ADVANCED DISPOSAL SERVICES, INC., 10-K filed on 2/28/2018
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Feb. 9, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Document Type
10-K 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Entity Registrant Name
Advanced Disposal Services, Inc. 
 
 
Entity Central Index Key
0001585790 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
88,508,468 
 
Entity Public Float
 
 
$ 972.8 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets
 
 
Cash and cash equivalents
$ 6.8 
$ 1.2 
Accounts receivable, net of allowance for doubtful accounts of $5.4 and $4.0, respectively
199.9 
183.2 
Prepaid expenses and other current assets
37.9 
30.3 
Total current assets
244.6 
214.7 
Other assets
23.0 
23.3 
Property and equipment, net of accumulated depreciation of $1,355.5 and $1,163.0, respectively
1,728.8 
1,633.4 
Goodwill
1,208.2 
1,173.9 
Other intangible assets, net of accumulated amortization of $247.6 and $210.7, respectively
288.7 
324.6 
Total assets
3,493.3 
3,369.9 
Current liabilities
 
 
Accounts payable
92.3 
86.5 
Accrued expenses
113.0 
109.8 
Deferred revenue
69.1 
62.5 
Current maturities of landfill retirement obligations
20.2 
29.3 
Current maturities of long-term debt
74.1 
36.5 
Total current liabilities
368.7 
324.6 
Other long-term liabilities
61.5 
54.2 
Long-term debt, less current maturities
1,884.2 
1,887.0 
Accrued landfill retirement obligations, less current maturities
205.7 
161.8 
Deferred income taxes
88.6 
112.8 
Total liabilities
2,608.7 
2,540.4 
Commitments and contingencies
   
   
Equity
 
 
Common stock: $.01 par value, 1,000,000,000 shares authorized, 88,491,194 and 88,034,813 shares outstanding, respectively
0.9 
0.8 
Additional paid-in capital
1,487.4 
1,470.3 
Accumulated other comprehensive loss
(0.4)
Accumulated deficit
(603.3)
(641.6)
Treasury stock at cost, 2,274 and 0 shares, respectively
Total stockholders’ equity
884.6 
829.5 
Total liabilities and stockholders’ equity
$ 3,493.3 
$ 3,369.9 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts receivable
$ 5.4 
$ 4.0 
Accumulated depreciation of property, plant, and equipment
1,355.5 
1,163.0 
Accumulated amortization of intangibles
$ 247.6 
$ 210.7 
Common stock, par value (in dollars per share)
$ 0.01 
$ 0.01 
Common stock, shares authorized (in shares)
1,000,000,000 
1,000,000,000 
Common stock, shares outstanding (in shares)
88,491,194 
88,034,813 
Treasury stock at costs (in shares)
2,274 
Consolidated Statements of Operations (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Statement [Abstract]
 
 
 
Service revenues
$ 1,507.6 
$ 1,404.6 
$ 1,396.4 
Operating costs and expenses
 
 
 
Operating (exclusive of items shown separately below)
962.1 
865.5 
866.6 
Selling, general and administrative
169.5 
157.0 
152.6 
Depreciation and amortization
269.8 
246.9 
259.1 
Acquisition and development costs
1.3 
0.7 
1.4 
Loss on disposal of assets and asset impairments
11.4 
1.8 
21.6 
Restructuring charges
3.4 
0.8 
Total operating costs and expenses
1,417.5 
1,272.7 
1,301.3 
Operating income
90.1 
131.9 
95.1 
Other (expense) income
 
 
 
Interest expense
(93.0)
(130.2)
(138.0)
Loss on debt extinguishments and modifications
(3.7)
(64.7)
Other income (expense), net
3.7 
6.9 
(10.1)
Total other expense
(93.0)
(188.0)
(148.1)
Loss before income taxes
(2.9)
(56.1)
(53.0)
Income tax benefit
(41.2)
(25.7)
(19.4)
Net income (loss)
$ 38.3 
$ (30.4)
$ (33.6)
Net income (loss) attributable to common stockholders per share
 
 
 
Basic income (loss) per share (in dollars per share)
$ 0.43 
$ (0.44)
$ (0.52)
Diluted income (loss) per share (in dollars per share)
$ 0.43 
$ (0.44)
$ (0.52)
Basic average shares outstanding (in shares)
88,323,213 
69,462,798 
64,493,536 
Diluted average shares outstanding (in shares)
88,887,812 
69,462,798 
64,493,536 
Consolidated Statements of Comprehensive Income (Loss) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement of Comprehensive Income [Abstract]
 
 
 
Net income (loss)
$ 38.3 
$ (30.4)
$ (33.6)
Other comprehensive loss, net of tax
(0.4)
(1.5)
Other comprehensive loss
(0.4)
(1.5)
Comprehensive income (loss)
$ 37.9 
$ (30.4)
$ (35.1)
Consolidated Statements of Stockholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Common Stock
Treasury Stock
Additional Paid-In
Accumulated Deficit
Accumulated Other Comprehensive Income (Loss)
Beginning Balance at Dec. 31, 2014
$ 528.9 
$ 0.6 
$ 0 
$ 1,104.4 
$ (577.6)
$ 1.5 
Beginning Balance (in shares) at Dec. 31, 2014
 
64,493,536 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net income (loss)
(33.6)
 
 
 
(33.6)
 
Unrealized loss resulting from change in fair value of derivative instruments, net of tax
(1.5)
 
 
 
 
(1.5)
Stock based compensation expense
3.1 
 
 
3.1 
 
 
Capital contribution from former parent
0.4 
 
 
0.4 
 
 
Return of capital to former parent
(7.5)
 
 
(7.5)
 
 
Ending Balance at Dec. 31, 2015
489.8 
0.6 
1,100.4 
(611.2)
Ending Balance (in shares) at Dec. 31, 2015
 
64,493,536 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net income (loss)
(30.4)
 
 
 
(30.4)
 
Unrealized loss resulting from change in fair value of derivative instruments, net of tax
 
 
 
 
 
Stock based compensation expense
6.3 
 
 
6.3 
 
 
Return of capital to former parent
(21.8)
 
 
(21.8)
 
 
Assumed liabilities from merger with former parent
(5.5)
 
 
(5.5)
 
 
Initial public offering proceeds, net (in shares)
 
22,137,500 
 
 
 
 
Initial public offering proceeds, net
373.7 
0.2 
 
373.5 
 
 
Stock option exercises and other
17.4 
 
 
17.4 
 
 
Stock option exercises and other (in shares)
 
1,403,777 
 
 
 
 
Ending Balance at Dec. 31, 2016
829.5 
0.8 
1,470.3 
(641.6)
Ending Balance (in shares) at Dec. 31, 2016
 
88,034,813 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Net income (loss)
38.3 
 
 
 
38.3 
 
Unrealized loss resulting from change in fair value of derivative instruments, net of tax
(0.4)
 
 
 
 
(0.4)
Stock based compensation expense
10.2 
 
 
10.2 
 
 
Stock based compensation expense (in shares)
 
53,177 
 
 
 
 
Stock option exercises and other
7.0 
0.1 
 
6.9 
 
 
Stock option exercises and other (in shares)
533,450 
405,478 
2,274 
 
 
 
Ending Balance at Dec. 31, 2017
$ 884.6 
$ 0.9 
$ 0 
$ 1,487.4 
$ (603.3)
$ (0.4)
Ending Balance (in shares) at Dec. 31, 2017
 
88,493,468 
2,274 
 
 
 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities
 
 
 
Net income (loss)
$ 38.3 
$ (30.4)
$ (33.6)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
 
 
 
Depreciation and amortization
269.8 
246.9 
259.1 
Change in fair value of derivative instruments
(1.5)
(18.5)
(11.1)
Amortization of debt issuance costs and original issue discount
6.3 
17.5 
19.5 
Loss on debt extinguishments and modifications
3.7 
64.7 
Loss on debt extinguishments and modifications
15.4 
13.0 
13.1 
Other accretion and amortization
3.5 
4.0 
4.2 
Provision for doubtful accounts
5.4 
3.7 
4.0 
Loss on disposition of property and equipment
1.6 
3.5 
4.7 
Gain on redemption of security
(2.5)
Impairment of assets
13.0 
6.4 
(Gain) loss on disposition of business
(2.8)
(1.7)
10.5 
Stock based compensation
10.2 
6.3 
3.1 
Deferred tax benefit
(41.3)
(26.5)
(21.6)
Earnings in equity investee
(1.6)
(1.8)
(1.3)
Changes in operating assets and liabilities, net of businesses acquired
 
 
 
(Increase) decrease in accounts receivable
(17.7)
(8.8)
8.3 
(Increase) decrease in prepaid expenses and other current assets
(5.9)
2.8 
1.1 
Decrease in other assets
2.4 
1.8 
3.9 
Increase (decrease) in accounts payable
4.1 
(0.9)
(2.8)
(Decrease) increase in accrued expenses
(2.6)
(14.3)
3.9 
Increase (decrease) in deferred revenue
2.2 
(1.0)
(0.5)
Increase (decrease) in other long-term liabilities
0.6 
(3.4)
(3.5)
Capping, closure and post-closure expenditures
(18.3)
(19.9)
(20.4)
Assumption of long-term care and closure reserve
24.0 
Net cash provided by operating activities
308.8 
237.0 
244.5 
Cash flows from investing activities
 
 
 
Purchases of property and equipment and construction and development
(186.6)
(171.0)
(179.7)
Proceeds from sale of property and equipment
2.2 
3.3 
2.6 
Proceeds from redemption of securities
15.0 
Acquisition of businesses, net of cash acquired
(111.9)
(5.4)
(50.0)
Proceeds from sale of businesses
8.7 
2.5 
14.7 
Net cash used in investing activities
(287.6)
(170.6)
(197.4)
Cash flows from financing activities
 
 
 
Proceeds from borrowings on debt instruments
326.2 
782.8 
114.0 
Repayments on debt instruments including capital leases
(347.0)
(1,164.4)
(153.4)
Bank overdraft
(2.6)
1.2 
Proceeds from issuance of common stock
375.6 
Costs associated with issuance of common stock
(1.9)
Costs associated with debt extinguishments and modifications
(1.8)
(50.9)
(0.2)
Costs associated with debt extinguishments and modifications
7.0 
17.4 
Return of capital to former parent
(21.8)
(7.1)
Other financing activities
(2.0)
Net cash used in financing activities
(15.6)
(65.8)
(47.5)
Net increase (decrease) in cash and cash equivalents
5.6 
0.6 
(0.4)
Cash and cash equivalents, beginning of year
1.2 
0.6 
1.0 
Cash and cash equivalents, end of year
$ 6.8 
$ 1.2 
$ 0.6 
Business Operations
Business Operations
Business Operations

Advanced Disposal Services, Inc. together with its consolidated subsidiaries, as a consolidated entity, is a regional environmental services company providing nonhazardous solid waste collection, transfer, recycling and disposal services to customers in the Southeast, Midwest and Eastern regions of the United States, as well as in the Commonwealth of the Bahamas.
The Company currently manages and evaluates its principal operations through three reportable operating segments on a regional basis. Those operating segments are the South, East and Midwest regions which provide collection, transfer, disposal (in both solid waste and non-hazardous waste landfills), recycling services and billing services. Additional information related to the Company's segments can be found in Note 21.

In fiscal 2017, the Company completed the acquisitions of fourteen companies. Consideration transferred, net of cash acquired, amounted to approximately $115.9 for these acquisitions, of which $4.0 will be paid in subsequent years. The results of operations of each acquisition are included in the Company's consolidated statements of operations subsequent to the closing date of each acquisition.
During fiscal 2017, the Company divested of its non-integrated collection services operation in Charlotte, North Carolina for consideration received of $8.7. A $1.4 gain on the sale of that business is included in the Company's consolidated statements of operations for fiscal 2017. Goodwill of $0.9 was disposed of related to this divestiture.
The Company also has non-integrated collection operations in South Carolina, included in the East segment, which operate in a competitor-owned disposal market that does not align with the Company's long-term market strategy of vertically integrated operations with Company owned disposal sites or marketplace neutral disposal sites. During April of fiscal 2017, changes in facts and circumstances led the Company to evaluate the long-term market for South Carolina collection operations and re-evaluate the expected cash flows provided by this market. The Company compared the carrying value of the South Carolina assets to their fair value and determined it appropriate to impair certain intangible assets that were recorded as part of the purchase accounting when these entities were acquired. Based on the Company's evaluation, an intangible asset impairment of $13.0 was recorded during fiscal 2017.
The Company disposed of certain businesses in the South segment for strategic reasons in June 2015 and recorded a loss on disposal of $10.9 for fiscal 2015. In connection with the sale, the Company impaired property and equipment and intangible assets in the amount of $4.3 for fiscal 2015. Further, the Company strategically concluded not to pursue permitting on a landfill site and therefore recorded a non-cash impairment charge of $2.1 primarily for permitting costs in fiscal 2015.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Basis of Presentation
The Company’s consolidated financial statements include its wholly-owned subsidiaries and their respective subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
In preparing its financial statements that conform with accounting principles generally accepted in the United s of America, the Company uses estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The Company must make these estimates and assumptions because certain information is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing its financial statements, the more subjective areas that deal with the greatest amount of uncertainty relate to accounting for long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs, valuation allowances for accounts receivable and deferred tax assets, liabilities for potential litigation, claims and assessments, liabilities for environmental remediation, stock compensation, accounting for goodwill and intangible asset impairments, deferred taxes, uncertain tax positions, self-insurance reserves, and estimates of the fair values of assets acquired and liabilities assumed in acquisitions. Each of these items is discussed in more detail elsewhere in these Notes to the Consolidated Financial Statements. The Company's actual results may differ significantly from our estimates.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, bank demand deposit accounts, and overnight sweep accounts. Cash equivalents include highly liquid investments with original maturities of three months or less when purchased.
Revenue Recognition
The Company recognizes revenues as the services are provided. Revenue is recognized as waste is collected, as tons are received at the landfill or transfer stations, as recycled commodities are delivered to a customer, or as services are rendered to customers. Certain customers are billed and pay in advance and, accordingly, recognition of the related revenues is deferred until the services are provided. Revenues are reported net of applicable state landfill taxes.
Trade Receivables
The Company records trade receivables when billed or when services are performed, as they represent claims against third parties that will generally be settled in cash. The carrying value of receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. The Company estimates losses for uncollectible accounts based on an evaluation of the aged accounts receivable and the likelihood of collection of the receivable based on historical collection data and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances.
Insurance Reserves
The Company uses a combination of insurance with high deductibles and self-insurance for various risks including workers compensation, vehicle liability, general liability and employee group health claims. The exposure for unpaid claims and associated expenses, including incurred but not reported losses, is estimated by factoring in pending claims and historical trends data and other actuarial assumptions. In estimating its claims liability, the Company analyzes its historical trends, including loss development and applies appropriate loss development factors to the incurred costs associated with the claims. The discounted estimated liability associated with settling unpaid claims is included in accrued expenses and other long-term liabilities in the consolidated balance sheets.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, accounts receivable and derivative instruments. The Company maintains cash and cash equivalents with banks that at times exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality financial institutions. The Company has not experienced any losses in such accounts. The maximum loss the Company would incur related to credit risk is the asset balances recorded in the balance sheets.
The Company generally does not require collateral on its trade receivables. Credit risk on accounts receivable is minimized as a result of the large and diverse nature of the Company’s customer base and its ability to discontinue service, to the extent allowable, to non-paying customers. No single customer represented greater than 5% of total accounts receivable at December 31, 2017 and 2016, respectively.
Asset Impairments
The Company monitors the carrying value of its long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. Typical indicators that an asset may be impaired include (i) a significant adverse change in legal factors in the business climate, (ii) an adverse action or assessment by a regulator, and (iii) a significant adverse change in the extent or manner in which a long-lived asset is being utilized or in its physical condition. If an impairment indicator occurs, the Company performs a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, the Company will determine whether an impairment has occurred for the asset group for which it can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, the Company measures any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group; (ii) third-party valuations; and/or (iii) information available regarding the current market for similar assets. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value exceeds the fair value of the asset.
Property and Equipment, Net
Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and improvements are capitalized and maintenance activities are expensed as incurred. When property and equipment are retired, sold, or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the results of operations. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Depreciation expense is calculated using the straight-line method over the estimated useful lives or the expected lease term, whichever is shorter. Estimated useful lives are as follows:
 
Years
Vehicles
5–10
Machinery and equipment
3–10
Containers
5–15
Furniture and fixtures
5–7
Building and improvements
5–39

Leases
The Company leases property and equipment in the ordinary course of its business. The most significant lease obligations are for property and equipment specific to the waste industry, including real property operated as landfills and transfer stations. The Company's leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that are considered in determining minimum lease payments. The leases are classified as either operating leases or capital leases, as appropriate.
The classification of the Company's operating leases can be attributed to either (i) relatively low fixed minimum lease payments as a result of real property lease obligations that vary based on the volume of waste we receive or process or (ii) minimum lease terms that are much shorter than the assets’ economic useful lives. The Company expects that in the normal course of business, its operating leases will be renewed, replaced by other leases, or replaced with fixed asset expenditures. The Company's rent expense during each of the last three years and its future minimum operating lease payments for each of the next five years for which it is contractually obligated as of December 31, 2017 is disclosed in Note 13.
Assets under capital leases are capitalized using interest rates determined at the inception of each lease and are amortized over the lesser of the useful life of the asset or the lease term, as appropriate, on a straight-line basis. The present value of the related lease payments is recorded as a debt obligation.
Landfill Accounting
Costs Basis of Landfill Assets
Landfills are typically developed in a series of cells, each of which is constructed, filled and capped in sequence over the operating life of the landfill. When the final cell is filled and the operating life of the landfill is completed, the cell must be capped and then closed and post-closure care and monitoring activities begin. Capitalized landfill costs include expenditures for land (which includes the land of the landfill footprint and landfill buffer property and setbacks) and related airspace associated with the permitting, development and construction of new landfills, expansions at existing landfills, landfill gas systems and landfill cell development. Landfill permitting, development and construction costs represent direct costs related to these activities, including land acquisition, engineering, legal and construction. These costs are deferred until all permits are obtained and operations have commenced at which point they are capitalized and amortized. If necessary permits are not obtained, costs are charged to operations. The cost basis of our landfill assets also includes asset retirement costs, which represent estimates of future costs associated with landfill final capping, closure and post-closure activities.

Final Capping, Closure and Post-Closure Costs
The following is a description of the Company's asset retirement activities and related accounting:
Final Capping
Includes installing flexible membrane and geosynthetic clay liners, drainage and compact soil layers, and topsoil, and is constructed over an area of the landfill where total airspace capacity has been consumed and waste disposal operations have ceased. These final capping activities occur in phases as needed throughout the operating life of a landfill as specific areas are filled to capacity and the final elevation for that specific area is reached in accordance with the provisions of the operating permit. Final capping asset retirement obligations are recorded on a units-of-consumption basis as airspace is consumed related to the specific final capping event with a corresponding increase in the landfill asset. Each final capping event is accounted for as a discrete obligation and recorded as an asset and a liability based on estimates of the discounted cash flows and capacity associated with each final capping event.
Closure and post-closure
These activities involve methane gas control, leachate management and groundwater monitoring, surface water monitoring and control, and other operational and maintenance activities that occur after the site ceases to accept waste. The post-closure period generally runs for 30 years or longer after final site closure for landfills. Landfill costs related to closure and post-closure are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing the closure and post-closure activities.
The Company annually updates its estimates for these obligations considering the respective State regulatory requirements, input from our internal engineers, operations, accounting personnel and external consulting engineers. The closure and post-closure requirements are established under the standards of the U.S. Environmental Protection Agency’s Subtitle D regulations as implemented and applied on a state-by-state basis. These estimates involve projections of costs that will be incurred as portions of the landfill are closed and during the post-closure monitoring period.
Capping, closure and post-closure costs are estimated assuming such costs would be incurred by a third party contractor in present day dollars and are inflated by 2.5% (an estimate based on the 25-year average change in the historical Consumer Price Index from 1992 to 2017) to the time periods within which it is estimated the capping, closure and post-closure costs will be expended. The Company discounts these costs to present value using the credit-adjusted, risk-free rate effective at the time an obligation is incurred, consistent with the expected cash flow approach. Any change that results in an upward revision to the estimated cash flows are treated as a new liability and discounted at the current rate while downward revisions are discounted at the historical weighted-average rate of the recorded obligation. As a result, the credit-adjusted, risk-free discount rate used to calculate the present value of an obligation is specific to each individual asset retirement obligation. The range of rates utilized within the calculation of the asset retirement obligations at December 31, 2017 is between 4.9% and 10.5%.
The Company records the estimated fair value of the final capping, closure and post-closure liabilities for its landfills based on the capacity consumed in the current period. The fair value of the final capping obligations is developed based on the Company’s estimates of the airspace consumed to date for each final capping event and the expected timing of each final capping event. The fair value of closure and post-closure obligations is developed based on the Company’s estimates of the airspace consumed to date for the entire landfill and the expected timing of each closure and post-closure activity. Because these obligations are measured at estimated fair value using present value techniques, changes in the estimated cost or timing of future final capping, closure and post-closure activities could result in a material change in these liabilities, related assets and results of operations. The Company assesses the appropriateness of the estimates used to develop its recorded balances annually, or more often if significant facts change.
Changes in inflation rates or the estimated costs, timing or extent of future final capping, closure and post-closure activities typically result in both (i) a current adjustment to the recorded liability and landfill asset; and (ii) a change in liability and asset amounts to be recorded prospectively over either the remaining capacity of the related discrete final capping event or the remaining permitted and expansion airspace (as defined below) of the landfill. Any changes related to the capitalized and future cost of the landfill assets are then recognized in accordance with the Company's amortization policy, which would generally result in amortization expense being recognized prospectively over the remaining capacity of the final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Changes in such estimates associated with airspace that has been fully utilized result in an adjustment to the recorded liability and landfill assets with an immediate corresponding adjustment to landfill airspace amortization expense.
Interest accretion on final capping, closure and post-closure liabilities is recorded using the effective interest method and is recorded in operating expenses in the consolidated statements of operations.
Amortization of Landfill Assets
The amortizable basis of a landfill includes (i) amounts previously expended and capitalized; (ii) capitalized and projected landfill final capping, closure and post-closure costs; (iii) projections of future acquisition and development costs required to develop the landfill site to its remaining permitted and expansion capacity; and (iv) land underlying both the footprint of the landfill and the surrounding required setbacks and buffer land.
Amortization is recorded on a units-of-consumption basis, applying expense as a rate per ton. The rate per ton is calculated by dividing each component of the amortizable basis of a landfill by the number of tons needed to fill the corresponding asset’s airspace. For landfills that the Company does not own, but operates through operating or lease arrangements, the rate per ton is calculated based on expected capacity to be utilized over the lesser of the contractual term of the underlying agreement or the life of the landfill.
 
Landfill site costs are depleted to zero upon final closure of a landfill. The Company develops its estimates of the obligations using input from its operations personnel, engineers and accountants. The obligations are based upon interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. The estimate of fair value is based upon present value techniques using historical experience and, where available, quoted or actual market prices paid for similar work.
The determination of airspace usage and remaining airspace is an essential component in the calculation of landfill asset depletion. This estimation is performed by conducting periodic topographic surveys, using aerial survey techniques, of the Company’s landfill facilities to determine remaining airspace in each landfill. The surveys are reviewed by the Company’s external consulting engineers, internal operating staff, and its management, financial and accounting staff.
Remaining airspace will include additional “deemed permitted” or unpermitted expansion airspace if the following criteria are met:
 
(1)
The Company must either own the property for the expansion or have a legal right to use or obtain property to be included in the expansion plan;
(2)
Conceptual design of the expansion must have been completed;
(3)
Personnel are actively working to obtain land use and local and state approvals for an expansion of an existing landfill and the application for expansion must reasonably be expected to be received within the normal application and processing time periods for approvals in the jurisdiction in which the landfill is located;
(4)
There are no known significant technical, community, business, or political restrictions or similar issues that would likely impair the success of the expansion; and
(5)
Financial analysis has been completed and the results demonstrate that the expansion has a positive financial and operational impact.
Senior management must have reviewed and approved all of the above. Of the Company's 40 active landfills, fifteen include deemed permitted airspace at December 31, 2017.
Upon successful meeting of the preceding criteria, the costs associated with developing, constructing, closing and monitoring the total additional future capacity are considered in the calculation of the amortization and closure and post-closure rates.
Once expansion airspace meets these criteria for inclusion in the Company’s calculation of total available disposal capacity, management continuously monitors each site’s progress in obtaining the expansion permit. If at any point it is determined that an expansion area no longer meets the required criteria, the deemed expansion airspace is removed from the landfill’s total available capacity, and the rates used at the landfill to amortize costs to acquire, construct, close and monitor the site during the post-closure period are adjusted prospectively. In addition, any amounts related to the probable expansion are charged to expense in the period in which it is determined that the criteria are no longer met.
Once the remaining permitted and expansion airspace is determined in cubic yards, an airspace utilization factor (“AUF”) is established to calculate the remaining permitted and expansion capacity in tons. The AUF is established using the measured density obtained from previous annual surveys and is then adjusted to account for future settlement. The amount of settlement that is forecasted will take into account several site-specific factors including: current and projected mix of waste type, initial and projected waste density, estimated number of years of life remaining, depth of underlying waste, anticipated access to moisture through precipitation or recirculation of landfill leachate and operating practices. In addition, the initial selection of the AUF is subject to a subsequent multi-level review by the Company's engineering group, and the AUF used is reviewed on a periodic basis and revised as necessary. The Company's historical experience generally indicates that the impact of settlement at a landfill is greater later in the life of the landfill when the waste placed at the landfill approaches its highest point under the permit requirements.
After determining the costs and remaining permitted and expansion capacity at each of its landfills, the Company determines the per ton rates that will be expensed as waste is received and deposited at the landfill by dividing the costs by the corresponding number of tons. The Company calculates per ton amortization rates for each landfill for assets associated with each final capping event, for assets related to closure and post-closure activities and for all other costs capitalized or to be capitalized in the future. These rates per ton are updated annually, or more often, as significant facts change.
It is possible that the Company’s estimates or assumptions could ultimately be significantly different from actual results. In some cases the Company may be unsuccessful in obtaining an expansion permit or the Company may determine that an expansion permit that it previously thought was probable has become unlikely. To the extent that such estimates, or the assumptions used to make those estimates, prove to be significantly different than actual results, or the belief that the Company will receive an expansion permit changes adversely in a significant manner, the costs of the landfill, including the costs incurred in the pursuit of the expansion, may be subject to impairment testing and lower profitability may be experienced due to higher amortization rates, higher capping, closure and post-closure rates, and higher expenses or asset impairments related to the removal of previously included expansion airspace.
The assessment of impairment indicators and the recoverability of the Company's capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the estimates involved. During the review of a landfill expansion application, a regulator may initially deny the expansion application although the permit is ultimately granted. In addition, the Company may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace, or a landfill may be required to cease accepting waste, prior to receipt of the expansion permit. However, such events occur in the ordinary course of business in the waste industry and do not necessarily result in an impairment of the landfill assets because, after consideration of all facts, such events may not affect the belief that the Company will ultimately obtain the expansion permit. As a result, the Company's tests of recoverability, which generally make use of a cash flow estimation approach, may indicate that no impairment loss should be recorded. No landfill impairments were recorded for the years ended December 31, 2017, 2016 and 2015.
Derivative Financial Instruments
The Company uses interest rate caps to manage interest rate risk on its variable rate debt. The Company may use commodity futures contracts as an economic hedge to reduce the exposure of changes in diesel fuel and natural gas prices. The 2017 interest rate caps qualify for hedge accounting treatment and have been designated as cash flow hedges for accounting purposes with changes in fair value, to the extent effective, recognized in accumulated other comprehensive income within the equity section of the consolidated balance sheets. Amounts are reclassified into earnings when the forecasted transaction affects earnings. The commodity futures contracts and the 2016 interest rate caps do not qualify for hedge accounting and as such changes in fair value are recognized in other income (expense), net in the consolidated statements of operations. The fair values of the derivatives are included in other current or long-term assets or other current or long term liabilities as appropriate. The Company obtains current valuations of its commodity futures contracts and interest rate caps based on quotes received from financial institutions that trade these contracts and a current forward fixed price swap curve, respectively.
Original Issue Discount and Debt Issuance Costs
Original issue discount and debt issuance costs related to the issuance of debt are deferred and recorded as a reduction to the carrying value of debt and amortized to interest expense using the effective interest method. Previously recorded original issue discount and debt issuance costs are expensed when debt is extinguished prior to maturity.

Third party costs incurred in relation to a modification of debt are expensed as incurred. For modifications of debt, previously recorded original issue discount and debt issuance costs are amortized over the life of the modified debt instrument using the effective interest method.
Acquisitions
The Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair values as of the date of acquisition. Any excess of purchase price over the fair value of the net assets acquired is recorded as goodwill.
In certain acquisitions, the Company agrees to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted revenue levels, targeted disposal volumes or the issuance of permits for expanded landfill airspace. The Company has recognized liabilities for these contingent obligations based on their estimated fair value at the date of acquisition with any differences between the acquisition date fair value and the ultimate settlement of the obligations being recognized as an adjustment to income from operations.
Assets and liabilities arising from contingencies such as pre-acquisition environmental matters and litigation are recognized at their acquisition date fair value when their respective fair values can be determined. If the fair values of such contingencies cannot be determined, the Company reports provisional amounts for which the accounting is incomplete.
Acquisition date fair value estimates are revised as necessary and accounted for as an adjustment to the purchase accounting balances prior to the close of the purchase accounting window. If the purchase accounting window has closed, these estimates are accounted for as adjustments to income from operations if, and when, additional information becomes available to further define and quantify assets acquired and liabilities assumed. All acquisition-related transaction costs have been expensed as incurred.
 
Goodwill
Goodwill is the excess of the purchase price over the fair value of the net identifiable assets of acquired businesses. The Company does not amortize goodwill. The Company assesses whether a goodwill impairment exists using both qualitative and quantitative assessments. The Company's reporting units are equivalent to its operating segments and when an individual business within an integrated operating segment is divested, goodwill is allocated to that business based on its fair value relative to the fair value of its operating segment. The Company's qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will not perform a quantitative assessment. Regardless of the results of its qualitative assessments, the Company performs a quantitative assessment at least every three years.
When the Company performs a quantitative assessment, the Company determines whether goodwill is impaired at the reporting unit level. The Company compares the fair value with its carrying amount to determine if there is an impairment of goodwill. Fair value is estimated using an income approach based on forecasted cash flows. Fair value computed via this method is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows and comparable marketplace data. There are inherent uncertainties related to these factors and to the Company's judgment in applying them to this analysis. However, the Company believes that this method provides a reasonable approach to estimating the fair value of its reporting units.
The Company performs its annual assessment as of December 31 of each year. The Company performed a qualitative assessment in fiscal 2017 and the last time a quantitative assessment was performed was in fiscal 2015. The impairment test as of December 31, 2017 determined that no events or circumstances exist that indicate it is more likely than not that the fair value of any reporting unit is less than its carrying amount. If the Company does not achieve its anticipated disposal volumes, our collection or disposal rates decline, costs or capital expenditures exceed forecasts, costs of capital increase, or the Company does not receive landfill expansions, the estimated fair value could decrease and potentially result in an impairment charge in the future. The Company recorded no goodwill impairment charges for fiscal 2017, 2016 and 2015 in connection with the assessments.
Intangible Assets, Net
Definite lived intangible assets are stated at cost less accumulated amortization and consist of noncompete agreements, tradenames, customer contracts and customer lists and are amortized over their estimated useful lives. Definite lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying value of a definite lived intangible is not recoverable and exceeds its estimated fair value, an impairment charge would be recognized in the amount of the excess. Fair value is typically estimated using an income approach for the respective asset, as described above.
Income Taxes
The Company is subject to income tax in the United States. Current tax obligations associated with the provision for income taxes are reflected in the accompanying consolidated balance sheets as a component of accrued expenses and the deferred tax obligations are reflected in deferred income tax asset or liability. Deferred income taxes arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred income taxes are classified as noncurrent in accordance with current accounting guidance. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company establishes reserves for uncertain tax positions, when despite its belief that its tax return positions are fully supportable, the Company believes that certain positions may be challenged and potentially disallowed. When facts and circumstances change, the Company adjusts these reserves through its provision for income taxes. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of tax expense in the consolidated statements of operations.

The Company monitors changes in tax legislation and accounting developments which could impact the timing and amounts of deductible or taxable items. In connection with the implementation of the Tax Cuts and Jobs Act, the Company recognized the estimated impact of this legislation as a component of the benefit for income taxes. Refer to Note 17. Income Taxes.
Contingencies
The Company is subject to various legal proceedings, claims and regulatory matters, the outcomes of which are subject to significant uncertainty. In general, the Company determines whether to disclose or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable, and whether it can be reasonably estimated. The Company assesses its potential liability relating to litigation and regulatory matters based on information available. The Company develops its assessment based on an analysis of possible outcomes under various strategies. The Company accrues for loss contingencies when such amounts are probable and reasonably estimable. If a contingent liability is only reasonably possible, the Company discloses the potential range of the loss, if estimable.
Equity Method Investments
The Company’s investments where it can exert significant influence on the investee, but does not have effective control over the investee, are accounted for using the equity method of accounting. The Company’s equity in the net income from equity method investments is recorded as other income with a corresponding increase in other assets. Distributions received from the equity investee reduces other assets. Distributions from equity investees representing the Company's share of the equity investee's earnings are treated as cash proceeds from operations while distributions in excess of the equity investee's earnings are considered a return of capital and treated as cash proceeds from investing activities in the Company's consolidated statement of cash flows.
New Accounting Standards Adopted
In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04 which simplifies the goodwill impairment test by eliminating step 2 of the quantitative assessment. Under the guidance, when a quantitative assessment is required, an entity will perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be measured as the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, entities should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new update is effective for annual periods beginning after December 15, 2019 with early adoption permitted. The Company's early adoption on January 1, 2017 did not have an impact on the Company's consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01 which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a screen to determine when a set of assets and activities is not a business. If the screen is not met, the amendments require further consideration of inputs, substantive processes and outputs to determine whether the transaction is an acquisition of a business. The new update is effective for annual periods beginning after December 15, 2017 with early adoption permitted. The Company's early adoption on January 1, 2017 did not have an impact on the Company's consolidated financial statements.
Acquisitions
Acquisitions
Acquisitions
In fiscal 2017, the Company completed the acquisitions of fourteen companies. Consideration transferred, net of cash acquired, amounted to approximately $115.9 for these acquisitions, of which $4.0 will be paid in subsequent years. The amount to be paid in subsequent years is contingent on net working capital adjustments and other commitments, which are expected to be completed within approximately one year. The goodwill recognized of $35.2 represents synergies from the combined operations of the acquired entities and the Company. The Company is still reviewing information surrounding property and equipment, intangible assets and current liabilities resulting from the acquisitions, which may result in changes to the Company’s preliminary purchase price allocation during fiscal 2018. Transaction costs related to these acquisitions were not significant for fiscal 2017.
In fiscal 2016, the Company completed the acquisitions of eight collection companies. Consideration transferred amounted to approximately $5.4 for these acquisitions, of which $0.1 will be paid in subsequent years. The Company recorded a reduction to the purchase price of prior year acquisitions during fiscal 2016 in the amount of $0.1. The goodwill recognized of $0.4 represents synergies from the combined operations of the acquired entities and the Company. Transaction costs related to these acquisitions were not significant for fiscal 2016.
In fiscal 2015, the Company completed the acquisitions of twelve collection companies. Consideration transferred amounted to approximately $56.3 for these acquisitions, of which $6.6 was paid in years subsequent to fiscal 2015. Transaction costs related to these acquisitions were not significant for fiscal 2015. Purchase price adjustments related to acquisitions in prior years amounted to approximately $0.3 for fiscal 2015.
The results of operations of each acquisition are included in the consolidated statements of operations of the Company subsequent to the closing date of each acquisition.
 
The following table summarizes the estimated fair values of the assets acquired by year of acquisition:
 
2017
 
2016
Current assets
$
5.9

 
$
0.3

Property and equipment
89.8

 
2.3

Goodwill
35.2

 
0.4

Other intangible assets
18.8

 
2.6

Total assets acquired
149.7

 
5.6

Current liabilities
6.9

 
0.2

Total liabilities assumed
33.8

 
0.2

Net assets acquired
$
115.9

 
$
5.4





The following table presents the allocation of the purchase price to other intangible assets:
 
2017
 
2016
Customer lists and contracts
$
17.0

 
$
2.3

Noncompete
1.2

 
0.1

Other
0.6

 
0.2

 
$
18.8

 
$
2.6


The amount of goodwill recorded related to 2017 acquisitions for the South Segment, East Segment, and Midwest Segment was $8.9, $25.7, and $0.6, respectively. The amount of goodwill deductible for tax purposes related to acquisitions in fiscal 2017 and fiscal 2016 was $4.4 and $0.4, respectively. The total amount of consolidated goodwill deductible for tax purposes was $79.7 and $88.9 at December 31, 2017 and 2016, respectively.
The weighted average life of other intangible assets in years is as follows:
Customer lists and contracts
17
Noncompete
7

Goodwill and intangible assets increased by $0.0, $0.1 and $0.1, for the years ended December 31, 2017, 2016 and 2015, respectively, as a result of purchase price adjustments of acquisitions from the previous year. The increases were primarily related to working capital adjustments as a result of finalizing the purchase accounting for the acquisitions.
Income (Loss) Per Share
Income (Loss) Per Share
Income (loss) Per Share
The following table sets forth the computation of basic income (loss) per share and income (loss) per share, assuming dilution for the following years:

 

2017

2016

2015
Numerator: (Dollars in millions)







Net income (loss)

$
38.3


$
(30.4
)

$
(33.6
)
Denominator:







Average common shares outstanding

88,323,213


69,462,798


64,493,536


Other potentially dilutive common shares

564,599






Average common shares outstanding, assuming dilution

88,887,812


69,462,798


64,493,536













Net income (loss) per share, basic

$
0.43


$
(0.44
)

$
(0.52
)

Net income (loss) per share, assuming dilution

$
0.43


$
(0.44
)

$
(0.52
)


Basic net income (loss) per share is based on the weighted-average number of shares of common stock outstanding for each of the periods presented. Net income (loss) per share, assuming dilution, is based on the weighted-average number of shares of common stock equivalents outstanding adjusted for the effects of common stock that may be issued as a result of potentially dilutive instruments. The Company's potentially dilutive instruments are made up of equity awards, which include stock options, restricted stock awards, and performance stock awards. All potentially dilutive common shares were excluded from the diluted earnings per share calculations for fiscal 2016 and fiscal 2015 because the Company was in a net loss position and their effect would have been antidilutive
When calculating diluted net income per share, the ASC requires the Company to include the potential shares that would be outstanding if all outstanding stock options were exercised. This number would be different from outstanding stock options because it is offset by shares the Company could repurchase using the proceeds from these hypothetical exercises to obtain the common stock equivalent.
Approximately 1.7 million, 4.3 million and 3.9 million of outstanding stock awards for fiscal 2017, 2016 and 2015, respectively, were excluded from the diluted income (loss) per share calculation because their effect was antidilutive.
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts
Allowance for doubtful accounts consists of the following at December 31:
 
2017
 
2016
 
2015
Beginning balance
$
4.0

 
$
4.4

 
$
5.0

Provision for doubtful accounts
5.4

 
3.7

 
4.0

Write-offs of bad debt
(4.6
)
 
(4.1
)
 
(4.8
)
Other
0.6

 

 
0.2

Balance at December 31,
$
5.4

 
$
4.0

 
$
4.4



Refer to Note 17. Income Taxes for information regarding the amount of recorded deferred tax asset valuation allowance.
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following at December 31:
 
 
2017
 
2016
Prepaid insurance
 
$
5.9

 
$
6.6

Prepaid expenses
 
16.4

 
14.2

Other receivables and current assets
 
6.8

 
1.7

Parts and supplies inventory
 
8.8

 
7.8

 
 
$
37.9

 
$
30.3

Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
The following table summarizes the fair value of derivative instruments recorded in our consolidated balance sheets at December 31:
 
Balance Sheet Location
 
2017
 
2016
Derivatives Designated as Hedging Instruments
 
 
 
 
 
2017 interest rate caps
Other long-term liabilities
 
$
(0.4
)
 
$

Derivatives Not Designated as Hedging Instruments

 


 


2016 interest rate caps
Prepaid expenses and other current assets

0.9



2016 interest rate caps
Other assets

$
2.8


$
2.3

Total derivatives
 
 
$
3.3

 
$
2.3


The Company has not offset fair value amounts recognized for its derivative instruments.
Interest Rate Caps
In November 2017, the Company entered into two interest rate cap agreements to hedge the risk of a rise in interest rates and associated cash flows on its variable rate debt. The Company has applied hedge accounting to the interest rate caps; therefore, changes in the fair value of the interest rate caps are recorded in other comprehensive loss, net of tax in the consolidated statements of comprehensive income (loss). The interest rate caps commence in 2019 and expire in 2021. The Company will pay the $4.9 premium on the caps in monthly installments beginning in October 2019. The notional value of the contracts aggregated were $600.0 as of December 31, 2017 and will remain constant through maturity in 2021.

In May 2016, the Company entered into three interest rate cap agreements as economic hedges against the risk of a rise in interest rates and the associated cash flows on its variable rate debt. The Company began paying the $5.5 premium of the caps equally over eleven quarters beginning on March 31, 2017. The Company elected not to apply hedge accounting to these interest rate caps therefore changes in the fair value of the interest rate caps are recorded in other income (expense), net in the consolidated statements of operations. The fair value of the 2016 interest rate caps were $3.7 and $2.3 as of December 31, 2017 and 2016, respectively. The notional value of the contracts aggregated were $800.0 as of December 31, 2017 and will remain constant through maturity in September 2019.

In December 2012, the Company entered into four interest rate cap agreements to hedge the risk of a rise in interest rates and associated cash flows on its variable rate debt. The interest rate caps expired in various tranches through 2016. The Company recorded the premium of $5.0 in other assets in the consolidated balance sheet and amortized the premium to interest expense based upon decreases in time value of the caps. Amortization expense was approximately $0.2 and $1.5 for fiscal 2016 and 2015, respectively. The contracts were expired as of December 31, 2016.
Commodity Futures Contracts
The Company has utilized fuel derivative instruments (commodity futures contracts) as economic hedges of the risk that fuel prices will fluctuate. The Company has used financial derivative instruments for both short-term and long-term time frames and utilized fixed swap price agreements to manage the identified risk. The Company does not enter into derivative financial instruments for trading or speculative purposes. The Company has not entered into any commodity futures contracts during fiscal 2017.

Changes in the fair value and settlements of the fuel derivative instruments are recorded in other income (expense), net in the consolidated statements of operations. The market price of diesel fuel is unpredictable and can fluctuate significantly. Significant volatility in the price of fuel could adversely affect the business and reduce the Company’s operating margins. To manage a portion of that risk, the Company entered into commodity swap agreements in fiscal 2014 that matured in fiscal 2015 for 23.8 gallons at weighted average prices per gallon that ranged from $2.20 to $2.84 per gallon. The Company entered into commodity swap agreements in fiscal 2014 that matured in fiscal 2016 for 13.4 gallons at weighted average prices per gallon that ranged from $2.20 to $2.64 per gallon. If the mean price of the high and the low of the calculation period for Gulf Coast Ultra Low Sulfur diesel pipeline platts for a gallon of diesel fuel exceeded the contract price per gallon, the Company received the difference between the average price and the contract price (multiplied by the notional gallons) from the counterparty. If the average price was less than the contract price per gallon, the Company paid the difference to the counterparty. The gain or loss on the Company's fuel derivative contracts recorded in the consolidated statements of operations during fiscal 2016 and 2015 was a gain of $1.2 and a loss of $15.4, respectively.
Property and Equipment, Net
Property and Equipment, Net
Property and Equipment, Net
Property and equipment, net consist of the following at December 31:
 
 
2017
 
2016
Land
$
209.1

 
$
193.3

Landfill site costs
1,465.7

 
1,358.1

Vehicles
680.3

 
595.7

Containers
294.4

 
271.5

Machinery and equipment
185.4

 
156.2

Furniture and fixtures
30.1

 
25.9

Building and improvements
188.7

 
170.1

Construction in process
30.6

 
25.6

 
3,084.3

 
2,796.4

Less: Accumulated depreciation on property and equipment
(679.3
)
 
(579.3
)
Less: Accumulated landfill airspace amortization
(676.2
)
 
(583.7
)
 
$
1,728.8

 
$
1,633.4


Gross assets under capital lease amount to approximately $108.1 and $63.0 at December 31, 2017 and 2016, respectively. Accumulated amortization for capital leases at December 31, 2017 and 2016 was $26.2 and $15.6, respectively. Amortization expense of assets under capital lease was $11.6, $7.3 and $4.1 for fiscal 2017, 2016 and 2015, respectively.

Depreciation, landfill amortization and depletion expense was $228.2, $204.3 and $216.3 for fiscal 2017, 2016 and 2015, respectively.
Landfill Accounting
Landfill Accounting
Landfill Accounting
Liabilities for final closure and post-closure costs consist of the following for the years ended December 31:
 
2017
 
2016
Balance at January 1
$
191.1

 
$
193.7

Increase in retirement obligation
9.7

 
9.3

Accretion of closure and post-closure costs
15.4

 
13.0

Acquisition
28.3

 

Change in estimate
2.1

 
(7.4
)
Costs incurred
(20.7
)
 
(17.5
)
 
225.9

 
191.1

Less: Current portion
(20.2
)
 
(29.3
)
Balance at December 31
$
205.7

 
$
161.8

Other Intangible Assets, Net and Goodwill
Other Intangible Assets, Net and Goodwill
Other Intangible Assets, Net and Goodwill
Intangible assets, net consist of the following at December 31:
 
 
 
2017
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Impairment
 
Net
Carrying
Value
 
Weighted
Average
Remaining
Life
(Years)
Noncompete agreements
 
$
5.4

 
$
(2.6
)
 
$

 
$
2.8

 
2.3
Tradenames
 
15.5

 
(6.9
)
 

 
8.6

 
12.9
Customer lists and contracts
 
525.5

 
(238.0
)
 
(13.0
)
 
274.5

 
12.8
Operating permits
 
2.5

 

 

 
2.5

 
N/A
Above/below market leases
 
0.4

 
(0.1
)
 

 
0.3

 
8.6
 
 
$
549.3

 
$
(247.6
)
 
$
(13.0
)
 
$
288.7

 
 
 
 
 
2016
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Impairment
 
Net
Carrying
Value
 
Weighted
Average
Remaining
Life
(Years)
Noncompete agreements
 
$
4.3

 
$
(1.7
)
 
$

 
$
2.6

 
3.6
Tradenames
 
14.9

 
(6.2
)
 

 
8.7

 
14.7
Customer lists and contracts
 
513.4

 
(202.7
)
 

 
310.7

 
13.8
Operating permits
 
2.3

 

 

 
2.3

 
N/A
Above/below market leases
 
0.4

 
(0.1
)
 

 
0.3

 
9.6
 
 
$
535.3

 
$
(210.7
)
 
$

 
$
324.6

 
 

Amortization expense recorded on intangible assets for the years ended December 31, 2017, 2016 and 2015 was $41.6, $42.6 and $42.8, respectively.
Future amortization expense for intangible assets for the year ending December 31 is estimated to be:
2018
$
47.1

2019
32.1

2020
31.3

2021
30.1

2022
26.8

Thereafter
121.3

 
$
288.7


The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 are as follows:  
 
Goodwill
 
Accumulated
Impairment
 
Goodwill,
Net
December 31, 2015
$
1,267.2

 
$
(93.7
)
 
$
1,173.5

Acquisition
0.4

 

 
0.4

December 31, 2016
1,267.6

 
(93.7
)
 
1,173.9

Acquisition
35.2

 

 
35.2

Disposition of businesses
(0.9
)
 

 
(0.9
)
December 31, 2017
$
1,301.9

 
$
(93.7
)
 
$
1,208.2

Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued expenses consist of the following at December 31:
 
2017
 
2016
Accrued compensation and benefits
$
30.9

 
$
32.5

Accrued waste disposal costs
42.1

 
40.1

Accrued insurance and self-insurance reserves
13.2

 
14.5

Accrued severance
1.5

 
0.5

Other accrued expenses
25.3

 
22.2

 
$
113.0

 
$
109.8

Long-Term Debt
Long-Term Debt
Long-Term Debt
Long-term debt consists of the following at December 31:
 
2017
2016
Revolving line of credit with lenders, interest at base rate plus margin, as defined (6.25% and 4.49% at December 31, 2017 and 2016, respectively) due quarterly; balance due at maturity in 2021
$
29.0

$

Term loans; quarterly principal payments commencing March 31, 2017 through September 30, 2023 with final payment due November 10, 2023; interest at an alternate base rate or adjusted LIBOR rate with a 0.75% floor plus an applicable margin
1,460.0

1,480.0

Senior notes payable; interest at 5.625% payable in arrears semi-annually commencing May 15, 2017; maturing on November 15, 2024.
425.0

425.0

Capital lease obligations, interest rates between 3.70% and 7.73%, maturing through 2024
63.9

42.5

Other debt
11.8

15.1


1,989.7

1,962.6

Less: Original issue discount and debt issuance costs classified as a reduction to long-term debt
(31.4
)
(39.1
)
Less: Current portion
(74.1
)
(36.5
)

$
1,884.2

$
1,887.0


Annual aggregate principal maturities at December 31, 2017 are as follows:
2018
$
45.1

2019
37.3

2020
27.4

2021
17.5

2022
18.3

Thereafter
1,844.1

 
$
1,989.7

 
Senior Secured Credit Facilities

On November 21, 2017, the Company entered into Amendment No. 1 (the “Amendment”) to its Credit Agreement, dated as of October 9, 2012 (as amended and restated as of November 10, 2016, the “Amended and Restated Credit Agreement”) among the Company, the lenders party thereto and Deutsche Bank AG New York Branch, as administrative agent and as collateral agent. The Amendment reduces the Company’s applicable margin on its Term Loan B by 0.50% per annum.

On November 10, 2016, the Company entered into the Amended and Restated Credit Agreement by and among the Company, the guarantors party thereto, the lenders party thereto (the “Lenders”) and Deutsche Bank AG New York Branch, as administrative agent and collateral agent (respectively, the “Administrative Agent” and the “Collateral Agent”), to the Credit Agreement, by and among the Company, the lenders party thereto, the Administrative Agent and the Collateral Agent, dated as of October 9, 2012 (as amended, supplemented or modified from time to time prior to the date hereof, the “Existing Credit Agreement” and as amended and restated in accordance with the Amended and Restated Credit Agreement).
 
The Amended and Restated Credit Agreement includes a $1.5 billion Term Loan B facility maturing 2023, and a $300 million Revolving Credit Facility maturing 2021 (together "Senior Secured Credit Facilities"). The Revolving Credit Facility allows for up to $100.0 of letters of credit outstanding. The proceeds were used to repay borrowings under the Existing Credit Agreement and to call the Company's 8.25% Senior Notes due 2020. All outstanding borrowings under the Existing Credit Agreement were either repaid in full or converted to the new Senior Secured Credit Facility. At the Company’s option, borrowings under the Amended and Restated Credit Agreement will bear interest at an alternate base rate or adjusted LIBOR rate in each case plus an applicable margin. The alternate base rate is defined as the greater of the prime rate, the federal funds rate plus 50 basis points, or the adjusted LIBOR rate plus 100 basis points. The LIBOR base rate is subject to a 0.75% floor.

In the case of the Term Loan B, the applicable margin, as amended, is 1.25% per annum for ABR Loans and 2.25% per annum for Eurodollar Loans. In the case of the Revolving Credit Facility, the applicable margin is 1.75% per annum for ABR Loans and 2.75% per annum for Eurodollar Loans if the Company's total net leverage ratio is greater than 4.0:1.0. If the Company's total net leverage ratio is less than 4.0:1.0, the applicable margin on the Revolving Credit Facility is 1.25% per annum for ABR Loans and 2.25% per annum for Eurodollar Loans.
 
Obligations under the Amended and Restated Credit Agreement are guaranteed by the Company’s existing and future domestic restricted subsidiaries (subject to certain exceptions) and are secured by a first-priority security interest in substantially all the personal property assets, and certain real property assets, of the Company and the guarantors, including all or a portion of the equity interests of certain of the Company’s domestic subsidiaries (in each cases, subject to certain limited exceptions).
 
Borrowings under the Amended and Restated Credit Agreement may be prepaid at any time without premium. The Amended and Restated Credit Agreement contains usual and customary representations and warranties, and usual and customary affirmative and negative covenants, including limitations on liens, additional indebtedness, investments, restricted payments, asset sales, mergers, affiliate transactions and other customary limitations, as well as a total net leverage ratio financial covenant (for the benefit of lenders under the revolving credit facility only). The Amended and Restated Credit Agreement also contains usual and customary events of default, including non-payment of principal, interest, fees and other amounts, material breach of a representation or warranty, nonperformance of covenants and obligations, default on other material debt, bankruptcy or insolvency, material judgments, incurrence of certain material ERISA liabilities, impairment of loan documentation or security and change of control. Compliance with these covenants is a condition to any incremental borrowings under our Senior Secured Credit Facilities and failure to meet these covenants would enable the lenders to require repayment of any outstanding loans (which would adversely affect our liquidity).
The Term Loan B has payments due quarterly of $3.75 with mandatory prepayments due to the extent net cash proceeds from the sale of assets exceed $25.0 in any fiscal year and are not reinvested in the business within 365 days from the date of sale, upon notification of the Company’s intent to take such action or in accordance with excess cash flow, as defined. Further prepayments are due when there is excess cash flow, as defined.

Borrowings under the Company's Senior Secured Credit Facilities can be used for working capital, capital expenditures, acquisitions and other general corporate purposes. As of December 31, 2017 and 2016, the Company had $29.0 and $0.0 in borrowings outstanding under its Revolving Credit Facility. As of December 31, 2017 and 2016, the Company had an aggregate of approximately $39.3 and $42.1 of letters of credit outstanding under its Senior Secured Credit Facilities. As of December 31, 2017 and 2016, the Company had remaining capacity under its Revolving Credit Facility of $231.7 and $257.9, respectively. As of December 31, 2017, the Company was in compliance with the covenants under the Senior Secured Credit Facilities. The Company's ability to maintain compliance with its covenants will be highly dependent on results of operations and, to the extent necessary, its ability to implement remedial measures such as reductions in operating costs. The Revolving Credit Facility has an annual commitment fee equal to 0.50% per annum if the total net leverage ratio is greater than 4.0:1.0, or if otherwise, 0.375% per annum. The amount of fees for 2017, 2016 and 2015 were not significant. The Company is subject to a maximum total net leverage ratio of 6.8:1.0.
5.625% Senior Notes due 2024

On November 10, 2016, the Company closed a 144A offering (the “Notes Offering”) exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), of $425.0 aggregate principal amount of 5.625% senior notes due 2024 (the “Notes”).
 
The Company issued the Notes under an indenture dated November 10, 2016 (the “Indenture”) among the Company, the guarantors party thereto, and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The Notes will bear interest at the rate of 5.625% per year. Interest on the Notes is payable on May 15 and November 15 of each year, beginning on May 15, 2017. The Notes will mature on November 15, 2024. Before November 15, 2019, the Company may redeem the Notes, in whole or in part, at a redemption price equal to 100% of their principal amount plus a make-whole premium and accrued and unpaid interest to the date of redemption. At any time on or after November 15, 2019, the Company may redeem the Notes, in whole or in part, at the applicable redemption prices set forth in the Indenture, plus accrued interest. In addition, before November 15, 2019, the Company may, from time to time, redeem up to 40% of the aggregate principal amount of the Notes with the net cash proceeds of certain equity offerings at a redemption price equal to 105.625% of the principal amount thereof, plus accrued and unpaid interest to the redemption date. The redemption prices set forth in the indenture for the twelve month periods beginning on November 15 of the years indicated below are as follows:
Year
Percentage

2019
104.219
%
2020
102.813
%
2021
101.406
%
2022 and thereafter
100.000
%

 
The Indenture contains covenants that, among other things, restrict the ability of the Company and its restricted subsidiaries to incur additional debt or issue certain preferred stock; pay dividends (subject to certain exceptions) or make certain redemptions, repurchases or distributions or make certain other restricted payments or investments; create liens; enter into transactions with affiliates; merge, consolidate or sell, transfer or otherwise dispose of all or substantially all of the Company’s assets; transfer and sell assets; and create restrictions on dividends or other payments by the Company’s restricted subsidiaries. Certain covenants will cease to apply to the Notes for so long as the Notes have investment grade ratings. The Notes will be unconditionally guaranteed, jointly and severally, on a senior unsecured basis by all of the Company’s current and future U.S. subsidiaries that guarantee the Amended and Restated Credit Agreement. As of December 31, 2017, the Company was in compliance with the covenants under the Indenture.
8.25% Senior Notes due 2020
On October 9, 2012, the Company issued $550.0 aggregate principal amount of 8.25% Senior Notes, which were scheduled to mature in October 2020. The 8.25% Senior Notes were redeemed and repaid in full during the fourth quarter of fiscal 2016 with funds obtained from the new Term Loan B and the issuance of the 5.625% Senior Notes.
Original Issue Discount and Debt Issuance Costs
In November 2017, the Company repriced its Term Loan B and as a result, recorded $3.7 of losses on extinguishments and modifications of debt.
When the Company refinanced the Term Loan B facility in November 2017, 93% was accounted for as a modification and 7% was accounted for as an extinguishment based on an analysis of the participation of each lender in the syndicate before and after the repricing. As a result of the 7% that was accounted for as an extinguishment, $1.9 of the unamortized original issue discount and deferred debt issuance costs were recorded as a loss on extinguishment of debt. In relation to the modification, the Company incurred $1.8 of third party fees which were recorded as a loss on modification of debt. the Company incurred $0.1 of third party fees related to new lenders in the syndicate which were recorded as a reduction to the carrying value of debt and will be amortized to interest expense using the effective interest method.
In fiscal 2016, the Company recorded $64.7 of losses on extinguishments and modifications of debt as follows:
In October of fiscal 2016, The Company prepaid $326.0 of its Existing Term Loan B with its initial public offering proceeds and recorded a loss on extinguishment of debt of $8.3 for unamortized original issue discount and debt issuance costs.
When the Company refinanced its Term Loan B facility in November 2016, 95% was accounted for as a modification and 5% was accounted for as an extinguishment based on an analysis of the participation of each lender in the syndicate before and after the refinancing. As a result of the 5% that was accounted for as an extinguishment, $1.5 of the unamortized original issue discount and deferred debt issuance costs were recorded as a loss on extinguishment of debt. In relation to the modification, the Company incurred $15.2 of third party fees which were recorded as a loss on modification of debt. The Company incurred $1.3 of third party fees related to new lenders in the syndicate which were recorded as a reduction to the carrying value of debt and will be amortized to interest expense using the effective interest method. Additionally, the Company recorded $3.8 of original issue discount as a reduction to the carrying value of debt and it will be amortized to interest expense using the effective interest method.
When the Company amended its Revolver in November 2016, the Company incurred $0.3 in third party financing fees which were recorded as an other long term asset and will be amortized to interest expense on a straight line basis over the term of the Revolver.
When the Company redeemed its $550.0 8.25% Senior Notes during the fourth quarter of fiscal 2016, the Company paid a call premium of $24.0. The Company recorded the call premium as a loss on extinguishment of debt during the fourth quarter of fiscal 2016. Additionally, the Company recorded $15.3 of loss on extinguishment of debt related to unamortized original issue discount and deferred debt issuance costs.
In November of fiscal 2016 when the Company issued $425.0 of 5.625% Senior Notes due 2024, the Company incurred $6.5 in debt issuance costs which were recorded as a reduction to the carrying value of debt and will be amortized to interest expense using the effective interest method.
In December of fiscal 2016, the Company prepaid $20.0 of its new Term Loan B and recorded a loss on extinguishment of debt of $0.4.

Fair Value of Debt
The fair value of the Company’s debt is estimated using discounted cash flow analysis, based on rates the Company would currently pay for similar types of instruments (Level 2 inputs). Although the Company has determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting the information and in developing the estimated fair values. Therefore, these estimates are not necessarily indicative of the amounts that the Company, or holders of the instruments, could realize in a current market exchange. The fair value estimates are based on information available as of December 31, 2017 and 2016 respectively.
The estimated fair value of the Company's debt is as follows at December 31:
 
 
2017
 
2016
Revolving Credit Facility
 
$
29.0

 
$

Senior Notes
 
435.1

 
425.5

Term Loan B Facility
 
1,467.3

 
1,495.7

 
 
$
1,931.4

 
$
1,921.2


The carrying value of the debt at December 31, 2017 is approximately $1,914.0 compared to $1,905.0 at December 31, 2016.

Unconditional Purchase Commitments
The Company has unconditional purchase commitments not recorded on the balance sheet which consist of disposal related agreements that include fixed or minimum royalty payments, disposal related host agreements, capital expenditure commitments and payments for premiums on interest rate caps. The Company has unconditional purchase commitments recorded on the balance sheet which consist of waste relocation obligations. The amounts purchased under these commitments during fiscal 2017, 2016 and 2015 were $8.3, $15.9 and $20.9, respectively.

The following table summarizes the Company's unconditional purchase commitments as of December 31, 2017:
2018
$
26.9

2019
7.4

2020
6.7

2021
6.1

2022
4.3

Thereafter
59.8


$
111.2

Leases
Leases
Leases
The Company leases certain facilities under operating lease agreements. Future minimum lease payments as of December 31, 2017 for noncancelable operating leases that have initial or remaining terms in excess of one year are as follows:
 
2018
$
6.3

2019
5.2

2020
4.4

2021
3.0

2022
2.4

Thereafter
21.8

 
$
43.1


The total rental expense for all operating leases for the years ended December 31, 2017, 2016 and 2015 was $10.9, $9.4 and $9.3, respectively.
Direct rental expense, consisting of rental expense at operating locations, is included in operating expenses, and rental expense for corporate offices is included in selling, general and administrative expenses in the consolidated statements of operations.
Stockholders' Equity and Stock Awards
Stockholders' Equity and Stock Awards
Stockholders' Equity and Stock Awards

(Share and per share amounts not in millions)
2012 Plan
In October 2012, the former Parent’s Board of Directors adopted the 2012 Stock Incentive Plan (the “ 2012 Plan”) under which an aggregate of 7,154,711 shares of the former Parent’s common stock was reserved for issuance. The 2012 Plan provided for employees of the Company to participate in the plan and provided that the options or stock purchase rights have a term of ten years and vest equally over four years at a rate of 20% with 20% of the options being vested at the date of grant for all options except the Strategic grants which vest 100% after five years. All options of the Strategic Plan issued prior to 2010 vested upon a change of control.
During fiscal 2016, the Board of Directors of the FormeParent amended the 2012 Plan to allow for the grant of performance shares, restricted shares, restricted share units, and other equity awards in addition to stock options and stock purchase rights as originally provided for under the 2012 Plan. Upon completion of the Company's initial public offering during the fourth quarter of fiscal 2016, no further awards will be issued under the 2012 Plan.
2016 Plan
The Company's board of directors adopted the Advanced Disposal Services, Inc. 2016 Omnibus Equity Plan (the "2016 Plan") on January 29, 2016 under which an aggregate of 5,030,000 shares of common stock was reserved for issuance. The 2016 Plan became effective on October 4, 2016 and will terminate on the tenth anniversary of the 2016 Plan effective date, unless sooner terminated by the Company's board of directors. Awards under the 2016 Plan may consist of stock options, restricted shares, restricted share units, stock appreciation rights, performance stock, performance stock units, cash performance units and other awards. The Compensation Committee shall set the vesting criteria applicable to each award, which will determine the extent to which the award becomes exercisable. The terms and conditions of each award shall be set forth in an award document in a form approved by the Compensation Committee for such Award.





Stock Option Grants
The fair value of the options granted is estimated using the Black-Scholes option pricing model using the following assumptions:
 
2017
 
2016
 
2015
Average expected term (years)
6.2
 
6.3
 
6.9
Risk-free interest rate
1.93% - 2.16%
 
1.22% - 1.47%
 
1.76% - 1.93%
Expected volatility
18.0% - 19.0%
 
30.0%
 
30.0%

Since the Company does not have enough historical exercise data that is indicative of expected future exercise performance, it has elected to use the “simplified method” to estimate the options expected term by taking the average of each vesting-tranche and the contractual term. The Company used the average ten day historical volatility for public companies in the solid waste sector to estimate historical volatility used in the Black-Scholes model. The risk-free rate used was based on the US Treasury security rate estimated for the expected term of the option at the date of grant. No dividends are expected to be issued. The company estimates stock option forfeitures based on historical experience. The Company issues new shares when stock options are exercised.
 
Stock Option Grants
During the first quarter of fiscal 2017, there were 788,500 annual options granted under the 2016 Plan for employees other than the Named Executive Officers ("NEOs"). Each option had an estimated fair value of $5.32 per option on the date of grant and each option had an exercise price of $22.00. The options will vest 20% on date of grant and 20% in four equal installments over each of the first four anniversaries of the date of the grant. The contractual term of each option is ten years.
During the first quarter of fiscal 2017, there were 213,507 NEO options granted under the 2016 Plan. Each option had an estimated fair value of $5.20 per option on the date of grant and each option had an exercise price of $22.00. The options will vest in three equal installments over each of the first three anniversaries of the date of the grant. The contractual term of each option is ten years.
During the first quarter of fiscal 2017, 118,217 performance options were granted to the Company's Chief Executive Officer based on fiscal 2016 performance criteria. Each option had an estimated fair value of $5.86 per option on the date of grant and each option had an exercise price of $23.30. The options will vest in full on the third anniversary of the date of the grant. The contractual term of each option is ten years.
During the third quarter of fiscal 2017, there were 36,000 options granted under the 2016 Plan for employees other than the NEOs. Each option had an estimated fair value of $5.27 per option on the date of grant and each option had an exercise price of $22.85. The options will vest 20% on date of grant and 20% in four equal installments over each of the first four anniversaries of the date of the grant. The contractual term of each option is ten years.










Stock Options Outstanding
A summary of the stock options outstanding for the year ended December 31, 2017 (in millions, except share and per share amounts) is as follows:
 
Number of
Shares
 
Weighted -
Average
Exercise Price
 
Weighted -
Average
Remaining
Contractual
Term
Outstanding at January 1, 2017
3,276,239

 
$
18.58

 
 
Granted
1,156,224

 
22.16

 
 
Exercised
(533,450
)
 
14.96

 
 
Expired or forfeited
(160,104
)
 
21.65

 
 
Outstanding at December 31, 2017
3,738,909

 
20.10

 
7.71
Exercisable at December 31, 2017
1,562,839

 
$
19.00

 
6.27

The weighted-average grant-date fair value of options granted per share was $5.35, $6.57 and $6.10 during 2017, 2016, and 2015, respectively. The total fair value of options vested was $5.1, $3.6 and $1.0 during fiscal 2017, 2016, and 2015, respectively. The intrinsic value of the options outstanding at December 31, 2017 was approximately $14.6. The intrinsic value of options exercised during fiscal 2017 was $3.0. The intrinsic value of exercisable options at December 31, 2017 was approximately $7.8.
Restricted Stock Grants
During fiscal 2017, there were 17,193 restricted stock awards granted under the 2016 Plan to non-employee directors with a weighted average grant date fair value $23.26 per share. The restricted stock awards will vest in full on the third anniversary of the date of the grant.
A summary of the status of non-vested restricted stock awards as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Shares

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
35,940


$
23.31

Granted
17,193


23.26

Vested



Forfeited



Nonvested at December 31, 2017
53,133


$
23.30











Restricted Stock Unit Grants
During fiscal 2017, there were 50,464 NEO restricted stock units granted under the 2016 Plan with a fair value of $22.00 per share. The restricted stock units will vest in full on the third anniversary of the date of the grant.
A summary of the status of non-vested restricted stock units as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Units

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
300,001


$
18.00

Granted
50,464


22.00

Vested



Forfeited



Nonvested at December 31, 2017
350,465


$
18.58


Performance Stock Unit Grants
During fiscal 2017, there were 100,930 NEO performance stock units (PSUs) granted under the 2016 Plan with a fair value of $22.00 per share. The PSUs will vest in full on the third anniversary of the date of the grant. The PSUs shall be measured based on the Company's budget and are weighted as follows: Adjusted EBITDA: 50%; Adjusted EBITDA less capital expenditures: 30%; and Revenue: 20%. The measurement criteria begins with an attainment of 90% of the budget which results in vesting of 25% of the shares underlying the PSUs granted and ends with an attainment of 110% of the budget which results in vesting of 175% of the shares underlying the PSUs granted. Performance will be measured separately for each of the three years in the performance period and the total number of PSUs earned at the conclusion of the three-year performance period will be the sum of the PSUs earned with respect to each individual year.
A summary of the status of non-vested performance stock units as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Units

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
54,830


$
24.28

Granted
100,930


22.00

Vested



Forfeited
(33,710
)

22.75

Nonvested at December 31, 2017
122,050


$
22.82


Compensation Expense
Compensation expense is recognized ratably over the vesting period for those awards that vest. For fiscal 2017, 2016 and 2015, the Company recognized share-based compensation expense as a component of selling, general and administrative expenses of $9.7, $5.5 and $3.1, respectively. As of December 31, 2017, the Company estimates that a total of approximately $13.4 of currently unrecognized compensation expense will be recognized over a weighted average period of approximately 2.08 years for unvested awards issued and outstanding.
Payment to Former Director
During fiscal 2017, we made the final payment to a former director under an equity compensation arrangement in the amount of $6.2.
Insurance
Insurance
Insurance
The Company carries insurance coverage for protection of its assets and operations from certain risks including automobile liability, general liability, real and personal property damage, workers’ compensation claims, directors’ and officers’ liability, pollution liability, employee group health claims and other coverages that are customary in the industry. The Company’s exposure to loss for insurance claims is generally limited to the per incident deductible under the related insurance policy. As of December 31, 2017, the Company’s insurance programs carried self-insurance exposures of up to $0.5, $1.0 and $0.8 per incident for general liability, automobile and workers’ compensation, respectively. Certain self-insurance claims reserves are recorded at present value using a 1.98% and a 1.47% discount rate as of December 31, 2017 and 2016, respectively.
The Company has a partially self-insured employee group health insurance program that carries an aggregate stop loss amount. The amount recorded for the health insurance liability at December 31, 2017 and 2016 for unpaid claims, including an estimate for IBNR claims, was $3.5 and $3.8, respectively. Liabilities are recorded gross of expected recoveries.
The self-insured portion of workers’ compensation liability for unpaid claims and associated expenses, including IBNR claims, is based on an actuarial valuation and internal estimates. The amount recorded for workers’ compensation liability at December 31, 2017 and 2016 for unpaid claims, including an estimate for IBNR claims, is $21.8 and $23.5, respectively.
The self-insured portion of general liability and automobile liability for unpaid claims and associated expenses, including IBNR claims, is based on an actuarial valuation and internal estimates. The amount recorded for general and automobile liability at December 31, 2017 and 2016 for unpaid claims, including an estimate for IBNR claims, was $20.7 and $17.2, respectively.
Of the above amounts, $16.7 and $18.3 is included in accrued expenses and the remainder is included in other long-term liabilities at December 31, 2017 and 2016, respectively.
Benefit Plans
Benefit Plans
Benefit Plans
The Company has 401(k) Savings Plans (“401(k) Plan”) for the benefit of qualifying full-time employees who have more than 90 days of service and are over 21 years of age. Employees make pre-tax contributions to the 401(k) Plan with a partial matching contribution made by the Company. The Company’s matching contributions to the 401(k) Plan were $3.5, $3.5 and $3.2 for fiscal 2017, 2016 and 2015, respectively. Contributions by the Company are included in operating costs and expenses in the accompanying consolidated statements of operations.
The Company is a participating employer in a number of trustee-managed multiemployer, defined benefit pension plans for employees who participate in collective bargaining agreements. Approximately 14% of the Company’s workforce is subject to a collective bargaining agreement and four of the collective bargaining agreements expire within one year. The risks of participating in the multiemployer plans are different from single-employer plans in that (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be required to be assumed by the remaining participating employers; and (iii) if the Company chooses to stop participating in any of the multiemployer plans, it may be required to pay those plans a withdrawal amount based on the underfunded status of the plan. The total contributions made to all plans for fiscal 2017 was $4.9, of which $0.2 is related to plans that are not individually significant.






The following table outlines the Company's participation in multiemployer plans considered to be individually significant: 
Pension Fund
EIN/Pension
Plan Number
 
Pension Protection
Act Zone Status
 
FIP/RP
Status Pending/
Implemented
(B)
 
Contributions
 
Expiration
Date of
Collective-
Bargaining
Agreement
2016
 
2015
 
2017
 
2016
 
2015
 
Suburban Teamsters of Northern IL Pension Fund
36-6155778-001
 
Endangered as of 1/1/2016
 
Endangered as of 1/1/2015
 
Implemented
 
$
0.6

 
$
0.7

 
$
0.6

 
1/31/2019
Pension Fund of Automobile Mechanics Local No. 701
36-6042061-001
 
Endangered as of 1/1/2016
 
Endangered as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
12/31/2018
Local 731 Private Scavengers and Garage Attendants Pension Fund (A)
36-6513567-001
 
Not Endangered or Critical as of 10/1/2016
 
Not Endangered or Critical as of 10/1/2015
 
Implemented
 
$
1.8

 
$
1.8

 
$
1.8

 
9/30/2018
Midwest Operating Engineers Pension Fund
36-6140097-001
 
Endangered as
of 4/1/2016
 
Endangered as
of 4/1/2015
 
Implemented
 
$
0.7

 
$
0.7

 
$
0.6

 
9/30/2019
Teamsters Local Union No. 301 Union Pension Fund (A)
36-6492992-001
 
Not Endangered or Critical as of 1/1/2016
 
Not Endangered or Critical as of 1/1/2015
 
No
 
$
1.0

 
$
1.0

 
$
0.9

 
9/30/2018
Central States Southeast and Southwest Areas Pension Fund
36-6064560-001
 
Critical and Declining Status as of 1/1/2016
 
Critical and Declining Status as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
1/31/2019
Local 705 Int’l Brotherhood of Teamsters Pension TR. FD.
36-6492502-001
 
Critical as of 1/1/2016
 
Critical as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
9/30/2018
 
(A)
The employers' contributions to the plan represent greater than 5% of the total contributions to the plan for the most recent plan year available.
(B)
A multi-employer defined benefit pension plan that has been certified as endangered, seriously endangered, or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable funding improvement plan or rehabilitation plan.
Income Taxes
Income Taxes
Income Taxes
The components of the benefit from income taxes are comprised of the following for the years ended December 31:
 
2017
 
2016
 
2015
Current
 
 
 
 
 
Federal
$
(1.1
)
 
$
(0.1
)
 
$
0.4

State
1.2

 
0.5

 
1.8

 
0.1

 
0.4

 
2.2

Deferred
 
 
 
 
 
Federal
(44.8
)
 
(23.4
)
 
(17.4
)
State
3.5

 
(2.7
)
 
(4.2
)
 
(41.3
)
 
(26.1
)
 
(21.6
)
Benefit from income taxes
$
(41.2
)
 
$
(25.7
)
 
$
(19.4
)

 






For fiscal 2017, 2016 and 2015, the federal statutory rate in effect was 35%. A reconciliation between the benefit from income taxes and the expected tax benefit using the federal statutory rate in effect for the years ended December 31 is as follows: 

2017

2016

2015
Amount computed using statutory rates
$
(1.0
)

$
(19.6
)

$
(18.6
)
State income taxes, net of federal benefit
(3.3
)

(6.0
)

(5.1
)
Benefit from stock option exercises


(4.3
)


Net effect of changes in tax rates
(0.3
)

(0.7
)

1.7

Uncertain tax positions and interest
0.5


0.4


1.0

Nondeductible expenses
1.5


1.2


1.8

Net effect of change in U.S. Tax Law
(40.4
)




Other
0.6


(0.2
)

0.7

Valuation allowance
1.2


3.5


(0.9
)
Benefit from income taxes
$
(41.2
)

$
(25.7
)

$
(19.4
)

The Company’s deferred tax assets and liabilities relate to the following sources and differences between financial accounting and the tax basis of the Company’s assets and liabilities at December 31:
 
2017
 
2016
Deferred tax assets
 
 
 
Allowance for doubtful accounts
$
1.4

 
$
1.6

Insurance reserve
11.8

 
16.2

Net operating loss
103.4

 
203.3

Capital loss carryforward
42.8

 
68.9

Accrued bonus and vacation
4.5

 
7.3

Stock compensation
3.7

 
2.0

Tax credits
3.1

 
7.2

Other
11.9

 
12.5

Total deferred tax assets
182.6

 
319.0

Valuation allowance
(60.0
)
 
(98.7
)
Deferred tax assets less valuation allowance
122.6

 
220.3

Deferred tax liabilities
 
 
 
Fixed asset basis
(66.4
)
 
(106.8
)
Intangible basis
(73.9
)
 
(117.2
)
Landfill and environmental remediation liabilities
(62.0
)
 
(100.5
)
Other
(8.9
)
 
(8.6
)
Deferred tax liabilities
(211.2
)
 
(333.1
)
Net deferred tax liability
$
(88.6
)
 
$
(112.8
)


On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "TCJA" or the "Act") was signed into law making significant changes to the Internal Revenue Code. These changes include, but are not limited to, reducing the U.S. corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017, allowing an immediate expensing of certain tangible assets placed in service before 2023, limiting the deduction of net interest expense, limiting the use of newly-generating net operating losses to offset 80% of future taxable income, repealing the corporate Alternative Minimum Tax ("AMT"), providing for the refund of AMT Credits and making substantial changes to the U.S. taxation of foreign operations.

The SEC staff issued Staff Accounting Bulletin ("SAB") 118, which provides clarifying guidance on accounting for the tax effects of the TCJA. SAB 118 allows for a measurement period, not to extend beyond one year from the enactment date, for companies to complete the accounting for the provision of the Act under ASC 740. In accordance with SAB 118, to the extent a company has not completed its analysis of the Act but can provide a reasonable estimate, it must record a provisional estimate in its financial statements.

The Company has calculated its best estimate of the impact of the Act in its year end income tax provision in accordance with its understanding of the Act and guidance available as of the date of this filing. The Company's 2017 financial results include a $40.5 non-cash tax benefit, primarily from revaluing the Company's net deferred tax assets, liabilities, and certain associated valuation allowances to reflect the recently enacted 21% federal corporate tax rate. Due to the Act's taxation of deemed repatriation on foreign earnings, the Company expects to pay a one-time tax of $0.1 related to its Bahamas operations.

The TCJA provides for the refund of AMT Credits in tax years 2018-2021. The Company has $3.1 of recognized AMT Credits which are included in the noncurrent deferred income tax accounts.

The Company's provisional estimate of the impacts of the TCJA may be impacted by future guidance issued by the U.S. Treasury Department, Internal Revenue Services, Financial Standards Accounting Board and other standard setting bodies. The Company is still analyzing certain aspects of the Act and is refining its calculations, which could potentially affect the provisional measurement of these balances. The completion of the Company's 2017 income tax returns by the third quarter 2018 may also impact the provisional amounts that have been recorded.

Effective for the fourth quarter of 2016, the Company adopted Accounting Standards Update (ASU) 2016-09, Improvements to Employee Share-Based Payment Accounting. This standard requires the Company to account for all of the tax effects related to share-based compensation through the statement of operations. For fiscal 2016, the adoption of this standard caused $4.7 to be recognized as a component of the benefit from income taxes.
The amounts recorded as deferred tax assets as of December 31, 2017 and 2016 represent the amounts of tax benefits of existing deductible temporary differences or net operating and capital loss carryforwards. Realization of deferred tax assets is dependent upon the generation of sufficient taxable income prior to expiration of any loss carryforwards. A valuation allowance has been recorded against deferred tax assets as of December 31, 2017 in the amount of $60.0. The valuation allowance for the year ended December 31, 2016 was $98.7. The valuation allowance decreased by $38.7 in 2017 primarily as a result of tax reform and unrecognized tax benefits. The Company has established valuation allowances for uncertainties in realizing the benefit of certain tax loss and credit carryforwards. While the Company expects to realize the deferred tax assets, net of the valuation allowances, changes in estimates of future taxable income or in tax laws may alter this expectation.
The Company had available federal net operating loss ("NOL") carryforwards from continuing operations of approximately $344.1 and $476.6 at December 31, 2017 and 2016 respectively. The Company’s federal net operating losses have expiration dates beginning in the year 2021 through 2036 if not utilized against taxable income. The capital loss of $175.9 expires in 2018, if not utilized against capital gains.
With the completion of the initial public offering in the fourth quarter of 2016, the Company experienced an ownership change pursuant to Section 382 of the Internal Revenue Code ("IRC"). This limitation is not expected to have an impact on the Company's ability to fully utilize its NOLs before expiration. Additionally, the Company has grown through a series of acquisitions and mergers and has had change of control events that resulted in limitations on the utilization of NOLs pursuant to Section 382 of the IRC. Approximately $58.8 of the NOLs from continuing operations are limited under the SRLY rules of the IRC. These NOLs are only available to be utilized against taxable income of the HWStar Waste Holdings, Corp. and subsidiaries thereof, a wholly-owned subsidiary of the Company. At this time, the Company expects to fully utilize these NOLs.
A predecessor of the Company had a transaction on November 1, 2005 that was treated as a reorganization. The Company estimates that it is subject to an annual limitation of approximately $4.2 on NOLs of approximately $29.1 originating prior to November 1, 2005.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for fiscal 2017, 2016 and 2015 is as follows:     

2017

2016

2015
Balance at January 1,
$
7.5


$
7.3


$
6.2

Additions based on tax positions of prior years
20.4


0.1


0.5

Change to prior tax positions due to tax rate changes
(0.4
)




Additions based on tax positions of current year


0.1


0.6

Balance at December 31,
$
27.5


$
7.5


$
7.3

These liabilities are included as a component of other liabilities and deferred income taxes in the Company's consolidated balance sheet. The Company does not anticipate that settlement of the liabilities will require payment of cash within the next twelve months. As of December 31, 2017, $25.1 of the net unrecognized benefit, if recognized in future periods, would impact the Company's effective rate.
The Company recognizes interest expense related to unrecognized tax benefits in tax expense. During the tax years ended December 31, 2017, 2016 and 2015, respectively, the Company recognized approximately $0.5, $0.2, and $0.2, respectively, of such interest expense as a component of the “Provision for Income Taxes”.
The Company had approximately $2.8 and $2.5 of accrued interest and $0.5 and $0.4 of accrued penalties in its balance sheet as of December 31, 2017 and 2016, respectively.
 
The Company and its subsidiaries are subject to income tax in the United States at the federal, state, and local jurisdictional levels. The company has open tax years dating back to 2003. There were no settlements of federal or state audits during 2017. Prior to the acquisition in fiscal 2012, Veolia ES Solid Waste division was part of a consolidated group and is still subject to IRS and state examinations dating back to 2004. Pursuant to the terms of the acquisition of Veolia ES Solid Waste, Inc., the Company is entitled to certain indemnifications for Veolia ES Solid Waste Division's pre-acquisition tax liabilities.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments
As a basis for considering assumptions, the fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level 1
  
Observable inputs such as quoted prices in active markets;
 
 
Level 2
  
Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
 
Level 3
  
Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of three valuation techniques noted in the guidance. The three valuation techniques are as follows:
Market approach
Prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities;
Cost approach
Amount that would be required to replace the service capacity of an asset (i.e., replacement cost); and
Income approach
Techniques to convert future amounts to a single present amount are based on market expectations (including present value techniques, option-pricing models, and lattice models).
 
The Company’s financial assets and liabilities recorded at fair value on a recurring basis include derivative instruments and certain investments included in cash equivalent money market funds. The Company’s interest rate caps are recorded at their estimated fair values based on a current forward fixed price swap curve.
All instruments were valued using the market approach. The Company's interest rate caps are valued using a third-party pricing model that incorporates information about LIBOR yield curves, which is considered observable market data, for each instrument’s respective term. Counterparties to the Company's interest rate caps are highly rated financial institutions. Valuations of those interest rate caps may fluctuate significantly from period to period due to volatility in the valuation of interest rates which are driven by market conditions and the scheduled maturities of the caps.
The Company’s assets and liabilities that are measured at fair value on a recurring basis approximate the following:
 
Fair Value Measurement at December 31, 2017
Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Gains
(Losses)
 
Carrying
Value
Recurring fair value measurements
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
6.8

 
$
6.8

 
$

 
$

 
$

 
$
6.8

Derivative instruments - Asset position
3.7

 

 
3.7

 

 

 
3.7

Derivative instruments - Liability position
(0.4
)
 
$

 
(0.4
)
 

 

 
(0.4
)
Total recurring fair value measurements
$
10.1

 
$
6.8

 
$
3.3

 
$

 
$

 
$
10.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement at December 31, 2016
Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Gains
(Losses)
 
Carrying
Value
Recurring fair value measurements
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.2

 
$
1.2

 
$

 
$

 
$

 
$
1.2

Derivative instruments - Asset position
2.3

 

 
2.3

 

 

 
2.3

Total recurring fair value measurements
$
3.5

 
$
1.2

 
$
2.3

 
$

 
$

 
$
3.5



 Refer to Note 12 for disclosures regarding the fair value of long-term debt.
Commitments and Contingencies
Commitments and Contingencies
Commitments and Contingencies
Municipal solid waste service and other service contracts, permits and licenses to operate transfer stations, landfills and recycling facilities may require performance or surety bonds, letters of credit or other means of financial assurance to secure contractual performance. To secure its obligations, the Company has provided customers, various regulatory authorities and the Company’s insurer with such bonds totaling to approximately $749.2 and $715.5 as of December 31, 2017 and 2016, respectively. The majority of these obligations expire each year and are automatically renewed. Additionally, letters of credit have been issued to fulfill such obligations and are included in the total letters of credit outstanding disclosed in Note 12 "Long Term Debt" in the notes to the consolidated financial statements herein.    The Company has an obligation as part of the purchase of one of its C&D landfills for payments of 6% of net revenue that began at the commencement of landfill operations and continues through the life of the landfill.
In February 2009, the Company and certain of its subsidiaries were named as defendants in a purported class action suit in the Circuit Court of Macon County, Alabama. Similar class action complaints were brought against the Company and certain of its subsidiaries in 2011 in Duval County, Florida and in 2013 in Quitman County, Georgia and Barbour County, Alabama, and in 2014 in Chester County, Pennsylvania. The 2013 Georgia complaint was dismissed in March 2014. In late 2015 in Gwinnett County, Georgia, another purported class action suit was filed. The plaintiffs in those cases primarily allege that the defendants charged improper fees (fuel, administrative and environmental charges) that were in breach of the plaintiffs' service agreements with the Company and seek damages in an unspecified amount. The Company believes that it has meritorious defenses against these purported class actions, which it will vigorously pursue. Given the inherent uncertainties of litigation, including the early stage of these cases, the unknown size of any potential class, and legal and factual issues in dispute, the outcome of these cases cannot be predicted and a range of loss, if any, cannot currently be estimated.
In November 2014, the Attorney General of the State of Vermont filed a complaint against the Company relating to the Moretown, Vermont landfill regarding alleged odor and other environmental-related noncompliances with environmental laws and regulations and environmental permits. In the complaint, the Attorney General requested that the State of Vermont Superior Court find the Company liable for the alleged noncompliances, issue related civil penalties, and order the Company to reimburse the State of Vermont for enforcement costs. The Company signed a consent and final judgment order during the first quarter of fiscal 2018 related to this matter and agreed to pay a civil penalty of $0.2.
In February 2017, a waste slide occurred in one cell at the Company's Greentree Landfill in Kersey, Pennsylvania. During fiscal 2017, the Company recorded a charge to operating expenses of $11.1, representing the Company's current estimate of probable costs to relocate displaced material and restore infrastructure, net of estimated insurance recoveries; this amount could increase or decrease as a result of actual costs incurred to completion and insurance recoveries. The Company has paid $9.4 as of December 31, 2017, which included a fine of $0.6 paid to the Pennsylvania Department of Environmental Protection.
The Company is subject to various other proceedings, lawsuits, disputes and claims and regulatory investigations arising in the ordinary course of its business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions filed against the Company include commercial, customer, and employment-related claims. The plaintiffs in some actions seek unspecified damages or injunctive relief, or both. These actions are in various procedural stages, and some are covered in part by insurance. Although the Company cannot predict the ultimate outcome and the range of loss cannot be currently estimated, the Company does not believe that the eventual outcome of any such action could have a material adverse effect on its business, financial condition, results of operations or cash flows.
Restructuring
Restructuring
Restructuring
For fiscal 2017, the Company incurred $3.4 of restructuring costs related to elimination of positions at the corporate office. Of the $3.4 of restructuring charges, $2.1 relates to the acceleration of stock-based compensation and $1.3 relates to severance expense.
For fiscal 2016, the Company incurred $0.8 of restructuring costs related to the consolidation of districts in the Midwest region and the resignation of one corporate executive.
For fiscal 2015, no new restructuring plans were adopted and no restructuring costs were incurred.

The costs associated with the actions described above are included in accrued expenses in the accompanying consolidated financial statements and include the amounts as follows:
 
2017
 
2016
 
2015
Beginning balance
$
1.0

 
$
2.2

 
$
5.4

Expense
3.4

 
0.8

 

Cash expenditures
 
 
 
 
 
Severance and relocation
(0.7
)
 
(1.4
)
 
(2.7
)
Other
(0.1
)
 
(0.6
)
 
(0.5
)
Non-cash acceleration of options
(2.1
)
 
$

 

Ending balance
$
1.5

 
$
1.0

 
$
2.2

Supplemental Cash Flow Information
Supplemental Cash Flow Information
Supplemental Cash Flow Information
Supplemental cash flow information for the years ended December 31 is as follows:
 
 
2017
 
2016
 
2015
Cash paid for interest
$
86.2

 
$
119.4

 
$
116.4

Cash paid for taxes
$
1.4

 
$
1.5

 
$
2.4

Assets acquired under capital lease
$
45.2


$
26.6


$
10.2

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)
The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of stockholders' equity, are as follows:
 
Gains and (Losses) on Derivative Instruments
Balance, December 31, 2014
$
1.5

Other comprehensive loss before reclassifications, net of tax
(1.5
)
Net current period other comprehensive loss
(1.5
)
Balance, December 31, 2015

Other comprehensive income before reclassifications, net of tax

Net current period other comprehensive income

Balance, December 31, 2016

Other comprehensive loss before reclassifications, net of tax
(0.4
)
Net current period other comprehensive loss
(0.4
)
Balance, December 31, 2017
$
(0.4
)

The significant amounts either added to or reclassified out of each component of accumulated other comprehensive income (loss) are included in the tables below:
 
 
Amount of Derivative Loss
Recognized in OCI – Effective for the
Years Ended December 31,

2017
 
2016
 
2015
Derivatives Designated as Cash Flow Hedges
 
 
 
 
 
Interest rate caps
$
(0.4
)
 
$

 
$
(2.0
)
Total before tax
(0.4
)
 

 
(2.0
)
Tax benefit

 

 
0.5

Net of tax
$
(0.4
)
 
$

 
$
(1.5
)
Equity Method Investment (Notes)
Equity Method Investment
Equity Method Investment

On November 20, 2012, in connection with a larger acquisition, ADS acquired a 50% equity stake in Sanitation Services Company Limited (“SS”) for approximately $9.5 million. SS is a Bahamas-based oil pumping, landscaping, garbage collection, janitorial, excavation and container rental services company. The Company uses the equity method to account for its 50% financial interest in SS. Equity in earnings was $1.6 million and $1.8 million for the years ended December 31, 2017 and 2016, respectively, and is recorded in Other Income (Expense), net on the Consolidated Statements of Operations. The investment balance was $9.5 and $9.8 as of December 31, 2017 and 2016, respectively and is recorded in Other Assets on the Consolidated Balance Sheets.

Summarized balance sheet information for SS consists of the following at December 31:
(in millions)
2017
 
2016
Current assets
$
3.2

 
$
3.9

Noncurrent assets
5.1

 
4.8

Current liabilities
0.8

 
0.8

Noncurrent liabilities
$
4.4

 
$
4.2


Summarized statement of operations information for SS consists of the following for the year ended:
(in millions)
2017
 
2016
Service revenue
$
12.3

 
$
13.9

Operating income
3.4

 
3.6

Income before income taxes
3.3

 
3.4

Net income
$
3.3

 
$
3.4

Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
The following table summarizes the unaudited quarterly results of operations for the respective quarters:
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2017
 
 
 
 
 
 
 
Operating revenues
$
347.4

 
$
383.1

 
$
392.7

 
$
384.4

Income from operations
$
11.3

 
$
24.1

 
$
29.7

 
$
25.0

Consolidated net (loss) income (a) (b)
$
(7.0
)
 
$
(0.2
)
 
$
3.5

 
$
42.0

Basic (loss) income per share
$
(0.08
)

$


$
0.04


$
0.47

Diluted (loss) income per share
$
(0.08
)

$


$
0.04


$
0.47

2016
 
 
 
 
 
 
 
Operating revenues
$
333.8

 
$
358.2

 
$
360.6

 
$
352.0

Income (loss) from operations
$
13.0

 
$
36.1

 
$
39.6

 
$
43.2

Consolidated net (loss) income (a)
$
(14.3
)
 
$
0.2

 
$
3.8

 
$
(20.1
)
Basic loss (income) per share
$
(0.22
)

$


$
0.06


$
(0.24
)
Diluted (loss) income per share
$
(0.22
)

$


$
0.06


$
(0.24
)


(a) Consolidated net income (loss) for the fourth quarter of fiscal 2017 and 2016 includes a loss on debt extinguishments and modifications of $3.7 and $64.7, respectively.

(b) Due to the enactment of the Tax Cuts and Jobs Act (the "Act") in the fourth quarter of fiscal 2017, the Company's fourth quarter financial results included a $40.5 non-cash tax benefit, primarily resulting from revaluing its net deferred tax assets, liabilities, and certain associated valuation allowances to reflect the recently enacted 21% federal corporate tax rate. Due to the Act's taxation of deemed repatriation on foreign earnings, the Company expects to pay a one-time tax of $0.1 related to its Bahamas operations.
New Accounting Standards Pending Adoption
New Accounting Standards Pending Adoption
New Accounting Standards Pending Adoption

In August 2017, the FASB issued ASU 2017-12 which intends to address concerns through changes to hedge accounting guidance which will accomplish the following: a) Expand hedge accounting for nonfinancial and financial risk components and amend measurement methodologies to more closely align hedge accounting with a company's risk management activities; b) Decrease the complexity of preparing and understanding hedge results through eliminating the separate measurement and reporting of hedge ineffectiveness; c) Enhance transparency, comparability and understandability of hedge results through enhanced disclosures and changing the presentation of hedge results to align the effects of the hedging instrument and the hedged item; and d) Reduce the cost and complexity of applying hedge accounting by simplifying the manner in which assessments of hedge effectiveness may be performed. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted in any interim period following the issuance date. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors to recognize a net lease investment. Additional qualitative and quantitative disclosures will also be required to increase transparency and comparability among organizations. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the standard is permitted; however, the Company does not expect to early adopt the ASU. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the expected impact of this standard update on disclosures, but does not anticipate any material changes to operating results or liquidity.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. This standard will become effective for the Company beginning with the first quarter 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The Company will adopt the standard as a cumulative effect adjustment as of the date of adoption.

The Company completed an impact assessment of the guidance changes affecting the Company and developed an approach to address each change. The Company completed a process of sampling contracts based on specifically identified contract characteristics. The Company reviewed its municipal contracts, commercial collection contracts, roll-off collection contracts, disposal contracts, sale of recyclable contracts, landfill gas contracts, trucking contracts, managed landfill contracts and sale of aggregates contracts. The Company evaluated key contract terms for its contracts and evaluated areas impacted by the amended guidance. Applicable changes to processes and internal controls have been evaluated to meet the standard’s reporting and disclosure requirements.

Based on the Company's work to date, the Company believes it has identified material contract types and costs that may be impacted by this amended guidance. Under the amended guidance, certain sales commissions will be capitalized and amortized to selling, general and administrative expense over the expected life of the customer relationship. The Company does not expect a material change to the amount of selling, general and administrative expense recognized on an annual basis, nor does it expect to recognize a material cumulative effect adjustment to accumulated deficit as of January 1, 2018. Additionally, while the Company does not expect a significant change to the timing or pattern of revenue recognition under the amended guidance, the Company anticipates recognizing certain consideration payable to customers as a reduction in operating revenues, which is currently recorded as operating expenses.
Summary of Significant Accounting Policies (Policies)
Basis of Presentation
The Company’s consolidated financial statements include its wholly-owned subsidiaries and their respective subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates
In preparing its financial statements that conform with accounting principles generally accepted in the United s of America, the Company uses estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. The Company must make these estimates and assumptions because certain information is dependent on future events, cannot be calculated with a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methodologies. In preparing its financial statements, the more subjective areas that deal with the greatest amount of uncertainty relate to accounting for long-lived assets, including recoverability, landfill development costs, and final capping, closure and post-closure costs, valuation allowances for accounts receivable and deferred tax assets, liabilities for potential litigation, claims and assessments, liabilities for environmental remediation, stock compensation, accounting for goodwill and intangible asset impairments, deferred taxes, uncertain tax positions, self-insurance reserves, and estimates of the fair values of assets acquired and liabilities assumed in acquisitions. Each of these items is discussed in more detail elsewhere in these Notes to the Consolidated Financial Statements. The Company's actual results may differ significantly from our estimates.
Cash and Cash Equivalents
For purposes of reporting cash flows, cash and cash equivalents includes cash on hand, bank demand deposit accounts, and overnight sweep accounts. Cash equivalents include highly liquid investments with original maturities of three months or less when purchased.
Revenue Recognition
The Company recognizes revenues as the services are provided. Revenue is recognized as waste is collected, as tons are received at the landfill or transfer stations, as recycled commodities are delivered to a customer, or as services are rendered to customers. Certain customers are billed and pay in advance and, accordingly, recognition of the related revenues is deferred until the services are provided. Revenues are reported net of applicable state landfill taxes.
Trade Receivables
The Company records trade receivables when billed or when services are performed, as they represent claims against third parties that will generally be settled in cash. The carrying value of receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. The Company estimates losses for uncollectible accounts based on an evaluation of the aged accounts receivable and the likelihood of collection of the receivable based on historical collection data and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances.
Insurance Reserves
The Company uses a combination of insurance with high deductibles and self-insurance for various risks including workers compensation, vehicle liability, general liability and employee group health claims. The exposure for unpaid claims and associated expenses, including incurred but not reported losses, is estimated by factoring in pending claims and historical trends data and other actuarial assumptions. In estimating its claims liability, the Company analyzes its historical trends, including loss development and applies appropriate loss development factors to the incurred costs associated with the claims. The discounted estimated liability associated with settling unpaid claims is included in accrued expenses and other long-term liabilities in the consolidated balance sheets.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, accounts receivable and derivative instruments. The Company maintains cash and cash equivalents with banks that at times exceed applicable insurance limits. The Company reduces its exposure to credit risk by maintaining such deposits with high quality financial institutions. The Company has not experienced any losses in such accounts. The maximum loss the Company would incur related to credit risk is the asset balances recorded in the balance sheets.
The Company generally does not require collateral on its trade receivables. Credit risk on accounts receivable is minimized as a result of the large and diverse nature of the Company’s customer base and its ability to discontinue service, to the extent allowable, to non-paying customers.
Asset Impairments
The Company monitors the carrying value of its long-lived assets for potential impairment and test the recoverability of such assets whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. Typical indicators that an asset may be impaired include (i) a significant adverse change in legal factors in the business climate, (ii) an adverse action or assessment by a regulator, and (iii) a significant adverse change in the extent or manner in which a long-lived asset is being utilized or in its physical condition. If an impairment indicator occurs, the Company performs a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, the Company will determine whether an impairment has occurred for the asset group for which it can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, the Company measures any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group; (ii) third-party valuations; and/or (iii) information available regarding the current market for similar assets. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying value exceeds the fair value of the asset.
Property and Equipment, Net
Property and equipment are recorded at cost, less accumulated depreciation. Expenditures for major additions and improvements are capitalized and maintenance activities are expensed as incurred. When property and equipment are retired, sold, or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts, and any resulting gain or loss is included in the results of operations. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell. Depreciation expense is calculated using the straight-line method over the estimated useful lives or the expected lease term, whichever is shorter. Estimated useful lives are as follows:
 
Years
Vehicles
5–10
Machinery and equipment
3–10
Containers
5–15
Furniture and fixtures
5–7
Building and improvements
5–39
Leases
The Company leases property and equipment in the ordinary course of its business. The most significant lease obligations are for property and equipment specific to the waste industry, including real property operated as landfills and transfer stations. The Company's leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that are considered in determining minimum lease payments. The leases are classified as either operating leases or capital leases, as appropriate.
The classification of the Company's operating leases can be attributed to either (i) relatively low fixed minimum lease payments as a result of real property lease obligations that vary based on the volume of waste we receive or process or (ii) minimum lease terms that are much shorter than the assets’ economic useful lives. The Company expects that in the normal course of business, its operating leases will be renewed, replaced by other leases, or replaced with fixed asset expenditures. The Company's rent expense during each of the last three years and its future minimum operating lease payments for each of the next five years for which it is contractually obligated as of December 31, 2017 is disclosed in Note 13.
Assets under capital leases are capitalized using interest rates determined at the inception of each lease and are amortized over the lesser of the useful life of the asset or the lease term, as appropriate, on a straight-line basis. The present value of the related lease payments is recorded as a debt obligation.
Landfill Accounting
Costs Basis of Landfill Assets
Landfills are typically developed in a series of cells, each of which is constructed, filled and capped in sequence over the operating life of the landfill. When the final cell is filled and the operating life of the landfill is completed, the cell must be capped and then closed and post-closure care and monitoring activities begin. Capitalized landfill costs include expenditures for land (which includes the land of the landfill footprint and landfill buffer property and setbacks) and related airspace associated with the permitting, development and construction of new landfills, expansions at existing landfills, landfill gas systems and landfill cell development. Landfill permitting, development and construction costs represent direct costs related to these activities, including land acquisition, engineering, legal and construction. These costs are deferred until all permits are obtained and operations have commenced at which point they are capitalized and amortized. If necessary permits are not obtained, costs are charged to operations. The cost basis of our landfill assets also includes asset retirement costs, which represent estimates of future costs associated with landfill final capping, closure and post-closure activities.

Final Capping, Closure and Post-Closure Costs
The following is a description of the Company's asset retirement activities and related accounting:
Final Capping
Includes installing flexible membrane and geosynthetic clay liners, drainage and compact soil layers, and topsoil, and is constructed over an area of the landfill where total airspace capacity has been consumed and waste disposal operations have ceased. These final capping activities occur in phases as needed throughout the operating life of a landfill as specific areas are filled to capacity and the final elevation for that specific area is reached in accordance with the provisions of the operating permit. Final capping asset retirement obligations are recorded on a units-of-consumption basis as airspace is consumed related to the specific final capping event with a corresponding increase in the landfill asset. Each final capping event is accounted for as a discrete obligation and recorded as an asset and a liability based on estimates of the discounted cash flows and capacity associated with each final capping event.
Closure and post-closure
These activities involve methane gas control, leachate management and groundwater monitoring, surface water monitoring and control, and other operational and maintenance activities that occur after the site ceases to accept waste. The post-closure period generally runs for 30 years or longer after final site closure for landfills. Landfill costs related to closure and post-closure are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing the closure and post-closure activities.
The Company annually updates its estimates for these obligations considering the respective State regulatory requirements, input from our internal engineers, operations, accounting personnel and external consulting engineers. The closure and post-closure requirements are established under the standards of the U.S. Environmental Protection Agency’s Subtitle D regulations as implemented and applied on a state-by-state basis. These estimates involve projections of costs that will be incurred as portions of the landfill are closed and during the post-closure monitoring period.
Capping, closure and post-closure costs are estimated assuming such costs would be incurred by a third party contractor in present day dollars and are inflated by 2.5% (an estimate based on the 25-year average change in the historical Consumer Price Index from 1992 to 2017) to the time periods within which it is estimated the capping, closure and post-closure costs will be expended. The Company discounts these costs to present value using the credit-adjusted, risk-free rate effective at the time an obligation is incurred, consistent with the expected cash flow approach. Any change that results in an upward revision to the estimated cash flows are treated as a new liability and discounted at the current rate while downward revisions are discounted at the historical weighted-average rate of the recorded obligation. As a result, the credit-adjusted, risk-free discount rate used to calculate the present value of an obligation is specific to each individual asset retirement obligation. The range of rates utilized within the calculation of the asset retirement obligations at December 31, 2017 is between 4.9% and 10.5%.
The Company records the estimated fair value of the final capping, closure and post-closure liabilities for its landfills based on the capacity consumed in the current period. The fair value of the final capping obligations is developed based on the Company’s estimates of the airspace consumed to date for each final capping event and the expected timing of each final capping event. The fair value of closure and post-closure obligations is developed based on the Company’s estimates of the airspace consumed to date for the entire landfill and the expected timing of each closure and post-closure activity. Because these obligations are measured at estimated fair value using present value techniques, changes in the estimated cost or timing of future final capping, closure and post-closure activities could result in a material change in these liabilities, related assets and results of operations. The Company assesses the appropriateness of the estimates used to develop its recorded balances annually, or more often if significant facts change.
Changes in inflation rates or the estimated costs, timing or extent of future final capping, closure and post-closure activities typically result in both (i) a current adjustment to the recorded liability and landfill asset; and (ii) a change in liability and asset amounts to be recorded prospectively over either the remaining capacity of the related discrete final capping event or the remaining permitted and expansion airspace (as defined below) of the landfill. Any changes related to the capitalized and future cost of the landfill assets are then recognized in accordance with the Company's amortization policy, which would generally result in amortization expense being recognized prospectively over the remaining capacity of the final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Changes in such estimates associated with airspace that has been fully utilized result in an adjustment to the recorded liability and landfill assets with an immediate corresponding adjustment to landfill airspace amortization expense.
Interest accretion on final capping, closure and post-closure liabilities is recorded using the effective interest method and is recorded in operating expenses in the consolidated statements of operations.
Amortization of Landfill Assets
The amortizable basis of a landfill includes (i) amounts previously expended and capitalized; (ii) capitalized and projected landfill final capping, closure and post-closure costs; (iii) projections of future acquisition and development costs required to develop the landfill site to its remaining permitted and expansion capacity; and (iv) land underlying both the footprint of the landfill and the surrounding required setbacks and buffer land.
Amortization is recorded on a units-of-consumption basis, applying expense as a rate per ton. The rate per ton is calculated by dividing each component of the amortizable basis of a landfill by the number of tons needed to fill the corresponding asset’s airspace. For landfills that the Company does not own, but operates through operating or lease arrangements, the rate per ton is calculated based on expected capacity to be utilized over the lesser of the contractual term of the underlying agreement or the life of the landfill.
 
Landfill site costs are depleted to zero upon final closure of a landfill. The Company develops its estimates of the obligations using input from its operations personnel, engineers and accountants. The obligations are based upon interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. The estimate of fair value is based upon present value techniques using historical experience and, where available, quoted or actual market prices paid for similar work.
The determination of airspace usage and remaining airspace is an essential component in the calculation of landfill asset depletion. This estimation is performed by conducting periodic topographic surveys, using aerial survey techniques, of the Company’s landfill facilities to determine remaining airspace in each landfill. The surveys are reviewed by the Company’s external consulting engineers, internal operating staff, and its management, financial and accounting staff.
Remaining airspace will include additional “deemed permitted” or unpermitted expansion airspace if the following criteria are met:
 
(1)
The Company must either own the property for the expansion or have a legal right to use or obtain property to be included in the expansion plan;
(2)
Conceptual design of the expansion must have been completed;
(3)
Personnel are actively working to obtain land use and local and state approvals for an expansion of an existing landfill and the application for expansion must reasonably be expected to be received within the normal application and processing time periods for approvals in the jurisdiction in which the landfill is located;
(4)
There are no known significant technical, community, business, or political restrictions or similar issues that would likely impair the success of the expansion; and
(5)
Financial analysis has been completed and the results demonstrate that the expansion has a positive financial and operational impact.
Senior management must have reviewed and approved all of the above. Of the Company's 40 active landfills, fifteen include deemed permitted airspace at December 31, 2017.
Upon successful meeting of the preceding criteria, the costs associated with developing, constructing, closing and monitoring the total additional future capacity are considered in the calculation of the amortization and closure and post-closure rates.
Once expansion airspace meets these criteria for inclusion in the Company’s calculation of total available disposal capacity, management continuously monitors each site’s progress in obtaining the expansion permit. If at any point it is determined that an expansion area no longer meets the required criteria, the deemed expansion airspace is removed from the landfill’s total available capacity, and the rates used at the landfill to amortize costs to acquire, construct, close and monitor the site during the post-closure period are adjusted prospectively. In addition, any amounts related to the probable expansion are charged to expense in the period in which it is determined that the criteria are no longer met.
Once the remaining permitted and expansion airspace is determined in cubic yards, an airspace utilization factor (“AUF”) is established to calculate the remaining permitted and expansion capacity in tons. The AUF is established using the measured density obtained from previous annual surveys and is then adjusted to account for future settlement. The amount of settlement that is forecasted will take into account several site-specific factors including: current and projected mix of waste type, initial and projected waste density, estimated number of years of life remaining, depth of underlying waste, anticipated access to moisture through precipitation or recirculation of landfill leachate and operating practices. In addition, the initial selection of the AUF is subject to a subsequent multi-level review by the Company's engineering group, and the AUF used is reviewed on a periodic basis and revised as necessary. The Company's historical experience generally indicates that the impact of settlement at a landfill is greater later in the life of the landfill when the waste placed at the landfill approaches its highest point under the permit requirements.
After determining the costs and remaining permitted and expansion capacity at each of its landfills, the Company determines the per ton rates that will be expensed as waste is received and deposited at the landfill by dividing the costs by the corresponding number of tons. The Company calculates per ton amortization rates for each landfill for assets associated with each final capping event, for assets related to closure and post-closure activities and for all other costs capitalized or to be capitalized in the future. These rates per ton are updated annually, or more often, as significant facts change.
It is possible that the Company’s estimates or assumptions could ultimately be significantly different from actual results. In some cases the Company may be unsuccessful in obtaining an expansion permit or the Company may determine that an expansion permit that it previously thought was probable has become unlikely. To the extent that such estimates, or the assumptions used to make those estimates, prove to be significantly different than actual results, or the belief that the Company will receive an expansion permit changes adversely in a significant manner, the costs of the landfill, including the costs incurred in the pursuit of the expansion, may be subject to impairment testing and lower profitability may be experienced due to higher amortization rates, higher capping, closure and post-closure rates, and higher expenses or asset impairments related to the removal of previously included expansion airspace.
The assessment of impairment indicators and the recoverability of the Company's capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the estimates involved. During the review of a landfill expansion application, a regulator may initially deny the expansion application although the permit is ultimately granted. In addition, the Company may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace, or a landfill may be required to cease accepting waste, prior to receipt of the expansion permit. However, such events occur in the ordinary course of business in the waste industry and do not necessarily result in an impairment of the landfill assets because, after consideration of all facts, such events may not affect the belief that the Company will ultimately obtain the expansion permit.
Derivative Financial Instruments
The Company uses interest rate caps to manage interest rate risk on its variable rate debt. The Company may use commodity futures contracts as an economic hedge to reduce the exposure of changes in diesel fuel and natural gas prices. The 2017 interest rate caps qualify for hedge accounting treatment and have been designated as cash flow hedges for accounting purposes with changes in fair value, to the extent effective, recognized in accumulated other comprehensive income within the equity section of the consolidated balance sheets. Amounts are reclassified into earnings when the forecasted transaction affects earnings. The commodity futures contracts and the 2016 interest rate caps do not qualify for hedge accounting and as such changes in fair value are recognized in other income (expense), net in the consolidated statements of operations. The fair values of the derivatives are included in other current or long-term assets or other current or long term liabilities as appropriate. The Company obtains current valuations of its commodity futures contracts and interest rate caps based on quotes received from financial institutions that trade these contracts and a current forward fixed price swap curve, respectively.
Original Issue Discount and Debt Issuance Costs
Original issue discount and debt issuance costs related to the issuance of debt are deferred and recorded as a reduction to the carrying value of debt and amortized to interest expense using the effective interest method. Previously recorded original issue discount and debt issuance costs are expensed when debt is extinguished prior to maturity.

Third party costs incurred in relation to a modification of debt are expensed as incurred. For modifications of debt, previously recorded original issue discount and debt issuance costs are amortized over the life of the modified debt instrument using the effective interest method.
Acquisitions
The Company recognizes assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair values as of the date of acquisition. Any excess of purchase price over the fair value of the net assets acquired is recorded as goodwill.
In certain acquisitions, the Company agrees to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted revenue levels, targeted disposal volumes or the issuance of permits for expanded landfill airspace. The Company has recognized liabilities for these contingent obligations based on their estimated fair value at the date of acquisition with any differences between the acquisition date fair value and the ultimate settlement of the obligations being recognized as an adjustment to income from operations.
Assets and liabilities arising from contingencies such as pre-acquisition environmental matters and litigation are recognized at their acquisition date fair value when their respective fair values can be determined. If the fair values of such contingencies cannot be determined, the Company reports provisional amounts for which the accounting is incomplete.
Acquisition date fair value estimates are revised as necessary and accounted for as an adjustment to the purchase accounting balances prior to the close of the purchase accounting window. If the purchase accounting window has closed, these estimates are accounted for as adjustments to income from operations if, and when, additional information becomes available to further define and quantify assets acquired and liabilities assumed. All acquisition-related transaction costs have been expensed as incurred.
Goodwill
Goodwill is the excess of the purchase price over the fair value of the net identifiable assets of acquired businesses. The Company does not amortize goodwill. The Company assesses whether a goodwill impairment exists using both qualitative and quantitative assessments. The Company's reporting units are equivalent to its operating segments and when an individual business within an integrated operating segment is divested, goodwill is allocated to that business based on its fair value relative to the fair value of its operating segment. The Company's qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment, the Company determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company will not perform a quantitative assessment. Regardless of the results of its qualitative assessments, the Company performs a quantitative assessment at least every three years.
When the Company performs a quantitative assessment, the Company determines whether goodwill is impaired at the reporting unit level. The Company compares the fair value with its carrying amount to determine if there is an impairment of goodwill. Fair value is estimated using an income approach based on forecasted cash flows. Fair value computed via this method is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows and comparable marketplace data. There are inherent uncertainties related to these factors and to the Company's judgment in applying them to this analysis. However, the Company believes that this method provides a reasonable approach to estimating the fair value of its reporting units.
The Company performs its annual assessment as of December 31 of each year. The Company performed a qualitative assessment in fiscal 2017 and the last time a quantitative assessment was performed was in fiscal 2015. The impairment test as of December 31, 2017 determined that no events or circumstances exist that indicate it is more likely than not that the fair value of any reporting unit is less than its carrying amount. If the Company does not achieve its anticipated disposal volumes, our collection or disposal rates decline, costs or capital expenditures exceed forecasts, costs of capital increase, or the Company does not receive landfill expansions, the estimated fair value could decrease and potentially result in an impairment charge in the future.
Intangible Assets, Net
Definite lived intangible assets are stated at cost less accumulated amortization and consist of noncompete agreements, tradenames, customer contracts and customer lists and are amortized over their estimated useful lives. Definite lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the carrying value of a definite lived intangible is not recoverable and exceeds its estimated fair value, an impairment charge would be recognized in the amount of the excess. Fair value is typically estimated using an income approach for the respective asset, as described above.
Income Taxes
The Company is subject to income tax in the United States. Current tax obligations associated with the provision for income taxes are reflected in the accompanying consolidated balance sheets as a component of accrued expenses and the deferred tax obligations are reflected in deferred income tax asset or liability. Deferred income taxes arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred income taxes are classified as noncurrent in accordance with current accounting guidance. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. The Company establishes reserves for uncertain tax positions, when despite its belief that its tax return positions are fully supportable, the Company believes that certain positions may be challenged and potentially disallowed. When facts and circumstances change, the Company adjusts these reserves through its provision for income taxes. To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of tax expense in the consolidated statements of operations.

The Company monitors changes in tax legislation and accounting developments which could impact the timing and amounts of deductible or taxable items. In connection with the implementation of the Tax Cuts and Jobs Act, the Company recognized the estimated impact of this legislation as a component of the benefit for income taxes. Refer to Note 17. Income Taxes.
Contingencies
The Company is subject to various legal proceedings, claims and regulatory matters, the outcomes of which are subject to significant uncertainty. In general, the Company determines whether to disclose or accrue for loss contingencies based on an assessment of whether the risk of loss is remote, reasonably possible or probable, and whether it can be reasonably estimated. The Company assesses its potential liability relating to litigation and regulatory matters based on information available. The Company develops its assessment based on an analysis of possible outcomes under various strategies. The Company accrues for loss contingencies when such amounts are probable and reasonably estimable. If a contingent liability is only reasonably possible, the Company discloses the potential range of the loss, if estimable.
Equity Method Investments
The Company’s investments where it can exert significant influence on the investee, but does not have effective control over the investee, are accounted for using the equity method of accounting. The Company’s equity in the net income from equity method investments is recorded as other income with a corresponding increase in other assets. Distributions received from the equity investee reduces other assets. Distributions from equity investees representing the Company's share of the equity investee's earnings are treated as cash proceeds from operations while distributions in excess of the equity investee's earnings are considered a return of capital and treated as cash proceeds from investing activities in the Company's consolidated statement of cash flows.
New Accounting Standards Adopted
In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04 which simplifies the goodwill impairment test by eliminating step 2 of the quantitative assessment. Under the guidance, when a quantitative assessment is required, an entity will perform a goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge will be measured as the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to that reporting unit. Additionally, entities should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. The new update is effective for annual periods beginning after December 15, 2019 with early adoption permitted. The Company's early adoption on January 1, 2017 did not have an impact on the Company's consolidated financial statements.

In January 2017, the FASB issued ASU 2017-01 which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments provide a screen to determine when a set of assets and activities is not a business. If the screen is not met, the amendments require further consideration of inputs, substantive processes and outputs to determine whether the transaction is an acquisition of a business. The new update is effective for annual periods beginning after December 15, 2017 with early adoption permitted. The Company's early adoption on January 1, 2017 did not have an impact on the Company's consolidated financial statements.
New Accounting Standards Pending Adoption

In August 2017, the FASB issued ASU 2017-12 which intends to address concerns through changes to hedge accounting guidance which will accomplish the following: a) Expand hedge accounting for nonfinancial and financial risk components and amend measurement methodologies to more closely align hedge accounting with a company's risk management activities; b) Decrease the complexity of preparing and understanding hedge results through eliminating the separate measurement and reporting of hedge ineffectiveness; c) Enhance transparency, comparability and understandability of hedge results through enhanced disclosures and changing the presentation of hedge results to align the effects of the hedging instrument and the hedged item; and d) Reduce the cost and complexity of applying hedge accounting by simplifying the manner in which assessments of hedge effectiveness may be performed. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted in any interim period following the issuance date. The Company is currently assessing the effect this guidance may have on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases, which will require lessees to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors to recognize a net lease investment. Additional qualitative and quantitative disclosures will also be required to increase transparency and comparability among organizations. This standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the standard is permitted; however, the Company does not expect to early adopt the ASU. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented. The Company is currently evaluating the expected impact of this standard update on disclosures, but does not anticipate any material changes to operating results or liquidity.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes previous revenue recognition guidance. The new standard requires that a company recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration the company expects to receive in exchange for those goods or services. Companies will need to use more judgment and estimates than under the guidance currently in effect, including estimating the amount of variable revenue to recognize over each identified performance obligation. Additional disclosures will be required to help users of financial statements understand the nature, amount and timing of revenue and cash flows arising from contracts. This standard will become effective for the Company beginning with the first quarter 2018 and can be adopted either retrospectively to each prior reporting period presented or as a cumulative effect adjustment as of the date of adoption. The Company will adopt the standard as a cumulative effect adjustment as of the date of adoption.

The Company completed an impact assessment of the guidance changes affecting the Company and developed an approach to address each change. The Company completed a process of sampling contracts based on specifically identified contract characteristics. The Company reviewed its municipal contracts, commercial collection contracts, roll-off collection contracts, disposal contracts, sale of recyclable contracts, landfill gas contracts, trucking contracts, managed landfill contracts and sale of aggregates contracts. The Company evaluated key contract terms for its contracts and evaluated areas impacted by the amended guidance. Applicable changes to processes and internal controls have been evaluated to meet the standard’s reporting and disclosure requirements.

Based on the Company's work to date, the Company believes it has identified material contract types and costs that may be impacted by this amended guidance. Under the amended guidance, certain sales commissions will be capitalized and amortized to selling, general and administrative expense over the expected life of the customer relationship. The Company does not expect a material change to the amount of selling, general and administrative expense recognized on an annual basis, nor does it expect to recognize a material cumulative effect adjustment to accumulated deficit as of January 1, 2018. Additionally, while the Company does not expect a significant change to the timing or pattern of revenue recognition under the amended guidance, the Company anticipates recognizing certain consideration payable to customers as a reduction in operating revenues, which is currently recorded as operating expenses.
As a basis for considering assumptions, the fair value guidance establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:
 
Level 1
  
Observable inputs such as quoted prices in active markets;
 
 
Level 2
  
Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
 
 
Level 3
  
Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Assets and liabilities measured at fair value are based on one or more of three valuation techniques noted in the guidance. The three valuation techniques are as follows:
Market approach
Prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities;
Cost approach
Amount that would be required to replace the service capacity of an asset (i.e., replacement cost); and
Income approach
Techniques to convert future amounts to a single present amount are based on market expectations (including present value techniques, option-pricing models, and lattice models).
 
The Company’s financial assets and liabilities recorded at fair value on a recurring basis include derivative instruments and certain investments included in cash equivalent money market funds. The Company’s interest rate caps are recorded at their estimated fair values based on a current forward fixed price swap curve.
All instruments were valued using the market approach. The Company's interest rate caps are valued using a third-party pricing model that incorporates information about LIBOR yield curves, which is considered observable market data, for each instrument’s respective term. Counterparties to the Company's interest rate caps are highly rated financial institutions. Valuations of those interest rate caps may fluctuate significantly from period to period due to volatility in the valuation of interest rates which are driven by market conditions and the scheduled maturities of the caps.
Summary of Significant Accounting Policies (Tables)
Estimated Useful Lives of Property and Equipment, Net
Estimated useful lives are as follows:
 
Years
Vehicles
5–10
Machinery and equipment
3–10
Containers
5–15
Furniture and fixtures
5–7
Building and improvements
5–39
Acquisitions (Tables)
The following table summarizes the estimated fair values of the assets acquired by year of acquisition:
 
2017
 
2016
Current assets
$
5.9

 
$
0.3

Property and equipment
89.8

 
2.3

Goodwill
35.2

 
0.4

Other intangible assets
18.8

 
2.6

Total assets acquired
149.7

 
5.6

Current liabilities
6.9

 
0.2

Total liabilities assumed
33.8

 
0.2

Net assets acquired
$
115.9

 
$
5.4

The following table presents the allocation of the purchase price to other intangible assets:
 
2017
 
2016
Customer lists and contracts
$
17.0

 
$
2.3

Noncompete
1.2

 
0.1

Other
0.6

 
0.2

 
$
18.8

 
$
2.6

The weighted average life of other intangible assets in years is as follows:
Customer lists and contracts
17
Noncompete
7
Income (Loss) Per Share (Tables)
Computation of Basic Income (Loss) Per Share and Loss Per Share, Assuming Dilution
The following table sets forth the computation of basic income (loss) per share and income (loss) per share, assuming dilution for the following years:

 

2017

2016

2015
Numerator: (Dollars in millions)







Net income (loss)

$
38.3


$
(30.4
)

$
(33.6
)
Denominator:







Average common shares outstanding

88,323,213


69,462,798


64,493,536


Other potentially dilutive common shares

564,599






Average common shares outstanding, assuming dilution

88,887,812


69,462,798


64,493,536













Net income (loss) per share, basic

$
0.43


$
(0.44
)

$
(0.52
)

Net income (loss) per share, assuming dilution

$
0.43


$
(0.44
)

$
(0.52
)
Allowance for Doubtful Accounts (Tables)
Summary of Allowance for Doubtful Accounts
Allowance for doubtful accounts consists of the following at December 31:
 
2017
 
2016
 
2015
Beginning balance
$
4.0

 
$
4.4

 
$
5.0

Provision for doubtful accounts
5.4

 
3.7

 
4.0

Write-offs of bad debt
(4.6
)
 
(4.1
)
 
(4.8
)
Other
0.6

 

 
0.2

Balance at December 31,
$
5.4

 
$
4.0

 
$
4.4

Prepaid Expenses and Other Current Assets (Tables)
Summary of Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consist of the following at December 31:
 
 
2017
 
2016
Prepaid insurance
 
$
5.9

 
$
6.6

Prepaid expenses
 
16.4

 
14.2

Other receivables and current assets
 
6.8

 
1.7

Parts and supplies inventory
 
8.8

 
7.8

 
 
$
37.9

 
$
30.3

Derivative Instruments and Hedging Activities (Tables)
Summary of Fair Value of Derivative Instruments Recorded in Combined Consolidated Balance Sheets
The following table summarizes the fair value of derivative instruments recorded in our consolidated balance sheets at December 31:
 
Balance Sheet Location
 
2017
 
2016
Derivatives Designated as Hedging Instruments
 
 
 
 
 
2017 interest rate caps
Other long-term liabilities
 
$
(0.4
)
 
$

Derivatives Not Designated as Hedging Instruments

 


 


2016 interest rate caps
Prepaid expenses and other current assets

0.9



2016 interest rate caps
Other assets

$
2.8


$
2.3

Total derivatives
 
 
$
3.3

 
$
2.3

Property and Equipment, Net (Tables)
Schedule of Property and Equipment, Net
Property and equipment, net consist of the following at December 31:
 
 
2017
 
2016
Land
$
209.1

 
$
193.3

Landfill site costs
1,465.7

 
1,358.1

Vehicles
680.3

 
595.7

Containers
294.4

 
271.5

Machinery and equipment
185.4

 
156.2

Furniture and fixtures
30.1

 
25.9

Building and improvements
188.7

 
170.1

Construction in process
30.6

 
25.6

 
3,084.3

 
2,796.4

Less: Accumulated depreciation on property and equipment
(679.3
)
 
(579.3
)
Less: Accumulated landfill airspace amortization
(676.2
)
 
(583.7
)
 
$
1,728.8

 
$
1,633.4

Landfill Accounting (Tables)
Summary of Liabilities for Final Closure and Post-Closure Costs
Liabilities for final closure and post-closure costs consist of the following for the years ended December 31:
 
2017
 
2016
Balance at January 1
$
191.1

 
$
193.7

Increase in retirement obligation
9.7

 
9.3

Accretion of closure and post-closure costs
15.4

 
13.0

Acquisition
28.3

 

Change in estimate
2.1

 
(7.4
)
Costs incurred
(20.7
)
 
(17.5
)
 
225.9

 
191.1

Less: Current portion
(20.2
)
 
(29.3
)
Balance at December 31
$
205.7

 
$
161.8

Other Intangible Assets, Net and Goodwill (Tables)
Intangible assets, net consist of the following at December 31:
 
 
 
2017
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Impairment
 
Net
Carrying
Value
 
Weighted
Average
Remaining
Life
(Years)
Noncompete agreements
 
$
5.4

 
$
(2.6
)
 
$

 
$
2.8

 
2.3
Tradenames
 
15.5

 
(6.9
)
 

 
8.6

 
12.9
Customer lists and contracts
 
525.5

 
(238.0
)
 
(13.0
)
 
274.5

 
12.8
Operating permits
 
2.5

 

 

 
2.5

 
N/A
Above/below market leases
 
0.4

 
(0.1
)
 

 
0.3

 
8.6
 
 
$
549.3

 
$
(247.6
)
 
$
(13.0
)
 
$
288.7

 
 
 
 
 
2016
 
 
Gross
Carrying
Value
 
Accumulated
Amortization
 
Impairment
 
Net
Carrying
Value
 
Weighted
Average
Remaining
Life
(Years)
Noncompete agreements
 
$
4.3

 
$
(1.7
)
 
$

 
$
2.6

 
3.6
Tradenames
 
14.9

 
(6.2
)
 

 
8.7

 
14.7
Customer lists and contracts
 
513.4

 
(202.7
)
 

 
310.7

 
13.8
Operating permits
 
2.3

 

 

 
2.3

 
N/A
Above/below market leases
 
0.4

 
(0.1
)
 

 
0.3

 
9.6
 
 
$
535.3

 
$
(210.7
)
 
$

 
$
324.6

 
 
Future amortization expense for intangible assets for the year ending December 31 is estimated to be:
2018
$
47.1

2019
32.1

2020
31.3

2021
30.1

2022
26.8

Thereafter
121.3

 
$
288.7

The changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 are as follows:  
 
Goodwill
 
Accumulated
Impairment
 
Goodwill,
Net
December 31, 2015
$
1,267.2

 
$
(93.7
)
 
$
1,173.5

Acquisition
0.4

 

 
0.4

December 31, 2016
1,267.6

 
(93.7
)
 
1,173.9

Acquisition
35.2

 

 
35.2

Disposition of businesses
(0.9
)
 

 
(0.9
)
December 31, 2017
$
1,301.9

 
$
(93.7
)
 
$
1,208.2

Accrued Expenses (Tables)
Summary of Accrued Expenses
Accrued expenses consist of the following at December 31:
 
2017
 
2016
Accrued compensation and benefits
$
30.9

 
$
32.5

Accrued waste disposal costs
42.1

 
40.1

Accrued insurance and self-insurance reserves
13.2

 
14.5

Accrued severance
1.5

 
0.5

Other accrued expenses
25.3

 
22.2

 
$
113.0

 
$
109.8

Long-Term Debt (Tables)
Long-term debt consists of the following at December 31:
 
2017
2016
Revolving line of credit with lenders, interest at base rate plus margin, as defined (6.25% and 4.49% at December 31, 2017 and 2016, respectively) due quarterly; balance due at maturity in 2021
$
29.0

$

Term loans; quarterly principal payments commencing March 31, 2017 through September 30, 2023 with final payment due November 10, 2023; interest at an alternate base rate or adjusted LIBOR rate with a 0.75% floor plus an applicable margin
1,460.0

1,480.0

Senior notes payable; interest at 5.625% payable in arrears semi-annually commencing May 15, 2017; maturing on November 15, 2024.
425.0

425.0

Capital lease obligations, interest rates between 3.70% and 7.73%, maturing through 2024
63.9

42.5

Other debt
11.8

15.1


1,989.7

1,962.6

Less: Original issue discount and debt issuance costs classified as a reduction to long-term debt
(31.4
)
(39.1
)
Less: Current portion
(74.1
)
(36.5
)

$
1,884.2

$
1,887.0

Annual aggregate principal maturities at December 31, 2017 are as follows:
2018
$
45.1

2019
37.3

2020
27.4

2021
17.5

2022
18.3

Thereafter
1,844.1

 
$
1,989.7

The redemption prices set forth in the indenture for the twelve month periods beginning on November 15 of the years indicated below are as follows:
Year
Percentage

2019
104.219
%
2020
102.813
%
2021
101.406
%
2022 and thereafter
100.000
%
The estimated fair value of the Company's debt is as follows at December 31:
 
 
2017
 
2016
Revolving Credit Facility
 
$
29.0

 
$

Senior Notes
 
435.1

 
425.5

Term Loan B Facility
 
1,467.3

 
1,495.7

 
 
$
1,931.4

 
$
1,921.2

The following table summarizes the Company's unconditional purchase commitments as of December 31, 2017:
2018
$
26.9

2019
7.4

2020
6.7

2021
6.1

2022
4.3

Thereafter
59.8


$
111.2

Leases (Tables)
Schedule of Future Minimum Lease Payments
Future minimum lease payments as of December 31, 2017 for noncancelable operating leases that have initial or remaining terms in excess of one year are as follows:
 
2018
$
6.3

2019
5.2

2020
4.4

2021
3.0

2022
2.4

Thereafter
21.8

 
$
43.1

Stockholders' Equity and Stock Awards (Tables)
The fair value of the options granted is estimated using the Black-Scholes option pricing model using the following assumptions:
 
2017
 
2016
 
2015
Average expected term (years)
6.2
 
6.3
 
6.9
Risk-free interest rate
1.93% - 2.16%
 
1.22% - 1.47%
 
1.76% - 1.93%
Expected volatility
18.0% - 19.0%
 
30.0%
 
30.0%
Stock Options Outstanding
A summary of the stock options outstanding for the year ended December 31, 2017 (in millions, except share and per share amounts) is as follows:
 
Number of
Shares
 
Weighted -
Average
Exercise Price
 
Weighted -
Average
Remaining
Contractual
Term
Outstanding at January 1, 2017
3,276,239

 
$
18.58

 
 
Granted
1,156,224

 
22.16

 
 
Exercised
(533,450
)
 
14.96

 
 
Expired or forfeited
(160,104
)
 
21.65

 
 
Outstanding at December 31, 2017
3,738,909

 
20.10

 
7.71
Exercisable at December 31, 2017
1,562,839

 
$
19.00

 
6.27
A summary of the status of non-vested restricted stock awards as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Shares

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
35,940


$
23.31

Granted
17,193


23.26

Vested



Forfeited



Nonvested at December 31, 2017
53,133


$
23.30

A summary of the status of non-vested performance stock units as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Units

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
54,830


$
24.28

Granted
100,930


22.00

Vested



Forfeited
(33,710
)

22.75

Nonvested at December 31, 2017
122,050


$
22.82

A summary of the status of non-vested restricted stock units as of December 31, 2017, including changes during fiscal 2017 is presented below:

Number of
Units

Weighted -
Average
Grant Price
Nonvested at January 1, 2017
300,001


$
18.00

Granted
50,464


22.00

Vested



Forfeited



Nonvested at December 31, 2017
350,465


$
18.58

Benefit Plans (Tables)
Summary of Company's Participation in Multiemployer Plans
The following table outlines the Company's participation in multiemployer plans considered to be individually significant: 
Pension Fund
EIN/Pension
Plan Number
 
Pension Protection
Act Zone Status
 
FIP/RP
Status Pending/
Implemented
(B)
 
Contributions
 
Expiration
Date of
Collective-
Bargaining
Agreement
2016
 
2015
 
2017
 
2016
 
2015
 
Suburban Teamsters of Northern IL Pension Fund
36-6155778-001
 
Endangered as of 1/1/2016
 
Endangered as of 1/1/2015
 
Implemented
 
$
0.6

 
$
0.7

 
$
0.6

 
1/31/2019
Pension Fund of Automobile Mechanics Local No. 701
36-6042061-001
 
Endangered as of 1/1/2016
 
Endangered as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
12/31/2018
Local 731 Private Scavengers and Garage Attendants Pension Fund (A)
36-6513567-001
 
Not Endangered or Critical as of 10/1/2016
 
Not Endangered or Critical as of 10/1/2015
 
Implemented
 
$
1.8

 
$
1.8

 
$
1.8

 
9/30/2018
Midwest Operating Engineers Pension Fund
36-6140097-001
 
Endangered as
of 4/1/2016
 
Endangered as
of 4/1/2015
 
Implemented
 
$
0.7

 
$
0.7

 
$
0.6

 
9/30/2019
Teamsters Local Union No. 301 Union Pension Fund (A)
36-6492992-001
 
Not Endangered or Critical as of 1/1/2016
 
Not Endangered or Critical as of 1/1/2015
 
No
 
$
1.0

 
$
1.0

 
$
0.9

 
9/30/2018
Central States Southeast and Southwest Areas Pension Fund
36-6064560-001
 
Critical and Declining Status as of 1/1/2016
 
Critical and Declining Status as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
1/31/2019
Local 705 Int’l Brotherhood of Teamsters Pension TR. FD.
36-6492502-001
 
Critical as of 1/1/2016
 
Critical as of 1/1/2015
 
Implemented
 
$
0.2

 
$
0.2

 
$
0.2

 
9/30/2018
 
(A)
The employers' contributions to the plan represent greater than 5% of the total contributions to the plan for the most recent plan year available.
(B)
A multi-employer defined benefit pension plan that has been certified as endangered, seriously endangered, or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable funding improvement plan or rehabilitation plan.
Income Taxes (Tables)
The components of the benefit from income taxes are comprised of the following for the years ended December 31:
 
2017
 
2016
 
2015
Current
 
 
 
 
 
Federal
$
(1.1
)
 
$
(0.1
)
 
$
0.4

State
1.2

 
0.5

 
1.8

 
0.1

 
0.4

 
2.2

Deferred
 
 
 
 
 
Federal
(44.8
)
 
(23.4
)
 
(17.4
)
State
3.5

 
(2.7
)
 
(4.2
)
 
(41.3
)
 
(26.1
)
 
(21.6
)
Benefit from income taxes
$
(41.2
)
 
$
(25.7
)
 
$
(19.4
)
A reconciliation between the benefit from income taxes and the expected tax benefit using the federal statutory rate in effect for the years ended December 31 is as follows: 

2017

2016

2015
Amount computed using statutory rates
$
(1.0
)

$
(19.6
)

$
(18.6
)
State income taxes, net of federal benefit
(3.3
)

(6.0
)

(5.1
)
Benefit from stock option exercises


(4.3
)


Net effect of changes in tax rates
(0.3
)

(0.7
)

1.7

Uncertain tax positions and interest
0.5


0.4


1.0

Nondeductible expenses
1.5


1.2


1.8

Net effect of change in U.S. Tax Law
(40.4
)




Other
0.6


(0.2
)

0.7

Valuation allowance
1.2


3.5


(0.9
)
Benefit from income taxes
$
(41.2
)

$
(25.7
)

$
(19.4
)
The Company’s deferred tax assets and liabilities relate to the following sources and differences between financial accounting and the tax basis of the Company’s assets and liabilities at December 31:
 
2017
 
2016
Deferred tax assets
 
 
 
Allowance for doubtful accounts
$
1.4

 
$
1.6

Insurance reserve
11.8

 
16.2

Net operating loss
103.4

 
203.3

Capital loss carryforward
42.8

 
68.9

Accrued bonus and vacation
4.5

 
7.3

Stock compensation
3.7

 
2.0

Tax credits
3.1

 
7.2

Other
11.9

 
12.5

Total deferred tax assets
182.6

 
319.0

Valuation allowance
(60.0
)
 
(98.7
)
Deferred tax assets less valuation allowance
122.6

 
220.3

Deferred tax liabilities
 
 
 
Fixed asset basis
(66.4
)
 
(106.8
)
Intangible basis
(73.9
)
 
(117.2
)
Landfill and environmental remediation liabilities
(62.0
)
 
(100.5
)
Other
(8.9
)
 
(8.6
)
Deferred tax liabilities
(211.2
)
 
(333.1
)
Net deferred tax liability
$
(88.6
)
 
$
(112.8
)
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for fiscal 2017, 2016 and 2015 is as follows:     

2017

2016

2015
Balance at January 1,
$
7.5


$
7.3


$
6.2

Additions based on tax positions of prior years
20.4


0.1


0.5

Change to prior tax positions due to tax rate changes
(0.4
)




Additions based on tax positions of current year


0.1


0.6

Balance at December 31,
$
27.5


$
7.5


$
7.3

Fair Value of Financial Instruments (Tables)
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis
The Company’s assets and liabilities that are measured at fair value on a recurring basis approximate the following:
 
Fair Value Measurement at December 31, 2017
Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Gains
(Losses)
 
Carrying
Value
Recurring fair value measurements
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
6.8

 
$
6.8

 
$

 
$

 
$

 
$
6.8

Derivative instruments - Asset position
3.7

 

 
3.7

 

 

 
3.7

Derivative instruments - Liability position
(0.4
)
 
$

 
(0.4
)
 

 

 
(0.4
)
Total recurring fair value measurements
$
10.1

 
$
6.8

 
$
3.3

 
$

 
$

 
$
10.1

 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurement at December 31, 2016
Reporting Date Using
 
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Total
Gains
(Losses)
 
Carrying
Value
Recurring fair value measurements
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1.2

 
$
1.2

 
$

 
$

 
$

 
$
1.2

Derivative instruments - Asset position
2.3

 

 
2.3

 

 

 
2.3

Total recurring fair value measurements
$
3.5

 
$
1.2

 
$
2.3

 
$

 
$

 
$
3.5



 Refer to Note 12 for disclosures regarding the fair value of long-term debt.
Restructuring (Tables)
Schedule of Restructuring Costs Included in Accrued Expenses in Accompanying Consolidated Financial Statements
The costs associated with the actions described above are included in accrued expenses in the accompanying consolidated financial statements and include the amounts as follows:
 
2017
 
2016
 
2015
Beginning balance
$
1.0

 
$
2.2

 
$
5.4

Expense
3.4

 
0.8

 

Cash expenditures
 
 
 
 
 
Severance and relocation
(0.7
)
 
(1.4
)
 
(2.7
)
Other
(0.1
)
 
(0.6
)
 
(0.5
)
Non-cash acceleration of options
(2.1
)
 
$

 

Ending balance
$
1.5

 
$
1.0

 
$
2.2

Supplemental Cash Flow Information (Tables)
Schedule of Supplemental Cash Flow Information
Supplemental cash flow information for the years ended December 31 is as follows:
 
 
2017
 
2016
 
2015
Cash paid for interest
$
86.2

 
$
119.4

 
$
116.4

Cash paid for taxes
$
1.4

 
$
1.5

 
$
2.4

Assets acquired under capital lease
$
45.2


$
26.6


$
10.2

Accumulated Other Comprehensive Income (Loss) (Tables)
The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of stockholders' equity, are as follows:
 
Gains and (Losses) on Derivative Instruments
Balance, December 31, 2014
$
1.5

Other comprehensive loss before reclassifications, net of tax
(1.5
)
Net current period other comprehensive loss
(1.5
)
Balance, December 31, 2015

Other comprehensive income before reclassifications, net of tax

Net current period other comprehensive income

Balance, December 31, 2016

Other comprehensive loss before reclassifications, net of tax
(0.4
)
Net current period other comprehensive loss
(0.4
)
Balance, December 31, 2017
$
(0.4
)
The significant amounts either added to or reclassified out of each component of accumulated other comprehensive income (loss) are included in the tables below:
 
 
Amount of Derivative Loss
Recognized in OCI – Effective for the
Years Ended December 31,

2017
 
2016
 
2015
Derivatives Designated as Cash Flow Hedges
 
 
 
 
 
Interest rate caps
$
(0.4
)
 
$

 
$
(2.0
)
Total before tax
(0.4
)
 

 
(2.0
)
Tax benefit

 

 
0.5

Net of tax
$
(0.4
)
 
$

 
$
(1.5
)
Equity Method Investment (Tables)
Summary of Income Statement Information of Equity Method Investment
Summarized balance sheet information for SS consists of the following at December 31:
(in millions)
2017
 
2016
Current assets
$
3.2

 
$
3.9

Noncurrent assets
5.1

 
4.8

Current liabilities
0.8

 
0.8

Noncurrent liabilities
$
4.4

 
$
4.2


Summarized statement of operations information for SS consists of the following for the year ended:
(in millions)
2017
 
2016
Service revenue
$
12.3

 
$
13.9

Operating income
3.4

 
3.6

Income before income taxes
3.3

 
3.4

Net income
$
3.3

 
$
3.4

Quarterly Financial Data (Unaudited) (Tables)
Summary of Quarterly Results of Operations
The following table summarizes the unaudited quarterly results of operations for the respective quarters:
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2017
 
 
 
 
 
 
 
Operating revenues
$
347.4

 
$
383.1

 
$
392.7

 
$
384.4

Income from operations
$
11.3

 
$
24.1

 
$
29.7

 
$
25.0

Consolidated net (loss) income (a) (b)
$
(7.0
)
 
$
(0.2
)
 
$
3.5

 
$
42.0

Basic (loss) income per share
$
(0.08
)

$


$
0.04


$
0.47

Diluted (loss) income per share
$
(0.08
)

$


$
0.04


$
0.47

2016
 
 
 
 
 
 
 
Operating revenues
$
333.8

 
$
358.2

 
$
360.6

 
$
352.0

Income (loss) from operations
$
13.0

 
$
36.1

 
$
39.6

 
$
43.2

Consolidated net (loss) income (a)
$
(14.3
)
 
$
0.2

 
$
3.8

 
$
(20.1
)
Basic loss (income) per share
$
(0.22
)

$


$
0.06


$
(0.24
)
Diluted (loss) income per share
$
(0.22
)

$


$
0.06


$
(0.24
)


(a) Consolidated net income (loss) for the fourth quarter of fiscal 2017 and 2016 includes a loss on debt extinguishments and modifications of $3.7 and $64.7, respectively.

(b) Due to the enactment of the Tax Cuts and Jobs Act (the "Act") in the fourth quarter of fiscal 2017, the Company's fourth quarter financial results included a $40.5 non-cash tax benefit, primarily resulting from revaluing its net deferred tax assets, liabilities, and certain associated valuation allowances to reflect the recently enacted 21% federal corporate tax rate. Due to the Act's taxation of deemed repatriation on foreign earnings, the Company expects to pay a one-time tax of $0.1 related to its Bahamas operations.
Business Operations - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended
Dec. 31, 2017
company
Segment
Dec. 31, 2016
company
Dec. 31, 2015
company
Dec. 31, 2015
South Segment
Dec. 31, 2018
Scenario, Forecast
Dec. 31, 2017
Business Acquisition
company
Dec. 31, 2016
Business Acquisition
Dec. 31, 2017
Charlotte, North Carolina
Disposed of by sale
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
 
Number of reportable operating segments
 
 
 
 
 
 
 
Number of companies acquired
14 
12 
 
 
14 
 
 
Consideration transferred
 
 
 
 
 
$ 115.9 
$ 5.4 
 
Consideration transferred
 
5.4 
56.3 
 
 
 
 
 
Amount of notes payable incurred as part of consideration transferred
0.1 
 
6.6 
 
4.0 
 
 
 
Proceeds from sale of businesses
8.7 
2.5 
14.7 
 
 
 
 
8.7 
Gain on sale of business
2.8 
1.7 
(10.5)
 
 
 
 
1.4 
Goodwill disposed of related to sale
0.9 
 
 
 
 
 
 
0.9 
Intangible asset impairment
13.0 
 
 
 
 
 
 
 
Loss on disposition of business
 
 
 
10.9 
 
 
 
 
Disposal group, asset impairment
 
 
4.3 
 
 
 
 
 
Disposal group, impairment of permit lapse
 
 
$ 2.1 
 
 
 
 
 
Summary of Significant Accounting Policies - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Landfill
customer
Dec. 31, 2016
customer
Dec. 31, 2015
Variable Interest Entity [Line Items]
 
 
 
Number of customers representing 5% of more of total accounts receivable
 
Percentage of accounts receivable, more than 5%
5.00% 
5.00% 
 
Post-closure period
30 years 
 
 
Historical rate of consumer price index
2.50% 
 
 
Average period changes in historical consumer price index
25 years 
 
 
Weighted-average rate applicable to asset retirement obligations, minimum
4.90% 
 
 
Weighted-average rate applicable to asset retirement obligations, maximum
10.50% 
 
 
Active landfills
40 
 
 
Goodwill impairment charges
$ 0 
$ 0 
$ 0 
Deemed Permitted Airspace
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Active landfills
15 
 
 
Landfill site costs
 
 
 
Variable Interest Entity [Line Items]
 
 
 
Landfill site costs
 
 
Landfill impairments
$ 0 
$ 0 
$ 0 
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment, Net (Details)
12 Months Ended
Dec. 31, 2017
Vehicles |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Vehicles |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Machinery and equipment |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
3 years 
Machinery and equipment |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
10 years 
Containers |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Containers |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
15 years 
Furniture and fixtures |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Furniture and fixtures |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
7 years 
Building and improvements |
Minimum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
5 years 
Building and improvements |
Maximum
 
Property, Plant and Equipment [Line Items]
 
Property and equipment, estimated useful lives
39 years 
Acquisitions - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
company
Dec. 31, 2016
company
Dec. 31, 2015
company
Dec. 31, 2018
Scenario, Forecast
Business Acquisition [Line Items]
 
 
 
 
Number of companies acquired
14 
12 
 
Consideration transferred
 
$ 5.4 
$ 56.3 
 
Amount of notes payable incurred as part of consideration transferred
0.1 
 
6.6 
4.0 
Goodwill
1,208.2 
1,173.9 
1,173.5 
 
Goodwill, acquisition
35.2 
0.4 
 
 
Purchase price adjustments related to acquisitions
 
$ (0.1)
$ 0.3 
 
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Business Acquisition [Line Items]
 
 
 
Goodwill
$ 1,208.2 
$ 1,173.9 
$ 1,173.5 
Business Acquisition
 
 
 
Business Acquisition [Line Items]
 
 
 
Current assets
5.9 
0.3 
 
Property and equipment
89.8 
2.3 
 
Goodwill
35.2 
0.4 
 
Other intangible assets
18.8 
2.6 
 
Total assets acquired
149.7 
5.6 
 
Current liabilities
6.9 
0.2 
 
Total liabilities assumed
33.8 
0.2 
 
Net assets acquired
$ 115.9 
$ 5.4 
 
Acquisitions - Purchase Price Allocation to Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Business Acquisition [Line Items]
 
 
Goodwill, acquisition
$ 35.2 
$ 0.4 
Amount of goodwill deductible for tax purposes
79.7 
88.9 
South Segment
 
 
Business Acquisition [Line Items]
 
 
Goodwill, acquisition
8.9 
 
East Segment
 
 
Business Acquisition [Line Items]
 
 
Goodwill, acquisition
25.7 
 
Midwest Segment
 
 
Business Acquisition [Line Items]
 
 
Goodwill, acquisition
0.6 
 
Business Acquisition
 
 
Business Acquisition [Line Items]
 
 
Other intangible assets
18.8 
2.6 
Amount of goodwill deductible for tax purposes
4.4 
0.4 
Business Acquisition |
Customer lists and contracts
 
 
Business Acquisition [Line Items]
 
 
Other intangible assets
17.0 
2.3 
Business Acquisition |
Noncompete
 
 
Business Acquisition [Line Items]
 
 
Other intangible assets
1.2 
0.1 
Business Acquisition |
Other Intangible Assets
 
 
Business Acquisition [Line Items]
 
 
Other intangible assets
$ 0.6 
$ 0.2 
Acquisitions - Weighted Average Remaining Life of Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Increase in goodwill and intangible assets
$ 0 
$ 0.1 
$ 0.1 
Business Acquisition |
Customer lists and contracts
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Weighted average remaining life of other intangible assets
17 years 
 
 
Business Acquisition |
Noncompete
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Weighted average remaining life of other intangible assets
7 years 
 
 
Income (Loss) Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
$ 38.3 
$ (30.4)
$ (33.6)
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
88,323,213 
69,462,798 
64,493,536 
Other potentially dilutive common shares (in shares)
 
 
 
 
 
 
 
 
564,599 
Average common shares outstanding, assuming dilution (in shares)
 
 
 
 
 
 
 
 
88,887,812 
69,462,798 
64,493,536 
Net income (loss) per share, basic (in dollars per share)
$ 0.47 
$ 0.04 
$ 0.00 
$ (0.08)
$ (0.24)
$ 0.06 
$ 0.00 
$ (0.22)
$ 0.43 
$ (0.44)
$ (0.52)
Net income (loss) per share, assuming dilution (in dollars per share)
$ 0.47 
$ 0.04 
$ 0.00 
$ (0.08)
$ (0.24)
$ 0.06 
$ 0.00 
$ (0.22)
$ 0.43 
$ (0.44)
$ (0.52)
Stock Option
 
 
 
 
 
 
 
 
 
 
 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Other potentially dilutive common shares (in shares)
 
 
 
 
 
 
 
 
1,700,000 
4,300,000 
3,900,000 
Allowance for Doubtful Accounts - Summary of Allowance for Doubtful Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
 
 
 
Beginning Balance at January 1,
$ 4.0 
$ 4.4 
$ 5.0 
Provision for doubtful accounts
5.4 
3.7 
4.0 
Write-offs of bad debt
(4.6)
(4.1)
(4.8)
Other
0.6 
0.2 
Balance at December 31,
$ 5.4 
$ 4.0 
$ 4.4 
Prepaid Expenses and Other Current Assets - Summary of Prepaid Expenses and Other Current Assets (Detail) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Prepaid insurance
$ 5.9 
$ 6.6 
Prepaid expenses
16.4 
14.2 
Other receivables and current assets
6.8 
1.7 
Parts and supplies inventory
8.8 
7.8 
Prepaid expenses and other current assets
$ 37.9 
$ 30.3 
Derivative Instruments and Hedging Activities - Summary of Fair Value of Derivative Instruments Recorded in Combined Consolidated Balance Sheets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Total derivatives
$ 3.3 
$ 2.3 
Derivatives Designated as Hedging Instruments |
Interest Rate Caps |
Other long-term liabilities
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Derivative liabilities
(0.4)
Derivatives Not Designated as Hedging Instruments |
Interest Rate Caps |
Prepaid expenses and other current assets
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Derivative assets
0.9 
Derivatives Not Designated as Hedging Instruments |
Interest Rate Caps |
Other assets
 
 
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
Derivative assets
$ 2.8 
$ 2.3 
Derivative Instruments and Hedging Activities - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Fuel Commodity Derivatives
Dec. 31, 2015
Fuel Commodity Derivatives
Dec. 31, 2016
Fuel Commodity Derivatives
Minimum
Dec. 31, 2015
Fuel Commodity Derivatives
Minimum
Dec. 31, 2016
Fuel Commodity Derivatives
Maximum
Dec. 31, 2015
Fuel Commodity Derivatives
Maximum
Dec. 31, 2016
Fuel Commodity Derivative Maturing in 2016
gal
Dec. 31, 2015
Fuel Commodity Derivative Maturing in 2016
gal
Dec. 31, 2016
Derivatives Designated as Hedging Instruments
Interest Rate Caps
Dec. 31, 2015
Derivatives Designated as Hedging Instruments
Interest Rate Caps
Dec. 31, 2012
Derivatives Designated as Hedging Instruments
Interest Rate Caps
Agreement
Dec. 31, 2012
Derivatives Designated as Hedging Instruments
Interest Rate Caps
Other Assets
Nov. 30, 2017
Derivatives Not Designated as Hedging Instruments
Interest Rate Caps
Agreement
May 31, 2016
Derivatives Not Designated as Hedging Instruments
Interest Rate Caps
Agreement
Dec. 31, 2017
Derivatives Not Designated as Hedging Instruments
Interest Rate Caps
Other Income (Expense), Net
Dec. 31, 2016
Derivatives Not Designated as Hedging Instruments
Interest Rate Caps
Other Income (Expense), Net
Dec. 31, 2017
Derivatives Not Designated as Hedging Instruments
Interest Rate Cap, maturing in 2021
Nov. 30, 2017
Derivatives Not Designated as Hedging Instruments
Interest Rate Cap, maturing in 2021
Dec. 31, 2017
Derivatives Not Designated as Hedging Instruments
Interest Rate Cap, maturing in 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of interest rate cap agreements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative premium
 
 
 
 
 
 
 
 
 
 
 
$ 5.0 
 
$ 5.5 
 
 
 
$ 4.9 
 
Gain on derivative instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.7 
2.3 
 
 
 
Notional amounts of the contracts
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
600.0 
 
800.0 
Amortization of interest rate cap premium
 
 
 
 
 
 
 
 
0.2 
1.5 
 
 
 
 
 
 
 
 
 
Commodity volume hedged
 
 
 
 
 
 
13,400,000 
23,800,000 
 
 
 
 
 
 
 
 
 
 
 
Hedged strike prices range
 
 
2.20 
2.20 
2.64 
2.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss recognized on fuel derivative contracts
$ 1.2 
$ 15.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 3,084.3 
$ 2,796.4 
Less: Accumulated depreciation on property and equipment
(679.3)
(579.3)
Less: Accumulated landfill airspace amortization
(1,355.5)
(1,163.0)
Property and equipment, net
1,728.8 
1,633.4 
Land
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
209.1 
193.3 
Landfill site costs
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
1,465.7 
1,358.1 
Vehicles
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
680.3 
595.7 
Containers
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
294.4 
271.5 
Machinery and equipment
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
185.4 
156.2 
Furniture and fixtures
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
30.1 
25.9 
Building and improvements
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
188.7 
170.1 
Construction in process
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
30.6 
25.6 
Landfill Airspace
 
 
Property, Plant and Equipment [Line Items]
 
 
Less: Accumulated landfill airspace amortization
$ (676.2)
$ (583.7)
Property and Equipment, Net - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment [Abstract]
 
 
 
Gross assets under capital lease
$ 108.1 
$ 63.0 
 
Accumulated amortization for capital leases
26.2 
15.6 
 
Amortization expense of assets under capital leases
11.6 
7.3 
4.1 
Depreciation, landfill amortization and depletion expense
$ 228.2 
$ 204.3 
$ 216.3 
Landfill Accounting - Summary of Liabilities for Final Closure and Post-Closure Costs (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
 
 
 
Balance at January 1
$ 191.1 
$ 193.7 
 
Increase in retirement obligation
9.7 
9.3 
 
Accretion of closure and post-closure costs
15.4 
13.0 
13.1 
Acquisition
28.3 
 
Change in estimate
2.1 
(7.4)
 
Costs incurred
(20.7)
(17.5)
 
Asset retirement obligation, total
225.9 
191.1 
193.7 
Less: Current portion
(20.2)
(29.3)
 
Noncurrent portion of retirement obligation
$ 205.7 
$ 161.8 
 
Other Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
 
 
 
Accumulated Amortization
$ (247.6)
$ (210.7)
 
Impairment
(13.0)
 
 
Net Carrying Value
288.7 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
 
 
 
Total Intangible Assets, Gross Carrying Amount
549.3 
535.3 
 
Total Intangible Assets Impairment
(13.0)
(6.4)
Total Intangible Assets, Net
288.7 
324.6 
 
Amortization of Intangible Assets
41.6 
42.6 
42.8 
Operating permits
 
 
 
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract]
 
 
 
Gross Carrying Value
2.5 
2.3 
 
Impairment
 
Net Carrying Value
2.5 
2.3 
 
Noncompete agreements
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Value
5.4 
4.3 
 
Accumulated Amortization
(2.6)
(1.7)
 
Impairment
 
Net Carrying Value
2.8 
2.6 
 
Weighted Average Remaining Life (Years)
2 years 3 months 18 days 
3 years 7 months 6 days 
 
Tradenames
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Value
15.5 
14.9 
 
Accumulated Amortization
(6.9)
(6.2)
 
Impairment
 
Net Carrying Value
8.6 
8.7 
 
Weighted Average Remaining Life (Years)
12 years 10 months 24 days 
14 years 8 months 12 days 
 
Customer lists and contracts
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Value
525.5 
513.4 
 
Accumulated Amortization
(238.0)
(202.7)
 
Impairment
(13.0)
 
Net Carrying Value
274.5 
310.7 
 
Weighted Average Remaining Life (Years)
12 years 9 months 18 days 
13 years 9 months 18 days 
 
Above/below market leases
 
 
 
Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Value
0.4 
0.4 
 
Accumulated Amortization
(0.1)
(0.1)
 
Impairment
 
Net Carrying Value
$ 0.3 
$ 0.3 
 
Weighted Average Remaining Life (Years)
8 years 7 months 6 days 
9 years 7 months 6 days 
 
Other Intangible Assets, Net and Goodwill - Future Amortization Expense for Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
 
2018
$ 47.1 
2019
32.1 
2020
31.3 
2021
30.1 
2022
26.8 
Thereafter
121.3 
Total amortization
$ 288.7 
Other Intangible Assets, Net and Goodwill - Changes in the Carrying Amount of Goodwill (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Goodwill, Gross [Roll Forward]
 
 
 
Beginning balance
$ 1,267.6 
$ 1,267.2 
 
Acquisition
35.2 
0.4 
 
Ending balance
1,301.9 
1,267.6 
 
Accumulated Impairment
(93.7)
(93.7)
(93.7)
Goodwill, Net [Roll Forward]
 
 
 
Beginning balance
1,173.9 
1,173.5 
 
Acquisition
35.2 
0.4 
 
Disposition of business
(0.9)
 
 
Ending balance
$ 1,208.2 
$ 1,173.9 
 
Accrued Expenses - Summary of Accrued Expenses (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Payables and Accruals [Abstract]
 
 
Accrued compensation and benefits
$ 30.9 
$ 32.5 
Accrued waste disposal costs
42.1 
40.1 
Accrued insurance and self-insurance reserves
13.2 
14.5 
Accrued severance
1.5 
0.5 
Other accrued expenses
25.3 
22.2 
Accrued expenses net
$ 113.0 
$ 109.8 
Long-Term Debt - Summary of Long-Term Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Capital lease obligations, maturing through 2024
$ 63.9 
$ 42.5 
Other debt
11.8 
15.1 
Total debt
1,989.7 
1,962.6 
Less: Original issue discount
(31.4)
(39.1)
Less: Current portion
(74.1)
(36.5)
Long-term debt, less original issue discount and current maturities
1,884.2 
1,887.0 
Revolver
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
29.0 
Term Loan B
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
1,460.0 
1,480.0 
Senior notes
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
$ 425.0 
$ 425.0 
Long-Term Debt - Summary of Long-Term Debt - Interest Rates (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Revolver
 
 
Debt Instrument [Line Items]
 
 
Revolving line of credit interest rate
6.25% 
4.49% 
Term Loan B |
LIBOR
 
 
Debt Instrument [Line Items]
 
 
LIBOR floor
0.75% 
0.75% 
Senior notes
 
 
Debt Instrument [Line Items]
 
 
Debt interest rate percentage
5.625% 
5.625% 
Minimum
 
 
Debt Instrument [Line Items]
 
 
Capital lease obligation interest rates
3.70% 
 
Maximum
 
 
Debt Instrument [Line Items]
 
 
Capital lease obligation interest rates
7.73% 
 
Long-Term Debt - Annual Aggregate Principal Maturities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Disclosure [Abstract]
 
 
2018
$ 45.1 
 
2019
37.3 
 
2020
27.4 
 
2021
17.5 
 
2022
18.3 
 
Thereafter
1,844.1 
 
Total debt
$ 1,989.7 
$ 1,962.6 
Long-Term Debt - Additional Information (Details) (USD $)
1 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 34 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended
Nov. 30, 2017
Oct. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Senior Secured Credit Facilities
Dec. 31, 2016
Senior Secured Credit Facilities
Dec. 31, 2017
Senior Secured Credit Facilities
Prime Rate or Federal Funds Rate
Dec. 31, 2017
Senior Secured Credit Facilities
LIBOR
Dec. 31, 2017
Senior Secured Credit Facilities
Total Net Leverage Ratio Greater than 4.00:1.00
Dec. 31, 2017
Senior Secured Credit Facilities
Total Net Leverage Ratio Less than 4.00:1.00
Dec. 31, 2017
Senior Secured Credit Facilities
Revolving Credit Facility
Dec. 31, 2016
Senior Secured Credit Facilities
Revolving Credit Facility
Oct. 21, 2016
Senior Secured Credit Facilities
Revolving Credit Facility
Dec. 31, 2017
Senior Secured Credit Facilities
Revolving Credit Facility
LIBOR
Dec. 31, 2017
Senior Secured Credit Facilities
Revolving Credit Facility
Total Net Leverage Ratio Greater than 4.00:1.00
Dec. 31, 2016
Senior Secured Credit Facilities
Term Loan B Facility
Dec. 31, 2017
Senior Secured Credit Facilities
Term Loan B Facility
Oct. 21, 2016
Senior Secured Credit Facilities
Term Loan B Facility
Nov. 21, 2017
Senior Secured Credit Facilities
Term Loan B Facility
LIBOR
Dec. 31, 2017
Senior Secured Credit Facilities
ABR Loans
Revolving Credit Facility
LIBOR
Dec. 31, 2017
Senior Secured Credit Facilities
ABR Loans
Revolving Credit Facility
Total Net Leverage Ratio Greater than 4.00:1.00
Dec. 31, 2017
Senior Secured Credit Facilities
ABR Loans
Term Loan B Facility
LIBOR
Dec. 31, 2017
Senior Secured Credit Facilities
Eurodollar Loans
Revolving Credit Facility
Total Net Leverage Ratio Greater than 4.00:1.00
Dec. 31, 2017
Senior Secured Credit Facilities
Eurodollar Loans
Revolving Credit Facility
Total Net Leverage Ratio Less than 4.00:1.00
Dec. 31, 2017
Senior Secured Credit Facilities
Eurodollar Loans
Term Loan B Facility
LIBOR
Nov. 10, 2016
Senior Notes
5.625% Senior Notes due 2024
Nov. 30, 2016
Senior Notes
5.625% Senior Notes due 2024
Nov. 10, 2016
Senior Notes
5.625% Senior Notes due 2024
Nov. 15, 2019
Senior Notes
5.625% Senior Notes due 2024
Scenario, Forecast
Dec. 31, 2016
Senior Notes
8.25% Senior Notes Due 2020
Oct. 9, 2012
Senior Notes
8.25% Senior Notes Due 2020
Nov. 30, 2017
Term Loan B
Nov. 30, 2016
Term Loan B
Nov. 30, 2016
Term Loan B
Other assets
Oct. 31, 2016
Term Loan B
IPO
Dec. 31, 2017
Revolver
Dec. 31, 2016
Revolver
Nov. 30, 2016
Revolver
Other assets
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction to applicable margin
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1.75% 
1.25% 
1.25% 
2.75% 
2.25% 
2.25% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving credit facility maximum borrowing capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000,000 
 
 
 
 
$ 1,500,000,000.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt interest rate percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.625% 
5.625% 
 
8.25% 
8.25% 
 
 
 
 
 
 
 
Debt instrument, reference rate subject to floor
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.75% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread on rate
 
 
 
 
 
 
 
0.50% 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Quarterly payments of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,750,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net cash proceeds from the sale of assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash proceeds from sale of assets, reinvestment period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
365 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
425,000,000 
 
 
 
 
 
 
 
29,000,000 
 
Letters of credit outstanding
 
 
 
 
 
39,300,000 
42,100,000 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowings outstanding under credit facility
 
 
 
 
 
 
 
 
 
 
 
231,700,000 
257,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Credit facility commitment fee percentage
 
 
 
 
 
 
 
 
 
0.50% 
0.375% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net leverage ratio
 
 
 
 
 
6.8 
 
 
 
 
 
 
 
 
 
4.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt redemption price percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
40.00% 
 
 
 
 
 
 
 
 
 
Debt redemption price percentage of principal amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(105.625%)
 
 
 
 
 
 
 
 
 
 
 
 
Debt issued face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
425,000,000.0 
 
 
 
550,000,000 
 
 
 
 
 
 
 
Loss on extinguishment of debt
(3,700,000)
8,300,000 
3,700,000 
64,700,000 
 
 
 
 
 
 
 
 
 
 
 
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,300,000 
 
1,900,000 
1,500,000 
 
 
 
 
 
Debt redemption price percentage of principal modification
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
93.00% 
95.00% 
 
 
 
 
 
Debt redemption price percentage of principal extinguished
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.00% 
5.00% 
 
 
 
 
 
Loss on modification of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,800,000 
15,200,000 
 
 
 
 
 
Debt issuance costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,500,000 
 
 
 
 
100,000 
1,300,000 
 
 
 
 
 
Prepayment of debt
 
 
347,000,000 
1,164,400,000 
153,400,000 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
326,000,000 
 
 
 
Unamortized debt costs
 
 
31,400,000 
39,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
 
 
300,000 
Early repayment of debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
550,000,000 
 
 
 
 
 
 
 
 
Payments of debt extinguishment costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
24,000,000 
 
 
 
 
 
 
 
 
Carrying value of debt
 
 
$ 1,914,000,000 
$ 1,905,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-Term Debt Long Term Debt - Redemption Prices (Details) (Senior Notes, 5.625% Senior Notes due 2024)
0 Months Ended
Nov. 10, 2016
Nov. 15, 2016
2019
Nov. 15, 2016
2020
Nov. 15, 2016
2021
Nov. 15, 2016
2022 and thereafter
Debt Instrument [Line Items]
 
 
 
 
 
Debt redemption price percentage of principal amount
105.625% 
104.219% 
102.813% 
101.406% 
100.00% 
Long-Term Debt - Fair Value of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument, Redemption [Line Items]
 
 
Estimated fair value debt
$ 1,931.4 
$ 1,921.2 
Revolver
 
 
Debt Instrument, Redemption [Line Items]
 
 
Estimated fair value debt
29.0 
Senior Notes
 
 
Debt Instrument, Redemption [Line Items]
 
 
Estimated fair value debt
435.1 
425.5 
Term Loan B Facility
 
 
Debt Instrument, Redemption [Line Items]
 
 
Estimated fair value debt
$ 1,467.3 
$ 1,495.7 
Long-Term Debt Long-Term Debt - Unconditional Purchase Commitments (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Debt Disclosure [Abstract]
 
 
 
Amounts purchased under unconditional commitments
$ 8.3 
$ 15.9 
$ 20.9 
2018
26.9 
 
 
2019
7.4 
 
 
2020
6.7 
 
 
2021
6.1 
 
 
2022
4.3 
 
 
Thereafter
59.8 
 
 
Total Unconditional Purchase Commitments
$ 111.2 
 
 
Leases - Future Minimum Lease Payments (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Leases [Abstract]
 
2018
$ 6.3 
2019
5.2 
2020
4.4 
2021
3.0 
2022
2.4 
Thereafter
21.8 
Total
$ 43.1 
Leases - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Leases [Abstract]
 
 
 
Rental expense for operating leases
$ 10.9 
$ 9.4 
$ 9.3 
Stockholders' Equity and Stock Awards - Additional Information (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Selling, General and Administrative Expenses
Dec. 31, 2016
Selling, General and Administrative Expenses
Dec. 31, 2015
Selling, General and Administrative Expenses
Dec. 31, 2017
Restricted Stock
Dec. 31, 2017
Restricted Stock Units (RSUs)
Dec. 31, 2017
Performance-based Stock Options
Dec. 31, 2017
Non-employee Director
Dec. 31, 2017
2012 Plan
Oct. 31, 2012
2012 Plan
Dec. 31, 2017
2012 Plan
Annual Vesting Rate
Dec. 31, 2017
2012 Plan
Vesting at Issuance
Dec. 31, 2017
2012 Plan
Vesting After Five Years
Strategic Stock Options
Mar. 31, 2017
2016 Plan
Jan. 29, 2016
2016 Plan
Mar. 31, 2017
2016 Plan
Stock Options
Dec. 31, 2017
2016 Plan
Restricted Stock Units (RSUs)
Dec. 31, 2017
2016 Plan
Performance Stock Units (PSUs)
Mar. 31, 2017
2016 Plan
Employees
Sep. 30, 2017
2016 Plan
Employees
Stock Options
Mar. 31, 2017
2016 Plan
Employees
Stock Options
Dec. 31, 2017
2016 Plan
Non-employee Director
Restricted Stock
Mar. 31, 2017
2016 Plan
CEO
Performance-based Stock Options
Sep. 30, 2017
2016 Plan
1st Anniversary of the Date of Grant
Employees
Stock Options
Mar. 31, 2017
2016 Plan
1st Anniversary of the Date of Grant
Employees
Stock Options
Sep. 30, 2017
2016 Plan
2nd Anniversary of the Date of Grant
Employees
Stock Options
Mar. 31, 2017
2016 Plan
2nd Anniversary of the Date of Grant
Employees
Stock Options
Sep. 30, 2017
2016 Plan
3rd Anniversary of the Date of Grant
Employees
Stock Options
Mar. 31, 2017
2016 Plan
3rd Anniversary of the Date of Grant
Employees
Stock Options
Sep. 30, 2017
2016 Plan
4th Anniversary of the Date of Grant
Employees
Stock Options
Mar. 31, 2017
2016 Plan
4th Anniversary of the Date of Grant
Employees
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock, shares capital reserve for future issuance (in shares)
 
 
 
 
 
 
 
 
 
 
 
7,154,711 
 
 
 
 
5,030,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award expiration period
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
 
 
 
10 years 
 
 
 
10 years 
10 years 
 
10 years 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
 
5 years 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock options vesting percentage
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
20.00% 
100.00% 
 
 
 
 
 
 
20.00% 
20.00% 
 
 
20.00% 
20.00% 
20.00% 
20.00% 
20.00% 
20.00% 
20.00% 
20.00% 
Stock Options Grants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number or options granted (in shares)
1,156,224 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
213,507 
 
 
 
 
 
36,000 
788,500 
 
118,217 
 
 
 
 
 
 
 
 
Exercise price (in dollars per share)
$ 14.96 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 22.00 
 
 
$ 22.00 
$ 22.85 
 
 
$ 23.30 
 
 
 
 
 
 
 
 
Estimated fair value of each option (in dollars per share)
$ 5.35 
$ 6.57 
$ 6.10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 5.20 
 
 
$ 5.32 
$ 5.27 
 
 
$ 5.86 
 
 
 
 
 
 
 
 
Total fair value of shares vested
$ 5.1 
$ 3.6 
$ 1.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of options outstanding
14.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of options exercised
3.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intrinsic value of options exercisable
7.8 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted and Performance Stock and Units Grants
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of awards granted (in shares)
 
 
 
 
 
 
17,193 
50,464 
100,930 
 
 
 
 
 
 
 
 
 
50,464 
100,930 
 
 
 
17,193 
 
 
 
 
 
 
 
 
 
Estimated fair value of each award (in dollars per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 22.00 
$ 22.00 
 
 
 
$ 23.26 
 
 
 
 
 
 
 
 
 
Peformance-based percentage, EBITDA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance-based percentage, Free Cash Flow
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Performance-based percentage, Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Budget attainment beginning, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Budget attainment beginning vesting, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Budget attainment ending, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
110.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Budget attainment ending vesting, percentage
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense
 
 
 
9.7 
5.5 
3.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense will be recognized
13.4 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense expected to recognized over a weighted average period
2 years 0 months 29 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Final payment under a compensation arrangement agreement
 
 
 
 
 
 
 
 
 
$ 6.2 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stockholders' Equity and Stock Awards - Fair Value of Option Granted and Assumptions Used (Details) (Stock Options)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Average expected term (years)
6 years 2 months 12 days 
6 years 3 months 18 days 
6 years 10 months 24 days 
Expected volatility
 
30.00% 
30.00% 
Minimum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk-free interest rate
1.93% 
1.22% 
1.76% 
Expected volatility
18.00% 
 
 
Maximum
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Risk-free interest rate
2.16% 
1.50% 
1.93% 
Expected volatility
19.00% 
 
 
Stockholders' Equity and Stock Awards - Stock Options Outstanding (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
 
Number or Shares, Outstanding at January 1, 2017 (in shares)
3,276,239 
Number of Shares, Granted (in shares)
1,156,224 
Number of Shares, Exercised (in shares)
(533,450)
Number of Shares, Expired or forfeited (in shares)
(160,104)
Number of Shares, Outstanding at December 31, 2017 (in shares)
3,738,909 
Number of Shares, Exercisable at December 31, 2017 (in shares)
1,562,839 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Weighted Average Exercise Price, Outstanding at January 1, 2017 (in dollars per share)
$ 18.58 
Weighted Average Exercise Price, Granted (in dollars per share)
$ 22.16 
Weighted Average Exercise Price, Exercised (in dollars per share)
$ 14.96 
Weighted Average Exercise Price, Expired or forfeited (in dollars per share)
$ 21.65 
Weighted Average Exercise Price, Outstanding at December 31, 2017 (in dollars per share)
$ 20.10 
Weighted Average Exercise Price, Exercisable at December 31, 2017 (in dollars per share)
$ 19.00 
Weighted - Average Remaining Contractual Term, Outstanding at December 31, 2017
7 years 8 months 17 days 
Weighted - Average Remaining Contractual Term, Exercisable at December 31, 2017
6 years 3 months 7 days 
Stockholders' Equity and Stock Awards - Restricted Stock, Restricted Stock Units, and Performance Stock Units Activity (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Restricted Stock
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Awards outstanding, beginning balance (in shares)
35,940 
Granted (in shares)
17,193 
Vested (in shares)
Forfeited (in shares)
Awards outstanding, ending balance (in shares)
53,133 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Awards outstanding, weighted average grant price, beginning balance (in dollars per share)
$ 23.31 
Granted, weighted average grant price (in dollars per share)
$ 23.26 
Vested, weighted average grant price (in dollars per share)
$ 0.00 
Forfeited, weighted average grant price (in dollars per share)
$ 0.00 
Awards outstanding, weighted average grant price, ending balance (in dollars per share)
$ 23.30 
Restricted Stock Units (RSUs)
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Awards outstanding, beginning balance (in shares)
300,001 
Granted (in shares)
50,464 
Vested (in shares)
Forfeited (in shares)
Awards outstanding, ending balance (in shares)
350,465 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Awards outstanding, weighted average grant price, beginning balance (in dollars per share)
$ 18.00 
Granted, weighted average grant price (in dollars per share)
$ 22.00 
Vested, weighted average grant price (in dollars per share)
$ 0.00 
Forfeited, weighted average grant price (in dollars per share)
$ 0.00 
Awards outstanding, weighted average grant price, ending balance (in dollars per share)
$ 18.58 
Performance-based Stock Options
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Awards outstanding, beginning balance (in shares)
54,830 
Granted (in shares)
100,930 
Vested (in shares)
Forfeited (in shares)
(33,710)
Awards outstanding, ending balance (in shares)
122,050 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Awards outstanding, weighted average grant price, beginning balance (in dollars per share)
$ 24.28 
Granted, weighted average grant price (in dollars per share)
$ 22.00 
Vested, weighted average grant price (in dollars per share)
$ 0.00 
Forfeited, weighted average grant price (in dollars per share)
$ 22.75 
Awards outstanding, weighted average grant price, ending balance (in dollars per share)
$ 22.82 
Insurance - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Concentration Risk [Line Items]
 
 
Discount rate for self-insurance claims reserves
1.98% 
1.47% 
Health insurance liability
$ 3.5 
$ 3.8 
Workers' compensation liability
21.8 
23.5 
General and automobile liability
20.7 
17.2 
Accrued Expense
 
 
Concentration Risk [Line Items]
 
 
General and automobile liability
16.7 
18.3 
General Liability
 
 
Concentration Risk [Line Items]
 
 
Self insurance exposures
0.5 
 
Automobile
 
 
Concentration Risk [Line Items]
 
 
Self insurance exposures
1.0 
 
Workers' Compensation
 
 
Concentration Risk [Line Items]
 
 
Self insurance exposures
$ 0.8 
 
Benefit Plans - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
agreement
age
Dec. 31, 2016
Dec. 31, 2015
Multiemployer Plans [Line Items]
 
 
 
401(k) Plan service requirement, more than one year
90 days 
 
 
401(k) Plan minimum age requirement
21 
 
 
Matching contributions to 401(k) Plan
$ 3.5 
$ 3.5 
$ 3.2 
Percent of workforce subject to a collective bargaining agreement
14.00% 
 
 
Number of collective bargaining agreements expiring within one year
 
 
Total annual contributions made
4.9 
 
 
Individually Insignificant Plans
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Total annual contributions made
$ 0.2 
 
 
Benefit Plans - Company's Participation in Multiemployer Plans Individually Significant (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Multiemployer Plans [Line Items]
 
 
 
Contributions
$ 4.9 
 
 
Employer contribution percentage, greater than 5%
5.00% 
 
 
Surcharge percentage during first twelve months
5.00% 
 
 
Surcharge percentage after 12 months
10.00% 
 
 
Suburban Teamsters of Northern IL Pension Fund
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
0.6 
0.7 
0.6 
Pension Fund of Automobile Mechanics Local No. 701
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
0.2 
0.2 
0.2 
Local 731 Private Scavengers and Garage Attendants Pension Fund (A)
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
1.8 
1.8 
1.8 
Midwest Operating Engineers Pension Fund
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
0.7 
0.7 
0.6 
Teamsters Local Union No. 301 Union Pension Fund (A)
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
1.0 
1.0 
0.9 
Central States Southeast and Southwest Areas Pension Fund
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
0.2 
0.2 
0.2 
Local 705 Int’l Brotherhood of Teamsters Pension TR. FD.
 
 
 
Multiemployer Plans [Line Items]
 
 
 
Contributions
$ 0.2 
$ 0.2 
$ 0.2 
Income Taxes - Components of Benefit for Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Current
 
 
 
Federal
$ (1.1)
$ (0.1)
$ 0.4 
State
1.2 
0.5 
1.8 
Current income tax expense
0.1 
0.4 
2.2 
Deferred
 
 
 
Federal
(44.8)
(23.4)
(17.4)
State
3.5 
(2.7)
(4.2)
Deferred income tax expense (benefit)
(41.3)
(26.1)
(21.6)
Benefit from income taxes
$ (41.2)
$ (25.7)
$ (19.4)
Income Taxes - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended 3 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Tax Period Prior to June 28, 2002
Dec. 31, 2017
HWStar Waste Holdings, Corp. and subsidiaries
Dec. 31, 2017
Capital Loss Carryforward
Dec. 31, 2016
(ASU) 2016-09 Improvements to Employee Share-Based Payment Accounting
Dec. 31, 2017
Federal
Dec. 31, 2016
Federal
Income Tax [Line Items]
 
 
 
 
 
 
 
 
 
 
Federal statutory rate
 
35.00% 
 
 
 
 
 
 
 
 
Tax benefit from change in tax rate
$ 40.5 
$ 40.5 
 
 
 
 
 
 
 
 
Tax related to repatriation
0.1 
0.1 
 
 
 
 
 
 
 
 
Alternative minimum tax credit
3.1 
3.1 
 
 
 
 
 
 
 
 
Provision for income taxes
 
 
 
 
 
 
 
4.7 
 
 
Valuation allowance
60.0 
60.0 
98.7 
 
 
 
 
 
 
 
Decrease in valuation allowance
 
38.7 
 
 
 
 
 
 
 
 
Operating loss carryforwards
 
 
 
 
29.1 
58.8 
 
 
344.1 
476.6 
Capital loss carryforward
 
 
 
 
 
 
175.9 
 
 
 
Estimated annual limitation of NOLs
 
 
 
 
4.2 
 
 
 
 
 
Net unrecognized tax benefits that would impact the effective tax rate
25.1 
25.1 
 
 
 
 
 
 
 
 
Interest expense related to unrecognized tax benefits in tax expense
 
0.5 
0.2 
0.2 
 
 
 
 
 
 
Accrued interest
2.8 
2.8 
2.5 
 
 
 
 
 
 
 
Accrued penalties
$ 0.5 
$ 0.5 
$ 0.4 
 
 
 
 
 
 
 
Income Taxes - Reconciliation between Benefit for Income Taxes and Expected Tax Provision (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income Tax Disclosure [Abstract]
 
 
 
Amount computed using statutory rates
$ (1.0)
$ (19.6)
$ (18.6)
State income taxes, net of Federal benefit
(3.3)
(6.0)
(5.1)
Benefit from stock option exercises
(4.3)
Tax rate adjustment
(0.3)
(0.7)
1.7 
Uncertain tax positions and interest
0.5 
0.4 
1.0 
Nondeductible expenses
1.5 
1.2 
1.8 
Net effect of change in U.S. Tax Law
(40.4)
Other
0.6 
(0.2)
0.7 
Valuation allowance
1.2 
3.5 
(0.9)
Benefit from income taxes
$ (41.2)
$ (25.7)
$ (19.4)
Income Taxes - Summary of Company's Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets
 
 
Allowance for doubtful accounts
$ 1.4 
$ 1.6 
Insurance reserve
11.8 
16.2 
Net operating loss
103.4 
203.3 
Capital loss carryforward
42.8 
68.9 
Accrued bonus and vacation
4.5 
7.3 
Stock compensation
3.7 
2.0 
Tax credits
3.1 
7.2 
Other
11.9 
12.5 
Total deferred tax assets
182.6 
319.0 
Valuation allowance
(60.0)
(98.7)
Deferred tax assets less valuation allowance
122.6 
220.3 
Deferred tax liabilities
 
 
Fixed asset basis
(66.4)
(106.8)
Intangible basis
(73.9)
(117.2)
Landfill and environmental remediation liabilities
(62.0)
(100.5)
Other
(8.9)
(8.6)
Deferred tax liabilities
(211.2)
(333.1)
Net deferred tax liability
$ (88.6)
$ (112.8)
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of beginning and ending amount of gross unrecognized tax benefits
 
 
 
Balance at January 1,
$ 7.5 
$ 7.3 
$ 6.2 
Additions based on tax positions of prior years
20.4 
0.1 
0.5 
Change to prior tax positions due to tax rate changes
(0.4)
Additions based on tax positions of current year
0.1 
0.6 
Balance at December 31,
$ 27.5 
$ 7.5 
$ 7.3 
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (Recurring, USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fair Value
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
$ 6.8 
$ 1.2 
Derivative instruments - Asset position
3.7 
2.3 
Derivative instruments - Liability position
(0.4)
 
Total recurring fair value measurements
10.1 
3.5 
Fair Value |
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
6.8 
1.2 
Derivative instruments - Asset position
Derivative instruments - Liability position
 
Total recurring fair value measurements
6.8 
1.2 
Fair Value |
Significant Other Observable Inputs (Level 2)
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
Derivative instruments - Asset position
3.7 
2.3 
Derivative instruments - Liability position
(0.4)
 
Total recurring fair value measurements
3.3 
2.3 
Fair Value |
Significant Unobservable Inputs (Level 3)
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
Derivative instruments - Asset position
Derivative instruments - Liability position
 
Total recurring fair value measurements
Total Gains (Losses)
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
Derivative instruments - Asset position
Derivative instruments - Liability position
 
Total recurring fair value measurements
Carrying Value
 
 
Recurring fair value measurements
 
 
Cash and cash equivalents
6.8 
1.2 
Derivative instruments - Asset position
3.7 
2.3 
Derivative instruments - Liability position
(0.4)
 
Total recurring fair value measurements
$ 10.1 
$ 3.5 
Commitments and Contingencies - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 2 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Feb. 26, 2018
Subsequent Event
Subsequent Event [Line Items]
 
 
 
Surety bonds and letters of credit facility outstanding
$ 749.2 
$ 715.5 
 
Purchase price obligation, payment of net revenue percentage
6.00% 
 
 
Civil penalty
 
 
0.2 
Environmental remediation expense
11.1 
 
 
Environmental remediation costs incurred
9.4 
 
 
Fine paid to Pennsylvania Department of Environmental Protection
$ 0.6 
 
 
Restructuring - Additional Information (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring charges
$ 3,400,000 
$ 800,000 
$ 0 
Severance costs
1,300,000.0 
 
 
Midwest
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring charges
 
800,000 
 
Non-cash acceleration of options
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Restructuring charges
$ 2,100,000 
 
 
Restructuring - Restructuring Reserve (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Reserve [Roll Forward]
 
 
 
Beginning balance
$ 1.0 
$ 2.2 
$ 5.4 
Expense
3.4 
0.8 
Ending balance
1.5 
1.0 
2.2 
Severance and relocation
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Cash expenditures
(0.7)
(1.4)
(2.7)
Other
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Cash expenditures
(0.1)
(0.6)
(0.5)
Non-cash acceleration of options
 
 
 
Restructuring Reserve [Roll Forward]
 
 
 
Expense
2.1 
 
 
Non-cash
$ (2.1)
$ 0 
$ 0 
Supplemental Cash Flow Information - Schedule of Supplemental Cash Flow Information (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Supplemental Cash Flow Elements [Abstract]
 
 
 
Cash paid for interest
$ 86.2 
$ 119.4 
$ 116.4 
Cash paid for taxes
1.4 
1.5 
2.4 
Assets acquired under capital lease
$ 45.2 
$ 26.6 
$ 10.2 
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Balances of Each Component of Accumulated Other Comprehensive Income, Net of Tax (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning Balance
$ 829.5 
 
 
Other comprehensive loss
(0.4)
(1.5)
Ending Balance
884.6 
829.5 
 
Gains and (Losses) on Derivative Instruments
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
Beginning Balance
1.5 
Other comprehensive loss before reclassifications, net of tax
(0.4)
(1.5)
Other comprehensive loss
(0.4)
(1.5)
Ending Balance
$ (0.4)
$ 0 
$ 0 
Accumulated Other Comprehensive Income (Loss) - Derivative Gain (Loss) Recognized in OCI (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
$ (0.4)
$ 0 
$ (2.0)
Tax (expense) benefit
0.5 
Net of tax
(0.4)
(1.5)
Interest Rate Caps
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
$ (0.4)
$ 0 
$ (2.0)
Equity Method Investment - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Nov. 20, 2012
Sanitation Services Company Limited
Dec. 31, 2017
Sanitation Services Company Limited
Dec. 31, 2016
Sanitation Services Company Limited
Nov. 20, 2012
Sanitation Services Company Limited
Schedule of Equity Method Investments [Line Items]
 
 
 
 
 
 
 
Financial interest in equity method investment
 
 
 
 
50.00% 
 
50.00% 
Payment to acquire equity method investment
 
 
 
$ 9.5 
 
 
 
Earnings in equity investee
1.6 
1.8 
1.3 
 
1.6 
1.8 
 
Equity method investment
 
 
 
 
$ 9.5 
$ 9.8 
 
Equity Method Investment - Summary of Balance Sheet Information (Details) (Sanitation Services Company Limited, USD $)
In Millions, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Sanitation Services Company Limited
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Current assets
$ 3.2 
$ 3.9 
Noncurrent assets
5.1 
4.8 
Current liabilities
0.8 
0.8 
Noncurrent liabilities
$ 4.4 
$ 4.2 
Equity Method Investment - Summary of Income Statement Information (Details) (Sanitation Services Company Limited, USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Sanitation Services Company Limited
 
 
Schedule of Equity Method Investments [Line Items]
 
 
Service revenue
$ 12.3 
$ 13.9 
Operating income
3.4 
3.6 
Income before income taxes
3.3 
3.4 
Net income
$ 3.3 
$ 3.4 
Quarterly Financial Data (Unaudited) - Summary of Quarterly Results of Operations (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Operating revenues
$ 384.4 
$ 392.7 
$ 383.1 
$ 347.4 
$ 352.0 
$ 360.6 
$ 358.2 
$ 333.8 
$ 1,507.6 
$ 1,404.6 
$ 1,396.4 
Income from operations
25.0 
29.7 
24.1 
11.3 
43.2 
39.6 
36.1 
13.0 
90.1 
131.9 
95.1 
Consolidated net (loss) income
42.0 
3.5 
(0.2)
(7.0)
(20.1)
3.8 
0.2 
(14.3)
 
 
 
Basic income (loss) per share (in dollars per share)
$ 0.47 
$ 0.04 
$ 0.00 
$ (0.08)
$ (0.24)
$ 0.06 
$ 0.00 
$ (0.22)
$ 0.43 
$ (0.44)
$ (0.52)
Diluted income (loss) per share (in dollars per share)
$ 0.47 
$ 0.04 
$ 0.00 
$ (0.08)
$ (0.24)
$ 0.06 
$ 0.00 
$ (0.22)
$ 0.43 
$ (0.44)
$ (0.52)
Loss on debt extinguishments and modifications included in consolidated net (loss) income
3.7 
 
 
 
64.7 
 
 
 
(3.7)
(64.7)
Tax benefit from change in tax rate
40.5 
 
 
 
 
 
 
 
40.5 
 
 
Tax related to repatriation
$ 0.1 
 
 
 
 
 
 
 
$ 0.1