|
January 5, 2009 | December 31, 2012 | 50,000 | 3.7400 | |||||||||
November 5, 2007
|
January 5, 2009 | December 30, 2013 | 60,000 | 3.2815 | |||||||||
January 26, 2007
|
January 7, 2008 | December 29, 2008 | 500,000 | 2.8285 | |||||||||
January 26, 2007
|
January 5, 2009 | December 28, 2009 | 500,000 | 2.8270 | |||||||||
January 26, 2007
|
January 4, 2010 | December 27, 2010 | 500,000 | 2.8100 |
25
Amount of Gain or | ||||||||||||||||||||||||||||
(Loss) | ||||||||||||||||||||||||||||
Location of Gain | Recognized in | |||||||||||||||||||||||||||
(Loss) Recognized | Income on | |||||||||||||||||||||||||||
in Income on | Derivative | |||||||||||||||||||||||||||
Amount of Gain | Derivative | (Ineffective | ||||||||||||||||||||||||||
Derivatives in | or (Loss) | (Ineffective Portion | Portion and | |||||||||||||||||||||||||
SFAS No. 133 | Recognized in | and Amount | Amount Excluded | |||||||||||||||||||||||||
Cash Flow | OCI on | Statement of | Amount of | Excluded from | from | |||||||||||||||||||||||
Hedging | Derivatives | Income | Realized Gain or | Effectiveness | Effectiveness | |||||||||||||||||||||||
Relationships | (Effective Portion) | Classification | (Loss) | Testing) | Testing) | |||||||||||||||||||||||
Six months | Six months | Six months | ||||||||||||||||||||||||||
ended June 30, | ended June 30, | ended June 30, | ||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||
Fuel hedges |
$ | 4.1 | $ | 16.7 | Cost of operations | $ | (4.7 | ) | $ | 3.4 | Other
income net |
$ | .1 | $ | .6 | |||||||||||||
Three months | Three months | Three months | ||||||||||||||||||||||||||
ended June 30, | ended June 30, | ended June 30, | ||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||
Fuel hedges |
$ | 5.2 | $ | 14.9 | Cost of operations | $ | (2.2 | ) | $ | 2.4 | Other
income net |
$ | .2 | $ | .5 |
Notional Amount | Contract Price |
|||||||||||||
(in Short Tons | Per Short | |||||||||||||
Inception Date | Commencement Date | Termination Date | Transaction Hedged | per Month) | Ton | |||||||||
May 16, 2008
|
January 1, 2009 | December 31, 2010 | OCC | 1,000 | $ | 105.00 | ||||||||
May 16, 2008
|
January 1, 2009 | December 31, 2010 | ONP | 1,000 | 102.00 | |||||||||
May 16, 2008
|
January 1, 2009 | December 31, 2010 | ONP | 1,000 | 106.00 | |||||||||
May 16, 2008
|
January 1, 2009 | December 31, 2010 | OCC | 1,000 | 103.00 | |||||||||
April 28, 2008
|
January 1, 2009 | December 31, 2010 | OCC | 1,000 | 106.00 | |||||||||
April 28, 2008
|
January 1, 2009 | December 31, 2010 | ONP | 1,000 | 106.00 | |||||||||
April 28, 2008
|
January 1, 2009 | December 31, 2010 | OCC | 1,000 | 110.00 | |||||||||
April 28, 2008
|
January 1, 2009 | December 31, 2010 | ONP | 1,000 | 103.00 |
26
Amount of Gain or | ||||||||||||||||||||||||||||||||
(Loss) | ||||||||||||||||||||||||||||||||
Location of Gain | Recognized in | |||||||||||||||||||||||||||||||
(Loss) Recognized | Income on | |||||||||||||||||||||||||||||||
in Income on | Derivative | |||||||||||||||||||||||||||||||
Amount of Gain | Derivative | (Ineffective | ||||||||||||||||||||||||||||||
Derivatives in | or (Loss) | (Ineffective Portion | Portion and | |||||||||||||||||||||||||||||
SFAS No. 133 | Recognized in | and Amount | Amount Excluded | |||||||||||||||||||||||||||||
Cash Flow | OCI on | Statement of | Amount of | Excluded from | from | |||||||||||||||||||||||||||
Hedging | Derivatives | Income | Realized Gain or | Effectiveness | Effectiveness | |||||||||||||||||||||||||||
Relationships | (Effective Portion) | Classification | (Loss) | Testing) | Testing) | |||||||||||||||||||||||||||
Six months | Six months | Six months | ||||||||||||||||||||||||||||||
ended June 30, | ended June 30, | ended June 30, | ||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||
Recycling commodity hedges |
$ | (2.4) | $ | (.8) | Revenue | $ | 3.3 | $ | | Other income, net | $ | (.1) | $ | (.1) | ||||||||||||||||||
Three months | Three months | Three months | ||||||||||||||||||||||||||||||
ended June 30, | ended June 30, | ended June 30, | ||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||
Recycling commodity hedges |
$ | (1.1) | $ | (.8) | Revenue | $ | 1.5 | $ | | Other income, net | $ | (.1) | $ | (.1) |
27
Fair Value Measurements Using | ||||||||||||||||
Quoted | Significant | |||||||||||||||
Prices in | Other | Significant | ||||||||||||||
Active | Observable | Unobservable | ||||||||||||||
Markets | Inputs | Inputs | ||||||||||||||
Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: |
||||||||||||||||
Restricted cash and marketable securities |
$ | 259.3 | $ | 259.3 | $ | | $ | | ||||||||
Commodity hedges other current assets |
5.1 | | 5.1 | | ||||||||||||
Interest rate swaps other assets |
11.8 | | 11.8 | | ||||||||||||
Total assets |
$ | 276.2 | $ | 259.3 | $ | 16.9 | $ | | ||||||||
Liabilities: |
||||||||||||||||
Fuel hedges other accrued liabilities |
$ | 5.0 | $ | | $ | 5.0 | $ | | ||||||||
Depreciation, | ||||||||||||||||||||||||||||
Amortization, | Operating | |||||||||||||||||||||||||||
Gross | Intercompany | Net | Depletion and | Income | Capital | |||||||||||||||||||||||
Revenue | Revenue(1) | Revenue | Accretion | (Loss) | Expenditures | Total Assets | ||||||||||||||||||||||
2009: |
||||||||||||||||||||||||||||
Eastern |
$ | 1,254.6 | $ | 190.9 | $ | 1,063.7 | $ | 109.1 | $ | 228.3 | $ | 78.6 | $ | 4,492.9 | ||||||||||||||
Midwest |
1,088.1 | 208.3 | 879.8 | 113.9 | 187.3 | 72.8 | 3,467.4 | |||||||||||||||||||||
Southern |
1,212.9 | 167.0 | 1,045.9 | 123.7 | 283.6 | 73.9 | 4,883.3 | |||||||||||||||||||||
Western |
1,333.7 | 242.9 | 1,090.8 | 114.1 | 338.9 | 92.5 | 5,451.1 | |||||||||||||||||||||
Corporate entities(2) |
64.1 | 17.7 | 46.4 | 24.9 | (164.5 | ) | 37.3 | 1,151.7 | ||||||||||||||||||||
Total |
$ | 4,953.4 | $ | 826.8 | $ | 4,126.6 | $ | 485.7 | $ | 873.6 | $ | 355.1 | $ | 19,446.4 | ||||||||||||||
2008 (3): |
||||||||||||||||||||||||||||
Eastern |
$ | 503.7 | $ | 65.7 | $ | 438.0 | $ | 38.3 | $ | 62.8 | $ | 34.7 | $ | 1,172.0 | ||||||||||||||
Midwest |
422.6 | 87.1 | 335.5 | 42.0 | 59.7 | 30.5 | 1,117.4 | |||||||||||||||||||||
Southern |
473.3 | 53.1 | 420.2 | 38.6 | 79.6 | 33.0 | 993.8 | |||||||||||||||||||||
Western |
512.4 | 99.5 | 412.9 | 35.7 | 62.2 | 26.8 | 927.6 | |||||||||||||||||||||
Corporate entities(2) |
.1 | | .1 | 3.9 | (36.5 | ) | 40.4 | 336.7 | ||||||||||||||||||||
Total |
$ | 1,912.1 | $ | 305.4 | $ | 1,606.7 | $ | 158.5 | $ | 227.8 | $ | 165.4 | $ | 4,547.5 | ||||||||||||||
(1) | Intercompany operating revenue reflects transactions within and between segments that are generally made on a basis intended to reflect the market value of such services. | |
(2) | Corporate functions include legal, tax, treasury, information technology, risk management, human resources, corporate accounts and other typical administrative functions. Capital expenditures for Corporate Entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. National accounts revenue included in the corporate entities represents the portion of revenue generated from nationwide contracts in markets outside our operating areas, and, as such, the associated waste 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. | |
(3) | Amounts by region for 2008 have been reclassified to conform to the current years presentation. The changes are due to the realignment of our regions in 2009. |
28
29
30
31
32
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Letters of credit(1) |
$ | 1,671.4 | $ | 1,753.1 | ||||
Surety bonds(2) |
2,252.0 | 2,119.2 |
(1) | The letters of credit include $1,631.8 million and $1,686.5 million as of June 30, 2009 and December 31, 2008, respectively, of utilized availability under our Credit Facilities. | |
(2) | Surety bonds expire on various dates through 2038. |
June 30, | December 31, | |||||||
2009 | 2008 | |||||||
Financing proceeds |
$ | 117.8 | $ | 133.5 | ||||
Capping, closure and post-closure obligations |
63.6 | 63.2 | ||||||
Other |
77.9 | 85.2 | ||||||
Total restricted cash and marketable securities |
$ | 259.3 | $ | 281.9 | ||||
33
34
35
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
Collection: |
||||||||||||||||||||||||||||||||
Residential |
$ | 550.6 | 26.6 | % | $ | 212.3 | 25.7 | % | $ | 1,096.7 | 26.6 | % | $ | 417.2 | 26.0 | % | ||||||||||||||||
Commercial |
633.8 | 30.7 | 254.8 | 30.8 | 1,292.4 | 31.3 | 503.3 | 31.3 | ||||||||||||||||||||||||
Industrial |
394.3 | 19.1 | 162.1 | 19.6 | 777.2 | 18.8 | 315.0 | 19.6 | ||||||||||||||||||||||||
Other |
6.4 | .3 | 5.4 | .6 | 13.6 | .3 | 10.3 | .6 | ||||||||||||||||||||||||
Total
Collection |
1,585.1 | 76.7 | 634.6 | 76.7 | 3,179.9 | 77.0 | 1,245.8 | 77.5 | ||||||||||||||||||||||||
Transfer and
disposal |
800.5 | 307.0 | 1,567.1 | 581.9 | ||||||||||||||||||||||||||||
Less: Intercompany |
(400.2 | ) | (156.7 | ) | (780.3 | ) | (301.2 | ) | ||||||||||||||||||||||||
Transfer
and
Disposal,
Net |
400.3 | 19.4 | 150.3 | 18.2 | 786.8 | 19.1 | 280.7 | 17.5 | ||||||||||||||||||||||||
Other (1) |
80.7 | 3.9 | 42.6 | 5.1 | 159.9 | 3.9 | 80.2 | 5.0 | ||||||||||||||||||||||||
Revenue |
$ | 2,066.1 | 100.0 | % | $ | 827.5 | 100.0 | % | $ | 4,126.6 | 100.0 | % | $ | 1,606.7 | 100.0 | % | ||||||||||||||||
(1) | Other revenue consists primarily of revenue from sales of recycled materials and revenue from national accounts acquired from Allied. National accounts revenue included in other revenue represents the portion of revenue generated from nationwide contracts in markets outside our operating areas, and, as such, the associated waste 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. |
36
Depreciation, | ||||||||||||||||||||
Amortization, | Gain (Loss) on | Operating | ||||||||||||||||||
Net | Depletion and | Disposition of | Income | Operating | ||||||||||||||||
Revenue | Accretion | Assets, Net | (Loss) | Margin | ||||||||||||||||
2009: |
||||||||||||||||||||
Eastern |
$ | 1,063.7 | $ | 109.1 | $ | (0.4 | ) | $ | 228.3 | 21.5 | % | |||||||||
Midwest |
879.8 | 113.9 | 26.4 | 187.3 | 21.3 | % | ||||||||||||||
Southern |
1,045.9 | 123.7 | 38.9 | 283.6 | 27.1 | % | ||||||||||||||
Western |
1,090.8 | 114.1 | 88.0 | 338.9 | 31.1 | % | ||||||||||||||
Corporate entities (1) |
46.4 | 24.9 | (7.7 | ) | (164.5 | ) | | |||||||||||||
Total |
$ | 4,126.6 | $ | 485.7 | $ | 145.2 | $ | 873.6 | 21.2 | % | ||||||||||
2008 (2): |
||||||||||||||||||||
Eastern |
$ | 438.0 | $ | 38.3 | $ | | $ | 62.8 | 14.3 | % | ||||||||||
Midwest |
335.5 | 42.0 | | 59.7 | 17.8 | % | ||||||||||||||
Southern |
420.2 | 38.6 | | 79.6 | 18.9 | % | ||||||||||||||
Western |
412.9 | 35.7 | | 62.2 | 15.1 | % | ||||||||||||||
Corporate entities (1) |
0.1 | 3.9 | | (36.5 | ) | | ||||||||||||||
Total |
$ | 1,606.7 | $ | 158.5 | $ | | $ | 227.8 | 14.2 | % | ||||||||||
(1) | Corporate functions include legal, tax, treasury, information technology, risk management, human resources, corporate accounts and other typical administrative functions. Capital expenditures for Corporate Entities primarily include vehicle inventory acquired but not yet assigned to operating locations and facilities. National accounts revenue included in the corporate entities represents the portion of revenue generated from nationwide contracts in markets outside our operating areas, and, as such, the associated waste 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. | |
(2) | Amounts by region for 2008 have been reclassified to conform to the current years presentation. The changes are due to the realignment of our regions in 2009. |
37
§ | Eastern Region. Revenue benefited from core price growth in all lines of business. However, the increase in revenue from core price was more than offset by volume declines in all lines of business, especially in our industrial and landfill lines of business. We also experienced declines in fuel surcharges and commodity pricing. | |
For the six months ended June 30, 2008, we incurred a $34.0 million charge for environmental conditions at our Countywide Recycling and Disposal Facility in Ohio, which reduced our operating margin for the comparable period in 2008 by 7.8%. Otherwise, the change in margin is primarily due to increased amortization costs resulting from assets acquired from Allied, higher risk insurance expense and facilities expense. This increase in cost was partially offset by lower fuel cost and lower selling, general and administrative expenses. | ||
§ | Midwest Region. Revenue benefited from core price growth in all lines of business. However, the increase in revenue from core price was more than offset by volume declines in all lines of business, especially in our industrial and landfill lines of business. We also experienced declines in fuel surcharges and commodity pricing. | |
For the six months ended June 30, 2009, we realized net gains from the disposition of assets of $26.4 million which increased operating margins by 3.0%. Otherwise, the change in operating margin is primarily due to lower fuel, disposal, transportation, and selling, general and administrative expenses. The increase in operating margin was partially offset by increased amortization costs resulting from assets acquired from Allied, higher risk insurance expense and facilities expense. | ||
§ | Southern Region. Revenue benefited from core price growth in all lines of business. However, the increase in revenue from core price was more than offset by volume declines in all lines of business, especially in our industrial and transfer station lines of business. We also experienced declines in fuel surcharges and commodity pricing. | |
For the six months ended June 30, 2009, we realized net gains from the disposition of assets of $38.9 million which increased operating margin by 3.7%. Otherwise the change in operating margin is primarily due to lower labor, fuel, disposal and transportation costs, partially offset by increased amortization costs resulting from assets acquired from Allied and higher landfill operating and facilities expense. | ||
§ | Western Region. Revenue benefited from core price growth in all lines of business. However, the increase in revenue from core price was more than offset by volume declines in all lines of business, especially in our industrial, transfer station and landfill lines of business as well as declines in fuel surcharges and commodity pricing. | |
For the six months ended June 30, 2008, we incurred a $34.0 million charge for environmental conditions at the Sunrise Landfill in Nevada which reduced operating margin for the comparable period in 2008 by 8.2%. For the six months ended June 30, 2009, we realized gains from the disposition of assets of $88.0 million which increased operating margin by 8.1%. Otherwise, margins were fairly flat for the year-over-year period. Margins were favorably impacted by lower labor, fuel, disposal, transportation and selling, general and administrative expenses, offset by increased amortization costs resulting from assets acquired from Allied and facilities expense. |
38
§ | Corporate Entities. The increase in net revenue for the Corporate Entities relates to Allieds national accounts program. The increase in depreciation, amortization, depletion and accretion expense, and the increase in the operating loss at the Corporate Entities is attributable to the acquisition of Allied. For the six months ended June 30, 2009, we incurred $7.7 million of transaction related expenses from the disposition of assets. |
Three Months Ended June 30, 2009 | Three Months Ended June 30, 2008 | |||||||||||||||||||||||
Diluted | Diluted | |||||||||||||||||||||||
Pre-tax | Net | Earnings | Pre-tax | Net | Earnings | |||||||||||||||||||
Income | Income | per Share | Income | Income | per Share | |||||||||||||||||||
As reported |
$ | 372.0 | $ | 225.9 | $ | .59 | $ | 67.7 | $ | 40.7 | $ | .22 | ||||||||||||
Gain on disposition of assets |
(150.1 | ) | (92.8 | ) | (.24 | ) | | | | |||||||||||||||
Restructuring charges |
12.3 | 7.6 | .02 | | | | ||||||||||||||||||
Costs to achieve synergies |
10.1 | 6.2 | .02 | | | | ||||||||||||||||||
Remediation charges |
| | | 69.0 | 43.8 | .24 | ||||||||||||||||||
Adjusted |
$ | 244.3 | $ | 146.9 | $ | .39 | $ | 136.7 | $ | 84.5 | $ | .46 | ||||||||||||
Six Months Ended June 30, 2009 | Six Months Ended June 30, 2008 | |||||||||||||||||||||||
Diluted | Diluted | |||||||||||||||||||||||
Pre-tax | Net | Earnings | Pre-tax | Net | Earnings | |||||||||||||||||||
Income | Income | per Share | Income | Income | per Share | |||||||||||||||||||
As reported |
$ | 572.4 | $ | 338.9 | $ | .89 | $ | 191.5 | $ | 116.8 | $ | .63 | ||||||||||||
Gain on disposition of assets |
(145.2 | ) | (90.1 | ) | (.24 | ) | | | | |||||||||||||||
Restructuring charges |
43.6 | 26.6 | .07 | | | | ||||||||||||||||||
Costs to achieve synergies |
22.9 | 14.0 | .04 | | | | ||||||||||||||||||
Remediation charges |
| | | 69.0 | 43.8 | .24 | ||||||||||||||||||
Adjusted |
$ | 493.7 | $ | 289.4 | $ | .76 | $ | 260.5 | $ | 160.6 | $ | .87 | ||||||||||||
39
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Expenses: |
||||||||||||||||
Cost of operations |
$ | | $ | (66.1 | ) | $ | | $ | (66.1 | ) | ||||||
Selling, general and administrative |
(10.1 | ) | (1.9 | ) | (22.9 | ) | (1.9 | ) | ||||||||
Gain on disposition of assets, net |
150.1 | | 145.2 | | ||||||||||||
Restructuring charges |
(12.3 | ) | | (43.6 | ) | | ||||||||||
127.7 | (68.0 | ) | 78.7 | (68.0 | ) | |||||||||||
Other income (expense), net |
| (1.0 | ) | | (1.0 | ) | ||||||||||
$ | 127.7 | $ | (69.0 | ) | $ | 78.7 | $ | (69.0 | ) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
Revenue |
$ | 2,066.1 | 100.0 | % | $ | 827.5 | 100.0 | % | $ | 4,126.6 | 100.0 | % | $ | 1,606.7 | 100.0 | % | ||||||||||||||||
Cost of operations |
1,226.9 | 59.4 | 577.5 | 69.8 | 2,435.6 | 59.0 | 1,054.0 | 65.6 | ||||||||||||||||||||||||
Depreciation,
amortization and
depletion of property
and equipment |
201.1 | 9.7 | 74.7 | 9.0 | 405.5 | 9.8 | 146.4 | 9.1 | ||||||||||||||||||||||||
Amortization of other
intangible assets |
17.5 | .9 | 1.5 | .2 | 35.0 | .8 | 3.2 | .2 | ||||||||||||||||||||||||
Accretion |
21.9 | 1.1 | 4.5 | .5 | 45.2 | 1.1 | 8.9 | .5 | ||||||||||||||||||||||||
Selling, general and
administrative |
215.8 | 10.4 | 83.7 | 10.1 | 433.3 | 10.5 | 166.4 | 10.4 | ||||||||||||||||||||||||
Gain on disposition of
assets, net |
(150.1 | ) | (7.3 | ) | | | (145.2 | ) | (3.5 | ) | | | ||||||||||||||||||||
Restructuring charges |
12.3 | .6 | | | 43.6 | 1.1 | | | ||||||||||||||||||||||||
Operating income |
$ | 520.7 | 25.2 | % | $ | 85.6 | 10.4 | % | $ | 873.6 | 21.2 | % | $ | 227.8 | 14.2 | % | ||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Republic Services, Inc. |
$ | 2,066.1 | $ | 827.5 | $ | 4,126.6 | $ | 1,606.7 | ||||||||
Allied Waste Industries, Inc. |
| 1,582.3 | | 3,066.5 | ||||||||||||
2,066.1 | 2,409.8 | 4,126.6 | 4,673.2 | |||||||||||||
Less: Divestitures |
(5.7 | ) | (47.0 | ) | (5.9 | ) | (47.7 | ) | ||||||||
Less: Intercompany revenue |
| (6.9 | ) | | (14.9 | ) | ||||||||||
Adjusted revenue |
$ | 2,060.4 | $ | 2,355.9 | $ | 4,120.7 | $ | 4,610.6 | ||||||||
40
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008(1) | 2009 | 2008(1) | |||||||||||||
Core price |
3.4 | % | 4.5 | % | 3.4 | % | 4.4 | % | ||||||||
Fuel surcharges |
(3.1 | ) | 1.9 | (2.2 | ) | 1.5 | ||||||||||
Recycling commodities |
(2.5 | ) | .6 | (2.7 | ) | .7 | ||||||||||
Total price |
(2.2 | ) | 7.0 | (1.5 | ) | 6.6 | ||||||||||
Core volume |
(10.3 | ) | (3.1 | ) | (9.1 | ) | (2.8 | ) | ||||||||
Total internal growth |
(12.5 | )% | 3.9 | % | (10.6 | )% | 3.8 | % | ||||||||
(1) | Certain prior year amounts have been reclassified to conform to the current years presentation. |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
Labor and related benefits |
$ | 392.6 | 19.0 | % | $ | 154.4 | 18.6 | % | $ | 791.8 | 19.2 | % | $ | 306.1 | 19.1 | % | ||||||||||||||||
Transfer and disposal costs |
181.7 | 8.8 | 81.3 | 9.8 | 339.9 | 8.2 | 157.0 | 9.8 | ||||||||||||||||||||||||
Maintenance and repairs |
163.6 | 7.9 | 60.3 | 7.3 | 331.4 | 8.0 | 117.9 | 7.3 | ||||||||||||||||||||||||
Transportation and
subcontract costs |
131.3 | 6.4 | 57.8 | 7.0 | 259.8 | 6.3 | 105.9 | 6.6 | ||||||||||||||||||||||||
Fuel |
84.2 | 4.1 | 64.2 | 7.8 | 161.1 | 3.9 | 115.6 | 7.2 | ||||||||||||||||||||||||
Franchise fees and taxes |
101.8 | 4.9 | 29.2 | 3.5 | 200.8 | 4.9 | 55.3 | 3.4 | ||||||||||||||||||||||||
Landfill operating costs |
32.8 | 1.6 | 71.7 | 8.7 | 63.8 | 1.5 | 78.4 | 4.9 | ||||||||||||||||||||||||
Risk management |
50.8 | 2.5 | 23.1 | 2.8 | 109.7 | 2.7 | 48.1 | 3.0 | ||||||||||||||||||||||||
Cost of goods sold |
14.6 | .7 | 14.5 | 1.8 | 25.5 | .6 | 27.1 | 1.7 | ||||||||||||||||||||||||
Other |
73.5 | 3.5 | 21.0 | 2.5 | 151.8 | 3.7 | 42.6 | 2.6 | ||||||||||||||||||||||||
Total cost of operations |
$ | 1,226.9 | 59.4 | % | $ | 577.5 | 69.8 | % | $ | 2,435.6 | 59.0 | % | $ | 1,054.0 | 65.6 | % | ||||||||||||||||
41
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||||||||||||||||||
Salaries |
$ | 136.0 | 6.5 | % | $ | 50.5 | 6.1 | % | $ | 269.3 | 6.5 | % | $ | 104.9 | 6.6 | % | ||||||||||||||||
Provision for doubtful
accounts |
3.6 | .2 | 2.1 | .2 | 9.4 | .2 | 3.2 | .2 | ||||||||||||||||||||||||
Costs to achieve synergies |
10.1 | .5 | | | 22.9 | .6 | | | ||||||||||||||||||||||||
Other |
66.1 | 3.2 | 31.1 | 3.8 | 131.7 | 3.2 | 58.3 | 3.6 | ||||||||||||||||||||||||
Total Selling,
General and Administrative Expenses |
$ | 215.8 | 10.4 | % | $ | 83.7 | 10.1 | % | $ | 433.3 | 10.5 | % | $ | 166.4 | 10.4 | % | ||||||||||||||||
42
43
Balance | Landfills | Permits | Changes | Balance | ||||||||||||||||||||||||
as of | New | Acquired, | Granted, | in | as of | |||||||||||||||||||||||
December 31, | Expansions | Net of | Net of | Airspace | Engineering | June 30, | ||||||||||||||||||||||
2008 | Undertaken | Divestitures | Closures | Consumed | Estimates(1) | 2009 | ||||||||||||||||||||||
Permitted airspace: |
||||||||||||||||||||||||||||
Cubic yards (in millions) |
4,559.6 | 201.0 | (162.6 | ) | (.2 | ) | (47.7 | ) | .7 | 4,550.8 | ||||||||||||||||||
Number of sites |
213 | (8 | ) | (2 | ) | 203 | ||||||||||||||||||||||
Probable expansion airspace: |
||||||||||||||||||||||||||||
Cubic yards (in millions) |
386.2 | (89.5 | ) | (61.6 | ) | | | (.6 | ) | 234.5 | ||||||||||||||||||
Number of sites |
23 | (6 | ) | (1 | ) | | 16 | |||||||||||||||||||||
Total available airspace: |
||||||||||||||||||||||||||||
Cubic yards (in millions) |
4,945.8 | 111.5 | (224.2 | ) | (.2 | ) | (47.7 | ) | .1 | 4,785.3 | ||||||||||||||||||
Number of sites |
213 | (8 | ) | (.2 | ) | 203 | ||||||||||||||||||||||
(1) | Changes in engineering estimates typically include minor modifications to the available disposal capacity of a landfill based on a refinement of the capacity calculations resulting from updated information. |
44
Non-Cash | Adjustments | |||||||||||||||||||||||||||||||
Balance | Additions | Transfers | to | Balance | ||||||||||||||||||||||||||||
as of | Acquisitions, | for Asset | and | Assets | as of | |||||||||||||||||||||||||||
December | Capital | Net of | Retirement | Other | Held for | June 30, | ||||||||||||||||||||||||||
31, 2008 | Additions | Divestitures | Obligations | Depletion | Adjustments | Sale | 2009 | |||||||||||||||||||||||||
Non-depletable landfill land |
$ | 169.3 | $ | .6 | $ | (7.9 | ) | $ | | $ | | $ | | $ | (4.9 | ) | $ | 157.1 | ||||||||||||||
Landfill development costs |
4,126.3 | | | 17.0 | | 8.6 | (5.6 | ) | 4,146.3 | |||||||||||||||||||||||
Construction-in-progress landfill |
76.2 | 102.6 | | | | (9.4 | ) | .7 | 170.1 | |||||||||||||||||||||||
Accumulated depletion and amortization |
(1,004.2 | ) | | | | (145.3 | ) | .6 | 4.4 | (1,144.5 | ) | |||||||||||||||||||||
Net investment in landfill land and
development costs |
$ | 3,367.6 | $ | 103.2 | $ | (7.9 | ) | $ | 17.0 | $ | (145.3 | ) | $ | (.2 | ) | $ | (5.4 | ) | $ | 3,329.0 | ||||||||||||
Balance | ||||||||||||
as of | Expected | Total | ||||||||||
June 30, | Future | Expected | ||||||||||
2009 | Investment | Investment | ||||||||||
Non-depletable landfill land |
$ | 157.1 | $ | | $ | 157.1 | ||||||
Landfill development costs |
4,146.3 | 5,828.5 | 9,974.8 | |||||||||
Construction-in-progress landfill |
170.1 | | 170.1 | |||||||||
Accumulated depletion and amortization |
(1,144.5 | ) | | (1,144.5 | ) | |||||||
Net investment in landfill land and development costs |
$ | 3,329.0 | $ | 5,828.5 | $ | 9,157.5 | ||||||
Six Months Ending June 30, | ||||||||
2009 | 2008 | |||||||
Number of landfills owned or operated |
203 | 58 | ||||||
Net investment, excluding non-depletable land (in millions) |
$ | 3,171.9 | $ | 834.6 | ||||
Total estimated available disposal capacity (in millions of cubic yards) |
4,785.3 | 1,704.3 | ||||||
Net investment per cubic yard |
$ | .66 | $ | .49 | ||||
Landfill depletion and amortization expense (in millions) |
$ | 145.3 | $ | 50.1 | ||||
Accretion expense (in millions) |
45.2 | 8.9 | ||||||
190.5 | 59.0 | |||||||
Airspace consumed (in millions of cubic yards) |
47.7 | 18.5 | ||||||
Depletion, amortization and accretion expense per cubic yard of airspace consumed |
$ | 3.99 | $ | 3.19 | ||||
45
Allowance | ||||||||||||||||
for | Final Capping, | |||||||||||||||
Doubtful | Closure and | Self- | ||||||||||||||
Accounts | Post-Closure | Remediation | Insurance | |||||||||||||
Balance, December 31, 2008 |
$ | 65.7 | $ | 1,040.6 | $ | 389.9 | $ | 408.1 | ||||||||
Non-cash asset additions |
| 17.1 | | | ||||||||||||
Increase due to acquisition |
| 5.4 | .9 | | ||||||||||||
SFAS 143 Adjustments |
| (.1 | ) | | | |||||||||||
Accretion expense |
| 45.2 | 10.0 | 7.7 | ||||||||||||
Other additions charged to expense |
9.4 | | | 242.3 | ||||||||||||
Other adjustments |
| 1.2 | | | ||||||||||||
Adjustments to assets held for sale |
.1 | (2.9 | ) | | | |||||||||||
Payments or usage |
(19.0 | ) | (33.2 | ) | (26.8 | ) | (231.2 | ) | ||||||||
Balance, June 30, 2009 |
56.2 | 1,073.3 | 374.0 | 426.9 | ||||||||||||
Less: Current portion |
(56.2 | ) | (99.8 | ) | (65.4 | ) | (125.1 | ) | ||||||||
Long-term portion |
$ | | $ | 973.5 | $ | 308.6 | $ | 301.8 | ||||||||
Gross Property and Equipment | ||||||||||||||||||||||||||||||||
Non-Cash | ||||||||||||||||||||||||||||||||
Balance | Additions | Transfers | Adjustments | Balance | ||||||||||||||||||||||||||||
as of | Acquisitions, | for Asset | and | to Assets | as of | |||||||||||||||||||||||||||
December 31, | Capital | Net of | Retirement | Other | Held for | June 30, | ||||||||||||||||||||||||||
2008 | Additions | Retirements | Divestitures | Obligations | Adjustments | Sale | 2009 | |||||||||||||||||||||||||
Other land |
$ | 464.4 | $ | .2 | $ | (1.5 | ) | $ | (23.1 | ) | $ | | $ | 2.8 | $ | (3.6 | ) | $ | 439.2 | |||||||||||||
Non-depletable landfill land |
169.3 | .6 | | (7.9 | ) | | | (4.9 | ) | 157.1 | ||||||||||||||||||||||
Landfill development costs |
4,126.3 | .1 | | | 17.0 | 8.4 | (5.5 | ) | 4,146.3 | |||||||||||||||||||||||
Vehicles and equipment |
3,432.3 | 203.2 | (30.4 | ) | 3.5 | | 2.9 | (18.3 | ) | 3,593.2 | ||||||||||||||||||||||
Buildings and Improvements |
706.0 | .8 | (8.4 | ) | .5 | | 14.8 | 3.9 | 717.6 | |||||||||||||||||||||||
Construction-in-progress landfill |
76.2 | 102.6 | | | | (9.4 | ) | .7 | 170.1 | |||||||||||||||||||||||
Construction-in-progress other |
26.3 | 13.4 | | | | (20.1 | ) | .1 | 19.7 | |||||||||||||||||||||||
Total |
$ | 9,000.8 | $ | 320.9 | $ | (40.3 | ) | $ | (27.0 | ) | $ | 17.0 | $ | (.6 | ) | $ | (27.6 | ) | $ | 9,243.2 | ||||||||||||
Accumulated Depreciation, Amortization and Depletion | ||||||||||||||||||||||||||||
Balance | Additions | Adjustments | Balance | |||||||||||||||||||||||||
as of | Charged | Acquisitions, | to Assets | as of | ||||||||||||||||||||||||
December 31, | to | Net of | SFAS 143 | Held for | June 30, | |||||||||||||||||||||||
2008 | Expense | Retirements | Divestitures | Adjustments | Sale | 2009 | ||||||||||||||||||||||
Landfill
development costs |
$ | (1,004.2 | ) | $ | (144.7 | ) | $ | | $ | | $ | | $ | 4.4 | $ | (1,144.5 | ) | |||||||||||
Vehicle and
equipment |
(1,147.3 | ) | (243.8 | ) | 24.5 | (2.3 | ) | | 7.9 | (1,361.0 | ) | |||||||||||||||||
Buildings and
improvements |
(111.1 | ) | (17.0 | ) | | | | 3.3 | (124.8 | ) | ||||||||||||||||||
Total |
$ | (2,262.6 | ) | $ | (405.5 | ) | $ | 24.5 | $ | (2.3 | ) | $ | | $ | 15.6 | $ | (2,630.3 | ) | ||||||||||
46
47
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Cash provided by operating activities |
$ | 168.3 | $ | 163.5 | $ | 680.7 | $ | 311.5 | ||||||||
Purchases of property and equipment |
(161.7 | ) | (83.8 | ) | (355.1 | ) | (165.4 | ) | ||||||||
Proceeds from sales of property and
equipment |
11.8 | 2.3 | 16.7 | 3.3 | ||||||||||||
Free cash flow |
$ | 18.4 | $ | 82.0 | $ | 342.3 | $ | 149.4 | ||||||||
48
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Purchases of
property and
equipment presented
in the unaudited
consolidated
statements of cash
flows |
$ | 161.7 | $ | 83.8 | $ | 355.1 | $ | 165.4 | ||||||||
Adjustment for
property and
equipment received
during the prior
period but paid for
in the following
period, net |
10.8 | 5.9 | (34.2 | ) | (27.9 | ) | ||||||||||
Property and
equipment received
during the current
period |
$ | 172.5 | $ | 89.7 | $ | 320.9 | $ | 137.5 | ||||||||
49
§ | our ability to successfully integrate Allieds and Republics operations and to achieve synergies or create long-term value for stockholders as expected, including the possibility that we will experience significant and unexpected transaction- and integration-related costs or that the timing of and proceeds received from the mandatory divestiture of certain assets may result in additional expenditures of money and resources or reduce the benefits of the merger; | ||
§ | the impact on us of our substantial post-merger indebtedness, including 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 and that any downgrade in our bond ratings could adversely impact us; | ||
§ | general economic and market conditions including, but not limited to, the current global economic and financial market crisis, inflation and changes in commodity pricing, fuel, labor, risk and health insurance and other variable costs that are generally not within our control and our exposure to credit and counterparty risk; | ||
§ | whether our estimates and assumptions concerning our selected balance sheet accounts, income tax accounts, final capping, closure, post- closure and remediation costs, available airspace, and projected costs and expenses related to our landfills and property and equipment (including our estimates of the fair values of the assets and liabilities acquired in our acquisition of Allied), and labor, fuel rates, and economic and inflationary trends, turn out to be correct or appropriate; | ||
§ | competition and demand for services in the solid waste industry; | ||
§ | the fact that price increases may not be adequate to offset the impact of increased costs and may cause us to lose volume; | ||
§ | our ability to manage growth and execute our acquisition 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; | ||
§ | our dependence on key personnel; | ||
§ | our dependence on large, long-term collection, transfer and disposal contracts; | ||
§ | our dependence on acquisitions for growth; | ||
§ | risks associated with undisclosed liabilities of acquired businesses; | ||
§ | risks associated with pending and any future legal proceedings, including our matters currently pending with the DOJ and IRS; | ||
§ | severe weather conditions, 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 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; | ||
§ | any litigation, audits or investigations brought by or before any governmental body; | ||
§ | workforce factors, including potential increases in our costs if we are required to provide additional funding to any multi-employer pension plan to which we contribute and 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 and waste- to-energy facilities; | ||
§ | changes by the Financial Accounting Standards Board or other accounting regulatory bodies to generally accepted accounting principles or policies; |
50
§ | acts of war, riots or terrorism, including the events taking place in the Middle East, the current military action in Iraq and 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; and | ||
§ | the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond our control. |
51
52
53
54
55
56
57
(d) Maximum Number | ||||||||||||||||
(or Approximate Dollar | ||||||||||||||||
(c) Total Number of | Value) of Shares (or | |||||||||||||||
Shares (or Units) | Units) that May Yet Be | |||||||||||||||
(a) Total Number of | (b) | Purchased as Part of | Purchased Under the | |||||||||||||
Shares (or Units) | Average Price Paid | Publicly Announced | Plans or Programs | |||||||||||||
Purchased | per Share (or Unit) | Plans or Programs | (in millions) | |||||||||||||
April 2009 |
9,420 | $ | 22.44 | 9,420 | $ | 247.5 | ||||||||||
May 2009 |
| | | 247.5 | ||||||||||||
June 2009 |
| | | 247.5 | ||||||||||||
Total |
9,420 | $ | 22.44 | 9,420 | $ | 247.5 | ||||||||||
Votes Cast | Votes Cast | |||||||
Director Nominee | For | Against | ||||||
James E. OConnor |
295,111,511 | 44,664,470 | ||||||
John W. Croghan |
296,857,972 | 42,918,009 | ||||||
James W. Crownover |
319,796,185 | 19,979,795 | ||||||
William J. Flynn |
316,139,906 | 23,636,075 | ||||||
David I. Foley |
302,035,929 | 37,740,051 | ||||||
Nolan Lehmann |
308,582,246 | 31,193,734 | ||||||
W. Lee Nutter |
305,546,680 | 34,229,301 | ||||||
Ramon A. Rodriguez |
294,735,347 | 45,040,633 | ||||||
Allan C. Sorensen |
288,001,706 | 51,774,275 | ||||||
John M. Trani |
319,409,124 | 20,366,857 | ||||||
Michael W. Wickham |
294,139,845 | 45,636,136 |
58
Votes Cast | Votes Cast | |||||||||||
For | Against | Abstentions | ||||||||||
337,941,274 | 1,798,093 | 36,613 |
Votes Cast | Votes Cast | |||||||||||
For | Against | Abstentions | ||||||||||
301,376,772 | 19,779,232 | 581,316 |
Votes Cast | Votes Cast | |||||||||||
For | Against | Abstentions | ||||||||||
317,896,317 | 3,352,779 | 488,224 |
Exhibit | ||
Number | Description of Exhibit | |
10.1
|
Republic Services, Inc. Executive Incentive Plan (incorporated by reference to the registrants Definitive Proxy Statement for its Annual Meeting of Stockholders held on May 14, 2009, File No. 001-14267). | |
10.2
|
Republic Services, Inc. Synergy Incentive Plan (under Republic Services, Inc. Executive Incentive Plan) (incorporated by reference to the registrants Definitive Proxy Statement for its Annual Meeting of Stockholders held on May 14, 2009, File No. 001-14267). | |
31.1*
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | |
31.1*
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer | |
31.2*
|
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer | |
32.1*
|
Section 1350 Certification of Chief Executive Officer | |
32.2*
|
Section 1350 Certification of Chief Financial Officer | |
101**
|
The following materials from Republic Services, Inc.s Quarterly Report on Form 10-Q for the period ended June 30, 2009, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statement of Stockholders Equity and Comprehensive Income, (iv) the Consolidated Statements of Cash Flows, and (v) the Notes to Consolidated Financial Statements, tagged as blocks of text. |
* | Filed herewith |
** | This exhibit is being furnished rather than filed, and shall not be deemed incorporated by reference into any filing, in accordance within Item 601 of Regulation S-K. |
59
REPUBLIC SERVICES, INC. |
||||
By: | /s/ TOD C. HOLMES | |||
Tod C. Holmes | ||||
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
||||
Date: August 6, 2009 | By: | /s/ CHARLES F. SERIANNI | ||
Charles F. Serianni | ||||
Senior Vice President and Chief Accounting Officer (Principal Accounting Officer) |
||||
60