REPUBLIC SERVICES, INC. MANAGEMENT REPORT AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS. (Form 10-Q)

You should read the following discussion in conjunction with the unaudited
consolidated financial statements and notes thereto included under Part I,
Item 1 of this Quarterly Report on Form 10-Q. In addition, you should refer to
our audited consolidated financial statements and notes thereto and related
Management's Discussion and Analysis of Financial Condition and Results of
Operations appearing in our Annual Report on Form 10-K for the fiscal year ended
December 31, 2021.

Disclosure Regarding Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain forward-looking information
about us that is intended to be covered by the safe harbor for "forward-looking
statements" provided by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are statements that are not historical facts. Words
such as "guidance," "expect," "will," "may," "anticipate," "plan," "estimate,"
"project," "intend," "should," "can," "likely," "could," "outlook" and similar
expressions are intended to identify forward-looking statements. In particular,
information appearing in this "Management's Discussion and Analysis of Financial
Condition and Results of Operations" includes forward-looking statements. These
statements include information about our plans, strategies, and expectations of
future financial performance and prospects. Forward-looking statements are not
guarantees of performance. These statements are based upon the current beliefs
and expectations of our management and are subject to significant risk and
uncertainties that could cause actual results to differ materially from those
expressed in, or implied or projected by, the forward-looking information and
statements. Although we believe that the expectations reflected in the
forward-looking statements are reasonable, we cannot assure you that the
expectations will prove to be correct. Among the factors that could cause actual
results to differ materially from the expectations expressed in the
forward-looking statements are the effects of the COVID-19 pandemic and actions
taken in response thereto, and our ability to integrate the operations of US
Ecology, Inc. into our operations and to realize the intended benefits of such
acquisition, as well as acts of war, riots or terrorism, and the impact of these
acts on economic, financial and social conditions in the United States as well
as our dependence on large, long-term collection, transfer and disposal
contracts. More information on factors that could cause actual results or events
to differ materially from those anticipated is included below under Part II,
Item 1A. - Risk Factors and from time to time in our reports filed with the
Securities and Exchange Commission, including our Annual Report on Form 10-K for
the year ended December 31, 2021. Additionally, new risk factors emerge from
time to time and it is not possible for us to predict all such risk factors, or
to assess the impact such risk factors might have on our business. We undertake
no obligation to update publicly any forward-looking statements whether as a
result of new information, future events or otherwise, except as required by
law.

Impact of the COVID-19 pandemic

In March 2020, the World Health Organization declared the outbreak of a new
strain of coronavirus (COVID-19) a pandemic. In 2020, certain customers in our
small- and large-container businesses began adjusting their service levels,
which included a decrease in the frequency of pickups or a temporary pause in
service. In addition, we experienced a decline in volumes disposed at certain of
our landfills and transfer stations. As service levels decreased, we also
experienced a decrease in certain costs of our operations which are variable in
nature. This decline in service activity peaked in 2020 and has improved
sequentially thereafter, returning to pre-pandemic levels in 2022.

In 2020 and 2021, we recognized our frontline employees for their commitment and
contributions to their communities during the pandemic through our Committed to
Serve program with two awards that were paid in January 2021 and November 2021.

The effects of the COVID-19 pandemic on our business are further described in the discussion of results of operations in this MD&A and Analysis of Financial Condition and Results of Operations.

RECENT DEVELOPMENTS

Acquisition of US Ecology, Inc.

On May 2, 2022, we acquired all outstanding shares of US Ecology, Inc. (US
Ecology) in a transaction valued at $2.2 billion. US Ecology is a leading
provider of environmental solutions offering treatment, recycling and disposal
of hazardous, non-hazardous and specialty waste. This acquisition expands our
existing environmental solutions footprint and adds a national platform to
provide customers with environmental solutions from collection to disposal,
including recycling, solid waste, special waste, hazardous waste, container
rental and field services. We financed the transaction through the entry into a
$1.0 billion unsecured Term Loan Credit Agreement (Term Loan Facility), and the
remaining purchase price was funded using borrowings on our $3.0 billion
unsecured revolving credit facility.
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Insight

Republic is one of the largest providers of environmental services in the United
States, as measured by revenue. As of March 31, 2022, we operated facilities in
41 states through 355 collection operations, 238 transfer stations, 198 active
landfills, 71 recycling processing centers, 3 treatment, recovery and disposal
facilities, 3 treatment, storage and disposal facilities (TSDF), 6 salt water
disposal wells and 7 deep injection wells. We are engaged in 75 landfill
gas-to-energy and renewable energy projects and had post-closure responsibility
for 124 closed landfills as of March 31, 2022.

Revenue for the three months ended March 31, 2022 increased by 14.4% to $2,968.8
million compared to $2,595.9 million for the same period in 2021. This change in
revenue is due to increased volume of 3.6%, average yield of 4.2%, acquisitions,
net of divestitures of 3.9%, recycling processing and commodity sales of 0.4%,
fuel recovery fees of 1.9%, and increased environmental solutions revenue of
0.4%.

The following table summarizes our revenue, expenses and operating income for
the three months ended March 31, 2022 and 2021 (in millions of dollars and as a
percentage of revenue):
                                                                 Three Months Ended March 31,
                                                                        2022                    2021
Revenue                                                                             $ 2,968.8            100.0  %       $ 2,595.9           100.0  %
Expenses:
Cost of operations                                                                    1,762.3             59.4            1,533.8            59.1

Depreciation, amortization and depletion of property, plant and equipment

            289.6              9.7              264.8            10.2
Amortization of other intangible assets                                                  10.0              0.3                7.3             0.3
Amortization of other assets                                                             10.8              0.4               10.0             0.4
Accretion                                                                                21.7              0.7               20.5             0.8
Selling, general and administrative                                                     307.8             10.4              265.4            10.2

Gain on business divestitures and impairments, net                                          -                -               (1.1)              -
Restructuring charges                                                                     6.0              0.2                2.8               -
Operating income                                                                    $   560.6             18.9  %       $   492.4            19.0  %


Our pre-tax income was $472.2 million for the three months ended March 31, 2022
compared to $400.1 million for the same period in 2021. Our net income
attributable to Republic Services, Inc. was $352.0 million for the three months
ended March 31, 2022, or $1.11 per diluted share, compared to $295.9 million, or
$0.93 per diluted share, for the same period in 2021.

During each of the three months ended March 31, 2022 and 2021, we recorded a
number of charges, other expenses and benefits that impacted our pre-tax income,
tax expense, net income attributable to Republic Services, Inc. (net income -
Republic) and diluted earnings per share as noted in the following table (in
millions, except per share data). Additionally, see our Results of Operations
discussion in this Management's Discussion and Analysis of Financial Condition
and Results of Operations for a discussion of other items that impacted our
earnings during the three months ended March 31, 2022 and 2021.

                                                         Three Months Ended March 31, 2022                                                 Three Months Ended March 31, 2021
                                                                                     Net             Diluted                                                           Net             Diluted
                                         Pre-tax                  Tax             Income -           Earnings              Pre-tax                  Tax             Income -           Earnings
                                          Income               Impact(2)          Republic          per Share               Income               Impact(2)          Republic          per Share

As reported                         $    472.2               $    120.3          $  352.0          $    1.11          $    400.1               $    103.7          $  295.9          $    0.93

Restructuring charges(1)                   6.0                      1.6               4.4               0.02                 2.8                      0.7               2.1                  -
Gain on business divestitures
and impairments, net(1)                      -                        -                 -                  -                (1.1)                    (0.3)             (0.8)                 -

US Ecology, Inc. acquisition
integration and deal costs                 4.8                      0.5               4.3               0.01                   -                        -                 -                  -
Total adjustments                         10.8                      2.1               8.7               0.03                 1.7                      0.4               1.3                  -
As adjusted                         $    483.0               $    122.4          $  360.7          $    1.14          $    401.8               $    104.1          $  297.2          $    0.93


(1) The aggregate impact to adjusted diluted earnings per share totals to less
than $0.01 for the three months ended March 31, 2021.
(2) The income tax effect related to our adjustments includes both current and
deferred income tax impact and is individually calculated based on the statutory
rates applicable to each adjustment.
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We believe that presenting adjusted pre-tax income, adjusted tax impact,
adjusted net income - Republic, and adjusted diluted earnings per share, which
are not measures determined in accordance with U.S. GAAP, provides an
understanding of operational activities before the financial impact of certain
items. We use these measures, and believe investors will find them helpful, in
understanding the ongoing performance of our operations separate from items that
have a disproportionate impact on our results for a particular period. We have
incurred comparable charges, costs and recoveries in prior periods, and similar
types of adjustments can reasonably be expected to be recorded in future
periods. Our definitions of adjusted pre-tax income, adjusted tax impact,
adjusted net income - Republic, and adjusted diluted earnings per share may not
be comparable to similarly titled measures presented by other companies. Further
information on each of these adjustments is included below.

Restructuring charges. During the three months ended March 31, 2022 and 2021, we
incurred restructuring charges of $6.0 million and $2.8 million, respectively,
related to the redesign of certain back-office software systems. During the same
periods, we paid $5.9 million and $4.0 million, respectively, related to these
restructuring efforts.

During the remainder of 2022, we expect to incur additional restructuring
charges of approximately $10 million to $15 million primarily related to the
redesign of certain of our back-office software systems. Substantially all of
these restructuring charges will be recorded in our corporate entities and other
segment.

Gain on disposal of businesses and impairment, net. In the three months ended March 31, 2021we recorded a net gain on disposals of businesses and impairments of $1.1 million.

US Ecology, Inc. acquisition integration and deal costs. During the three months
ended March 31, 2022, we incurred $4.8 million of acquisition integration and
deal costs in connection with the acquisition of US Ecology, which closed on May
2, 2022.

Results of Operations

Revenue

We generate revenue by providing environmental services to our customers,
including the collection and processing of recyclable materials, the collection,
transfer and disposal of solid waste, and other environmental solutions. Our
residential, small-container and large-container collection operations in some
markets are based on long-term contracts with municipalities. Certain of our
municipal contracts have annual price escalation clauses that are tied to
changes in an underlying base index such as a consumer price index. We generally
provide small-container and large-container collection services to customers
under contracts with terms up to three years. Our transfer stations and
landfills generate revenue from disposal or tipping fees charged to third
parties. Our recycling processing centers generate revenue from tipping fees
charged to third parties and the sale of recycled commodities. Our revenue from
environmental solutions consists mainly of fees we charge for disposal of
hazardous and non-hazardous solid and liquid material and in-plant services,
such as transportation and logistics, including at our TSDFs. Other non-core
revenue consists primarily of revenue from National Accounts, which represents
the portion of revenue generated from nationwide or regional contracts in
markets outside our operating areas where the associated material handling is
subcontracted to local operators. Consequently, substantially all of this
revenue is offset with related subcontract costs, which are recorded in cost of
operations.
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The following table reflects our revenue by service line for the three months
ended March 31, 2022 and 2021 (in millions of dollars and as a percentage of
revenue):
                                                                       

Three months completed March, 31st,

                                                                              2022                    2021
Collection:
Residential                                                                               $   627.9             21.1  %       $   593.1             22.8  %
Small-container                                                                               915.6             30.8              810.2             31.2
Large-container                                                                               621.1             20.9              534.4             20.6
Other                                                                                          12.4              0.4               12.3              0.5
Total collection                                                                            2,177.0             73.2            1,950.0             75.1
Transfer                                                                                      362.7                               331.3
Less: intercompany                                                                           (197.8)                             (185.1)
Transfer, net                                                                                 164.9              5.6              146.2              5.6
Landfill                                                                                      617.2                               565.1
Less: intercompany                                                                           (269.0)                             (249.3)
Landfill, net                                                                                 348.2             11.7              315.8             12.2
Environmental solutions                                                                       108.9                                39.0
Less: intercompany                                                                             (9.6)                               (4.1)
Environmental solutions, net                                                                      99.3           3.4                  34.9           1.3
Other:
Recycling processing and commodity sales                                                       99.8              3.4               87.6              3.4
Other non-core                                                                                 79.6              2.7               61.4              2.4
Total other                                                                                   179.4              6.1              149.0              5.8
Total revenue                                                                             $ 2,968.8            100.0  %       $ 2,595.9            100.0  %


The following table reflects changes in components of our revenue, as a
percentage of total revenue, for the three months ended March 31, 2022 and 2021:
                                                                   Three Months Ended March 31,
                                                                                    2022                    2021
Average yield                                                                            4.2  %                  2.3  %
Fuel recovery fees                                                                       1.9                    (0.4)
Total price                                                                              6.1                     1.9
Volume                                                                                   3.6                    (0.8)
Change in workdays                                                                         -                    (0.6)
Recycling processing and commodity sales                                                 0.4                     0.8
Environmental solutions                                                                  0.4                    (0.7)
Total internal growth                                                                   10.5                     0.6
Acquisitions / divestitures, net                                                         3.9                     1.0

Total                                                                                   14.4  %                  1.6  %

Core price                                                                               6.0  %                  4.3  %


Average yield is defined as revenue growth from the change in average price per
unit of service, expressed as a percentage. Core price is defined as price
increases to our customers and fees, excluding fuel recovery fees, net of price
decreases to retain customers. We also measure changes in average yield and core
price as a percentage of related-business revenue, defined as total revenue
excluding recycled commodities, fuel recovery fees and environmental solutions
revenue, to determine the effectiveness of our pricing strategies. Average yield
as a percentage of related-business revenue was 4.5% and 2.5% for the three
months ended March 31, 2022 and 2021, respectively. Core price as a percentage
of related-business revenue was 6.5% and 4.5% for the three months ended March
31, 2022 and 2021, respectively.
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In the three months ended March 31, 2022we experienced the following changes in our revenues compared to the same respective period in 2021:

• Average Yield increased revenue by 4.2% in the quarter ended March 31, 2022 due to price increases in all of our collection and disposal activities.

•The fuel recovery fee program, which mitigates our exposure to increases in
fuel prices, increased revenue by 1.9% during the three months ended March 31,
2022 primarily due to an increase in fuel prices compared to the same period in
2021.

•Volume increased revenue by 3.6% during the three months ended March 31, 2022,
primarily due to volume growth in our small- and large-container collection,
landfill, and transfer lines of business, partially offset by a decrease in
volume in our residential line of business. The volume increase in our landfill
line of business is primarily attributable to increased solid waste, special
waste, and construction and demolition volumes.

•Recycling processing and commodity sales increased revenue by 0.4% during the
three months ended March 31, 2022 primarily due to an increase in overall
commodity prices as compared to the same period in 2021. The average price for
recycled commodities, excluding glass and organics, for the three months ended
March 31, 2022 was $201 per ton compared to $133 per ton for the same period in
2021.

Changing market demand for recycled commodities causes volatility in commodity
prices. At current volumes and mix of materials, we believe a $10 per ton change
in the price of recycled commodities would change both annual revenue and
operating income by approximately $10 million.

•Environmental solutions revenue increased by 0.4% during the three months ended
March 31, 2022 primarily due to an increase in volumes, including those driven
by an increase in rig counts and drilling activity.

• Acquisitions, net of divestitures, increased revenue by 3.9% in the quarter ended March 31, 2022reflecting our continued growth strategy of acquiring private solid waste management, recycling and environmental services companies that complement and expand our existing business platform.

Cost of operations

Cost of operations includes labor and related benefits, which consists of
salaries and wages, health and welfare benefits, incentive compensation and
payroll taxes. It also includes transfer and disposal costs representing tipping
fees paid to third party disposal facilities and transfer stations; maintenance
and repairs relating to our vehicles, equipment and containers, including
related labor and benefit costs; transportation and subcontractor costs, which
include costs for independent haulers that transport our waste to disposal
facilities and costs for local operators that provide waste handling services
associated with our National Accounts in markets outside our standard operating
areas; fuel, which includes the direct cost of fuel used by our vehicles, net of
fuel tax credits; disposal fees and taxes, consisting of landfill taxes, host
community fees and royalties; landfill operating costs, which includes financial
assurance, leachate disposal, remediation charges and other landfill maintenance
costs; risk management costs, which include insurance premiums and claims; cost
of goods sold, which includes material costs paid to suppliers; and other, which
includes expenses such as facility operating costs, equipment rent and gains or
losses on sale of assets used in our operations.

The following table summarizes the major components of our cost of operations
for the three months ended March 31, 2022 and 2021 (in millions of dollars and
as a percentage of revenue):
                                                                            

Three months completed March, 31st,

                                                                          2022                                  2021
Labor and related benefits                                 $        608.9             20.5  %       $   555.7             21.4  %
Transfer and disposal costs                                         211.7              7.1              192.4              7.4
Maintenance and repairs                                             268.7              9.0              237.4              9.2
Transportation and subcontract costs                                213.3              7.2              168.9              6.5
Fuel                                                                129.3              4.4               78.9              3.0
Disposal fees and taxes                                              79.4              2.7               77.7              3.0
Landfill operating costs                                             61.4              2.1               57.4              2.2
Risk management                                                      68.5              2.3               59.3              2.3

Other                                                               121.1              4.1              106.1              4.1

Total cost of operations                                   $      1,762.3             59.4  %       $ 1,533.8             59.1  %


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These cost categories may change from time to time and may not be comparable to
similarly titled categories presented by other companies. As such, you should
take care when comparing our cost of operations by component to that of other
companies and of ours for prior periods.

The most significant items that impacted our operating costs during the three months ended March 31, 2022 and 2021 are summarized below:

•Labor and related benefits increased in aggregate dollars due to higher hourly
and salaried wages as a result of annual merit increases along with additional
headcount attributable to acquisition-related growth, and an increase in service
levels attributable to economic recovery from the COVID-19 pandemic.

•Transfer and disposal costs increased in overall dollars due to higher collection volumes and increased third-party disposal rates.

•During the three months ended March 31, 2022 and 2021, approximately 69% of the
total solid waste volume we collected was disposed at landfill sites that we own
or operate (internalization).

• Maintenance and repair expenses increased in aggregate dollars due to an increase in service levels due to the economic recovery from the COVID-19 pandemic.

•Transportation and subcontract costs increased during the three months ended
March 31, 2022 primarily due to higher collection and transfer station volumes,
acquisition-related activity, and increased subcontract work attributable to an
increase in non-core revenues as compared to the same period in 2021.

•Our fuel costs increased due to an increase in the average diesel fuel cost per
gallon. The national average diesel fuel cost per gallon for the three months
ended March 31, 2022 was $4.24 as compared to $2.91 for the same period in 2021.

At current consumption levels, we believe a twenty-cent per gallon change in the
price of diesel fuel would change our fuel costs by approximately $26 million
per year. Offsetting these changes in fuel expense would be changes in our fuel
recovery fee charged to our customers. At current participation rates, a
twenty-cent per gallon change in the price of diesel fuel would change our fuel
recovery fee by approximately $26 million per year.

•Landfill operating costs increased in aggregate dollars primarily due to
increased leachate treatment, transportation and disposal costs due in part to
increased rainfall in select geographic regions, as well as landfill gas and
other maintenance costs.

•Risk management expenses increased during the three months ended March 31, 2022
primarily due to favorable actuarial developments in the prior year that did not
recur in the current year.

•Other costs of operations increased during the three months ended March 31,
2022 due to increased occupancy and facility related expenses as well as higher
third-party truck and equipment rentals supporting higher volumes.

Depreciation, amortization and depletion of property, plant and equipment

The following table summarizes the depreciation, amortization and depletion of property, plant and equipment for the three months ended March 31, 2022 and 2021 (in millions of dollars and as a percentage of revenues):

                                                                  Three 

Months ended March, 31st,

                                                                          2022                  2021
Depreciation and amortization of property and equipment                               $ 192.6            6.5  %       $ 177.9             6.8  %
Landfill depletion and amortization                                                      97.0            3.2             86.9             3.4
Depreciation, amortization and depletion expense                                      $ 289.6            9.7  %       $ 264.8            10.2  %


Depreciation of property, plant and equipment increased for the three months ended March 31, 2022 primarily due to assets added through acquisitions.

Landfill depletion and amortization expense increased due to higher landfill
disposal volumes primarily driven by solid waste, special waste and construction
and demolition waste volumes coupled with an increase in our overall average
depletion rate. These increases were partially offset by an unfavorable
amortization adjustment related to the asset retirement obligation at one of our
closed landfills during the three months ended March 31, 2021, which did not
recur in 2022.

Amortization of other intangible assets

The amortization of other intangible assets mainly concerns customer relationships and, to a lesser extent, non-competition agreements. Amortization charges for other intangible assets have been $10.0 millioni.e. 0.3% of turnover, for the three months

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ended March 31, 2022 compared to $7.3 million, or 0.3% of revenue, for the same
respective period in 2021. Amortization expense increased due to assets added
through acquisitions.

Amortization of Other Assets

Our other assets primarily relate to the prepayment of fees and capitalized
implementation costs associated with cloud-based hosting arrangements. Expenses
for amortization of other assets were $10.8 million, or 0.4% of revenue, for the
three months ended March 31, 2022 compared to $10.0 million, or 0.4% of revenue,
for the same respective period in 2021.

Growth expense

Accretion expense was $21.7 million, or 0.7% of revenue, for the three months
ended March 31, 2022 compared to $20.5 million, or 0.8% of revenue, for the same
respective period in 2021. Accretion expense has remained relatively unchanged
as our asset retirement obligations have remained relatively consistent period
over period.

Selling, general and administrative expenses

Selling, general and administrative expenses include salaries, health and
welfare benefits, and incentive compensation for corporate and field general
management, field support functions, sales force, accounting and finance, legal,
management information systems, and clerical and administrative departments.
Other expenses include rent and office costs, fees for professional services
provided by third parties, legal settlements, marketing, investor and community
relations services, directors' and officers' insurance, general employee
relocation, travel, entertainment and bank charges. Restructuring charges are
excluded from selling, general and administrative expenses and are discussed
separately.

The following table summarizes our selling, general and administrative expenses
for the three months ended March 31, 2022 and 2021 (in millions of dollars and
as a percentage of revenue):
                                                                  Three 

Months ended March, 31st,

                                                                          2022                   2021
Salaries and related benefits                                                         $ 212.9             7.2  %       $ 194.3             7.4  %
Provision for doubtful accounts                                                           6.6             0.2              4.3             0.2
Other                                                                                    83.5             2.8             66.8             2.6
Subtotal                                                                                303.0            10.2            265.4            10.2

US Ecology, Inc. acquisition integration and deal costs                                   4.8             0.2                -               -
Total selling, general and administrative expenses                                    $ 307.8            10.4  %       $ 265.4            10.2  %


These cost categories may change from time to time and may not be comparable to
similarly titled categories presented by other companies. As such, you should
take care when comparing our selling, general and administrative expenses by
cost component to those of other companies and of ours for prior periods.

The most significant items affecting our selling, general and administrative
expenses during the three months ended March 31, 2022 and 2021 are summarized
below:

•Salaries and benefits increased in aggregate dollars primarily due to higher compensation and incentive salaries, benefits and other payroll-related items resulting from annual merit increases.

•Other selling, general and administrative expenses increased for the three
months ended March 31, 2022, primarily due to an increase in advertising and
travel costs.

•During the three months ended March 31, 2022, we incurred $4.8 million of
acquisition integration and deal costs in connection with the acquisition of US
Ecology, which closed on May 2, 2022.

Gain on business disposals and impairments, net

We strive to have a number one or number two market position in each of the
markets we serve, or have a clear path on how we will achieve a leading market
position over time. Where we cannot establish a leading market position, or
where operations are not generating acceptable returns, we may decide to divest
certain assets and reallocate resources to other markets. Business divestitures
could result in gains, losses or impairment charges that may be material to our
results of operations in a given period.

During the three months ended March 31, 2021, we recorded a net gain on business
divestitures and impairments of $1.1 million. No such gains were recorded during
the three months ended March 31, 2022.
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Restructuring charges

During the three months ended March 31, 2022 and 2021, we incurred restructuring
charges of $6.0 million and $2.8 million, respectively, related to the redesign
of certain back-office software systems. During the same periods, we paid $5.9
million and $4.0 million, respectively, related to these restructuring efforts.
During the remainder of 2022, we expect to incur additional restructuring
charges of approximately $10 million to $15 million primarily related to the
redesign of certain of our back-office software systems.

Interest charges

The following table provides the components of interest expense, including
accretion of debt discounts and accretion of discounts primarily associated with
environmental and risk insurance liabilities assumed in acquisitions, for the
three months ended March 31, 2022 and 2021:
                                       Three Months Ended March 31,
                                                                 2022       

2021

Interest expense on debt                                       $ 65.4      $ 62.9
Non-cash interest                                                18.8       

16.0

Less: capitalized interest                                       (0.7)       (0.5)
Total interest expense                                         $ 83.5      $ 78.4

Total interest expense for the three months ended March 31, 2022 increased primarily due to higher interest rates on our variable rate debt.

Cash paid for interest, excluding net swap settlements for our fixed-to-floating
interest rate swaps, was $75.6 million and $66.2 million for the three months
ended March 31, 2022 and 2021, respectively.

Income taxes

Our effective tax rate, excluding non-controlling interests, for the three months ended March 31, 2022 and 2021 were 25.5% and 25.9%, respectively.

The money paid for income taxes was a net payment of $3.7 million and a net refund of
$0.4 million for the three months ended March 31, 2022 and 2021, respectively.

For additional discussion and detail regarding our income taxes, see Note 8,
Income Taxes, to our unaudited consolidated financial statements included in
Part I, Item 1 of this Quarterly Report on Form 10-Q.

Reportable Segments

Our senior management evaluates, oversees and manages the financial performance
of our operations through three field groups, which are our operating segments,
referred to as Group 1, Group 2, and Environmental Solutions. Group 1 primarily
consists of geographic areas located in the western United States, and Group 2
primarily consists of geographic areas located in the southeastern and
mid-western United States, and the eastern seaboard of the United States. Our
Environmental Solutions operating segment, which provides environmental
solutions for daily operations of industrial, petrochemical and refining
facilities, is aggregated with Corporate entities and other as it only
represents approximately 3% of our consolidated revenue. Each of our operating
segments provides integrated environmental services, including collection,
transfer, recycling, and disposal.
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Summarized financial information about our segments to be presented for the three months ended March 31, 2022 and 2021 (in millions of dollars and as a percentage of revenue in the case of operating margin) follows:

                                            Depreciation,
                                            Amortization,         Adjustments to                                    Gain on
                                            Depletion and          Amortization                                    Business
                                          Accretion Before          Expense for           Depreciation,          Divestitures
                                           Adjustments for             Asset              Amortization,               and
                                          Asset Retirement          Retirement            Depletion and          Impairments,            Operating
                      Net Revenue            Obligations            Obligations             Accretion                 Net              Income

(Loss) Operating Margin

Three Months Ended March 31, 2022
Group 1             $    1,440.4          $        143.7          $          -          $        143.7          $          -          $      372.8                     25.9  %
Group 2                  1,379.8                   141.9                   0.3                   142.2                     -                 319.4                     23.1  %
Corporate entities
and other                  148.6                    46.0                   0.2                    46.2                     -                (131.6)                       -
Total               $    2,968.8          $        331.6          $        0.5          $        332.1          $          -          $      560.6                     18.9  %

Three Months Ended March 31, 2021
Group 1             $    1,298.6          $        133.2          $       (1.1)         $        132.1          $          -          $      351.5                     27.1  %
Group 2                  1,222.0                      128.1                0.6                   128.7                     -                 261.8                     21.4  %
Corporate entities
and other                   75.3                       37.6                4.2                    41.8                  (1.1)               (120.9)                       -
Total               $    2,595.9          $        298.9          $        3.7          $        302.6          $       (1.1)         $      492.4                     19.0  %


Corporate entities and other include legal, tax, treasury, information
technology, risk management, human resources, closed landfills, other
administrative functions, and environmental solutions. National Accounts revenue
included in Corporate entities and other represents the portion of revenue
generated from nationwide and regional contracts in markets outside our
operating areas where the associated material handling is subcontracted to local
operators. Consequently, substantially all of this revenue is offset with
related subcontract costs, which are recorded in cost of operations.

Significant changes in revenues and operating margins of our reportable segments comparing the three months ended March 31, 2022 and 2021 are discussed below.

Group 1

Revenue for the three months ended March 31, 2022 increased 10.9% due to an
increase in both average yield in all lines of business. Additionally, volume
increased in our residential, small- and large-container collection lines of
business, as well as our transfer station and landfill lines of business. The
increase in landfill volume was attributable to an increase in solid waste,
construction and demolition waste and special waste volumes. Revenue also
increased due to acquisition-related growth.

Operating income in Group 1 increased from $351.5 million for the three months
ended March 31, 2021, or a 27.1% operating income margin, to $372.8 million for
the three months ended March 31, 2022, or a 25.9% operating income margin.
Operating income margin for the three months ended March 31, 2022 was
unfavorably impacted by higher disposal costs due to an increase in third party
disposal rates and higher transportation and subcontract costs driven by an
increase in volume.

Group 2

Revenue for the three months ended March 31, 2022 increased 12.9% due to an
increase in average yield in all lines of business. Additionally, volume
increased in our landfill, transfer station, and small- and large-container
collection lines of business. These increases were partially offset by volume
declines in our residential line of business. The increase in landfill volume
was attributable to an increase in construction and demolition and special waste
volumes. Revenue also increased due to acquisition-related growth.

Operating income in Group 2 increased from $261.8 million for the three months
ended March 31, 2021, or a 21.4% operating income margin, to $319.4 million for
the three months ended March 31, 2022, or a 23.1% operating income margin.
Operating income margin for the three months ended March 31, 2022 was favorably
impacted by the increase in revenue attributable to the economic recovery from
the COVID-19 pandemic coupled with the effective management of certain operating
costs, primarily labor and related benefits, disposal costs, and maintenance and
repairs. The favorable impact was partially offset by higher transportation and
subcontract costs driven by an increase in volume.
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Corporate and other entities

Operating loss in our Corporate entities and other segment increased from $120.9
million for the three months ended March 31, 2021 to $131.6 million for the
three months ended March 31, 2022. The change in the operating loss for the
three months ended March 31, 2022 compared to the three months ended March 31,
2021 was primarily due to an increase in acquisition deal and integration costs
as well as restructuring costs.

Landfill and environmental issues

Airspace available

As of March 31, 2022, we owned or operated 198 active solid waste landfills with
total available disposal capacity estimated to be 5.0 billion in-place cubic
yards. For these landfills, the following table reflects changes in capacity and
remaining capacity, as measured in cubic yards of airspace:
                                                                                                  Landfills             Permits Granted /
                                   Balance as of                                               Acquired, Net of             New Sites,                Airspace               Changes in             Balance as of March
                                 December 31, 2021           New Expansions Undertaken           Divestitures            Net of Closures              Consumed          Engineering Estimates            31, 2022
Cubic yards (in millions):
Permitted airspace                      4,826.7                             -                        15.0                          -                   (19.3)                         -                    4,822.4
Probable expansion airspace                 186                             -                           -                          -                       -                          -                      186.0
Total cubic yards (in millions)         5,012.7                             -                        15.0                          -                   (19.3)                         -                    5,008.4
Number of sites:
Permitted airspace                          198                             -                           -                          -                                                                           198
Probable expansion airspace                  11                             -                           -                          -                                                                            11


Total available disposal capacity represents the sum of estimated permitted
airspace plus an estimate of probable expansion airspace. Engineers develop
these estimates at least annually using information provided by annual aerial
surveys. Before airspace included in an expansion area is determined to be
probable expansion airspace and, therefore, included in our calculation of total
available disposal capacity, it must meet all of our expansion criteria.

As of March 31, 2022, 11 of our landfills met all of our criteria for including
their probable expansion airspace in their total available disposal capacity. At
projected annual volumes, these landfills have an estimated remaining average
site life of 33 years, including probable expansion airspace. The average
estimated remaining life of all of our landfills is 59 years. We have other
expansion opportunities that are not included in our total available airspace
because they do not meet all of our criteria for treatment as probable expansion
airspace.

Sanitation fees and other fees for landfill issues

It is reasonably possible that we will need to adjust our accrued landfill and
environmental liabilities to reflect the effects of new or additional
information, to the extent that such information impacts the costs, timing or
duration of the required actions. Future changes in our estimates of the costs,
timing or duration of the required actions could have a material adverse effect
on our consolidated financial position, results of operations and cash flows.

For a description of our significant remediation matters, see Note 6, Landfill
and Environmental Costs, of the notes to our unaudited consolidated financial
statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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Property and Equipment

The following tables reflect the activity of our property, plant and equipment accounts for the three months ended March 31, 2022:

                                                                                                                      Gross Property and Equipment
                                                                                                                                           Non-cash
                                                                                                                                           Additions            Adjustments           Impairments,
                                                Balance as of                                                     Acquisitions,            for Asset             for Asset             Transfers
                                                 December 31,            Capital                                     Net of               Retirement            Retirement             and Other            Balance as of
                                                     2021               Additions           Retirements           Divestitures            Obligations           Obligations           Adjustments          March 31, 2022
Land                                           $       694.9          $      0.1          $       (1.4)         $         20.5          $          -          $          -          $           -          $      714.1

Landfill development costs                           8,539.6                   -                     -                    18.6                  12.7                   1.0                   74.0               8,645.9
Vehicles and equipment                               8,576.9          $    

134.3 $(77.4) $12.9 –

        $          -          $         4.7               8,651.4
Buildings and improvements                           1,508.4                 1.1                  (1.7)                    1.1                     -                     -                    8.9               1,517.8
Construction-in-progress - landfill                    279.3          $     42.9          $          -          $            -          $          -          $          -          $       (73.1)                249.1
Construction-in-progress - other                       182.9                20.7                     -                       -                     -                     -                  (37.6)                166.0
Total                                          $    19,782.0          $    199.1          $      (80.5)         $         53.1          $       12.7          $        1.0          $       (23.1)         $   19,944.3


                                                                                    Accumulated Depreciation, Amortization and Depletion
                                                              Additions                                                         Adjustments          Impairments,
                                                               Charged                                  Acquisitions,            for Asset             Transfers
                                      Balance as of               to                                       Net of               Retirement             and Other           Balance as of
                                    December 31, 2021          Expense            Retirements           Divestitures            Obligations           Adjustments          March 31, 2022
Landfill development costs         $       (4,625.6)         $   (96.5)         $          -          $            -          $       (0.5)         $          -          $    (4,722.6)
Vehicles and equipment                     (5,231.6)            (176.8)                 75.8                       -                     -                   9.1               (5,323.5)
Buildings and improvements                   (692.7)             (17.8)                  1.6                       -                     -                   1.8                 (707.1)
Total                              $      (10,549.9)         $  (291.1)         $       77.4          $            -          $       (0.5)         $       10.9          $   (10,753.2)

Cash and capital resources

Cash and cash equivalents

The following is a summary of our cash and cash equivalents and our restricted cash and marketable securities balances as of:

                                                            March 31, 2022           December 31, 2021
Cash and cash equivalents                                 $          39.0          $             29.0
Restricted cash and marketable securities                           117.2                       139.0
Less: restricted marketable securities                              (59.1)                      (62.4)

Cash, cash equivalents, restricted cash and restricted cash equivalents

                                          $          97.1          $            105.6


Our restricted cash and marketable securities include, among other things,
restricted cash related to proceeds from the issuance of tax-exempt bonds that
will be used to fund qualifying landfill-related expenditures in the
Commonwealth of Pennsylvania, restricted cash and marketable securities pledged
to regulatory agencies and governmental entities as financial guarantees of our
performance under certain collection, landfill and transfer station contracts
and permits, and relating to our final capping, closure and post-closure
obligations at our landfills as well as restricted cash and marketable
securities related to our insurance obligations.

The following table summarizes our restricted cash and marketable securities:
                                                   March 31, 2022      December 31, 2021
Financing proceeds                                $          6.2      $             12.4
Capping, closure and post-closure obligations               42.4            

42.4

Insurance                                                   68.6            

84.2

Total restricted cash and marketable securities $117.2 $

139.0

Material cash needs and intended uses of cash

We expect existing cash, cash equivalents, restricted cash and marketable
securities, cash flows from operations and financing activities to continue to
be sufficient to fund our operating activities and cash commitments for
investing and financing activities for at least the next 12 months and
thereafter for the foreseeable future. Our known current- and long-term uses of
cash include, among other possible demands: (1) capital expenditures and leases;
(2) acquisitions; (3) dividend payments; (4)
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share buybacks; (5) repayments for servicing debt and other long-term obligations; and (6) payments for asset retirement obligations and environmental liabilities.

We may choose to voluntarily retire certain portions of our outstanding debt
before their maturity dates using cash from operations or additional borrowings.
We may also explore opportunities in the capital markets to fund redemptions
should market conditions be favorable. Early extinguishment of debt will result
in an impairment charge in the period in which the debt is repaid. The loss on
early extinguishment of debt relates to premiums paid to effectuate the
repurchase and the relative portion of unamortized note discounts and debt issue
costs.

Acquisitions

Our acquisition growth strategy focuses primarily on acquiring privately held
recycling and solid waste companies and environmental solutions businesses that
complement our existing business platform. We continue to invest in
value-enhancing acquisitions in existing markets.

On May 2, 2022, we acquired all outstanding shares of US Ecology in a
transaction valued at $2.2 billion. US Ecology is a leading provider of
environmental solutions offering treatment, recycling and disposal of hazardous,
non-hazardous and specialty waste. We financed the transaction through the entry
into a $1.0 billion unsecured Term Loan Facility, and the remaining purchase
price was funded using borrowings on our $3.0 billion unsecured revolving credit
facility.

We plan to invest at least $500 million in additional acquisitions in 2022.

Cash Activity Summary

The major components of changes in cash flows are discussed in the following
paragraphs. The following table summarizes our cash flow from operating
activities, investing activities and financing activities for the three months
ended March 31, 2022 and 2021:

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