Republic Services Inc.

Company Overview

Business Model: Republic Services, Inc. is one of the largest providers of environmental services in the United States, generating revenue through a vertically integrated operating platform. The Company offers comprehensive services including the collection and processing of recyclable, solid waste, and industrial waste materials; transportation and disposal of non-hazardous and hazardous waste streams; and other environmental solutions. Revenue is primarily generated from residential, small-container, and large-container collection services, transfer station tipping fees, landfill tipping fees, and environmental solutions. The Company is expanding into sustainability innovation, focusing on material circularity and decarbonization solutions.

Market Position: Republic Services, Inc. operates across the United States and Canada, serving a total addressable North American environmental services market estimated at approximately $165 billion annually. This market includes $105 billion in recycling and waste, $35 billion in broader environmental solutions, and $25 billion in sustainability innovation and emerging waste/recycling technologies. The Company aims for a leading market position in each of its service areas, leveraging its vertically integrated infrastructure which includes 367 collection operations, 248 transfer stations, 75 recycling centers, 208 active landfills, 2 treatment, recovery and disposal facilities, 23 treatment, storage and disposal facilities, 5 salt water disposal wells, 14 deep injection wells, and 1 polymer center. In 2024, approximately 67% of the total solid waste volume collected by the Company was disposed of at its owned or operated landfills.

Recent Strategic Developments:

• Expansion of Recycling Capabilities: Commenced operation at its first Polymer Center in Las Vegas, Nevada, and completed construction of a second Polymer Center in Indianapolis, Indiana, in 2024. These centers aim to advance circularity for plastics, producing food-grade drop-in substitutes for virgin plastics.
• Joint Venture for Plastics Circularity: Announced the development of Blue Polymers, a joint venture with Ravago JV Holdings, LLC, in 2023. This initiative will acquire olefins from the Polymer Centers to manufacture custom blended pellets for food-grade and non-food-grade packaging, with facilities under construction in Indianapolis, Indiana, and Buckeye, Arizona.
• Renewable Energy Projects: Engaged in 79 landfill gas-to-energy and other renewable energy projects, with 45 landfill gas-to-renewable natural gas (RNG) projects in development, primarily through a minority equity joint venture with Archaea Energy.
• Fleet Electrification: Operated 52 electric collection vehicles and 22 commercial scale electric charging facilities as of December 31, 2024, as part of a leadership position in electric technology innovation.
• Acquisition Growth: Continued to acquire privately held environmental services businesses, including the acquisition of US Ecology, Inc. (closed May 2022) and subsequent acquisitions, to expand its environmental solutions segment. In February 2025, acquired COP Shamrock Parent, Inc., a provider of industrial waste and wastewater treatment services, for approximately $700 million.

Geographic Footprint: Republic Services, Inc. operates across the United States and Canada. In 2024, revenue generated in Canada was $182 million. The remainder of the Company's revenue and assets are related to its United States operations.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: 41.68% (2024)
• Operating Margin: 19.93% (2024)
• Net Margin: 12.74% (2024)

Investment in Growth:

• R&D Expenditure: Not explicitly disclosed as a separate line item.
• Capital Expenditures: $1,855 million (2024)
• Strategic Investments:
  • Non-controlling equity interests in limited liability companies for renewable energy assets (investment tax credits): $236 million (2024)
  • Non-controlling equity interest in a landfill gas-to-energy developer joint venture (Illinois): $35 million (2024)
  • Non-controlling equity interest in a thermal processing facility (Canada): $27 million (2024)
  • Non-controlling equity interest in a landfill gas-to-energy developer joint venture (US): $98 million (2024)
  • Non-controlling equity interest in Blue Polymers, LLC joint venture: $38 million (2024)

Business Segment Analysis

Group 1 (Recycling & Waste - Western United States)

Financial Performance:

• Net Revenue: $7,220 million (+7.9% YoY)
• Adjusted EBITDA: $2,353 million
• Key Growth Drivers: Increase in average yield across all lines of business, partially offset by volume declines in large container collection and landfill services.

Product Portfolio: Integrated environmental services including collection, transfer, recycling, and disposal.

Market Dynamics: Primarily operates in geographic areas located in the western United States.

Group 2 (Recycling & Waste - Southeastern, Midwestern, Eastern Seaboard United States & Canada)

Financial Performance:

• Net Revenue: $6,969 million (+4.9% YoY)
• Adjusted EBITDA: $2,190 million
• Key Growth Drivers: Increase in average yield across all lines of business and increased volume in landfill services, partially offset by decreased volume in collection and transfer services.

Product Portfolio: Integrated environmental services including collection, transfer, recycling, and disposal.

Market Dynamics: Primarily operates in geographic areas located in the southeastern and mid-western United States, the eastern seaboard of the United States, and Canada.

Group 3 (Environmental Solutions - United States & Canada)

Financial Performance:

• Net Revenue: $1,843 million (+13.4% YoY)
• Adjusted EBITDA: $436 million
• Key Growth Drivers: Acquisition-related growth, favorable pricing, and an increase in event-based volumes.

Product Portfolio: Collection, treatment, consolidation, disposal, and recycling of hazardous and non-hazardous waste; field and industrial services; equipment rental; emergency response and standby services; and in-plant services. Includes 6 active hazardous waste landfills, 9 active energy waste landfills, 2 treatment, recovery and disposal facilities, 23 treatment, storage and disposal facilities, 5 salt water disposal wells, and 14 deep injection wells.

Market Dynamics: Operates across the United States and Canada, addressing complex environmental and sustainability needs of industrial, petrochemical, refining, and oil/natural gas facilities, as well as private and government-funded projects.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: $480 million (2.5 million shares) in 2024.
• Dividend Payments: $699 million in 2024.
• Dividend Yield: Not explicitly stated.
• Future Capital Return Commitments: $3.0 billion share repurchase authorization approved in October 2023, effective January 1, 2024, through December 31, 2026. Remaining authorized purchase capacity of $2.5 billion as of December 31, 2024. Quarterly dividend increased to $0.580 per share in July 2024, marking the 21st consecutive year of a dividend increase.

Balance Sheet Position:

• Cash and Equivalents: $74 million (as of December 31, 2024)
• Total Debt: $12,840 million (principal value as of December 31, 2024)
• Net Cash Position: Not explicitly stated.
• Credit Rating: BBB+ by Standard & Poor’s Ratings Services, A- by Fitch Ratings, Inc., and Baa1 by Moody’s Investors Service, Inc.
• Debt Maturity Profile (Principal Maturities as of December 31, 2024):
  • 2025: $862 million
  • 2026: $594 million
  • 2027: $663 million
  • 2028: $844 million
  • 2029: $2,179 million
  • Thereafter: $7,698 million

Cash Flow Generation:

• Operating Cash Flow: $3,936 million (2024)
• Free Cash Flow: Not explicitly defined or provided as a metric in the filing.
• Cash Conversion Metrics: Days sales outstanding were 40.9 days (30.0 days net of deferred revenue) as of December 31, 2024, an improvement from 42.0 days (30.9 days net of deferred revenue) as of December 31, 2023.

Operational Excellence

Production & Service Model: Republic Services, Inc. employs a vertically integrated operating platform, delivering services through "The Republic Way: One Way. Everywhere. Every Day." This model emphasizes standardized processes with rigorous controls and local operating management to achieve efficiency and respond to unique market dynamics. The Company prioritizes safety, fleet automation, fleet electrification, and standardized maintenance.

Supply Chain Architecture: Key Suppliers & Partners:

• Equipment Manufacturers: Collaborates with multiple manufacturers for electric-powered recycling and waste trucks and to incorporate safety elements into its fleet (e.g., seat belt alarms, blind spot awareness, lane departure alarms).
• Technology Partners: Leverages technology for its "RISE" dispatch platform and in-cab technology, and is deploying "MPower" enterprise asset management system.
• Joint Venture Partners: Ravago JV Holdings, LLC (Blue Polymers) for plastics circularity; Archaea Energy (a bp company) for landfill gas-to-renewable natural gas projects.

Facility Network:

• Collection Operations: 367 locations across the United States and Canada.
• Transfer Stations: 248 facilities.
• Recycling Centers: 75 centers, processing and selling 2.1 million tons of materials (excluding glass and organics) and 0.3 million tons of organic materials in 2024.
• Landfills: 208 active landfills with 41,158 estimated permitted acres and 5.0 billion in-place cubic yards of disposal capacity. Also has post-closure responsibility for 125 closed landfills.
• Treatment & Disposal Facilities: 2 treatment, recovery and disposal facilities, 23 treatment, storage and disposal facilities (TSDFs), 5 salt water disposal wells, and 14 deep injection wells.
• Polymer Centers: 1 operational Polymer Center in Las Vegas, Nevada, and 1 under construction in Indianapolis, Indiana.
• Renewable Energy Projects: 79 landfill gas-to-energy and other renewable energy projects, and hosts solar projects at six sites.

Operational Metrics:

• Internalization Rate: 67% of total solid waste volume collected was disposed at Company-owned or operated landfills in 2024 (compared to 68% in 2023).
• Automated Residential Routes: Approximately 77% of residential routes converted to automated single-driver trucks.
• Electric Fleet: 52 electric collection vehicles and 22 commercial scale electric charging facilities as of December 31, 2024.
• Average Fleet Age (Recycling & Waste Collection Vehicles as of December 31, 2024):
  • Residential: 7.7 years (7,300 vehicles)
  • Small-container: 7.2 years (5,500 vehicles)
  • Large-container: 9.0 years (4,800 vehicles)
  • Total: 7.9 years (17,600 vehicles)
• Landfill Gas Collection Systems: More than 87% of landfill acreage is covered by gas collection systems.
• Safety Performance: Over the past 10 years, safety performance (OSHA recordable rates) has been 24% better than the industry average.

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Utilizes a Priority Based Selling (PBS) technique and a cloud-based "Capture" pricing tool to identify customer needs and configure offerings.
• Channel Partners: Fulfills demand for services not directly provided through alliance partnerships, while maintaining the customer-facing relationship.
• Digital Platforms: Offers online account management via its website and mobile app, and an e-commerce sales channel for real-time service acquisition. Leverages "RISE" dispatch platform and in-cab technology for improved productivity and customer connectivity.

Customer Portfolio: Enterprise Customers: Serves a diverse customer base including residential households, small businesses, multi-family housing, strip malls, larger facilities, hotels, office buildings, industrial, petrochemical, and refining facilities, oil and natural gas exploration and production sites, and government entities. Customer Concentration: Not explicitly quantified in the filing. Geographic Revenue Distribution:

• Canada: $182 million (2024)
• United States: Remainder of total revenue.

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics: The North American environmental services market is estimated at approximately $165 billion annually, encompassing recycling and waste, broader environmental solutions, and sustainability innovation. The environmental solutions segment is fragmented, offering consolidation opportunities. Customer demand for decarbonization and circularity products and services is expected to drive above-average growth. The industry is capital-intensive and subject to local dynamics, legislation, demographic shifts, and competitive landscapes.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors: The Company competes with a few other large, national publicly-owned companies, several regional publicly- and privately-owned companies, and thousands of small privately-owned companies. Municipalities that operate their own collection or disposal operations also represent competition, potentially having financial advantages due to tax revenue and tax-exempt financing.

Emerging Competitive Threats: New entrants, disruptive technologies, and alternative solutions such as increased recycling, composting, and waste reduction at the source (e.g., "zero-waste" goals by large companies, extended producer responsibility, organic diversion, and minimum recycled content regulations).

Competitive Response Strategy: Republic Services, Inc. aims to maintain its competitive advantage through:

• Developing a strong, vertically integrated market position and building density.
• Internal growth initiatives including volume growth through long-term contracts, strategic price increases, expansion of recycling capabilities (e.g., Polymer Centers), and infrastructure development (landfill expansions).
• External growth through acquisitions of privately held environmental services businesses and public-private partnerships.
• Realizing synergies from consolidating businesses.
• Investing in its operating model (Republic Way) focusing on safety, fleet automation, fleet electrification, and standardized maintenance.
• Differentiating capabilities in customer zeal, digital platforms, and sustainability.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Competition: Intense competition from national, regional, local, and municipal entities, potentially leading to price reductions and market share loss.
• Recycled Commodity Price Volatility: Fluctuations in prices for recycled materials (e.g., paper, plastics, aluminum) due to economic conditions and market demand (e.g., Chinese import restrictions) can adversely affect revenue and operating income. A $10 per ton change in recycled commodity prices is estimated to change annual revenue and operating income by approximately $11 million.
• Alternatives to Landfill Disposal: Trends toward waste reduction, recycling, composting, and bans on certain waste types (e.g., yard waste, food waste) could reduce landfill disposal volumes and negatively impact revenues and operating results.
• Economic Conditions: Weak or volatile economic conditions, including inflation, can reduce volumes, increase competitive pricing pressure, and increase operating costs (e.g., labor, fuel, third-party disposal). Technology Disruption:
• Emerging Technologies: The costs and risks associated with developing or investing in new recycling and waste processing technologies, or a competitor obtaining exclusive rights to a disruptive technology, could adversely affect the business model. Customer Concentration: Not explicitly quantified as a risk.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Fuel Price Volatility: Unpredictable fluctuations in fuel prices (diesel, CNG) significantly impact operating expenses. While fuel recovery fees mitigate some risk, full offset is not guaranteed. A $0.20 per gallon change in diesel fuel price is estimated to change fuel costs by $27 million annually, with a $38 million change in fuel recovery fees.
• Petrochemical Prices: Increases in petrochemical prices can raise costs for products like landfill liners.
• Labor Costs & Shortages: Dependence on key personnel, union organizing campaigns, work stoppages, or labor shortages could increase operating costs and disrupt operations. Approximately 22% of the workforce is covered by collective bargaining agreements.
• Capacity Constraints: Inability to obtain or maintain required permits or expand existing permitted capacity at facilities (landfills, transfer stations) could decrease revenue and increase costs due to reliance on competitor facilities or longer haul distances. Geographic Concentration: Not explicitly identified as a specific risk category. Capacity Constraints: The environmental services industry is capital-intensive; capital expenditures may exceed expectations, requiring additional funding or impairing growth.

Financial & Regulatory Risks

Market & Financial Risks:

• Indebtedness: Substantial indebtedness ($12.8 billion principal value as of December 31, 2024) may limit financial flexibility, ability to obtain financing, and compliance with debt covenants.
• Credit Ratings: Inability to maintain investment-grade credit ratings could increase interest expense and adversely affect access to capital markets.
• Credit Risk: Weakness in the economy may expose the Company to credit risk from governmental entities, large national accounts, and industrial customers.
• Accounting Estimates: Financial statements rely on estimates and assumptions (e.g., landfill capping, closure, post-closure, remediation costs, available airspace, fair values of acquired assets), which if incorrect, could materially affect financial condition and results.
• Multiemployer Pension Plans: Obligations to fund underfunded multiemployer pension plans or withdrawal events could result in significant payments. Regulatory & Compliance Risks:
• Environmental Regulations: Costly compliance with federal, state, provincial, and local environmental laws (RCRA, CERCLA, Clean Water Act, Clean Air Act, OSHA), including changes related to PFAS and other emerging chemicals, could increase operating costs or require additional capital expenditures.
• Flow Control Regulations: Laws restricting waste transportation across jurisdictional lines or directing waste flow could reduce landfill volumes and increase disposal costs.
• Greenhouse Gas Emissions Regulation: Efforts to curtail GHG emissions (e.g., methane from landfills, CO2 from fleet) could impose material costs for more stringent controls, monitoring systems, or higher fuel efficiency standards.
• Maritime Regulations: Group 3 operations are subject to specific maritime laws (Jones Act, SOLAS, ISPS Code) and associated compliance costs.
• Legal Proceedings: Pending and future litigation or governmental proceedings (e.g., environmental claims, nuisance, personal injury) could result in material adverse consequences, including judgments, fines, or settlements.
• Renewable Fuel Policies: Changes to federal Renewable Fuel Standard (RFS) program or RIN prices could affect financial performance of landfill gas-to-energy projects.

Geopolitical & External Risks

Geopolitical Exposure: Not explicitly detailed beyond general economic and market conditions. Trade Relations: Not explicitly detailed beyond general economic and market conditions. Sanctions & Export Controls: Not explicitly detailed. Severe Weather & Natural Disasters: Acute and chronic weather events (hurricanes, wildfires, storms, rising temperatures) can disrupt operations, increase costs, reduce operational efficiency, or delay landfill development.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Plastics Circularity: Investment in Polymer Centers (Las Vegas operational, Indianapolis under construction) to manage the plastics stream from curbside collection to production of food-grade recycled content. Joint venture with Ravago (Blue Polymers) to further process recycled HDPE and PP into custom blended pellets.
• Renewable Energy: Conversion of landfill gas to energy (79 projects operational) and renewable natural gas (45 projects in development, including a joint venture with Archaea Energy). Hosting solar projects at six landfill sites.
• Fleet Technology: Leadership in electric vehicle technology for collection fleets (52 electric vehicles, 22 charging facilities). Deployment of "RISE" dispatch platform and "MPower" enterprise asset management system.
• Recycling Efficiency: Investment in robotics and advanced sorting equipment (disk screens, magnets, optical sorters) to increase efficiency and maximize recycling efforts. Innovation Pipeline: Continued development of Polymer Centers and Blue Polymers facilities, with plans for additional sites in the coming years. Ongoing deployment of fleet electrification and digital operational platforms.

Intellectual Property Portfolio:

• Patent Strategy: Not explicitly detailed in the filing, but the Company's investments in innovative recycling and energy technologies imply a focus on proprietary processes.
• Licensing Programs: Not explicitly detailed.
• IP Litigation: Not explicitly detailed.

Technology Partnerships:

• Strategic Alliances: Joint venture with Ravago JV Holdings, LLC for Blue Polymers. Minority equity owner in a joint venture with Archaea Energy for RNG projects.
• Research Collaborations: Not explicitly detailed, but the Company works with equipment manufacturers to incorporate safety and efficiency elements into its fleet.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: The Company emphasizes "Composite Strength" by blending experienced industry veterans with talented individuals from other industries to ensure leadership continuity, preserve institutional knowledge, and introduce new skills and ideas. Rotational training and development programs (e.g., General Manager Acceleration Program, Operations Manager Acceleration Program, MBA intern program) are in place to develop future leaders.

Board Composition: The Board of Directors' Sustainability & Corporate Responsibility Committee oversees sustainability performance and corporate responsibilities. The Audit Committee oversees cybersecurity risk exposures.

Human Capital Strategy

Workforce Composition:

• Total Employees: Approximately 42,000 full-time employees.
• Geographic Distribution: Employees are located across the United States and Canada.
• Skill Mix: Not explicitly detailed, but the Company focuses on developing fundamental skills for various roles including drivers, technicians, supervisors, and general managers.

Talent Management: Acquisition & Retention:

• Hiring Strategy: Committed to attracting and hiring talent across the country, including expanding remote work opportunities.
• Retention Metrics: Employee engagement score of 86 in 2024 (7 points above national benchmark), with 99% participation in the engagement survey. Business units with highly engaged workforces experience less turnover.
• Employee Value Proposition: Offers market-competitive wages, a focus on pay equity, competitive paid time off, access to preventative care, financial planning advice, and mental health support. Diversity & Development:
• Diversity Metrics: Frontline workforce closely represents community demographics. Efforts to improve representation of diverse groups across all levels.
• Development Programs: Includes new hire onboarding, new leader assimilation, Leadership Fundamentals (1,226 leaders completed in 2024), Driver Training, Technician Training (267 participants since 2021), Supervisor Training, Sales Acceleration, General Manager Onboarding. Rotational training programs like the General Manager Acceleration Program (GMAP) and Operations Manager Acceleration Program have graduated 109 leaders since 2017. The MBA intern program has had 51 participants since 2019.
• Culture & Engagement: Fosters a culture of caring, respect, support, and encouragement. Employee engagement scores are a component of General Managers' incentive compensation. Supports Business Resource Groups (BRGs) including Women of Republic, VALOR, UNIDOS, Black Employee Network, PRISM, and AAPI (launched May 2024).

Environmental & Social Impact

Environmental Commitments: Climate Strategy:

• Emissions Targets: Committed to reducing absolute Scope 1 and 2 greenhouse gas emissions by 35% by 2030 (relative to 2017 baseline), approved by SBTi. Interim goal of 10% reduction by 2025 was achieved early in 2023.
• Carbon Neutrality: Not explicitly stated as a target, but efforts contribute to decarbonization.
• Renewable Energy: Operates 79 landfill gas-to-energy projects and has 45 landfill gas-to-renewable natural gas (RNG) projects in development. Hosts solar projects at six sites. Committed to increasing beneficial reuse of biogas by 50% by 2030. Supply Chain Sustainability:
• Supplier Engagement: Not explicitly detailed beyond general ESG requirements for suppliers.
• Responsible Sourcing: Not explicitly detailed, but Polymer Centers aim to advance circularity for plastics.

Social Impact Initiatives:

• Community Investment: Goal to create sustainable neighborhoods through strong community partnerships for 45 million people by 2030.
• Product Impact: Focus on products and services that respond to evolving environmental trends, including decarbonization and circularity, which are valuable to customers and essential for long-term sustainability.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Operating revenues tend to be higher in the summer months (second and third quarters) due to increased volumes of construction and demolition waste, as well as large-container and residential recycling and waste in certain regions.
• Economic Sensitivity: Business is directly affected by local, national, and global economic factors, including governmental monetary policies, international trade restrictions, consumer confidence, slowing economic growth, inflation, pandemics, and interest rates.
• Industry Cycles: Recovery in the environmental services industry has historically lagged behind recovery in the general economy.

Planning & Forecasting: The Company has business continuity plans in place for severe weather, natural disasters, and other emergencies (e.g., hurricanes, tornadoes, flooding, winter storms, earthquakes, wildfires) to limit operational disruptions and ensure service continuity.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Solid Waste Disposal: Subject to the Solid Waste Disposal Act, including RCRA (Subtitles C for hazardous waste, D for municipal solid waste), requiring permits, facility design, operating criteria, closure/post-closure, and groundwater monitoring.
• Hazardous Substances: Governed by CERCLA, which imposes strict joint and several liability for cleanup costs of hazardous substances. The EPA designated two PFAS as hazardous substances in 2024, potentially triggering additional obligations.
• Water Quality: Regulated by the Clean Water Act, governing wastewater/storm water discharges and requiring permits.
• Air Quality: Subject to the Clean Air Act, imposing limitations on emissions from landfills (methane, non-methane gases) and vehicle fleets (carbon dioxide, fuel efficiency standards).
• Occupational Safety: Governed by OSHA, setting occupational safety and health standards.
• State and Local Regulations: Affected by state/local laws on waste reduction, recycling, composting, bans on certain waste types (e.g., yard waste, food waste), "extended producer responsibility," and "minimum recycled content" regulations.
• Canadian Regulations: Group 3 operations are subject to the Canadian Environmental Protection Act, 1999 (CEPA), Transportation of Dangerous Goods Act, 1992, and provincial acts (e.g., Québec Environment Quality Act, Ontario Environmental Protection Act, Alberta Environmental Protection and Enhancement Act). The federal Greenhouse Gas Pollution Pricing Act imposes a carbon pricing system.
• Maritime Regulations: Group 3 operations with 63 United States-flag vessels are subject to United States Coast Guard, Customs and Border Protection, Maritime Administration, Jones Act (cabotage laws), Oil Pollution Act of 1990, and the International Ship and Port Facility Security Code (ISPS Code).
• Other Regulations: Subject to the Toxic Substances Control Act of 1976 (TSCA) for PCBs and asbestos, and the Atomic Energy Act of 1954 (AEA) for radioactive materials.

Trade & Export Controls:

• Export Restrictions: Canadian regulations control transboundary movement of hazardous waste and recyclable materials, requiring permits.
• Sanctions Compliance: Not explicitly detailed.

Legal Proceedings:

• Material Litigation: As of December 31, 2024, the Company had an aggregate accrual of approximately $13 million relating to outstanding legal proceedings (excluding insurance and environmental remediation liabilities).
• Environmental Litigation: Environmental remediation liabilities totaled $447 million as of December 31, 2024. The Company is a potentially responsible party at the West Lake Landfill Superfund Site, with a revised undiscounted cost estimate of $392 million for remediation.

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: 16% for 2024, compared to 21% for 2023. The 2024 rate reflects a $222 million benefit from investment tax credits related to non-controlling interests in renewable energy assets and an $18 million benefit from tax credits for qualified investments in renewable natural gas projects and commercial electric vehicles.
• Geographic Tax Planning: Not explicitly detailed.
• Tax Reform Impact: The Inflation Reduction Act of 2022 (IRA) is expected to provide future benefits from credits related to commercial electric vehicles, carbon capture, and renewable natural gas. Proposed Corporate Alternative Minimum Tax (CAMT) regulations could result in substantial additional income taxes if not addressed favorably.

Insurance & Risk Transfer

Risk Management Framework: The Company maintains various policies of insurance with high deductibles for workers' compensation, commercial general and auto liability, environmental and remediation liability, and employee-related health care benefits. Accruals for insurance reserves are based on claims filed and actuarial estimates of claims incurred but not reported.

Insurance Coverage:

• Insurance Reserves: Liabilities for unpaid and incurred but not reported claims totaled $622 million as of December 31, 2024 (compared to $566 million in 2023).
• Restricted Cash for Insurance: $149 million in restricted cash and marketable securities supports insurance programs as of December 31, 2024.

Risk Transfer Mechanisms:

• Surety Bonds: $5,045 million in surety bonds were in place as of December 31, 2024, to secure financial assurances for landfill operations (capping, closure, post-closure) and contract performance. The Company owns a 19.9% interest in a company that issues financial surety bonds, with $1,812 million of these bonds outstanding for Republic Services, Inc. as of December 31, 2024.
• Letters of Credit: $464 million in letters of credit were in place as of December 31, 2024, for financial assurances. $317 million of these were outstanding under the Credit Facility.
• Trust Deposits: Cash is deposited into restricted trust funds or escrow accounts to satisfy financial assurance requirements for certain landfills.