10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)                    

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

For the quarterly period ended June 30, 2018

OR

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

For the transition period from to

Commission file no: 001-37904

Advanced Disposal Services, Inc.

(Exact name of registrant as specified in its charter)

Delaware	90-0875845
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

90 Fort Wade Road

Ponte Vedra, Florida 32081

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (904) 737-7900

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes ý     No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes ý    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

The number of shares of Common Stock, $0.01 par value, of the registrant outstanding at July 20, 2018 was 88,587,220 shares.

1

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the U.S. federal securities laws. All statements other than statements of historical facts in this document, including, without limitation, those regarding our business strategy, financial position, results of operations, plans, prospects and objectives of management for future operations (including development plans and objectives relating to our activities), are forward-looking statements. Many, but not all, of these statements can be found by looking for words like “expect,” “anticipate,” “goal,” “project,” “plan,” “believe,” “seek,” “will,” “may,” “forecast,” “estimate,” “intend,” “future” and similar words. Statements that address activities, events or developments that we intend, expect or believe may occur in the future are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, and are subject to safe harbor created by those sections. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements.

There are a number of risks, uncertainties and other important factors, many of which are beyond our control, which could cause actual results to differ materially from the forward-looking statements contained in this report. Such risks, uncertainties and factors include those set forth in "Risk Factors" in our 2017 Annual Report on Form 10-K.

Examples of these risks, uncertainties and other factors include, but are not limited to:

• our ability to achieve future profitability will depend on us executing our strategy and controlling costs;

• future results may be impacted by the expiration of net operating losses (NOLs);

• our tax position may be affected by recent changes in U.S. tax law;       

• operating in a highly competitive industry and the inability to compete effectively with larger and better capitalized companies and governmental service providers;

• our results are vulnerable to economic conditions;

• we may lose contracts through competitive bidding, early termination or governmental action;

• some of our customers, including governmental entities, have suffered financial difficulties affecting their credit risk, which could negatively impact our operating results;

• our financial and operating performance may be affected by the inability, in some instances, to renew or expand existing landfill permits or acquire new landfills. Further, the cost of operation and/or future construction of our existing landfills may become economically unfeasible causing us to abandon or cease operations;

• we could be precluded from maintaining permits or entering into certain contracts if we are unable to obtain sufficient third-party financial assurance or adequate insurance coverage;

• our accruals for our landfill site closure, post-closure and contamination related costs may be inadequate;

• our cash flow may not be sufficient to finance our high level of capital expenditures;

• our acquisitions, including our ability to integrate acquired businesses, or that acquired businesses may have unexpected risks or liabilities;

• the seasonal nature of our business and "event-driven" waste projects that could cause our results to fluctuate;

• adverse and destructive weather conditions that could result in higher fuel costs, higher labor costs, reduced municipal contract productivity and higher disposal costs;

2

• we may be subject in the normal course of business to judicial, administrative or other third-party proceedings that could interrupt or limit our operations, result in adverse judgments, settlements or fines and create negative publicity;

• fuel supply and prices may fluctuate significantly and we may not be able to pass on cost increases to our customers;

• fluctuations in the prices of commodities may adversely affect our financial condition, results of operations and cash flows;

• increases in labor and disposal costs and related transportation costs could adversely impact our financial results;

• efforts by labor unions could divert management attention and adversely affect operating results;

• we depend significantly on the services of the members of our senior, regional and local management teams, and the departure of any of those persons could cause our operating results to suffer;

• we are increasingly dependent on technology in our operations and, if our technology fails, our business could be adversely affected;

• a cybersecurity incident could negatively impact our business and our relationships with customers;

• operational and safety risks, including the risk of personal injury to employees and others;

• we are subject to substantial governmental regulation and failure to comply with these requirements, as well as enforcement actions and litigation arising from an actual or perceived breach of such requirements, could subject us to fines, penalties and judgments, and impose limits on our ability to operate and expand;

• our operations being subject to environmental, health and safety laws and regulations, as well as contractual obligations that may result in significant liabilities;

• future changes in laws or renewed enforcement of laws regulating the flow of solid waste in interstate commerce could adversely affect our operating results;

• fundamental change in the waste management industry as traditional waste streams are increasingly viewed as renewable resources and changes in laws and environmental policies may limit the items that enter the waste stream, any of which may adversely impact volumes and tipping fees at our landfills. Alternatives to landfill disposal may cause our revenues and operating results to decline;

• risks associated with our substantial indebtedness and working capital deficit;

• risks associated with our ability to implement our growth strategy as and when planned; and

• the other risks described in the "Risk Factors" section of our 2017 Annual Report on Form 10-K.

The above examples are not exhaustive and new risks may emerge from time to time. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we will operate in the future. These forward-looking statements speak only as of the date of this report. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained herein to reflect any change in our expectations with regard thereto or any change of events, conditions or circumstances on which any such statement was based.

3

Advanced Disposal Services, Inc. and Subsidiaries

Form 10-Q

For the Quarterly Period Ended June 30, 2018

Table of Contents

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)	5
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Operations	6
	Condensed Consolidated Statements of Comprehensive Income (Loss)	7
	Condensed Consolidated Statement of Stockholders' Equity	8
	Condensed Consolidated Statements of Cash Flows	9
	Notes to Unaudited Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.	Controls and Procedures	39
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings	40
Item 1a.	Risk Factors	40
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3.	Defaults upon Senior Securities	40
Item 4.	Mine Safety Disclosures	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
Signature

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Advanced Disposal Services, Inc. and Subsidiaries

Condensed Consolidated Balance Sheets

(Unaudited)

(in millions, except share data)	June 30, 2018			December 31, 2017
Assets
Current assets
Cash and cash equivalents	$	6.9		$	6.8
Accounts receivable, net of allowance for doubtful accounts of $4.6 and $5.4, respectively	208.5			199.9
Prepaid expenses and other current assets	40.0			37.9
Total current assets	255.4			244.6
Other assets	30.9			23.0
Property and equipment, net of accumulated depreciation of $1,460.0 and $1,355.5, respectively	1,730.8			1,728.8
Goodwill	1,210.3			1,208.2
Other intangible assets, net of accumulated amortization of $268.3 and $247.6, respectively	271.2			288.7
Total assets	$	3,498.6		$	3,493.3
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$	125.1		$	92.3
Accrued expenses	106.5			113.0
Deferred revenue	70.3			69.1
Current maturities of landfill retirement obligations	20.2			20.2
Current maturities of long-term debt	49.2			74.1
Total current liabilities	371.3			368.7
Other long-term liabilities	58.7			61.5
Long-term debt, less current maturities	1,855.6			1,884.2
Accrued landfill retirement obligations, less current maturities	210.8			205.7
Deferred income taxes	93.9			88.6
Total liabilities	2,590.3			2,608.7
Commitments and contingencies
Equity
Common stock: $.01 par value, 1,000,000,000 shares authorized, 88,575,377 and 88,491,194 shares outstanding, respectively	0.9			0.9
Treasury stock at cost, 2,274 and 2,274 shares, respectively	—			—
Additional paid-in capital	1,493.3			1,487.4
Accumulated deficit	(588.7		)	(603.3		)
Accumulated other comprehensive income (loss)	2.8			(0.4		)
Total stockholders' equity	908.3			884.6
Total liabilities and stockholders' equity	$	3,498.6		$	3,493.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

Advanced Disposal Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Operations

(Unaudited)

(in millions, except share and per share data)	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Service revenues	$	398.1		$	383.1		$	762.8		$	730.5
Operating costs and expenses
Operating	250.7			240.2			486.8			469.1
Selling, general and administrative	44.5			40.6			90.0			85.7
Depreciation and amortization	69.2			67.5			133.9			128.9
Acquisition and development costs	0.1			0.4			0.3			0.8
(Gain) loss on disposal of assets and asset impairments	(1.4		)	10.3			(3.3		)	10.6
Restructuring charges	—			—			0.1			—
Total operating costs and expenses	363.1			359.0			707.8			695.1
Operating income	35.0			24.1			55.0			35.4
Other (expense) income
Interest expense	(23.6		)	(23.1		)	(46.6		)	(45.6		)
Other income (expense), net	2.0			(1.3		)	7.9			(1.8		)
Total other expense	(21.6		)	(24.4		)	(38.7		)	(47.4		)
Income (loss) before income taxes	13.4			(0.3		)	16.3			(12.0		)
Income tax expense (benefit)	3.7			(0.1		)	4.5			(4.8		)
Net income (loss)	$	9.7		$	(0.2	)	$	11.8		$	(7.2	)
Net income (loss) attributable to common stockholders per share
Basic income (loss) per share	$	0.11		$	—		$	0.13		$	(0.08	)
Diluted income (loss) per share	$	0.11		$	—		$	0.13		$	(0.08	)
Basic average shares outstanding	88,555,647			88,275,698			88,535,860			88,206,590
Diluted average shares outstanding	89,272,966			88,275,698			89,147,337			88,206,590

The accompanying notes are an integral part of these condensed consolidated financial statements.

6

Advanced Disposal Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (Loss)

(Unaudited)

(in millions)	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
Net income (loss)	$	9.7	$	(0.2	)	$	11.8	$	(7.2	)
Change in fair value of interest rate caps, net of tax of $0.4 and $1.1 for the three and six months ended June 30, 2018, respectively	1.0		—			3.2		—
Comprehensive income (loss)	$	10.7	$	(0.2	)	$	15.0	$	(7.2	)

The accompanying notes are an integral part of these condensed consolidated financial statements.

7

Advanced Disposal Services, Inc. and Subsidiaries

Condensed Consolidated Statement of Stockholders' Equity

(Unaudited)

						Additional Paid-In Capital		Accumulated Deficit			Accumulated Other Comprehensive (Loss) Income			Total Stockholders' Equity
(in millions, except share data)	Common Stock			Treasury Stock
	Shares	Amount		Shares	Amount
Balance at December 31, 2017	88,493,468	$	0.9	2,274	—	$	1,487.4	$	(603.3	)	$	(0.4	)	$	884.6
Net income	—	—		—	—	—		11.8			—			11.8
Stock-based compensation	22,565	—		—	—	4.9		—			—			4.9
Stock option exercises	61,618	—		—	—	1.0		—			—			1.0
Unrealized gain resulting from change in fair value of derivative instruments, net of tax of $1.1	—	—		—	—	—		—			3.2			3.2
Impact of implementing new revenue recognition standard, net of tax of $1.1	—	—		—	—	—		2.8			—			2.8
Balance at June 30, 2018	88,577,651	$	0.9	2,274	—	$	1,493.3	$	(588.7	)	$	2.8		$	908.3

The accompanying notes are an integral part of these condensed consolidated financial statements.

8

Advanced Disposal Services, Inc. and Subsidiaries

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(in millions)	Six Months Ended June 30,
	2018			2017
Cash flows from operating activities
Net income (loss)	$	11.8		$	(7.2	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	133.9			128.9
Change in fair value of derivative instruments	(5.6		)	2.4
Amortization of debt issuance costs and original issue discount	3.3			3.2
Accretion on landfill retirement obligations	7.6			7.4
Other accretion and amortization	2.3			1.9
Provision for doubtful accounts	1.8			2.2
(Gain) loss on disposition of property and equipment	(3.4		)	0.9
Impairment of assets	—			13.0
Gain on disposition of businesses and assets	—			(2.8		)
Stock based compensation	4.9			4.7
Deferred tax expense (benefit)	4.8			(6.4		)
Earnings in equity investee	(0.9		)	(0.6		)
Changes in operating assets and liabilities, net of businesses acquired
Increase in accounts receivable	(10.5		)	(7.8		)
Decrease in prepaid expenses and other current assets	5.5			1.5
Decrease in other assets	0.5			0.1
Increase in accounts payable	26.9			18.3
Decrease in accrued expenses	(6.1		)	(9.8		)
Increase in deferred revenue	0.5			0.8
(Decrease) increase in other long-term liabilities	(5.8		)	0.2
Capping, closure and post-closure obligations	(8.3		)	(4.1		)
Assumption of long term care and closure reserve	—			24.0
Net cash provided by operating activities	163.2			170.8
Cash flows from investing activities
Purchases of property and equipment and landfill construction and development	(86.5		)	(79.9		)
Proceeds from sale of property and equipment and insurance recoveries	4.2			3.0
Acquisition of businesses, net of cash acquired	(5.9		)	(84.3		)
Proceeds from sale of businesses	—			8.7
Net cash used in investing activities	(88.2		)	(152.5		)
Cash flows from financing activities
Proceeds from borrowings on debt instruments	53.0			120.0
Repayment on debt instruments, including capital leases	(128.9		)	(141.3		)
Proceeds from issuance of common stock	1.0			4.7
Net cash used in financing activities	(74.9		)	(16.6		)
Net increase in cash and cash equivalents	0.1			1.7
Cash and cash equivalents, beginning of period	6.8			1.2
Cash and cash equivalents, end of period	$	6.9		$	2.9

The accompanying notes are an integral part of these condensed consolidated financial statements.

9

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

1. Business Operations

Advanced Disposal Services, Inc. together with its consolidated subsidiaries (the "Company"), as a consolidated entity, is a non-hazardous solid waste services company providing collection, transfer, recycling and disposal services to customers in the South, Eastern and Midwest regions of the United States.

The Company 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, recycling and disposal services. Additional information related to segments can be found in Note 10.

Six acquisitions were completed during the six months ended June 30, 2018 for aggregate consideration consisting of a cash purchase price of $5.9 and notes payable of $0.7 subject to net working capital adjustments and other commitments, which are expected to be completed within approximately one year. Eight acquisitions were completed during the six months ended June 30, 2017 for a cash purchase price, net of cash acquired, of $84.3 and notes payable of $1.6. The results of operations of each acquisition are included in the Company's unaudited condensed consolidated statements of operations subsequent to the closing date of each acquisition. Our acquisition accounting and valuation processes with respect to property and equipment, intangible assets, current liabilities and long-term liabilities related to acquisitions completed subsequent to January 1, 2018 are preliminary and subject to adjustments.

During the three and six months ended June 30, 2018, the Company recorded a charge in operating expenses of $5.4 related to engineered enhancement of leachate and gas infrastructure and reconstruction of specific storm and surface water control systems at one of its landfills. As a result, the location redirected waste to 3rd party sites to allow for construction activities in a limited delineated area of the site. This charge was recorded based on costs incurred to redirect waste for an interim period to complete construction activities and allow for the Company to be considered for an expansion permit. The Company has incurred expenditures of $3.4 as of June 30, 2018 related to this matter.

During the six months ended June 30, 2017, the Company entered into an Asset Transfer and Liability Assumption Agreement with BFI Waste Systems of North America, LLC. The Company received a cash payment of $24.0 which was recorded as an operating cash flow. In exchange for this payment, the Company assumed certain post-closure liabilities of a closed portion of a landfill and became responsible for expenditures related to a gas infrastructure system. The present value of the assumed post-closure liabilities and expenditures related to the gas infrastructure system over the life of the landfill approximate the amount of the cash received.

During the three and six months ended June 30, 2017, the Company divested of its collection 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 unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2017.

2. Basis of Presentation

The Company’s condensed consolidated financial statements include its wholly-owned subsidiaries and their respective subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 are unaudited. In the opinion of management, these condensed consolidated financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair statement of the balance sheet, results of operations, comprehensive income (loss), cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

In conformity with accounting principles generally accepted in the United States of America, the Company uses estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. The Company must make these estimates and assumptions because certain information that it uses 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 the Company's 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, 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 value of assets acquired and liabilities assumed in any acquisition. Actual results could differ materially from the estimates and assumptions that the Company uses in preparation of its financial statements.

Intangible Asset Impairment

The Company has collection operations in South Carolina 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 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 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, the Company recorded an intangible asset impairment of $13.0 during the second quarter of 2017.

Recently Adopted Accounting Standards

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 "Revenue Recognition" (Topic 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 and applicable technical updates as of January 1, 2018 using the modified retrospective transition method. See Note 3 for further details.

In August 2016, the FASB issued ASU 2016‑15 associated with the classification of certain cash receipts and cash payments in the statement of cash flows. In November 2016, the FASB issued ASU 2016‑18 associated with the presentation of restricted cash and cash equivalents in the statement of cash flows. The objective of both amendments was to reduce existing diversity in practice. The Company's adoption of these ASUs in fiscal 2018 did not have a material impact on the Company's Statement of Cash Flows.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases, and in July 2018 the FASB issued ASU 2018-11, Leases: Targeted Improvements. Lessees will be required to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors will be required 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 standard. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented or as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the standard by recognizing and measuring leases as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is assessing the provisions of this amended guidance and has (i) formed an implementation team (ii) acquired a software solution to manage and account for leases under the new standard (iii) solicited feedback on the population of leases from business unit personnel and (iv) analyzed payment activity and general ledger accounts to further identify leases under the new standard. The Company is currently evaluating the impact of this amended guidance on its consolidated financial statements but does not anticipate any material changes to operating results or liquidity.

3. Revenue Recognition

Adoption of ASC Topic 606, "Revenue from Contracts with Customers"

On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605.

The Company recorded a net reduction to opening accumulated deficit of $2.8 as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to capitalization of sales commissions. The impact to service revenues for the three and six months ended June 30, 2018 was a decrease of $8.8 and $16.8, respectively, as a result of applying Topic 606 and an associated policy election to treat applicable state landfill tax payments as a reduction of revenue

10

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

(historically recorded as an operating expense). Recycling rebates paid to customers, franchise fees paid to customers and state landfill tax payments are now recognized as a reduction of revenue.

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Further discussion of revenue for each major lines of business is provided below.

Residential Collection Revenue

The Company's residential collection operations consist of curbside collection of residential refuse from small carts or containers into collection vehicles for transport to a disposal/recycling site. These services are typically performed either under long-term contracts with local government entities or on a subscription basis, whereby individual households contract directly with the Company for collection services. The Company's residential collection service fees are typically quoted in its contracts on a weekly or monthly basis and revenue is recognized as the services are provided each month. The Company's residential contracts generally allow for annual rate increases and the number of households serviced under the Company's municipal contracts change throughout the contract period. For these reasons, revenue associated with the Company's residential collection service contracts is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Commercial Collection Revenue

The Company's commercial collection operations consist of collection of commercial refuse from Company supplied waste containers for transport to a disposal/recycling site. Standard service agreements with commercial customers are typicallythreetofiveyears in length with pricing based on estimated disposal weight and time required to service the account.The Company's commercial collection service fees are typically quoted in its service agreements on a weekly or monthly basis and revenue is recognized as the services are provided each month. The Company's commercial service agreements generally allow for rate increases and it is not uncommon for the collection needs of the customer to change throughout the contract period. For these reasons, revenue associated with the Company's commercial collection service agreements is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Rolloff Collection Revenue

The Company's rolloff collection operations consist of providing construction and demolition sites with rolloff containers and collecting, transporting and disposing of the customers' waste at a disposal site. Rolloff services are typically provided pursuant to arrangements in which the customer provides 24-hour advance notice of its disposal needs and is billed on a "per pull" plus disposal basis. The Company typically has written service agreements with permanent rolloff customers but does not enter into written service agreements with customers that utilize temporary rolloff containers due to the relatively short-term nature of their needs.The Company's permanent rolloff service agreements generally allow for rate increases and number of pulls plus disposal weight vary throughout the contract period. For these reasons, revenue associated with the Company's rolloff collection service agreements is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Disposal Revenue

Transfer stations provide collection operations with a cost-effective means to consolidate waste and reduce transportation costs while providing the Company's landfill sites with an additional “gate” to extend the geographic reach of its landfills. Disposal revenue at transfer stations is primarily generated by charging tipping or disposal fees to third party customers.

Landfill disposal services represent the final stage in the Company's vertically integrated waste collection and disposal services solution. The Company generates disposal revenue at its landfills by charging tipping or disposal fees to third party customers.

The Company's landfill and transfer station tipping fees are quoted to customers on a per ton basis and disposal weight varies each time the customer disposes of waste at a Company facility. For these reasons, revenue associated with the Company's disposal services is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

11

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

Sale of Recyclables

The Company has a network of 22 recycling facilities that it manages or operates. These facilities generate revenue through the collection, processing and sale of old corrugated cardboard, old newspaper, mixed paper, aluminum, glass and other materials. These recyclable materials are internally collected by the Company's residential, commercial and industrial collection operations as well as third-party haulers. The Company's sale of recyclables are quoted to customers on a per ton basis and recyclable weight varies each time the Company sells recyclables to its customers. For these reasons, revenue associated with the Company's sale of recyclables is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Fuel and Environmental Charges

The amounts charged for collection, disposal and recycling services may include fuel and environmental charges. These charges are not designed to be specific to the direct costs to service an individual customer’s account, but rather are designed to help recover changes in the Company's overall cost structure and to achieve an acceptable operating margin. Fuel and environmental charges vary each month in relation to the variable consideration of collection, disposal and recycling services. For this reason, fuel and environmental charges are accounted for as variable consideration.

Other Revenue

Other revenue is comprised of the following:

• Trucking revenue;

• Landfill management fee revenue;

• Sale of landfill gas revenue;

• Brokerage revenue; and

• Service charges, administrative charges and other charges.

Other revenue typically varies based on volume of the related service therefore the Company accounts for this revenue as variable consideration.

Revenue by Segment

See Note 10 for additional information related to revenue by reportable segment and major line of business.

Variable Consideration

As described above, the Company accounts for revenue for each line of business as variable consideration. The Company believes that there will not be significant changes to its estimates of variable consideration as revenue recognized is recorded in accordance with the terms of the related contracts or verbal agreements.

Capitalized Sales Commissions

Under Topic 606, the Company capitalizes sales commissions as contract assets related to commercial and permanent rolloff collection customers and amortizes those sales commissions over the estimated customer life. The balance of capitalized sales commissions as of June 30, 2018 and January 1, 2018 were $4.0 and $3.8, respectively. The Company recorded amortization expense of $0.4 and $0.7 related to capitalized sales commissions for the three and six months ended June 30, 2018, respectively.

Deferred Revenues

The Company records deferred revenue when cash payments are received in advance of the Company's performance. The increase in the deferred revenue balance from December 31, 2017 to June 30, 2018 is primarily driven by cash payments received in advance of the Company satisfying its performance obligations, offset by $67.9 of revenues recognized that were included in the deferred revenue balance at December 31, 2017.

12

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

Topic 606 Practical Expedients

As allowed by Topic 606, the Company does not disclose the value of unsatisfied performance obligations related to its contracts and service agreements as the Company accounts for its revenue as variable consideration and has the right to invoice for services performed each period.

4. Landfill Liabilities

Liabilities for final closure and post-closure costs for the year ended December 31, 2017 and for the six months endedJune 30, 2018 are shown in the table below:

Balance at December 31, 2016	$	191.1
Increase in retirement obligation	9.7
Accretion of closure and post-closure costs	15.4
Acquisition	28.3
Change in estimate	2.1
Costs incurred	(20.7		)
Balance at December 31, 2017	225.9
Increase in retirement obligation	4.7
Accretion of closure and post-closure costs	7.6
Costs incurred	(7.2		)
Balance at June 30, 2018	231.0
Less: Current portion	(20.2		)
	$	210.8

5. Earnings (Loss) Per Share

The following table sets forth the computation of basic earnings (loss) per share and earnings (loss) per share, assuming dilution:

		Three Months Ended June 30,					Six Months Ended June 30,
		2018		2017			2018		2017
Numerator:
	Net income (loss)	$	9.7	$	(0.2	)	$	11.8	$	(7.2	)
Denominator:
	Average common shares outstanding	88,555,647		88,275,698			88,535,860		88,206,590
	Other potentially dilutive common shares	717,319		—			611,477		—
	Average common shares outstanding, assuming dilution	89,272,966		88,275,698			89,147,337		88,206,590
	Basic net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)
	Diluted net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)

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. Diluted net income (loss) per share 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 units and performance stock units.

Pursuant to the FASB’s Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share, the Company includes additional shares in the computation of diluted net income per share. The additional shares included in diluted net income per

13

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

share represent the number of shares that would be issued if all of the above potentially dilutive instruments were converted into common stock. When calculating diluted net income per share, the ASC requires the Company to include the potential shares that would be outstanding if dilutive outstanding stock options were exercised. This number is 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 2.3 million and 4.6 million of outstanding stock awards were excluded from the diluted net income (loss) per share calculation for the three months ended June 30, 2018 and June 30, 2017, respectively, because their effect was antidilutive. Approximately 2.3 million and 4.2 million of outstanding stock awards were excluded from the diluted income (loss) per share calculation for the six months ended June 30, 2018 and June 30, 2017, respectively, because their effect was antidilutive.

6. Debt

The following table summarizes the major components of debt at each balance sheet date and provides the maturities and interest rate ranges of each major category of debt:

	June 30, 2018			December 31, 2017
Revolving line of credit with lenders (Revolver), interest at applicable rate plus margin, as defined (6.75% and 6.25% at June 30, 2018 and December 31, 2017, respectively) due quarterly; balance due at maturity in November 2021	$	3.0		$	29.0
Term loans (Term Loan B); quarterly payments of $3.75 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	1,430.0			1,460.0
Senior notes (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, maturing through 2024	65.5			63.9
Other debt	9.6			11.8
	1,933.1			1,989.7
Less: Original issue discount and debt issuance costs classified as a reduction to long-term debt	(28.3		)	(31.4		)
Less: Current portion	(49.2		)	(74.1		)
	$	1,855.6		$	1,884.2

All borrowings under the Term Loan B, Revolver and Senior Notes are guaranteed by each of the Company's current and future domestic subsidiaries, subject to certain agreed-upon exemptions. All guarantors are jointly and severally and fully and unconditionally liable. There are no significant restrictions on the Company or any guarantor to obtain funds from its subsidiaries by dividend or loan.

Revolver and Letter of Credit Facilities

As of June 30, 2018, the Company had an aggregate committed capacity of $300.0, of which $100.0 was available for letters of credit under its credit facilities. The Company’s Revolver is its primary source of letter of credit capacity and expires in 2021. As of June 30, 2018 and December 31, 2017, the Company had $3.0 and $29.0 of borrowings outstanding on the Revolver, respectively. As of June 30, 2018 and December 31, 2017, the Company had an aggregate of $32.3 and $39.3, respectively, of letters of credit outstanding under its credit facilities.

14

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

7. Derivative Instruments and Hedging Activities

The following table summarizes the fair values of derivative instruments recorded in the Company’s condensed consolidated balance sheets:

	Balance Sheet Location	June 30, 2018		December 31, 2017
Derivatives Designated as Hedging Instruments
2017 Interest rate caps	Other assets	$	4.5	$	—
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	6.5		0.9
2016 Interest rate caps	Other assets	2.2		2.8
Total derivatives		$	13.2	$	3.3

The Company has not offset fair value of assets and liabilities recognized for its derivative instruments.

Interest Rate Caps

In November 2017, the Company entered into two interest rate cap agreements as cash flow hedges (the "2017 interest rate caps") 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 2017 interest rate caps; therefore, changes in the fair value of the 2017 interest rate caps, to the extent they are effective, are recorded in other comprehensive income, net of tax in the condensed consolidated statements of comprehensive income (loss). The 2017 interest rate caps commence in 2019 and expire in 2021. The Company will pay the $4.9 premium on the 2017 interest rate caps in monthly installments beginning in October 2019. The Company recorded a gain related to the 2017 interest rate caps of $1.0 for the three months ended June 30, 2018 which was recorded in other comprehensive income in the condensed consolidated statements of comprehensive income (loss). The Company recorded a gain related to the 2017 interest rate caps of $3.8 for the six months ended June 30, 2018 of which the effective portion of $3.2 was recorded in other comprehensive income in the condensed consolidated statements of comprehensive income (loss) and the ineffective portion of $0.6 was recorded in other income (expense), net in the condensed consolidated statement of operations. The notional value of the 2017 interest rate cap contracts aggregated were $600.0 as of June 30, 2018 and will remain constant through maturity in 2021.

In May 2016, the Company entered into three interest rate cap agreements (the "2016 interest rate caps") as economic hedges against the risk of a rise in interest rates and the associated cash flows on its variable rate debt. The Company is paying the $5.5 premium of the 2016 interest rate caps equally over eleven quarters beginning on March 31, 2017. The Company elected not to apply hedge accounting to the 2016 interest rate caps, therefore, changes in the fair value of the 2016 interest rate caps are recorded in other income (expense), net in the condensed consolidated statements of operations. The Company recorded a gain related to the 2016 interest rate caps of $1.4 and a loss of $2.0 for the three months ended June 30, 2018 and 2017, respectively. The Company recorded a gain related to the 2016 interest rate caps of $6.0 and a loss of $3.3 for the six months ended June 30, 2018 and 2017, respectively. The notional value of the 2016 interest rate cap contracts aggregated were $800.0 as of June 30, 2018 and will remain constant through maturity in September 2019.

8. Income Taxes

The Company’s effective income tax rate for the three months ended June 30, 2018 and 2017 was 27.6% and 33.3%, respectively. The Company evaluates its effective income tax rate at each interim period and adjusts it accordingly as facts and circumstances warrant. The difference between income taxes computed at the federal statutory rate of 21% and reported income taxes for the three months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The effective tax rate for the three months ended June 30, 2017 is materially consistent with the federal statutory rate of 35%.

The Company’s effective income tax rate for the six months ended June 30, 2018 and 2017 was 27.6% and 40.0%, respectively. The difference between income taxes computed at the federal statutory rate of 21% and reported income tax expense for the six

15

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The difference between income taxes computed at the federal statutory rate of 35% and reported income taxes for the six months ended June 30, 2017 was primarily due to the favorable impact of recorded valuation allowance and the favorable impact of state and local taxes.

As of June 30, 2018, the Company had $31.0 of liabilities associated with unrecognized tax benefits and related interest. These liabilities are included as components 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. The Company is not able to reasonably estimate when it would make any cash payments required to settle these liabilities, but does not believe that the ultimate settlement of its obligations will materially affect its liquidity.

On December 22, 2017, the Tax Cut and Jobs Act (the “Act”) was signed into law. In accordance with Staff Accounting Bulletin (“SAB”) 118, the Company recognized the estimated impact of this legislation as a component of the benefit for income taxes in its audited financial statements for the year ended December 31, 2017. SAB 118 allows for a measurement period, not to extend beyond one year from the enactment date, for companies to complete their accounting for the provisions of the Act under ASC 740. As of June 30, 2018, no subsequent adjustments have been made to the provisional amounts recorded with the financial statements for the year ended December 31, 2017. 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 Company's estimate of the impacts of the Act may change due to future guidance issued by the U.S. Treasury Department, Internal Revenue Services, Financial Standards Accounting Board and other standard setting bodies. The Company continues to analyze its estimate of a $0.1 tax related to the Act’s taxation of deemed repatriation on foreign earnings related to the Company’s Bahamas operations. The completion of the Company's 2017 income tax returns by the fourth quarter 2018 may also impact the provisional amounts that have been recorded.

9. Commitments and Contingencies

Financial Instruments

The Company has obtained letters of credit, performance bonds and insurance policies for the performance of the following: landfill final capping, closure and post-closure requirements; certain collection, landfill and transfer station contracts; environmental remediation; and other obligations. Letters of credit are supported by the Company’s Revolver (Note 6).

The Company does not expect that any claims against or draws on these instruments would have a material adverse effect on the Company’s condensed consolidated financial statements. The Company has not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for its current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, the Company continues to evaluate various options to access cost-effective sources of financial assurance.

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, workers' compensation, directors' and officers' liability, pollution, legal liability and other coverages the Company believes are customary to the industry. The Company's exposure to loss for insurance claims is generally limited to the per incident deductible, or self-insured retention, under the related insurance policy. Its exposure, however, could increase if its insurers are unable to meet their commitments on a timely basis.

The Company has retained a significant portion of the risks related to its automobile, general liability, workers' compensation and health claims programs. For its self-insured retentions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation and internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from the Company's assumptions used. The Company does not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on its financial condition, results of operations or cash flows.

Litigation and Other Matters

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

16

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

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 charges (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 February 2017, a waste slide occurred in one cell at the Company’s Greentree Landfill in Kersey, Pennsylvania. During the three months ended June 30, 2018, the Company recorded a benefit in operating expenses of $3.7 as a result of higher insurance recoveries than previously estimated. No benefit or charge was recorded in operating expenses during three months ended June 30, 2017 related to this matter. During the six months ended June 30, 2018 and 2017, the Company recorded a charge in operating expenses of $0.1 and $5.4, respectively. These charges were recorded to adjust the reserve related to this matter to the remaining probable costs to relocate displaced material and restore infrastructure, net of insurance recoveries; this amount could increase or decrease as a result of actual costs incurred to completion. The Company has incurred expenditures of $6.4, net of insurance recoveries, as of June 30, 2018 related to this matter.

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.     

Multiemployer Defined Benefit Pension Plans

Approximately 14.3% of the Company’s workforce is covered by collective bargaining agreements with various local unions across its operating regions. As a result of some of these agreements, certain of the Company’s subsidiaries are participating employers in a number of trustee-managed multiemployer, defined benefit pension plans for the affected employees. In connection with its ongoing renegotiation of various collective bargaining agreements, the Company may discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. A complete or partial withdrawal from a multiemployer pension plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them. The Company is not aware of any such actions in connection with continuing operations. As a result of certain discontinued operations, the Company is potentially exposed to certain withdrawal liabilities. The Company does not believe that any future withdrawals, individually or in the aggregate, from the multiemployer plans to which it contributes could have a material adverse effect on the Company's business, financial condition or liquidity. However, such withdrawals could have a material adverse effect on the Company's results of operations for a particular reporting period, depending on the number of employees withdrawn in any future period and the financial condition of the multiemployer plan(s) at the time of such withdrawal(s).

Tax Matters

The Company has open tax years dating back to 2003. 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.

The Company maintains a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse impact on the Company's results of operations or cash flows.

17

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

10. Segment and Related Information

The Company manages and evaluates its operations primarily through its South, East and Midwest regional segments. These three groups are presented below as the Company’s reportable segments. The Company’s three geographic operating segments provide collection, transfer, disposal and recycling services. The Company serves residential, commercial and industrial, and municipal customers throughout its operating segments.

Service revenues, operating income/(loss) and depreciation and amortization for the Company's reportable segments for the periods indicated are shown in the following tables:

	Service Revenues		Operating Income (Loss)			Depreciation and Amortization
Three Months Ended June 30, 2018
South	$	152.7	$	21.3		$	21.5
East	104.3		12.7			20.5
Midwest	141.1		18.6			26.1
Corporate	—		(17.6		)	1.1
	$	398.1	$	35.0		$	69.2
Three Months Ended June 30, 2017
South	$	139.6	$	24.0		$	19.7
East	100.2		(5.3		)	20.1
Midwest	143.3		20.6			25.2
Corporate	—		(15.2		)	2.5
	$	383.1	$	24.1		$	67.5
Six Months Ended June 30, 2018
South	301.6		47.3			43.2
East	193.6		10.9			38.4
Midwest	267.6		32.5			50.0
Corporate	—		(35.7		)	2.3
	$	762.8	$	55.0		$	133.9
Six Months Ended June 30, 2017
South	$	275.1	$	46.2		$	38.8
East	186.2		(7.9		)	37.7
Midwest	269.2		31.9			47.8
Corporate	—		(34.8		)	4.6
	$	730.5	$	35.4		$	128.9

18

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

The following table presents the Company's revenues disaggregated by major line of business. Recycling rebates paid to customers, franchise fees paid to customers and state landfill taxes are excluded from revenues.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017 (1)		2018		2017 (1)
Residential Collection Revenue	$	101.7	$	97.5	$	201.1	$	191.0
Commercial Collection Revenue	93.9		92.0		186.0		182.6
Rolloff Collection Revenue	65.4		63.2		126.0		120.2
Disposal Revenue	73.4		73.5		130.5		128.8
Fuel and Environmental Charges	29.2		23.9		56.0		46.9
Sale of Recyclables	4.1		8.7		9.4		16.4
Other Revenue	30.4		24.3		53.8		44.6
	$	398.1	$	383.1	$	762.8	$	730.5

(1) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605.

Fluctuations in the Company's operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business and operating segment and by general economic conditions. In addition, its revenues and income from operations typically reflect seasonal patterns. The Company expects its operating results to vary seasonally, with revenues typically lowest in the first quarter, higher in the second and third quarters and lower in the fourth quarter than in the second and third quarters. This seasonality reflects the lower volume of solid waste generated during the late fall, winter and early spring in the East and Midwest segments because of decreased construction and demolition activities during winter months in these regions of the United States. In addition, some of the Company's operating costs may be higher in the winter months. Adverse winter weather conditions slow waste collection activities, resulting in higher labor and operational costs. Greater precipitation in the winter increases the weight of collected municipal solid waste, resulting in higher disposal costs, which are calculated on a per ton basis.

Additionally, certain destructive weather conditions that tend to occur during the second half of the year, such as hurricanes that most often impact the South region, can increase the Company’s revenues in the areas affected. While weather-related and other occurrences can boost revenues through additional work, the earnings generated can be moderated as a result of significant start-up costs and other factors, resulting in earnings at comparatively lower margins. These destructive weather conditions can result in higher fuel costs, higher labor costs, reduced municipal contract productivity and higher disposal costs in disposal neutral markets. Certain weather conditions, including severe winter storms, may result in the temporary suspension of the Company’s operations, which can significantly affect the operating results of the affected regions.

19

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

11. Fair Value Measurements

Assets and Liabilities Accounted for at Fair Value

In measuring fair values of assets and liabilities, the Company uses valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). The Company does not have any assets or liabilities measured using unobservable Level 3 inputs. The Company also uses market data or assumptions that it believes market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of the Company's financial instruments approximate fair value because of their short-term nature. The Company’s assets and liabilities that are measured at fair value on a recurring basis include the following:

				Fair Value Measurement at June 30, 2018 Reporting Date Using
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.9		$	6.9	$	—		$	6.9
Interest rate caps - asset position	13.2			—		13.2			13.2
Total recurring fair value measurements	$	20.1		$	6.9	$	13.2		$	20.1
				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)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.8		$	6.8	$	—		$	6.8
Interest rate caps - asset position	3.7			—		3.7			3.7
Interest rate caps - liability position	(0.4		)	$	—	(0.4		)	(0.4		)
Total recurring fair value measurements	$	10.1		$	6.8	$	3.3		$	10.1

The fair value of the interest rate caps are determined using standard option valuation models with assumptions about interest rates based on those observed in underlying markets (Level 2 in fair value hierarchy).

Fair Value of Debt

The fair value of the Company’s debt (Level 2) is estimated using indirectly observable market inputs, except for the Revolver for which cost approximates fair value due to the short-term nature of the interest rate. Although the Company has determined the estimated fair value amounts using quoted market prices, 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 June 30, 2018 and December 31, 2017, respectively.

20

Advanced Disposal Services, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

(in millions, except share data)

The estimated fair value of the Company’s debt is as follows:

	June 30, 2018		December 31, 2017
Revolver	$	3.0	$	29.0
Senior Notes	422.9		435.1
Term Loan B	1,430.0		1,467.3
	$	1,855.9	$	1,931.4

The carrying value of the Company’s debt at June 30, 2018 and December 31, 2017 was $1,858.0 and $1,914.0, respectively.

21

Item 2. Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations

You should read the following discussion in conjunction with the unaudited condensed consolidated financial statements and notes thereto included under Item 1. 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 2017 Annual Report on Form 10-K. All dollar amounts are presented in millions, unless otherwise stated.

Overview

We are a leading integrated provider of non-hazardous solid waste collection, transfer, recycling and disposal services, operating primarily in secondary markets or under exclusive arrangements. We have a presence in 16 states across the South, East and Midwest regions of the United States, serving approximately 2.8 million residential and over 200,000 commercial and industrial (C&I) customers through our extensive network of 93 collection operations, 73 transfer stations, 22 owned or operated recycling facilities and 40 owned or operated landfills. We operate six landfill gas and renewable energy projects and have an additional 12 third party owned landfill gas and renewable energy projects. We also have post-closure responsibility for five closed landfills. We seek to drive financial performance in markets in which we own or operate a disposal facility or in certain disposal-neutral markets, where the disposal facility is owned by our municipal customer. In markets in which we own or operate a disposal facility, we aim to create and maintain vertically integrated operations through which we manage a majority of our customers' waste from the point of collection through the point of disposal, a process we refer to as internalization. By internalizing a majority of the waste in these markets, we are able to deliver high quality customer service while also ensuring a stable revenue stream and maximizing profitability and cash flow from operations. In disposal-neutral markets, we focus selectively on opportunities where we can negotiate exclusive arrangements with our municipal customers, facilitating highly efficient and profitable collection operations with lower capital requirements.

Geographically, we focus our business principally in secondary, or less densely populated non-urban, markets where the presence of large national providers is generally more limited. We also compete selectively in primary, or densely populated urban, markets where we can capitalize on opportunities for vertical integration through our high-quality transfer and disposal infrastructure and where we can benefit from highly efficient collection route density. We maintain an attractive mix of revenue from varying sources, including residential collections, C&I collections, landfill gas and special waste streams, and fees charged to third parties for disposal in our network of transfer stations and landfills.

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Results of Operations

The following table sets forth for the periods indicated our consolidated results of operations and the percentage relationship that certain items from our condensed consolidated financial statements bear to revenue (in millions and as a percentage of our revenue).

	Three Months Ended June 30,									Six Months Ended June 30,
	2018					2017				2018					2017
Service revenues	$	398.1		100.0	%	$	383.1	100.0	%	$	762.8		100.0	%	$	730.5	100.0	%
Operating costs and expenses
Operating	246.9			62.0	%	236.4		61.7	%	479.2			62.8	%	461.7		63.2	%
Accretion of landfill retirement obligations	3.8			1.0	%	3.8		1.0	%	7.6			1.0	%	7.4		1.0	%
Operating expenses	250.7			63.0	%	240.2		62.7	%	486.8			63.8	%	469.1		64.2	%
Selling, general and administrative	44.5			11.2	%	40.6		10.6	%	90.0			11.8	%	85.7		11.7	%
Depreciation and amortization	69.2			17.4	%	67.5		17.6	%	133.9			17.6	%	128.9		17.6	%
Acquisition and development costs	0.1			—	%	0.4		0.1	%	0.3			—	%	0.8		0.1	%
(Gain) loss on disposal of assets and asset impairments	(1.4		)	(0.4	)%	10.3		2.7	%	(3.3		)	(0.4	)%	10.6		1.5	%
Restructuring charges	—			—	%	—		—	%	0.1			—	%	—		—	%
Total operating costs and expenses	363.1			91.2	%	359.0		93.7	%	707.8			92.8	%	695.1		95.2	%
Operating income	$	35.0		8.8	%	$	24.1	6.3	%	$	55.0		7.2	%	$	35.4	4.8	%

Revenue

Through our subsidiaries, we generate revenue primarily by providing collection and disposal services to commercial, industrial, municipal and residential customers. Our remaining revenue is generated from recycling, fuel and environmental charges, landfill gas-to-energy operations and other ancillary revenue-generating activities. Revenues from our collection operations consist of fees we receive from municipal, subscription, residential and C&I customers and are influenced by factors such as collection frequency, type of collection equipment furnished, type and volume or weight of the waste collected, distance to the recycling, transfer station or disposal facilities and our disposal costs. Standard C&I service agreements are typically three to five years, and we have historically maintained strong relationships with our C&I customers. Our municipal customer relationships are generally supported by exclusive contracts ranging from three to ten years in initial duration with subsequent renewal periods. Certain municipal contracts have annual price escalation clauses that are tied to changes in an underlying base index such as the consumer price index (CPI). We provide commercial front load and temporary and permanent rolloff service offerings to our commercial customers. While the majority of our rolloff services are provided to customers under long-term service agreements, we generally do not enter into written contracts with our temporary rolloff customers due to the relatively short-term nature of most construction and demolition (C&D) projects.

Our transfer stations and landfills generate revenue from disposal or tipping fees. Revenues from our landfill operations consist of fees which are generally based on the type and weight or volume of waste being disposed of at our disposal facilities. Fees charged at transfer stations are generally based on the weight or volume of waste deposited, taking into account our cost of loading, transporting and disposing of the solid waste at a disposal site. Recycling revenue consists of disposal or tipping fees and proceeds from the sale of recyclable commodities to third parties.

The amounts charged for collection, disposal, and recycling services may include fuel charges and environmental charges. Fuel charges and environmental charges are not designed to be specific to the direct costs and expenses to service an individual customer's account, but rather are designed to address and to help recover changes in our overall cost structure and to achieve an operating margin acceptable to us.

Other revenue is comprised of ancillary revenue-generating activities, such as trucking, landfill gas-to-energy operations at municipal solid waste (MSW) landfills, management of third-party owned landfills, customer service charges relating to

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overdue payments, customer administrative charges relating to customers who request paper copies of invoices rather than opting for electronic invoices and compliance and business impact charges.

The following table sets forth our consolidated revenues by line of business for the periods indicated (in millions and as a percentage of total service revenues).

	Three Months Ended June 30,										Six Months Ended June 30,
	2018					2017					2018					2017
Collection	$	269.9		67.8	%	$	252.8		66.0	%	$	530.4		69.5	%	$	494.0		67.6	%
Disposal	148.0			37.2	%	144.6			37.7	%	272.1			35.7	%	262.5			35.9	%
Sale of recyclables	4.4			1.1	%	9.4			2.5	%	9.8			1.3	%	17.6			2.4	%
Fuel charges and environmental charges	30.5			7.7	%	25.1			6.6	%	58.5			7.7	%	49.1			6.7	%
Other revenue	25.1			6.3	%	27.7			7.2	%	43.6			5.7	%	50.7			6.9	%
Intercompany eliminations	(79.8		)	(20.1	)%	(76.5		)	(20.0	)%	(151.6		)	(19.9	)%	(143.4		)	(19.5	)%
Total service revenues	$	398.1		100.0	%	$	383.1		100.0	%	$	762.8		100.0	%	$	730.5		100.0	%

The following table reflects changes in components of our revenue, as a percentage of total revenue, for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Average yield	3.2	%	1.4	%	2.5	%	2.0	%
Recycling	(1.2	)%	1.2	%	(0.9	)%	1.3	%
Fuel surcharge revenue	0.9	%	0.5	%	0.9	%	0.4	%
Total yield	2.9	%	3.1	%	2.5	%	3.7	%
Organic volume	1.2	%	0.6	%	1.7	%	(0.5	)%
Acquisitions	2.6	%	3.4	%	3.1	%	2.6	%
Divestitures	(0.5	)%	(0.1	)%	(0.6	)%	(0.2	)%
Impact of revenue recognition standard adoption	(2.3	)%	—	%	(2.3	)%	—	%
Total revenue growth	3.9	%	7.0	%	4.4	%	5.6	%

Average yield is defined as aggregate contribution of price changes excluding recycled commodities and fuel surcharge revenue.

During the three months ended June 30, 2018, we experienced the following changes in components of our revenue as compared to the same period in fiscal 2017:

• Average yield increased revenue by 3.2% driven by higher open market price yield as we continue to focus on disciplined pricing and higher price yield in our municipal residential collection business due to the positive impact of higher CPI contract resets. Environmental charges and other charges also contributed to our increase in average yield due to recent rate increases that went into effect;

• Recycling revenue decreased revenue by 1.2% due to a decrease in recycling commodity prices;

• Fuel surcharge revenue increased revenue by 0.9% due to an increase in diesel fuel prices. These charges fluctuate in response to changes in prices for diesel fuel on which the surcharge is based and, consequently, any increase in fuel prices results in an increase in our revenue. Our fuel surcharges reset on a monthly basis therefore an increase in our fuel surcharge revenue is delayed in comparison to the increase in our fuel expense when diesel fuel prices increase;

• Organic volume increased revenue by 1.2% primarily due to an increase in our commercial, rolloff and residential collection lines of business partially offset by lower pass through revenue related to special waste trucking volumes;

• Acquisitions increased revenue by 2.6% due to our execution of acquisition opportunities that further enhance our vertical integration strategy;

• Divestitures decreased revenue by 0.5% due to our strategic decision to divest our non-integrated Charlotte collection operations in the second quarter of fiscal 2017;

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• The adoption of the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes decreased revenue by 2.3%.

During the six months ended June 30, 2018, we experienced the following changes in components of our revenue as compared to the same period in fiscal 2017:

• Average yield increased revenue by 2.5% driven by higher open market price yield as we continue to focus on disciplined pricing and higher price yield in our municipal residential collection business due to the positive impact of higher CPI contract resets. Environmental charges and other charges also contributed to our increase in average yield due to recent rate increases that went into effect;

• Recycling revenue decreased revenue by 0.9% due to a decrease in recycling commodity prices;

• Fuel surcharge revenue increased revenue by 0.9% due to an increase in diesel fuel prices;

• Organic volume increased revenue by 1.7% primarily due to an increase in our commercial, rolloff and residential collection lines of business partially offset by lower pass through revenue related to special waste trucking volumes;

• Acquisitions increased revenue by 3.1% due to our execution of acquisition opportunities that further enhance our vertical integration strategy;

• Divestitures decreased revenue by 0.6% due to our strategic decision to divest our non-integrated Charlotte collection operations in the second quarter of fiscal 2017;

• The adoption of the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes decreased revenue by 2.3%.

Operating Expenses

Our operating expenses include the following:

• Labor and related benefits, which consist of salaries and wages, health and welfare benefits, incentive compensation and payroll taxes;

• Transfer and disposal costs which include tipping fees paid to third-party disposal facilities and transfer stations as well as transportation and subcontractor costs (which include costs for independent haulers who transport waste from transfer stations to our disposal facilities and costs for local operators who provide waste handling services associated with markets outside our standard operating areas);

• Maintenance and repairs expenses which include labor, maintenance and repairs to our vehicles, equipment and containers;

• Fuel costs which include the direct cost of fuel used by our vehicles, net of fuel tax credits;

• Franchise fees and taxes which consist of municipal franchise fees not paid to customers, host community fees and royalties;

• Risk management expenses which include casualty insurance premiums, claims payments, estimates for claims incurred but not reported and casualty losses;

• Other expenses which include expenses such as facility operating costs, equipment rent, leachate and sulfate treatment and disposal and other landfill maintenance costs;

• Accretion expense related to landfill capping, closure and post-closure is included in operating expenses in our condensed consolidated statement of operations, but it is excluded from the table below (refer to “Accretion of Landfill Retirement Obligations” below for a detailed discussion of the changes in amounts).

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The following table summarizes the major components of our operating expenses, excluding accretion expense on our landfill retirement obligations (in millions and as a percentage of our revenue):

	Three Months Ended June 30,									Six Months Ended June 30,
	2018					2017				2018				2017
Labor and related benefits	$	83.2		20.9	%	$	77.6	20.3	%	$	165.2	21.7	%	$	153.0	20.9	%
Transfer and disposal costs	54.3			13.6	%	54.1		14.1	%	102.2		13.4	%	101.7		13.9	%
Maintenance and repairs	38.7			9.7	%	34.7		9.1	%	75.7		9.9	%	67.9		9.3	%
Fuel	21.2			5.3	%	16.1		4.2	%	39.4		5.2	%	31.9		4.4	%
Franchise fees and taxes	11.0			2.8	%	18.1		4.7	%	19.7		2.6	%	32.4		4.4	%
Risk management	8.1			2.0	%	7.7		2.0	%	16.4		2.1	%	16.8		2.3	%
Other	28.7			7.3	%	28.1		7.3	%	55.1		7.2	%	52.6		7.2	%
Subtotal	$	245.2		61.6	%	$	236.4	61.7	%	$	473.7	62.1	%	$	456.3	62.5	%
Greentree expenses, net of insurance recoveries	(3.7		)	(0.9	)%	—		—	%	0.1		—	%	5.4		0.7	%
Landfill remediation expenses	5.4			1.3	%	—		—	%	5.4		0.7	%	—		—	%
Total operating expenses, excluding accretion expense	$	246.9		62.0	%	$	236.4	61.7	%	$	479.2	62.8	%	$	461.7	63.2	%

The cost categories shown above may not be comparable to similarly titled categories used by other companies. Thus, you should exercise caution when comparing our operating expenses by cost component to that of other companies.

Three months ended June 30, 2018 compared to 2017

Operating expenses increased by $10.5 or 4.4% to $246.9 for the three months ended June 30, 2018 from $236.4 for the three months ended June 30, 2017. The change was due to the following:

• Labor and related benefits increased by $5.6 or 7.2% to $83.2 which was primarily attributable to a driver shortage, merit increases, acquisition activity and the start of new municipal contracts partially offset by lower healthcare costs as a result of re-designed benefit plans for fiscal 2018;

• Transfer and disposal costs increased by $0.2 or 0.4% to $54.3 as a result of increased third party trucking costs due to labor and fuel cost increases offset by a reduction in recycling rebates primarily due to the impact of adopting the new revenue recognition standard as these rebates are recorded as a reduction of revenue beginning in the first quarter of fiscal 2018;

• Maintenance and repairs expense increased by $4.0 or 11.5% to $38.7 primarily due to a mechanic shortage, acquisition activity and the start of new municipal contracts;

• Fuel costs increased$5.1 or 31.7% to $21.2 impacted by an increase in diesel fuel prices;

• Franchise fees and taxes decreased $7.1 or 39.2% to $11.0 primarily due to the impact of adopting the new revenue recognition standard as a portion of these fees and taxes are recorded as a reduction of revenue beginning in the first quarter of fiscal 2018;

• Risk management expense increased $0.4 or 5.2% to $8.1 primarily due to higher frequency and severity of automobile and property liability claims in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017;

• Other operating costs increased$0.6 or 2.1% to $28.7 due to increases in vehicle and equipment operating expenses and leachate treatment and disposal costs;

• We recorded a benefit in operating expenses of $3.7 during the three months ended June 30, 2018 due to higher insurance recoveries than previously estimated related to the Greentree waste slide as further described in Note 9 to the unaudited consolidated financial statements;

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• We recorded a charge in operating expenses of $5.4 during the three months ended June 30, 2018 at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements.

Six months ended June 30, 2018 compared to 2017

Operating expenses increased by $17.5 or 3.8% to $479.2 for the six months ended June 30, 2018 from $461.7 for the six months ended June 30, 2017. The change was due to the following:

• Labor and related benefits increased by $12.2 or 8.0% to $165.2 which was primarily attributable to a driver shortage, merit increases, acquisition activity and the start of new municipal contracts partially offset by lower healthcare costs as a result of re-designed benefit plans for fiscal 2018 and a decrease in the severity of claims in the six months ended June 30, 2018 as compared to the six months ended June 30, 2017;

• Transfer and disposal costs increased by $0.5 or 0.5% to $102.2 as a result of increased third party trucking costs due to labor and fuel cost increases offset by a reduction in recycling rebates primarily due to the impact of adopting the new revenue recognition standard as these rebates are recorded as a reduction of revenue beginning in the first quarter of fiscal 2018;

• Maintenance and repairs expense increased by $7.8 or 11.5% to $75.7 primarily due to a mechanic shortage, acquisition activity and the start of new municipal contracts;

• Fuel costs increased $7.5 or 23.5% to $39.4 impacted by an increase in diesel fuel prices partially offset by a benefit of $1.8 realized in the six months ended June 30, 2018 from CNG tax credits that were enacted in the first quarter of fiscal 2018 related to fiscal 2017 CNG purchases;

• Franchise fees and taxes decreased $12.7 or 39.2% to $19.7 primarily due to the impact of adopting the new revenue recognition standard as a portion of these fees and taxes are recorded as a reduction of revenue beginning in the first quarter of fiscal 2018;

• Risk management expense decreased $0.4 or 2.4% to $16.4 primarily due to lower frequency and severity of automobile and property liability claims in the first quarter of fiscal 2018 compared to the first quarter of fiscal 2017 partially offset by higher frequency and severity of automobile and property liability claims in the second quarter of fiscal 2018 compared to the second quarter of fiscal 2017;

• Other operating costs increased $2.5 or 4.8% to $55.1 due to increases in vehicle and equipment operating expenses, facility expenses, safety program expenses and leachate treatment and disposal costs;

• Greentree expenses, net of insurance recoveries, decreased $5.3 or 98.1% to $0.1. The costs recorded in each period relate to our estimate of remaining expenses necessary to remediate the damage caused by the waste slide in the first quarter of fiscal 2017 offset by estimated insurance recoveries related to the matter;

• We recorded a charge in operating expenses of $5.4 during the six months ended June 30, 2018 at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements.

Accretion of Landfill Retirement Obligations

Accretion expense was $3.8 and $3.8 for the three months ended June 30, 2018 and 2017, respectively. Accretion expense was $7.6 and $7.4 for the six months ended June 30, 2018 and 2017, respectively. The increase of $0.2 was primarily attributable to the assumption of post-closure responsibility at one of our landfills during the first quarter of fiscal 2017 and the acquisition of a landfill during the first quarter of fiscal 2017. Accretion associated with each of these liabilities was recorded for a full quarter in the first quarter of fiscal 2018 compared to a partial quarter in the first quarter of fiscal 2017.

Selling, General and Administrative

Selling, general and administrative expenses include salaries, legal and professional fees and other expenses. Salaries expenses include salaries and wages, health and welfare benefits and incentive compensation for corporate and field general

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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, marketing, directors’ and officers’ insurance, general employee relocation, travel, entertainment and bank charges, but exclude any such amounts recorded as restructuring charges.

The following table provides the components of our selling, general and administrative expenses for the periods indicated (in millions and as a percentage of our revenue):

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Salaries	$	28.8	7.2	%	$	25.5	6.7	%	$	57.4	7.5	%	$	55.0	7.5	%
Legal and professional	3.4		0.9	%	2.7		0.7	%	7.2		0.9	%	5.9		0.8	%
Other	12.3		3.1	%	12.4		3.2	%	25.4		3.4	%	24.8		3.4	%
Total selling, general and administrative expenses	$	44.5	11.2	%	$	40.6	10.6	%	$	90.0	11.8	%	$	85.7	11.7	%

Three months ended June 30, 2018 compared to 2017

• Our salaries expenses increased by $3.3 or 12.9% to $28.8 primarily due to higher bonus accruals and merit increases.

• Legal and professional fees increased$0.7 or 25.9% to $3.4 due to higher consulting fees of $0.5 primarily associated with information technology projects and higher litigation fees of $0.3.

• Other selling, general and administrative expenses decreased$0.1 or 0.8% to $12.3 primarily due to lower bad debt expense as a result of our billing and collection center consolidation improving collection activities.

Six months ended June 30, 2018 compared to 2017

• Our salaries expenses increased by $2.4 or 4.4% to $57.4 primarily due to higher bonus accruals and merit increases partially offset by lower severance expense and lower stock based compensation expense as a result of initial public offering related awards issued in the six months ended June 30, 2017 that did not recur in six months ended June 30, 2018.

• Legal and professional fees increased $1.3 or 22.0% to $7.2 due to higher consulting fees of $1.1 primarily associated with information technology projects and higher litigation fees of $0.4.

• Other selling, general and administrative expenses increased $0.6 or 2.4% to $25.4 primarily due to an increase in computer hardware and software maintenance costs partially offset by lower bad debt expense as a result of our billing and collection center consolidation improving collection activities.

Depreciation and Amortization

The following table summarizes the components of depreciation and amortization expense by asset type (in millions and as a percentage of our revenue). For a detailed discussion of depreciation and amortization by asset type refer to the discussion included in the following two sections herein.

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Depreciation, amortization and depletion of property and equipment	$	58.9	14.8	%	$	57.1	14.9	%	$	113.2	14.8	%	$	108.1	14.8	%
Amortization of other intangible assets	10.3		2.6	%	10.4		2.7	%	20.7		2.8	%	20.8		2.8	%
Depreciation and amortization	$	69.2	17.4	%	$	67.5	17.6	%	$	133.9	17.6	%	$	128.9	17.6	%

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Depreciation, Amortization and Depletion of Property and Equipment

Depreciation, amortization and depletion expense includes depreciation of fixed assets over the estimated useful life of the assets using the straight-line method, and amortization and depletion of landfill airspace assets under the units-of-consumption method. Refer to the footnotes to the consolidated financial statements in our 2017 Annual Report on Form 10-K for a further discussion of our accounting policies.

The following table summarizes depreciation, amortization and depletion of property and equipment for the periods indicated (in millions and as a percentage of our revenue):

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
Depreciation and amortization of property and equipment	$	34.5	8.7	%	$	33.4	8.7	%	$	68.9	9.0	%	$	65.9	9.0	%
Landfill depletion and amortization	24.4		6.1	%	23.7		6.2	%	44.3		5.8	%	42.2		5.8	%
Depreciation, amortization and depletion of property and equipment	$	58.9	14.8	%	$	57.1	14.9	%	$	113.2	14.8	%	$	108.1	14.8	%

Three months ended June 30, 2018 compared to 2017

• Depreciation and amortization of property and equipment increased $1.1 or 3.3% to $34.5 due mainly to acquisition activity and equipment purchased related to the start of new municipal contracts.

• Landfill depletion and amortization increased$0.7 or 3.0% to $24.4 due to acquisition activity and the mix of disposal volumes.

Six months ended June 30, 2018 compared to 2017

• Depreciation and amortization of property and equipment increased $3.0 or 4.6% to $68.9 due mainly to acquisition activity and equipment purchased related to the start of new municipal contracts.

• Landfill depletion and amortization increased $2.1 or 5.0% to $44.3 due to acquisition activity and the mix of disposal volumes.

Amortization of Other Intangible Assets

Amortization of other intangible assets was $10.3 and $10.4, or as a percentage of revenue, 2.6% and 2.7%, for the three months ended June 30, 2018 and 2017, respectively. Amortization of other intangible assets was $20.7 and $20.8 or as a percentage of revenue, 2.7% and 2.8%, for the six months ended June 30, 2018 and 2017, respectively. The decreases for the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017 was due to certain intangible assets becoming fully amortized partially offset by the impact of acquisition activity.

Acquisitions and Divestitures

In the ordinary course of our business, we regularly evaluate and pursue acquisition opportunities that further enhance our vertical integration strategy. We also regularly evaluate our current operations and consider divesting of those operations that do not provide us with an acceptable profit margin.

We completed six acquisitions during the six months ended June 30, 2018 for a cash purchase price of $5.9 and notes payable of $0.7, subject to net working capital adjustments, which we expect to be completed within approximately one year. Eight acquisitions were completed during the six months ended June 30, 2017 for a cash purchase price, net of cash acquired, of $84.3 and notes payable of $1.6. The results of operations of each acquisition are included in our condensed consolidated statements of operations subsequent to the closing date of each acquisition.

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Gain/Loss on Disposal of Assets and Asset Impairments

We had a gain on disposal of assets of $1.4 and a loss on disposal of assets and asset impairments of $10.3 during the three months ended June 30, 2018 and 2017, respectively. We had a gain on disposal of assets of $3.3 and a loss on disposal of assets and asset impairments of $10.6 during the six months ended June 30, 2018 and 2017, respectively. The gains for the three and six months ended June 30, 2018 were primarily related to the sale of a property in Clay County, Florida and the losses during the three and six months ended June 30, 2017 were primarily related to the South Carolina intangible asset impairment.

Other, Net

Changes in the fair value and settlements of derivative instruments are recorded in other income (expense), net in the condensed consolidated statements of operations and amounted to income of $1.4 and losses of $2.0 for the three months ended June 30, 2018 and 2017, respectively. Changes in the fair value and settlements of derivative instruments amounted to income of $6.6 and losses of $3.3 for the six months ended June 30, 2018 and 2017, respectively. Income from equity investee for the three months ended June 30, 2018 and 2017, respectively, was $0.4 and $0.2. Income from equity investee for the six months ended June 30, 2018 and 2017, respectively, was $0.9 and $0.6.

Interest Expense

Interest expense increased by $0.5 or 2.2% to $23.6 for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. Interest expense increased by $1.0 or 2.2% to $46.6 for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increases were primarily due to the impact of increasing interest rates on our variable rate debt partially offset by the impact of our Term Loan B repricing in the fourth quarter of fiscal 2017 and lower debt levels during the three and six months ended June 30, 2018 compared to the three and six months ended June 30, 2017.

Cash paid for interest was $28.0 and $27.6 for the three months ended June 30, 2018 and 2017, respectively. Cash paid for interest was $43.2 and $42.4 for the six months ended June 30, 2018 and 2017, respectively.

Income Taxes

Our effective income tax rate for the three months ended June 30, 2018 and 2017 was 27.6% and 33.3%, respectively. We evaluate our effective income tax rate at each interim period and adjust it accordingly as facts and circumstances warrant. The difference between income taxes computed at the federal statutory rate of 21% and reported income taxes for the three months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The effective tax rate for the three months ended June 30, 2017 is materially consistent with the federal statutory rate of 35%.

Our effective income tax rate for the six months ended June 30, 2018 and 2017 was 27.6% and 40.0%, respectively. The difference between income taxes computed at the federal statutory rate of 21% and reported income tax benefit for the six months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The difference between income taxes computed at the federal statutory rate of 35% and reported income taxes for the six months ended June 30, 2017 was primarily due to the favorable impact of recorded valuation allowance and the favorable impact of state and local taxes.

Cash paid for income taxes (net of refunds) was $0.9 and $0.3 for the three months ended June 30, 2018 and 2017, respectively. Cash paid for income taxes (net of refunds) was $1.0 and $0.6 for the six months ended June 30, 2018 and 2017, respectively.

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Reportable Segments

Our operations are managed through three geographic regions (South, East and Midwest) that we designate as our reportable segments. Service revenues, operating income/(loss) and depreciation and amortization for our reportable segments for the periods indicated are shown in the following tables:

	Service Revenues		Operating Income (Loss)			Depreciation and Amortization
Three Months Ended June 30, 2018
South	$	152.7	$	21.3		$	21.5
East	104.3		12.7			20.5
Midwest	141.1		18.6			26.1
Corporate	—		(17.6		)	1.1
	$	398.1	$	35.0		$	69.2
Three Months Ended June 30, 2017
South	$	139.6	$	24.0		$	19.7
East	100.2		(5.3		)	20.1
Midwest	143.3		20.6			25.2
Corporate	—		(15.2		)	2.5
	$	383.1	$	24.1		$	67.5
Six Months Ended June 30, 2018
South	301.6		47.3			43.2
East	193.6		10.9			38.4
Midwest	267.6		32.5			50.0
Corporate	—		(35.7		)	2.3
	$	762.8	$	55.0		$	133.9
Six Months Ended June 30, 2017
South	$	275.1	$	46.2		$	38.8
East	186.2		(7.9		)	37.7
Midwest	269.2		31.9			47.8
Corporate	—		(34.8		)	4.6
	$	730.5	$	35.4		$	128.9

Comparison of Reportable Segments—Three Months Ended June 30, 2018 compared to Three Months Ended June 30, 2017

South Segment

Revenue increased$13.1 or 9.4% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The increase in revenue was due to the following: an increase in acquisition related revenue of $5.3; an increase in residential collection volume of $2.9 primarily due to the start of a new municipal contract in the fourth quarter of fiscal 2017; an increase in pricing in our residential, commercial and rolloff collection operations of $2.3; an increase in MSW, C&D and special waste landfill disposal pricing of $2.2; an increase in environmental and other charges of $1.8 due to recent rate increases that went into effect; an increase in rolloff collection volume of $0.9; and an increase in fuel surcharge revenue of $0.9 due to an increase in diesel fuel prices. The increases were partially offset by a decrease in MSW and special waste disposal volumes of $4.3 primarily due to waste re-direction activities at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements.

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Operating income from our South Segment decreased by $2.7 or 11.3% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The decrease was primarily due to the following: an increase of $5.4 in remediation costs at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements; an increase in salaries and wages of $3.7 primarily attributable to a driver shortage, merit increases, acquisition activity and the start of a new municipal contract; an increase in fuel costs of $2.3 due to an increase in diesel fuel prices; an increase in depreciation and amortization of $1.7 due mainly to acquisition activity and equipment purchased related to the start of a new municipal contract; an increase in maintenance and repairs expense of $1.5 primarily due to a mechanic shortage, acquisition activity and the start of a new municipal contract; and an increase in disposal costs of $0.8 due to the start of a new municipal contract in a market where we do not own a disposal facility. The decrease to operating income was partially offset by the revenue increase of $13.1 as described above.

East Segment

Revenue increased by $4.1, or 4.1% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The increase was primarily due to the following: an increase in acquisition related revenue of $2.3; an increase in fuel surcharge revenue of $1.7 due to an increase in diesel fuel prices; an increase in environmental and other charges of $1.6 due to recent rate increases that went into effect; an increase in commercial and rolloff collection pricing of $1.4; an increase in special waste disposal volume of $1.4; and an increase in MSW and C&D disposal pricing of $1.2. The increases were partially offset by the following: a decrease in revenue of $1.9 due to our strategic decision to divest our non-integrated Charlotte collection operations in the second quarter of fiscal 2017; a decrease in revenue of $1.7 as a result of adopting the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes; and a reduction in pass through revenue related to special waste trucking volumes of $1.3.

Operating income from our East Segment increased $18.0 for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The increase in operating income was primarily due to the following: the South Carolina intangible asset impairment of $13.0 during the second quarter of fiscal 2017 that did not recur in the second quarter of fiscal 2018; a benefit of $3.7 recorded during the three months ended June 30, 2018 due to higher insurance recoveries than previously estimated related to the Greentree waste slide; and an increase in revenue of $5.8 after adjusting for the impact of adopting the new revenue recognition standard. These favorable variances were partially offset by the following: an increase in maintenance and repairs expense of $1.4 primarily due to a mechanic shortage and acquisition activity; an increase in fuel costs of $1.3 due to an increase in diesel fuel prices; and an increase in salaries and wages of $0.6 primarily attributable to a driver shortage, merit increases and acquisition activity partially offset by lower healthcare costs as a result of re-designed benefit plans for fiscal 2018.

Midwest Segment

Revenue decreased$2.2 or 1.5% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The decrease was primarily due to a decrease in revenue of $6.2 as a result of adopting the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes and a decrease in revenue of $3.5 due to a decrease in recycled commodity prices. The decreases were partially offset by the following: an increase in environmental and other charges of $3.1 due to recent rate increases that went into effect; an increase in acquisition related revenue of $2.4; and an increase in fuel surcharge revenue of $1.0 due to an increase in diesel fuel prices.

Operating income from our Midwest Segment decreased by $2.0, or 9.7% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017. The decrease in operating income is primarily due to the following: an increase in fuel costs of $1.6 due to an increase in diesel fuel prices; an increase in salaries and wages of $1.4 primarily attributable to a driver shortage, merit increases and acquisition activity; an increase in maintenance and repairs expense of $1.4 primarily due to a mechanic shortage and acquisition activity; and an increase in depreciation and amortization of $1.0 due mainly to acquisition activity. The decrease in operating income was partially offset by an increase in revenue of $3.9 after adjusting for the impact of adopting the new revenue recognition standard.

Corporate

Operating loss increased$2.4 or 15.8% for the three months ended June 30, 2018 compared to the three months ended June 30, 2017 primarily due to higher bonus accruals of $1.5 and higher professional fees of $1.2 associated with information technology projects and litigation.

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Comparison of Reportable Segments—Six Months Ended June 30, 2018 compared to Six Months Ended June 30, 2017

South Segment

Revenue increased $26.5 or 9.6% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increase in revenue was due to the following: an increase in acquisition related revenue of $12.1; an increase in residential collection volume of $5.8 primarily due to the start of a new municipal contract in the fourth quarter of fiscal 2017; an increase in pricing in our residential, commercial and rolloff collection operations of $4.1; an increase in MSW, C&D and special waste landfill disposal pricing of $3.4; an increase in environmental and other charges of $2.6 due to recent rate increases that went into effect; an increase in brokerage revenue of $1.9; and an increase in fuel surcharge revenue of $1.5 due to an increase in diesel fuel prices. The increases were partially offset by a decrease in MSW and special waste disposal volumes of $5.1 primarily due to waste re-direction activities at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements.

Operating income from our South Segment increased by $1.1 or 2.4% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increase was primarily due to the revenue increase of $26.5 as described above. The increase was largely offset by the following; an increase in salaries and wages of $7.2 primarily attributable to a driver shortage, merit increases, acquisition activity and the start of a new municipal contract; an increase of $5.4 in remediation costs at one of our landfills as further described in Note 1 to the unaudited consolidated financial statements; an increase in depreciation and amortization of $4.3 due mainly to acquisition activity and equipment purchased related to the start of a new municipal contract; an increase in maintenance and repairs expense of $3.5 primarily due to a mechanic shortage, acquisition activity and the start of a new municipal contract; an increase in fuel costs of $3.2 due to an increase in diesel fuel prices; and an increase in disposal costs of $2.1 due to the start of a new municipal contract in a market where we do not own a disposal facility.

East Segment

Revenue increased by $7.4, or 4.0% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increase was primarily due to the following: an increase in acquisition related revenue of $6.2; an increase in residential, commercial and rolloff collection volume of $3.2; an increase in fuel surcharge revenue of $2.3 due to an increase in diesel fuel prices; an increase in environmental and other charges of $2.1 due to recent rate increases that went into effect; an increase in commercial and rolloff collection pricing of $2.0; an increase in special waste disposal volume of $1.6; and an increase in MSW and C&D disposal pricing of $1.9. The increases were partially offset by the following: a decrease in revenue of $4.1 due to our strategic decision to divest our non-integrated Charlotte collection operations in the second quarter of fiscal 2017; a decrease in revenue of $3.2 as a result of adopting the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes; a reduction in pass through revenue related to special waste trucking volumes of $2.0; and a decrease in C&D disposal volume of $1.5.

Operating income from our East Segment increased $18.8 for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increase in operating income was primarily due to the following: the South Carolina intangible asset impairment of $13.0 during the second quarter of fiscal 2017 that did not recur in the second quarter of fiscal 2018; an increase in revenue of $10.5 after adjusting for the impact of adopting the new revenue recognition standard; a benefit of $3.7 recorded during the six months ended June 30, 2018 due to higher insurance recoveries than previously estimated related to the Greentree waste slide; and a decrease in expenses of $1.6 related to the Greentree landfill waste slide. These favorable variances were partially offset by the following: an increase in maintenance and repairs expense of $2.6 primarily due to a mechanic shortage and acquisition activity; an increase in salaries and wages of $2.1 primarily attributable to a driver shortage, merit increases and acquisition activity partially offset by lower healthcare costs as a result of re-designed benefit plans for fiscal 2018 and a decrease in the severity of claims in the six months ended June 30, 2018 as compared to the six months ended June 30, 2017; an increase in fuel costs of $1.9 due to an increase in diesel fuel prices; a gain of $1.4 on the sale of Charlotte, North Carolina collection operations during the six months ended June 30, 2017 that did not recur in the six months ended June 30, 2018; an increase in third party trucking costs of $0.9 due to labor and fuel cost increases; and an increase in depreciation and amortization of $0.9 due mainly to acquisition activity.

Midwest Segment

Revenue decreased $1.6 or 0.6% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The decrease was primarily due to a decrease in revenue of $11.9 as a result of adopting the new revenue recognition standard and an associated policy election to record revenues net of applicable state landfill taxes and a decrease in revenue of $5.4 due to a decrease in recycled commodity prices. The decreases were partially offset by the following: an increase in environmental and

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other charges of $4.4 due to recent rate increases that went into effect; an increase in acquisition related revenue of $4.4; an increase in residential, commercial and rolloff collection volume of $2.7; an increase in MSW, C&D and special waste disposal volume of $2.4; and an increase in fuel surcharge revenue of $2.4 due to an increase in diesel fuel prices.

Operating income from our Midwest Segment increased by $0.6, or 1.9% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. The increase was primarily due to an increase in revenue of $10.3 after adjusting for the impact of adopting the new revenue recognition standard. The increase was largely offset by the following: an increase in salaries and wages of $2.9 primarily attributable to a driver shortage, merit increases and acquisition activity; an increase in depreciation and amortization of $2.4 due mainly to acquisition activity; an increase in fuel costs of $2.3 due to an increase in diesel fuel prices; and an increase in maintenance and repairs expense of $1.8 primarily due to a mechanic shortage and acquisition activity.

Corporate

Operating loss increased $0.9 or 2.6% for the six months ended June 30, 2018 compared to the six months ended June 30, 2017 primarily due to higher bonus accruals of $2.5 and higher professional fees of $1.6 associated with information technology projects and litigation. These increases to operating loss were partially offset by lower stock based compensation expense of $1.4 as a result of initial public offering related awards issued in the six months ended June 30, 2017 that did not recur in the six months ended June 30, 2018 and lower severance expense of $1.2 during the six months ended June 30, 2018 compared to the six months ended June 30, 2017.

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Liquidity and Capital Resources

Our primary sources of cash are cash flows from operations, bank borrowings, debt offerings and equity offerings. We intend to use excess cash on hand and cash from operating activities, together with bank borrowings, to fund purchases of property and equipment, working capital, acquisitions and debt repayments. For this reason and since we efficiently manage our working capital requirements, it is common for us to have negative working capital. Actual debt repayments may include purchases of our outstanding indebtedness in the secondary market or otherwise. We believe that our current cash balances, cash from operating activities and funds available under our Revolver will provide us with sufficient financial resources to meet our anticipated capital requirements and maturing obligations as they come due. At June 30, 2018, we had negative working capital which was driven by purchases of property and equipment and landfill construction and development during the six months ended June 30, 2018 as well as the use of our cash to fund debt repayments and acquisitions. At December 31, 2017, we had negative working capital which was driven by cash used for acquisitions during fiscal 2017. We have more than adequate availability on our Revolving Credit Facility to fund short term working capital requirements.

Summary of Cash and Cash Equivalents and Debt Obligations

The table below presents a summary of our cash and cash equivalents and debt balances (in millions):

	June 30, 2018		December 31, 2017
Cash and cash equivalents	$	6.9	$	6.8
Debt:
Current portion	49.2		74.1
Long-term portion	1,855.6		1,884.2
Total debt	$	1,904.8	$	1,958.3

Summary of Cash Flow Activity

The following table sets forth for the periods indicated a summary of our cash flows (in millions):

	Six months ended June 30,
	2018			2017
Net cash provided by operating activities	$	163.2		$	170.8
Net cash used in investing activities	$	(88.2	)	$	(152.5	)
Net cash used in financing activities	$	(74.9	)	$	(16.6	)

Cash Flows Provided by Operating Activities

We generated $163.2 of cash flows from operating activities during the six months ended June 30, 2018, compared with $170.8 during the six months ended June 30, 2017. The decrease was primarily due to the following:

• During the six months ended June 30, 2017, we entered into an Asset Transfer and Liability Assumption Agreement with BFI Waste Systems of North America, LLC. We received a cash payment of $24.0 which was recorded as an operating cash flow. In exchange for this payment, we assumed certain post-closure liabilities of a closed portion of a landfill and became responsible for expenditures related to a gas infrastructure system. The present value of the assumed post-closure liabilities and expenditures related to the gas infrastructure system over the life of the landfill approximate the amount of the cash payment. This payment did not recur in the six months ended June 30, 2018;

• A decrease in other long term liabilities of $5.8 during the six months ended June 30, 2018 compared to an increase of $0.2 during the six months ended June 30, 2017. The variance is the result of us settling several large legacy automobile claims during the six months ended June 30, 2018;

• An increase in capping, closure and post closure expenditures of $4.2 due to the timing of landfill closure cash expenditures;

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The decrease in cash flows provided by operating activities for the six months ended June 30, 2018 was partially offset by the following:

• An increase in net income of $12.9, after adjusting for non cash items, due to improved operating results;

• An increase of $26.9 in accounts payable during the six months ended June 30, 2018 compared to a increase of $18.3 during the six months ended June 30, 2017, resulting in a positive variance of $8.6. Days Payable Outstanding was 40.1 during the three months ended June 30, 2018 compared to 35.5 during the three months ended June 30, 2017;

• A larger decrease in prepaid expenses and other current assets of $4.0 primarily due to a payment received during the six months ended June 30, 2018 associated with an insurance receivable related to the Greentree waste slide. Additionally, we had a higher prepaid insurance balance at December 31, 2017 compared to December 31, 2016 due to timing of payments and increased premiums.

Cash flows from operating activities are used to fund capital expenditures, acquisitions, interest payments and debt.

Cash Flows Used in Investing Activities

We used $88.2 of cash in investing activities during the six months ended June 30, 2018 compared with $152.5 during the six months ended June 30, 2017, adecrease of $64.3. The variance was due to the following:

• A decrease of $78.4 in cash expenditures used to fund acquisitions;

• Higher cash expenditures of $6.6 used to fund the purchase of property and equipment and landfill construction and development;

• Lower proceeds of $7.5 from the sale of property and equipment and businesses due to the sale of our Charlotte, North Carolina operations during the six months ended June 30, 2017 partially offset by proceeds associated with our sale of land in Clay County, Florida during the six months ended June 30, 2018.

Cash Flows Used In Financing Activities

During the six months ended June 30, 2018, net cash used in financing activities was $74.9 compared to net cash used in financing activities of $16.6 during the six months ended June 30, 2017, a decrease of $58.3. The variance was primarily due to the following:

• An increase in net payments on debt instruments of $54.6 as we used excess cash to make debt repayments in the six months ended June 30, 2018 compared to using excess cash to fund acquisitions in the six months ended June 30, 2017;

• A decrease in proceeds from stock option exercises of $3.7.

Senior Secured Credit Facilities

On November 21, 2017, we entered into Amendment No. 1 (the “Amendment”) to our 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 our applicable margin on the Term Loan B by 0.50% per annum.

On November 10, 2016, we 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 $300.0 Revolving Credit Facility maturing 2021 (together our "Senior Secured Credit Facilities"). The Revolving Credit Facility allows for up to $100.0 million of letters of credit outstanding. The proceeds were used to repay borrowings under the Existing Credit Agreement and to call a portion of our 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.

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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 our total net leverage ratio is greater than 4.0:1.0. If our 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 our existing and future domestic restricted subsidiaries (subject to certain exceptions) and are secured by a first-priority security interest in substantially all our personal property assets, and certain real property assets, including all or a portion of the equity interests of certain of our 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 our 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 our Senior Secured Credit Facilities can be used for working capital, capital expenditures, acquisitions and other general corporate purposes. As of June 30, 2018 and December 31, 2017, we had $3.0 and $29.0 in borrowings outstanding under our Revolving Credit Facility. As of June 30, 2018 and December 31, 2017, we had an aggregate of approximately $32.3 and $39.3 of letters of credit outstanding under our Senior Secured Credit Facilities. As of June 30, 2018 and December 31, 2017, we had remaining capacity under our Revolving Credit Facility of $264.7 and $231.7, respectively. As of June 30, 2018, we were in compliance with the covenants under the Senior Secured Credit Facilities. Our ability to maintain compliance with our covenants will be highly dependent on our results of operations and, to the extent necessary, our 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 commitment fees for the three and six months ended June 30, 2018 and 2017 were not significant.

We are subject to a maximum total net leverage ratio of 6.8:1.0. The actual total net leverage ratio at June 30, 2018 and December 31, 2017 was 4.5:1.0 and 4.7:1.0, respectively.

5.625% Senior Notes due 2024

On November 10, 2016, we 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”).

We 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 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, we 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, we 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, we 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.

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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 our ability 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 our assets; transfer and sell assets; and create restrictions on dividends or other payments by our 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 our current and future U.S. subsidiaries that guarantee the Amended and Restated Credit Agreement. As of June 30, 2018, we were in compliance with the covenants under the Indenture.

Off-Balance Sheet Arrangements

As of June 30, 2018 and December 31, 2017, we had no off-balance sheet debt or similar obligations, other than financial assurance instruments and operating leases, which are not classified as debt. We do not guarantee any third-party debt.

Seasonality

We expect our operating results to vary seasonally, with revenues typically lowest in the first quarter, higher in the second and third quarters and lower in the fourth quarter than in the second and third quarters. This seasonality reflects the lower volume of solid waste generated during the late fall, winter and early spring in the East and Midwest segments because of decreased construction and demolition activities during winter months in these regions of the U.S. In addition, some of our operating costs may be higher in the winter months. Adverse winter weather conditions slow waste collection activities, resulting in higher labor and operational costs. Greater precipitation in the winter increases the weight of collected municipal solid waste, resulting in higher disposal costs, which are calculated on a per ton basis.

Additionally, certain destructive weather conditions that tend to occur during the second half of the year, such as hurricanes that most often impact the South region, can increase the Company’s revenues in the areas affected. While weather-related and other occurrences can boost revenues through additional work, the earnings generated can be moderated as a result of significant start-up costs and other factors, resulting in earnings at comparatively lower margins. These destructive weather conditions can result in higher fuel costs, higher labor costs, reduced municipal contract productivity and higher disposal costs in disposal neutral markets.

Liquidity Impacts of Income Tax Items

As of June 30, 2018, we have $31.0 of liabilities associated with unrecognized tax benefits and related interest. These liabilities are primarily included as a component of other long-term liabilities in our condensed consolidated balance sheet because the Company generally does not anticipate that settlement of the liabilities will require payment of cash within the next 12 months. We are not able to reasonably estimate when we would make any cash payments required to settle these liabilities, but we do not believe that the ultimate settlement of our obligations will materially affect our liquidity.

Financial Assurance

We must provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping, closure and post-closure costs, and related to our performance under certain collection, landfill and transfer station contracts. We satisfy these financial assurance requirements by providing surety bonds and letters of credit. The amount of the financial assurance requirements for capping, closure and post-closure costs is determined by applicable state environmental regulations. The financial assurance requirements for capping, closure and post-closure costs may be associated with a portion of the landfill or the entire landfill. Generally, states require a third-party engineering specialist to determine the estimated capping, closure and post-closure costs that are used to determine the required

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amount of financial assurance for a landfill. The amount of financial assurance required can, and generally will, differ from the obligation determined and recorded under U.S. GAAP. The amount of the financial assurance requirements related to contract performance varies by contract. Additionally, we must provide financial assurance for our insurance program and collateral for certain performance obligations. We do not expect a material increase in financial assurance requirements in the foreseeable future, although the mix of financial assurance instruments may change.

These financial instruments are issued in the normal course of business and are not considered company indebtedness. Because we currently have no liability for these financial assurance instruments, they are not reflected in our condensed consolidated balance sheets. However, we record capping, closure and post-closure liabilities and self-insurance liabilities as they are incurred. The underlying obligations of the financial assurance instruments, in excess of those already reflected in our condensed consolidated balance sheets, would be recorded if it is probable that we would be unable to fulfill our related obligations. We do not expect this to occur.

Critical Accounting Policies and Estimates

Our condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”). The preparation of financial statements in accordance with GAAP requires our management to make estimates and assumptions that affect the amounts reported in the unaudited condensed consolidated financial statements and accompanying notes. Our estimates and assumptions are based on historical experience and changes in the business environment. However, actual results may differ from estimates under different conditions, sometimes materially. Critical accounting policies and estimates are defined as those that are both most important to the portrayal of our financial condition and results and require management’s most subjective judgments. A summary of significant accounting policies is disclosed in Note 1 to the Consolidated Financial Statements included in our 2017 Annual Report on Form 10-K. Our critical accounting policies are further described under the caption “Discussion of Critical Accounting Policies” in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our 2017 Annual Report on Form 10-K.

Recently Issued and Proposed Accounting Standards

For a description of new accounting standards that may affect us, see Note 2, Basis of Presentation, to our unaudited condensed consolidated financial statements in Part 1 of this Form 10-Q.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks as of June 30, 2018, does not differ materially from that included in our 2017 Annual Report on Form 10-K.

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this Form 10-Q. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2018, our disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II: OTHER INFORMATION

Item 1. Legal Proceedings

Information regarding our legal proceedings can be found under the Litigation and Other Matters section of Note 9 to the unaudited condensed consolidated financial statements.

Item 1A. Risk Factors

There have been no material changes from risk factors previously disclosed in our 2017 Annual Report on Form 10-K in response to Item 1A to Part I of Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None.

Item 3. Defaults upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Not applicable.

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Item 6. Exhibits

Exhibit 31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101.INS	XBRL Instance Document
Exhibit 101.SCH	XBRL Extension Schema Document
Exhibit 101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
Exhibit 101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
Exhibit 101.LAB	XBRL Taxonomy Extension Label Linkbase Document
Exhibit 101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

41

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

August 7, 2018	Advanced Disposal Services, Inc.
	By:	/s/ Steven R. Carn
		Steven R. Carn
		Chief Financial Officer

42

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard Burke certify that:

i. I have reviewed this report on Form 10-Q of Advanced Disposal Services, Inc.;

ii. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

iii. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

iv. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a — 15(e) and 15d — 15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

v. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 7, 2018

By: /s/ RICHARD BURKE

Richard Burke

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO RULES 13a-14(a) AND 15d-14(a)

UNDER THE SECURITIES EXCHANGE ACT OF 1934,

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Steven R. Carn, certify that:

i. I have reviewed this report on Form 10-Q of Advanced Disposal Services, Inc.;

ii. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

iii. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

iv. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a — 15(e) and 15d — 15(e)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

v. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 7, 2018

By: /s/ STEVEN R. CARN

Steven R. Carn

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Disposal Services, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard Burke, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 7, 2018

By: /s/ RICHARD BURKE

Richard Burke

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Advanced Disposal Services, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Steven R. Carn, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 7, 2018

By: /s/ STEVEN R. CARN

Steven R. Carn

Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 20, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	Advanced Disposal Services, Inc.
Entity Central Index Key	0001585790
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		88,587,220

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 6.9	$ 6.8
Accounts receivable, net of allowance for doubtful accounts of $4.6 and $5.4, respectively	208.5	199.9
Prepaid expenses and other current assets	40.0	37.9
Total current assets	255.4	244.6
Other assets	30.9	23.0
Property and equipment, net of accumulated depreciation of $1,460.0 and $1,355.5, respectively	1,730.8	1,728.8
Goodwill	1,210.3	1,208.2
Other intangible assets, net of accumulated amortization of $268.3 and $247.6, respectively	271.2	288.7
Total assets	3,498.6	3,493.3
Current liabilities
Accounts payable	125.1	92.3
Accrued expenses	106.5	113.0
Deferred revenue	70.3	69.1
Current maturities of landfill retirement obligations	20.2	20.2
Current maturities of long-term debt	49.2	74.1
Total current liabilities	371.3	368.7
Other long-term liabilities	58.7	61.5
Long-term debt, less current maturities	1,855.6	1,884.2
Accrued landfill retirement obligations, less current maturities	210.8	205.7
Deferred income taxes	93.9	88.6
Total liabilities	2,590.3	2,608.7
Commitments and contingencies
Equity
Common stock: $.01 par value, 1,000,000,000 shares authorized, 88,575,377 and 88,491,194 shares outstanding, respectively	0.9	0.9
Treasury stock at cost, 2,274 and 2,274 shares, respectively	0.0	0.0
Additional paid-in capital	1,493.3	1,487.4
Accumulated deficit	(588.7)	(603.3)
Accumulated other comprehensive income (loss)	2.8	(0.4)
Total stockholders' equity	908.3	884.6
Total liabilities and stockholders’ equity	$ 3,498.6	$ 3,493.3

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 4.6	$ 5.4
Accumulated depreciation property and equipment	1,460.0	1,355.5
Accumulated amortization other intangible assets	$ 268.3	$ 247.6
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)	88,575,377	88,491,194
Treasury stock at cost (in shares)	2,274	2,274

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Statement [Abstract]
Service revenues	$ 398.1	$ 383.1	$ 762.8	$ 730.5
Operating costs and expenses
Operating	250.7	240.2	486.8	469.1
Selling, general and administrative	44.5	40.6	90.0	85.7
Depreciation and amortization	69.2	67.5	133.9	128.9
Acquisition and development costs	0.1	0.4	0.3	0.8
(Gain) loss on disposal of assets and asset impairments	(1.4)	10.3	(3.3)	10.6
Restructuring charges	0.0	0.0	0.1	0.0
Total operating costs and expenses	363.1	359.0	707.8	695.1
Operating income	35.0	24.1	55.0	35.4
Other (expense) income
Interest expense	(23.6)	(23.1)	(46.6)	(45.6)
Other income (expense), net	2.0	(1.3)	7.9	(1.8)
Total other expense	(21.6)	(24.4)	(38.7)	(47.4)
Income (loss) before income taxes	13.4	(0.3)	16.3	(12.0)
Income tax expense (benefit)	3.7	(0.1)	4.5	(4.8)
Net income (loss)	$ 9.7	$ (0.2)	$ 11.8	$ (7.2)
Net income (loss) attributable to common stockholders per share
Basic income (loss) per share (in dollars per share)	$ 0.11	$ 0.00	$ 0.13	$ (0.08)
Diluted income (loss) per share (in dollars per share)	$ 0.11	$ 0.00	$ 0.13	$ (0.08)
Basic average shares outstanding (in shares)	88,555,647	88,275,698	88,535,860	88,206,590
Diluted average shares outstanding (in shares)	89,272,966	88,275,698	89,147,337	88,206,590

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 9.7	$ (0.2)	$ 11.8	$ (7.2)
Change in fair value of interest rate caps, net of tax of $0.4 and $1.1 for the three and six months ended June 30, 2018, respectively	1.0	0.0	3.2	0.0
Comprehensive income (loss)	$ 10.7	$ (0.2)	$ 15.0	$ (7.2)

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Change in fair value of interest rate caps, tax	$ 0.4	$ 0.0	$ 1.1	$ 0.0

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Millions	Total	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive (Loss) Income
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Impact of implementing new revenue recognition standard, net of tax of $1.1	$ 2.8				$ 2.8
Balance (in shares) at Dec. 31, 2017		88,493,468	2,274
Balance at Dec. 31, 2017	884.6	$ 0.9	$ 0.0	$ 1,487.4	(603.3)	$ (0.4)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	11.8				11.8
Stock-based compensation (in shares)		22,565
Stock-based compensation	4.9			4.9
Stock option exercises (in shares)		61,618
Stock option exercises	1.0			1.0
Unrealized gain resulting from change in fair value of derivative instruments, net of tax of $1.1	3.2					3.2
Balance (in shares) at Jun. 30, 2018		88,577,651	2,274
Balance at Jun. 30, 2018	$ 908.3	$ 0.9	$ 0.0	$ 1,493.3	$ (588.7)	$ 2.8

XML

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) $ in Millions	6 Months Ended
	Jun. 30, 2018 USD ($)
Statement of Stockholders' Equity [Abstract]
Unrealized gain resulted from change in fair value of derivative instruments, tax	$ 1.1
Impact of implementing new revenue recognition standard, tax	$ 1.1

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities
Net income (loss)	$ 11.8	$ (7.2)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization	133.9	128.9
Change in fair value of derivative instruments	(5.6)	2.4
Amortization of debt issuance costs and original issue discount	3.3	3.2
Accretion on landfill retirement obligations	7.6	7.4
Other accretion and amortization	2.3	1.9
Provision for doubtful accounts	1.8	2.2
(Gain) loss on disposition of property and equipment	(3.4)	0.9
Impairment of assets	0.0	13.0
Gain on disposition of businesses and assets	0.0	(2.8)
Stock based compensation	4.9	4.7
Deferred tax expense (benefit)	4.8	(6.4)
Earnings in equity investee	(0.9)	(0.6)
Changes in operating assets and liabilities, net of businesses acquired
Increase in accounts receivable	(10.5)	(7.8)
Decrease in prepaid expenses and other current assets	5.5	1.5
Decrease in other assets	0.5	0.1
Increase in accounts payable	26.9	18.3
Decrease in accrued expenses	(6.1)	(9.8)
Increase in deferred revenue	0.5	0.8
(Decrease) increase in other long-term liabilities	(5.8)	0.2
Capping, closure and post-closure obligations	(8.3)	(4.1)
Assumption of long term care and closure reserve	0.0	24.0
Net cash provided by operating activities	163.2	170.8
Cash flows from investing activities
Purchases of property and equipment and landfill construction and development	(86.5)	(79.9)
Proceeds from sale of property and equipment and insurance recoveries	4.2	3.0
Acquisition of businesses, net of cash acquired	(5.9)	(84.3)
Proceeds from sale of businesses	0.0	8.7
Net cash used in investing activities	(88.2)	(152.5)
Cash flows from financing activities
Proceeds from borrowings on debt instruments	53.0	120.0
Repayment on debt instruments, including capital leases	(128.9)	(141.3)
Proceeds from issuance of common stock	1.0	4.7
Net cash used in financing activities	(74.9)	(16.6)
Net increase in cash and cash equivalents	0.1	1.7
Cash and cash equivalents, beginning of period	6.8	1.2
Cash and cash equivalents, end of period	$ 6.9	$ 2.9

XML

Business Operations

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Operations

Business Operations

Advanced Disposal Services, Inc. together with its consolidated subsidiaries (the "Company"), as a consolidated entity, is a non-hazardous solid waste services company providing collection, transfer, recycling and disposal services to customers in the South, Eastern and Midwest regions of the United States.

The Company 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, recycling and disposal services. Additional information related to segments can be found in Note 10.

Six acquisitions were completed during the six months ended June 30, 2018 for aggregate consideration consisting of a cash purchase price of $5.9 and notes payable of $0.7 subject to net working capital adjustments and other commitments, which are expected to be completed within approximately one year. Eight acquisitions were completed during the six months ended June 30, 2017 for a cash purchase price, net of cash acquired, of $84.3 and notes payable of $1.6. The results of operations of each acquisition are included in the Company's unaudited condensed consolidated statements of operations subsequent to the closing date of each acquisition. Our acquisition accounting and valuation processes with respect to property and equipment, intangible assets, current liabilities and long-term liabilities related to acquisitions completed subsequent to January 1, 2018 are preliminary and subject to adjustments.

During the three and six months ended June 30, 2018, the Company recorded a charge in operating expenses of $5.4 related to engineered enhancement of leachate and gas infrastructure and reconstruction of specific storm and surface water control systems at one of its landfills. As a result, the location redirected waste to 3rd party sites to allow for construction activities in a limited delineated area of the site. This charge was recorded based on costs incurred to redirect waste for an interim period to complete construction activities and allow for the Company to be considered for an expansion permit. The Company has incurred expenditures of $3.4 as of June 30, 2018 related to this matter.

During the six months ended June 30, 2017, the Company entered into an Asset Transfer and Liability Assumption Agreement with BFI Waste Systems of North America, LLC. The Company received a cash payment of $24.0 which was recorded as an operating cash flow. In exchange for this payment, the Company assumed certain post-closure liabilities of a closed portion of a landfill and became responsible for expenditures related to a gas infrastructure system. The present value of the assumed post-closure liabilities and expenditures related to the gas infrastructure system over the life of the landfill approximate the amount of the cash received.

During the three and six months ended June 30, 2017, the Company divested of its collection 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 unaudited condensed consolidated statements of operations for the three and six months ended June 30, 2017.

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The Company’s condensed consolidated financial statements include its wholly-owned subsidiaries and their respective subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of June 30, 2018 and for the three and six months ended June 30, 2018 and 2017 are unaudited. In the opinion of management, these condensed consolidated financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair statement of the balance sheet, results of operations, comprehensive income (loss), cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

In conformity with accounting principles generally accepted in the United States of America, the Company uses estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. The Company must make these estimates and assumptions because certain information that it uses 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 the Company's 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, 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 value of assets acquired and liabilities assumed in any acquisition. Actual results could differ materially from the estimates and assumptions that the Company uses in preparation of its financial statements.

Intangible Asset Impairment

The Company has collection operations in South Carolina 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 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 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, the Company recorded an intangible asset impairment of $13.0 during the second quarter of 2017.

Recently Adopted Accounting Standards

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 "Revenue Recognition" (Topic 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 and applicable technical updates as of January 1, 2018 using the modified retrospective transition method. See Note 3 for further details.

In August 2016, the FASB issued ASU 2016‑15 associated with the classification of certain cash receipts and cash payments in the statement of cash flows. In November 2016, the FASB issued ASU 2016‑18 associated with the presentation of restricted cash and cash equivalents in the statement of cash flows. The objective of both amendments was to reduce existing diversity in practice. The Company's adoption of these ASUs in fiscal 2018 did not have a material impact on the Company's Statement of Cash Flows.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases, and in July 2018 the FASB issued ASU 2018-11, Leases: Targeted Improvements. Lessees will be required to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors will be required 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 standard. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented or as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the standard by recognizing and measuring leases as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is assessing the provisions of this amended guidance and has (i) formed an implementation team (ii) acquired a software solution to manage and account for leases under the new standard (iii) solicited feedback on the population of leases from business unit personnel and (iv) analyzed payment activity and general ledger accounts to further identify leases under the new standard. The Company is currently evaluating the impact of this amended guidance on its consolidated financial statements but does not anticipate any material changes to operating results or liquidity.

XML

Revenue Recognition

6 Months Ended

Jun. 30, 2018

Revenue from Contract with Customer [Abstract]

Revenue Recognition

Revenue Recognition

Adoption of ASC Topic 606, "Revenue from Contracts with Customers"

On January 1, 2018, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605.

The Company recorded a net reduction to opening accumulated deficit of $2.8 as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to capitalization of sales commissions. The impact to service revenues for the three and six months ended June 30, 2018 was a decrease of $8.8 and $16.8, respectively, as a result of applying Topic 606 and an associated policy election to treat applicable state landfill tax payments as a reduction of revenue (historically recorded as an operating expense). Recycling rebates paid to customers, franchise fees paid to customers and state landfill tax payments are now recognized as a reduction of revenue.

Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to the Company's customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Further discussion of revenue for each major lines of business is provided below.

Residential Collection Revenue

The Company's residential collection operations consist of curbside collection of residential refuse from small carts or containers into collection vehicles for transport to a disposal/recycling site. These services are typically performed either under long-term contracts with local government entities or on a subscription basis, whereby individual households contract directly with the Company for collection services. The Company's residential collection service fees are typically quoted in its contracts on a weekly or monthly basis and revenue is recognized as the services are provided each month. The Company's residential contracts generally allow for annual rate increases and the number of households serviced under the Company's municipal contracts change throughout the contract period. For these reasons, revenue associated with the Company's residential collection service contracts is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Commercial Collection Revenue

The Company's commercial collection operations consist of collection of commercial refuse from Company supplied waste containers for transport to a disposal/recycling site. Standard service agreements with commercial customers are typicallythreetofiveyears in length with pricing based on estimated disposal weight and time required to service the account.The Company's commercial collection service fees are typically quoted in its service agreements on a weekly or monthly basis and revenue is recognized as the services are provided each month. The Company's commercial service agreements generally allow for rate increases and it is not uncommon for the collection needs of the customer to change throughout the contract period. For these reasons, revenue associated with the Company's commercial collection service agreements is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Rolloff Collection Revenue

The Company's rolloff collection operations consist of providing construction and demolition sites with rolloff containers and collecting, transporting and disposing of the customers' waste at a disposal site. Rolloff services are typically provided pursuant to arrangements in which the customer provides 24-hour advance notice of its disposal needs and is billed on a "per pull" plus disposal basis. The Company typically has written service agreements with permanent rolloff customers but does not enter into written service agreements with customers that utilize temporary rolloff containers due to the relatively short-term nature of their needs.The Company's permanent rolloff service agreements generally allow for rate increases and number of pulls plus disposal weight vary throughout the contract period. For these reasons, revenue associated with the Company's rolloff collection service agreements is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Disposal Revenue

Transfer stations provide collection operations with a cost-effective means to consolidate waste and reduce transportation costs while providing the Company's landfill sites with an additional “gate” to extend the geographic reach of its landfills. Disposal revenue at transfer stations is primarily generated by charging tipping or disposal fees to third party customers.

Landfill disposal services represent the final stage in the Company's vertically integrated waste collection and disposal services solution. The Company generates disposal revenue at its landfills by charging tipping or disposal fees to third party customers.

The Company's landfill and transfer station tipping fees are quoted to customers on a per ton basis and disposal weight varies each time the customer disposes of waste at a Company facility. For these reasons, revenue associated with the Company's disposal services is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Sale of Recyclables

The Company has a network of 22 recycling facilities that it manages or operates. These facilities generate revenue through the collection, processing and sale of old corrugated cardboard, old newspaper, mixed paper, aluminum, glass and other materials. These recyclable materials are internally collected by the Company's residential, commercial and industrial collection operations as well as third-party haulers. The Company's sale of recyclables are quoted to customers on a per ton basis and recyclable weight varies each time the Company sells recyclables to its customers. For these reasons, revenue associated with the Company's sale of recyclables is accounted for as variable consideration and the amounts recorded represent the value of the performance obligations completed.

Fuel and Environmental Charges

The amounts charged for collection, disposal and recycling services may include fuel and environmental charges. These charges are not designed to be specific to the direct costs to service an individual customer’s account, but rather are designed to help recover changes in the Company's overall cost structure and to achieve an acceptable operating margin. Fuel and environmental charges vary each month in relation to the variable consideration of collection, disposal and recycling services. For this reason, fuel and environmental charges are accounted for as variable consideration.

Other Revenue

Other revenue is comprised of the following:

• Trucking revenue;

• Landfill management fee revenue;

• Sale of landfill gas revenue;

• Brokerage revenue; and

• Service charges, administrative charges and other charges.

Other revenue typically varies based on volume of the related service therefore the Company accounts for this revenue as variable consideration.

Revenue by Segment

See Note 10 for additional information related to revenue by reportable segment and major line of business.

Variable Consideration

As described above, the Company accounts for revenue for each line of business as variable consideration. The Company believes that there will not be significant changes to its estimates of variable consideration as revenue recognized is recorded in accordance with the terms of the related contracts or verbal agreements.

Capitalized Sales Commissions

Under Topic 606, the Company capitalizes sales commissions as contract assets related to commercial and permanent rolloff collection customers and amortizes those sales commissions over the estimated customer life. The balance of capitalized sales commissions as of June 30, 2018 and January 1, 2018 were $4.0 and $3.8, respectively. The Company recorded amortization expense of $0.4 and $0.7 related to capitalized sales commissions for the three and six months ended June 30, 2018, respectively.

Deferred Revenues

The Company records deferred revenue when cash payments are received in advance of the Company's performance. The increase in the deferred revenue balance from December 31, 2017 to June 30, 2018 is primarily driven by cash payments received in advance of the Company satisfying its performance obligations, offset by $67.9 of revenues recognized that were included in the deferred revenue balance at December 31, 2017.

Topic 606 Practical Expedients

As allowed by Topic 606, the Company does not disclose the value of unsatisfied performance obligations related to its contracts and service agreements as the Company accounts for its revenue as variable consideration and has the right to invoice for services performed each period.

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Landfill Liabilities

6 Months Ended

Jun. 30, 2018

Asset Retirement Obligation Disclosure [Abstract]

Landfill Liabilities

Landfill Liabilities

Liabilities for final closure and post-closure costs for the year ended December 31, 2017 and for the six months endedJune 30, 2018 are shown in the table below:

Balance at December 31, 2016	$	191.1
Increase in retirement obligation	9.7
Accretion of closure and post-closure costs	15.4
Acquisition	28.3
Change in estimate	2.1
Costs incurred	(20.7		)
Balance at December 31, 2017	225.9
Increase in retirement obligation	4.7
Accretion of closure and post-closure costs	7.6
Costs incurred	(7.2		)
Balance at June 30, 2018	231.0
Less: Current portion	(20.2		)
	$	210.8

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

Earnings (Loss) Per Share

The following table sets forth the computation of basic earnings (loss) per share and earnings (loss) per share, assuming dilution:

		Three Months Ended June 30,					Six Months Ended June 30,
		2018		2017			2018		2017
Numerator:
	Net income (loss)	$	9.7	$	(0.2	)	$	11.8	$	(7.2	)
Denominator:
	Average common shares outstanding	88,555,647		88,275,698			88,535,860		88,206,590
	Other potentially dilutive common shares	717,319		—			611,477		—
	Average common shares outstanding, assuming dilution	89,272,966		88,275,698			89,147,337		88,206,590
	Basic net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)
	Diluted net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)

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. Diluted net income (loss) per share 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 units and performance stock units.

Pursuant to the FASB’s Accounting Standards Codification (“ASC”) Topic 260, Earnings Per Share, the Company includes additional shares in the computation of diluted net income per share. The additional shares included in diluted net income per share represent the number of shares that would be issued if all of the above potentially dilutive instruments were converted into common stock. When calculating diluted net income per share, the ASC requires the Company to include the potential shares that would be outstanding if dilutive outstanding stock options were exercised. This number is 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 2.3 million and 4.6 million of outstanding stock awards were excluded from the diluted net income (loss) per share calculation for the three months ended June 30, 2018 and June 30, 2017, respectively, because their effect was antidilutive. Approximately 2.3 million and 4.2 million of outstanding stock awards were excluded from the diluted income (loss) per share calculation for the six months ended June 30, 2018 and June 30, 2017, respectively, because their effect was antidilutive.

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Debt

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt

Debt

The following table summarizes the major components of debt at each balance sheet date and provides the maturities and interest rate ranges of each major category of debt:

	June 30, 2018			December 31, 2017
Revolving line of credit with lenders (Revolver), interest at applicable rate plus margin, as defined (6.75% and 6.25% at June 30, 2018 and December 31, 2017, respectively) due quarterly; balance due at maturity in November 2021	$	3.0		$	29.0
Term loans (Term Loan B); quarterly payments of $3.75 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	1,430.0			1,460.0
Senior notes (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, maturing through 2024	65.5			63.9
Other debt	9.6			11.8
	1,933.1			1,989.7
Less: Original issue discount and debt issuance costs classified as a reduction to long-term debt	(28.3		)	(31.4		)
Less: Current portion	(49.2		)	(74.1		)
	$	1,855.6		$	1,884.2

All borrowings under the Term Loan B, Revolver and Senior Notes are guaranteed by each of the Company's current and future domestic subsidiaries, subject to certain agreed-upon exemptions. All guarantors are jointly and severally and fully and unconditionally liable. There are no significant restrictions on the Company or any guarantor to obtain funds from its subsidiaries by dividend or loan.

Revolver and Letter of Credit Facilities

As of June 30, 2018, the Company had an aggregate committed capacity of $300.0, of which $100.0 was available for letters of credit under its credit facilities. The Company’s Revolver is its primary source of letter of credit capacity and expires in 2021. As of June 30, 2018 and December 31, 2017, the Company had $3.0 and $29.0 of borrowings outstanding on the Revolver, respectively. As of June 30, 2018 and December 31, 2017, the Company had an aggregate of $32.3 and $39.3, respectively, of letters of credit outstanding under its credit facilities.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

The following table summarizes the fair values of derivative instruments recorded in the Company’s condensed consolidated balance sheets:

	Balance Sheet Location	June 30, 2018		December 31, 2017
Derivatives Designated as Hedging Instruments
2017 Interest rate caps	Other assets	$	4.5	$	—
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	6.5		0.9
2016 Interest rate caps	Other assets	2.2		2.8
Total derivatives		$	13.2	$	3.3

The Company has not offset fair value of assets and liabilities recognized for its derivative instruments.

Interest Rate Caps

In November 2017, the Company entered into two interest rate cap agreements as cash flow hedges (the "2017 interest rate caps") 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 2017 interest rate caps; therefore, changes in the fair value of the 2017 interest rate caps, to the extent they are effective, are recorded in other comprehensive income, net of tax in the condensed consolidated statements of comprehensive income (loss). The 2017 interest rate caps commence in 2019 and expire in 2021. The Company will pay the $4.9 premium on the 2017 interest rate caps in monthly installments beginning in October 2019. The Company recorded a gain related to the 2017 interest rate caps of $1.0 for the three months ended June 30, 2018 which was recorded in other comprehensive income in the condensed consolidated statements of comprehensive income (loss). The Company recorded a gain related to the 2017 interest rate caps of $3.8 for the six months ended June 30, 2018 of which the effective portion of $3.2 was recorded in other comprehensive income in the condensed consolidated statements of comprehensive income (loss) and the ineffective portion of $0.6 was recorded in other income (expense), net in the condensed consolidated statement of operations. The notional value of the 2017 interest rate cap contracts aggregated were $600.0 as of June 30, 2018 and will remain constant through maturity in 2021.

In May 2016, the Company entered into three interest rate cap agreements (the "2016 interest rate caps") as economic hedges against the risk of a rise in interest rates and the associated cash flows on its variable rate debt. The Company is paying the $5.5 premium of the 2016 interest rate caps equally over eleven quarters beginning on March 31, 2017. The Company elected not to apply hedge accounting to the 2016 interest rate caps, therefore, changes in the fair value of the 2016 interest rate caps are recorded in other income (expense), net in the condensed consolidated statements of operations. The Company recorded a gain related to the 2016 interest rate caps of $1.4 and a loss of $2.0 for the three months ended June 30, 2018 and 2017, respectively. The Company recorded a gain related to the 2016 interest rate caps of $6.0 and a loss of $3.3 for the six months ended June 30, 2018 and 2017, respectively. The notional value of the 2016 interest rate cap contracts aggregated were $800.0 as of June 30, 2018 and will remain constant through maturity in September 2019.

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Income Taxes

6 Months Ended

Jun. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The Company’s effective income tax rate for the three months ended June 30, 2018 and 2017 was 27.6% and 33.3%, respectively. The Company evaluates its effective income tax rate at each interim period and adjusts it accordingly as facts and circumstances warrant. The difference between income taxes computed at the federal statutory rate of 21% and reported income taxes for the three months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The effective tax rate for the three months ended June 30, 2017 is materially consistent with the federal statutory rate of 35%.

The Company’s effective income tax rate for the six months ended June 30, 2018 and 2017 was 27.6% and 40.0%, respectively. The difference between income taxes computed at the federal statutory rate of 21% and reported income tax expense for the six months ended June 30, 2018 was primarily due to the unfavorable impact of state and local taxes and the unfavorable change in recorded valuation allowance. The difference between income taxes computed at the federal statutory rate of 35% and reported income taxes for the six months ended June 30, 2017 was primarily due to the favorable impact of recorded valuation allowance and the favorable impact of state and local taxes.

As of June 30, 2018, the Company had $31.0 of liabilities associated with unrecognized tax benefits and related interest. These liabilities are included as components 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. The Company is not able to reasonably estimate when it would make any cash payments required to settle these liabilities, but does not believe that the ultimate settlement of its obligations will materially affect its liquidity.

On December 22, 2017, the Tax Cut and Jobs Act (the “Act”) was signed into law. In accordance with Staff Accounting Bulletin (“SAB”) 118, the Company recognized the estimated impact of this legislation as a component of the benefit for income taxes in its audited financial statements for the year ended December 31, 2017. SAB 118 allows for a measurement period, not to extend beyond one year from the enactment date, for companies to complete their accounting for the provisions of the Act under ASC 740. As of June 30, 2018, no subsequent adjustments have been made to the provisional amounts recorded with the financial statements for the year ended December 31, 2017. 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 Company's estimate of the impacts of the Act may change due to future guidance issued by the U.S. Treasury Department, Internal Revenue Services, Financial Standards Accounting Board and other standard setting bodies. The Company continues to analyze its estimate of a $0.1 tax related to the Act’s taxation of deemed repatriation on foreign earnings related to the Company’s Bahamas operations. The completion of the Company's 2017 income tax returns by the fourth quarter 2018 may also impact the provisional amounts that have been recorded.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Financial Instruments

The Company has obtained letters of credit, performance bonds and insurance policies for the performance of the following: landfill final capping, closure and post-closure requirements; certain collection, landfill and transfer station contracts; environmental remediation; and other obligations. Letters of credit are supported by the Company’s Revolver (Note 6).

The Company does not expect that any claims against or draws on these instruments would have a material adverse effect on the Company’s condensed consolidated financial statements. The Company has not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for its current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, the Company continues to evaluate various options to access cost-effective sources of financial assurance.

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, workers' compensation, directors' and officers' liability, pollution, legal liability and other coverages the Company believes are customary to the industry. The Company's exposure to loss for insurance claims is generally limited to the per incident deductible, or self-insured retention, under the related insurance policy. Its exposure, however, could increase if its insurers are unable to meet their commitments on a timely basis.

The Company has retained a significant portion of the risks related to its automobile, general liability, workers' compensation and health claims programs. For its self-insured retentions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation and internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from the Company's assumptions used. The Company does not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on its financial condition, results of operations or cash flows.

Litigation and Other Matters

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 charges (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 February 2017, a waste slide occurred in one cell at the Company’s Greentree Landfill in Kersey, Pennsylvania. During the three months ended June 30, 2018, the Company recorded a benefit in operating expenses of $3.7 as a result of higher insurance recoveries than previously estimated. No benefit or charge was recorded in operating expenses during three months ended June 30, 2017 related to this matter. During the six months ended June 30, 2018 and 2017, the Company recorded a charge in operating expenses of $0.1 and $5.4, respectively. These charges were recorded to adjust the reserve related to this matter to the remaining probable costs to relocate displaced material and restore infrastructure, net of insurance recoveries; this amount could increase or decrease as a result of actual costs incurred to completion. The Company has incurred expenditures of $6.4, net of insurance recoveries, as of June 30, 2018 related to this matter.

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.     

Multiemployer Defined Benefit Pension Plans

Approximately 14.3% of the Company’s workforce is covered by collective bargaining agreements with various local unions across its operating regions. As a result of some of these agreements, certain of the Company’s subsidiaries are participating employers in a number of trustee-managed multiemployer, defined benefit pension plans for the affected employees. In connection with its ongoing renegotiation of various collective bargaining agreements, the Company may discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. A complete or partial withdrawal from a multiemployer pension plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them. The Company is not aware of any such actions in connection with continuing operations. As a result of certain discontinued operations, the Company is potentially exposed to certain withdrawal liabilities. The Company does not believe that any future withdrawals, individually or in the aggregate, from the multiemployer plans to which it contributes could have a material adverse effect on the Company's business, financial condition or liquidity. However, such withdrawals could have a material adverse effect on the Company's results of operations for a particular reporting period, depending on the number of employees withdrawn in any future period and the financial condition of the multiemployer plan(s) at the time of such withdrawal(s).

Tax Matters

The Company has open tax years dating back to 2003. 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.

The Company maintains a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse impact on the Company's results of operations or cash flows.

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Segment and Related Information

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

The Company manages and evaluates its operations primarily through its South, East and Midwest regional segments. These three groups are presented below as the Company’s reportable segments. The Company’s three geographic operating segments provide collection, transfer, disposal and recycling services. The Company serves residential, commercial and industrial, and municipal customers throughout its operating segments.

Service revenues, operating income/(loss) and depreciation and amortization for the Company's reportable segments for the periods indicated are shown in the following tables:

	Service Revenues		Operating Income (Loss)			Depreciation and Amortization
Three Months Ended June 30, 2018
South	$	152.7	$	21.3		$	21.5
East	104.3		12.7			20.5
Midwest	141.1		18.6			26.1
Corporate	—		(17.6		)	1.1
	$	398.1	$	35.0		$	69.2
Three Months Ended June 30, 2017
South	$	139.6	$	24.0		$	19.7
East	100.2		(5.3		)	20.1
Midwest	143.3		20.6			25.2
Corporate	—		(15.2		)	2.5
	$	383.1	$	24.1		$	67.5
Six Months Ended June 30, 2018
South	301.6		47.3			43.2
East	193.6		10.9			38.4
Midwest	267.6		32.5			50.0
Corporate	—		(35.7		)	2.3
	$	762.8	$	55.0		$	133.9
Six Months Ended June 30, 2017
South	$	275.1	$	46.2		$	38.8
East	186.2		(7.9		)	37.7
Midwest	269.2		31.9			47.8
Corporate	—		(34.8		)	4.6
	$	730.5	$	35.4		$	128.9

The following table presents the Company's revenues disaggregated by major line of business. Recycling rebates paid to customers, franchise fees paid to customers and state landfill taxes are excluded from revenues.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017 (1)		2018		2017 (1)
Residential Collection Revenue	$	101.7	$	97.5	$	201.1	$	191.0
Commercial Collection Revenue	93.9		92.0		186.0		182.6
Rolloff Collection Revenue	65.4		63.2		126.0		120.2
Disposal Revenue	73.4		73.5		130.5		128.8
Fuel and Environmental Charges	29.2		23.9		56.0		46.9
Sale of Recyclables	4.1		8.7		9.4		16.4
Other Revenue	30.4		24.3		53.8		44.6
	$	398.1	$	383.1	$	762.8	$	730.5

(1) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605.

Fluctuations in the Company's operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business and operating segment and by general economic conditions. In addition, its revenues and income from operations typically reflect seasonal patterns. The Company expects its operating results to vary seasonally, with revenues typically lowest in the first quarter, higher in the second and third quarters and lower in the fourth quarter than in the second and third quarters. This seasonality reflects the lower volume of solid waste generated during the late fall, winter and early spring in the East and Midwest segments because of decreased construction and demolition activities during winter months in these regions of the United States. In addition, some of the Company's operating costs may be higher in the winter months. Adverse winter weather conditions slow waste collection activities, resulting in higher labor and operational costs. Greater precipitation in the winter increases the weight of collected municipal solid waste, resulting in higher disposal costs, which are calculated on a per ton basis.

Additionally, certain destructive weather conditions that tend to occur during the second half of the year, such as hurricanes that most often impact the South region, can increase the Company’s revenues in the areas affected. While weather-related and other occurrences can boost revenues through additional work, the earnings generated can be moderated as a result of significant start-up costs and other factors, resulting in earnings at comparatively lower margins. These destructive weather conditions can result in higher fuel costs, higher labor costs, reduced municipal contract productivity and higher disposal costs in disposal neutral markets. Certain weather conditions, including severe winter storms, may result in the temporary suspension of the Company’s operations, which can significantly affect the operating results of the affected regions.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Assets and Liabilities Accounted for at Fair Value

In measuring fair values of assets and liabilities, the Company uses valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). The Company does not have any assets or liabilities measured using unobservable Level 3 inputs. The Company also uses market data or assumptions that it believes market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of the Company's financial instruments approximate fair value because of their short-term nature. The Company’s assets and liabilities that are measured at fair value on a recurring basis include the following:

				Fair Value Measurement at June 30, 2018 Reporting Date Using
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.9		$	6.9	$	—		$	6.9
Interest rate caps - asset position	13.2			—		13.2			13.2
Total recurring fair value measurements	$	20.1		$	6.9	$	13.2		$	20.1
				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)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.8		$	6.8	$	—		$	6.8
Interest rate caps - asset position	3.7			—		3.7			3.7
Interest rate caps - liability position	(0.4		)	$	—	(0.4		)	(0.4		)
Total recurring fair value measurements	$	10.1		$	6.8	$	3.3		$	10.1

The fair value of the interest rate caps are determined using standard option valuation models with assumptions about interest rates based on those observed in underlying markets (Level 2 in fair value hierarchy).

Fair Value of Debt

The fair value of the Company’s debt (Level 2) is estimated using indirectly observable market inputs, except for the Revolver for which cost approximates fair value due to the short-term nature of the interest rate. Although the Company has determined the estimated fair value amounts using quoted market prices, 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 June 30, 2018 and December 31, 2017, respectively.

The estimated fair value of the Company’s debt is as follows:

	June 30, 2018		December 31, 2017
Revolver	$	3.0	$	29.0
Senior Notes	422.9		435.1
Term Loan B	1,430.0		1,467.3
	$	1,855.9	$	1,931.4

The carrying value of the Company’s debt at June 30, 2018 and December 31, 2017 was $1,858.0 and $1,914.0, respectively.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation

The Company’s condensed 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 and Assumptions

In conformity with accounting principles generally accepted in the United States of America, the Company uses estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. The Company must make these estimates and assumptions because certain information that it uses 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 the Company's 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, 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 value of assets acquired and liabilities assumed in any acquisition. Actual results could differ materially from the estimates and assumptions that the Company uses in preparation of its financial statements.

Recently Adopted and Issued Accounting Standards

Recently Adopted Accounting Standards

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 "Revenue Recognition" (Topic 605), and requires entities to recognize revenue when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The Company adopted Topic 606 and applicable technical updates as of January 1, 2018 using the modified retrospective transition method. See Note 3 for further details.

In August 2016, the FASB issued ASU 2016‑15 associated with the classification of certain cash receipts and cash payments in the statement of cash flows. In November 2016, the FASB issued ASU 2016‑18 associated with the presentation of restricted cash and cash equivalents in the statement of cash flows. The objective of both amendments was to reduce existing diversity in practice. The Company's adoption of these ASUs in fiscal 2018 did not have a material impact on the Company's Statement of Cash Flows.

Recently Issued Accounting Standards

In February 2016, the FASB issued ASU 2016-02, Leases, and in July 2018 the FASB issued ASU 2018-11, Leases: Targeted Improvements. Lessees will be required to recognize most leases on their balance sheets as a right-of-use asset with a corresponding lease liability, and lessors will be required 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 standard. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented or as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company expects to adopt the standard by recognizing and measuring leases as of the adoption date with a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company is assessing the provisions of this amended guidance and has (i) formed an implementation team (ii) acquired a software solution to manage and account for leases under the new standard (iii) solicited feedback on the population of leases from business unit personnel and (iv) analyzed payment activity and general ledger accounts to further identify leases under the new standard. The Company is currently evaluating the impact of this amended guidance on its consolidated financial statements but does not anticipate any material changes to operating results or liquidity.

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Landfill Liabilities (Tables)

6 Months Ended

Jun. 30, 2018

Asset Retirement Obligation Disclosure [Abstract]

Summary of Liabilities for Final Closure and Post-Closure Costs

Liabilities for final closure and post-closure costs for the year ended December 31, 2017 and for the six months endedJune 30, 2018 are shown in the table below:

Balance at December 31, 2016	$	191.1
Increase in retirement obligation	9.7
Accretion of closure and post-closure costs	15.4
Acquisition	28.3
Change in estimate	2.1
Costs incurred	(20.7		)
Balance at December 31, 2017	225.9
Increase in retirement obligation	4.7
Accretion of closure and post-closure costs	7.6
Costs incurred	(7.2		)
Balance at June 30, 2018	231.0
Less: Current portion	(20.2		)
	$	210.8

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2018

Earnings Per Share [Abstract]

Computation of Basic and Dilutive Earnings (Loss) Per Share

The following table sets forth the computation of basic earnings (loss) per share and earnings (loss) per share, assuming dilution:

		Three Months Ended June 30,					Six Months Ended June 30,
		2018		2017			2018		2017
Numerator:
	Net income (loss)	$	9.7	$	(0.2	)	$	11.8	$	(7.2	)
Denominator:
	Average common shares outstanding	88,555,647		88,275,698			88,535,860		88,206,590
	Other potentially dilutive common shares	717,319		—			611,477		—
	Average common shares outstanding, assuming dilution	89,272,966		88,275,698			89,147,337		88,206,590
	Basic net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)
	Diluted net income (loss) per share	$	0.11	$	—		$	0.13	$	(0.08	)

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Debt (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Summary of Major Components of Debt

The following table summarizes the major components of debt at each balance sheet date and provides the maturities and interest rate ranges of each major category of debt:

	June 30, 2018			December 31, 2017
Revolving line of credit with lenders (Revolver), interest at applicable rate plus margin, as defined (6.75% and 6.25% at June 30, 2018 and December 31, 2017, respectively) due quarterly; balance due at maturity in November 2021	$	3.0		$	29.0
Term loans (Term Loan B); quarterly payments of $3.75 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	1,430.0			1,460.0
Senior notes (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, maturing through 2024	65.5			63.9
Other debt	9.6			11.8
	1,933.1			1,989.7
Less: Original issue discount and debt issuance costs classified as a reduction to long-term debt	(28.3		)	(31.4		)
Less: Current portion	(49.2		)	(74.1		)
	$	1,855.6		$	1,884.2

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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Values of Derivative Instruments Recorded in Condensed Consolidated Balance Sheets

The following table summarizes the fair values of derivative instruments recorded in the Company’s condensed consolidated balance sheets:

	Balance Sheet Location	June 30, 2018		December 31, 2017
Derivatives Designated as Hedging Instruments
2017 Interest rate caps	Other assets	$	4.5	$	—
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	6.5		0.9
2016 Interest rate caps	Other assets	2.2		2.8
Total derivatives		$	13.2	$	3.3

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Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

Summary of Financial Information Concerning Reportable Segments

Service revenues, operating income/(loss) and depreciation and amortization for the Company's reportable segments for the periods indicated are shown in the following tables:

	Service Revenues		Operating Income (Loss)			Depreciation and Amortization
Three Months Ended June 30, 2018
South	$	152.7	$	21.3		$	21.5
East	104.3		12.7			20.5
Midwest	141.1		18.6			26.1
Corporate	—		(17.6		)	1.1
	$	398.1	$	35.0		$	69.2
Three Months Ended June 30, 2017
South	$	139.6	$	24.0		$	19.7
East	100.2		(5.3		)	20.1
Midwest	143.3		20.6			25.2
Corporate	—		(15.2		)	2.5
	$	383.1	$	24.1		$	67.5
Six Months Ended June 30, 2018
South	301.6		47.3			43.2
East	193.6		10.9			38.4
Midwest	267.6		32.5			50.0
Corporate	—		(35.7		)	2.3
	$	762.8	$	55.0		$	133.9
Six Months Ended June 30, 2017
South	$	275.1	$	46.2		$	38.8
East	186.2		(7.9		)	37.7
Midwest	269.2		31.9			47.8
Corporate	—		(34.8		)	4.6
	$	730.5	$	35.4		$	128.9

Summary of Disaggregation of Revenue

The following table presents the Company's revenues disaggregated by major line of business. Recycling rebates paid to customers, franchise fees paid to customers and state landfill taxes are excluded from revenues.

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017 (1)		2018		2017 (1)
Residential Collection Revenue	$	101.7	$	97.5	$	201.1	$	191.0
Commercial Collection Revenue	93.9		92.0		186.0		182.6
Rolloff Collection Revenue	65.4		63.2		126.0		120.2
Disposal Revenue	73.4		73.5		130.5		128.8
Fuel and Environmental Charges	29.2		23.9		56.0		46.9
Sale of Recyclables	4.1		8.7		9.4		16.4
Other Revenue	30.4		24.3		53.8		44.6
	$	398.1	$	383.1	$	762.8	$	730.5

(1) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with the Company's historic accounting under Topic 605.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

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 include the following:

				Fair Value Measurement at June 30, 2018 Reporting Date Using
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.9		$	6.9	$	—		$	6.9
Interest rate caps - asset position	13.2			—		13.2			13.2
Total recurring fair value measurements	$	20.1		$	6.9	$	13.2		$	20.1
				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)			Carrying Value
Recurring fair value measurements
Cash and cash equivalents	$	6.8		$	6.8	$	—		$	6.8
Interest rate caps - asset position	3.7			—		3.7			3.7
Interest rate caps - liability position	(0.4		)	$	—	(0.4		)	(0.4		)
Total recurring fair value measurements	$	10.1		$	6.8	$	3.3		$	10.1

Estimated Fair Value of Company's Debt

The estimated fair value of the Company’s debt is as follows:

	June 30, 2018		December 31, 2017
Revolver	$	3.0	$	29.0
Senior Notes	422.9		435.1
Term Loan B	1,430.0		1,467.3
	$	1,855.9	$	1,931.4

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Business Operations (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) Segment company	Jun. 30, 2017 USD ($) acquisition
Business Acquisition [Line Items]
Number of reportable operating segments | Segment			3
Number of geographic operating segments | Segment			3
Assumption of long term care and closure reserve			$ 0.0	$ 24.0
Proceeds from sale of businesses			0.0	8.7
Gain on sale of business			$ 0.0	2.8
Certain collection services assets | Charlotte, North Carolina | Disposal group, disposed by sale
Business Acquisition [Line Items]
Proceeds from sale of businesses		$ 8.7		8.7
Gain on sale of business		$ 1.4		1.4
BFI Waste Systems of North America, LLC
Business Acquisition [Line Items]
Assumption of long term care and closure reserve				$ 24.0
Business Acquisition
Business Acquisition [Line Items]
Number of acquisitions completed			6	8
Consideration transferred			$ 5.9
Amount of notes payable incurred as part of consideration transferred			0.7
Consideration transferred, cash				$ 84.3
Consideration transferred, notes payable				$ 1.6
Redirection of waste
Business Acquisition [Line Items]
Environmental remediation expense	$ 5.4		5.4
Environmental remediation costs incurred			$ 3.4

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Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Intangible asset impairment	$ 13.0	$ 0.0	$ 13.0

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Revenue Recognition (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) recycling_facility	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) recycling_facility	Jun. 30, 2017 USD ($)	Jan. 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accumulated deficit	$ (588.7)		$ (588.7)			$ (603.3)
Decrease in service revenues	$ (398.1)	$ (383.1)	$ (762.8)	$ (730.5)
Number of recycling facilities | recycling_facility	22		22
Capitalized sales commissions	$ 4.0		$ 4.0		$ 3.8
Capitalized sales commissions amortization	0.4		0.7
Recognized deferred revenue			67.9
Cumulative impact | Topic 606
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accumulated deficit					$ 2.8
Decrease in service revenues	$ 8.8		$ 16.8
Minimum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Term of standard service agreement			3 years
Maximum
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Term of standard service agreement			5 years

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Landfill Liabilities - Summary of Liabilities for Final Closure and Post-Closure Costs (Details) - USD ($) $ in Millions	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2016
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	$ 225.9	$ 191.1
Increase in retirement obligation	4.7		$ 9.7
Accretion of closure and post-closure costs	7.6	$ 7.4	15.4
Acquisition			28.3
Change in estimate			2.1
Costs incurred	(7.2)		(20.7)
Ending balance	231.0		$ 191.1
Less: Current portion	(20.2)
Noncurrent portion	$ 210.8

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Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income (loss)	$ 9.7	$ (0.2)	$ 11.8	$ (7.2)
Denominator:
Average common shares outstanding (in shares)	88,555,647	88,275,698	88,535,860	88,206,590
Other potentially dilutive common shares (in shares)	717,319	0	611,477	0
Average common shares outstanding, assuming dilution (in shares)	89,272,966	88,275,698	89,147,337	88,206,590
Basic net income (loss) per share (in dollars per share)	$ 0.11	$ 0.00	$ 0.13	$ (0.08)
Diluted net income (loss) per share (in dollars per share)	$ 0.11	$ 0.00	$ 0.13	$ (0.08)
Stock option
Denominator:
Antidilutive stock awards excluded from calculation (in shares)	2,300,000	4,600,000	2,300,000	4,200,000

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Debt - Summary of Major Components of Debt - Principal (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Capital lease obligations, maturing through 2024	$ 65.5	$ 63.9
Other debt	9.6	11.8
Long-term debt, gross	1,933.1	1,989.7
Less: Original issue discount	(28.3)	(31.4)
Less: Current portion	(49.2)	(74.1)
Long-term debt, less original issue discount and current maturities	1,855.6	1,884.2
Revolver
Debt Instrument [Line Items]
Long-term debt	3.0	29.0
Term Loan B
Debt Instrument [Line Items]
Long-term debt	1,430.0	1,460.0
Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 425.0	$ 425.0

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Debt - Summary of Major Components of Debt - Interest Rates (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Revolver
Debt Instrument [Line Items]
Line of credit interest rate	6.75%	6.25%
Term Loan B
Debt Instrument [Line Items]
Debt periodic principal payment	$ 3,750	$ 3,750
Term Loan B | LIBOR
Debt Instrument [Line Items]
Debt reference rate	0.75%	0.75%
Senior Notes
Debt Instrument [Line Items]
Debt interest rate	5.625%	5.625%

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Debt - Additional Information (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Letters of credit outstanding	$ 32,300,000	$ 39,300,000
Revolver
Debt Instrument [Line Items]
Long-term debt	3,000,000	$ 29,000,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	300,000,000.0
Letters of Credit
Debt Instrument [Line Items]
Line of credit maximum borrowing capacity	$ 100,000,000.0

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Derivative Instruments and Hedging Activities - Summary of Fair Values of Derivative Instruments Recorded in Condensed Consolidated Balance Sheets (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total derivatives	$ 13.2	$ 3.3
Interest rate caps | Derivatives Designated as Hedging Instruments | Other assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets	4.5	0.0
Interest rate caps | Derivatives Designated as Hedging Instruments | Other long-term liabilities
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative liabilities	0.0	(0.4)
Interest rate caps | Derivatives Not Designated as Hedging Instruments | Other assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets	2.2	2.8
Interest rate caps | Derivatives Not Designated as Hedging Instruments | Prepaid expenses and other current assets
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative assets	$ 6.5	$ 0.9

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Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)	Nov. 30, 2017 USD ($) Agreement	May 31, 2016 USD ($) Agreement
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Premium payment period			33 months
Interest rate caps | Derivatives Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate cap agreements | Agreement					2
Premium included in other assets from condensed consolidated balance sheet					$ 4.9
Effective portion recorded in other comprehensive income	$ 1.0		$ 3.2
Gain related to interest rate caps			3.8
Notional amounts of the contracts	600.0		600.0
Interest rate caps | Derivatives Designated as Hedging Instruments | Other income (expense), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Ineffective portion recorded in other income (expense), net			0.6
Interest rate caps | Derivatives Not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Number of interest rate cap agreements | Agreement						3
Premium included in other assets from condensed consolidated balance sheet						$ 5.5
Notional amounts of the contracts	800.0		800.0
Interest rate caps | Derivatives Not Designated as Hedging Instruments | Other income (expense), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Gain (loss) due to changes in fair value of derivative instruments	$ 1.4	$ (2.0)	$ 6.0	$ (3.3)

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Effective income tax rate continuing operations	27.60%	33.30%	27.60%	40.00%
Federal statutory tax rate	21.00%	35.00%	21.00%	35.00%
Liabilities associated with unrecognized tax benefits and related interest	$ 31.0		$ 31.0
Taxation of deemed repatriation on foreign earnings					$ 0.1

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Commitments and Contingencies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Site Contingency [Line Items]
Percentage of workforce covered under collective bargaining	14.30%		14.30%
Waste slide
Site Contingency [Line Items]
Benefit in operating expenses due to higher insurance recoveries	$ 3,700,000	$ 0
Environmental remediation expense			$ 100,000	$ 5,400,000
Environmental remediation costs incurred			$ 6,400,000

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Segment and Related Information - Additional Information (Details)	6 Months Ended
	Jun. 30, 2018 Segment
Segment Reporting [Abstract]
Number of reportable segments	3
Number of geographic operating segments	3

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Segment and Related Information - Summary of Financial Information Concerning Reportable Segments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Service revenues	$ 398.1	$ 383.1	$ 762.8	$ 730.5
Operating Income (Loss)	35.0	24.1	55.0	35.4
Depreciation and Amortization	69.2	67.5	133.9	128.9
Operating Segments | South
Segment Reporting Information [Line Items]
Service revenues	152.7	139.6	301.6	275.1
Operating Income (Loss)	21.3	24.0	47.3	46.2
Depreciation and Amortization	21.5	19.7	43.2	38.8
Operating Segments | East
Segment Reporting Information [Line Items]
Service revenues	104.3	100.2	193.6	186.2
Operating Income (Loss)	12.7	(5.3)	10.9	(7.9)
Depreciation and Amortization	20.5	20.1	38.4	37.7
Operating Segments | Midwest
Segment Reporting Information [Line Items]
Service revenues	141.1	143.3	267.6	269.2
Operating Income (Loss)	18.6	20.6	32.5	31.9
Depreciation and Amortization	26.1	25.2	50.0	47.8
Corporate
Segment Reporting Information [Line Items]
Service revenues	0.0	0.0	0.0	0.0
Operating Income (Loss)	(17.6)	(15.2)	(35.7)	(34.8)
Depreciation and Amortization	$ 1.1	$ 2.5	$ 2.3	$ 4.6

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Segment and Related Information - Disaggregated Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue	$ 398.1	$ 383.1	$ 762.8	$ 730.5
Residential Collection Revenue
Disaggregation of Revenue [Line Items]
Revenue	101.7	97.5	201.1	191.0
Commercial Collection Revenue
Disaggregation of Revenue [Line Items]
Revenue	93.9	92.0	186.0	182.6
Rolloff Collection Revenue
Disaggregation of Revenue [Line Items]
Revenue	65.4	63.2	126.0	120.2
Disposal Revenue
Disaggregation of Revenue [Line Items]
Revenue	73.4	73.5	130.5	128.8
Sale of Recyclables
Disaggregation of Revenue [Line Items]
Revenue	29.2	23.9	56.0	46.9
Fuel and Environmental Charges
Disaggregation of Revenue [Line Items]
Revenue	4.1	8.7	9.4	16.4
Other Revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 30.4	$ 24.3	$ 53.8	$ 44.6

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Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Total Fair Value
Recurring fair value measurements
Cash and cash equivalents	$ 6.9	$ 6.8
Interest rate caps - asset position	13.2	3.7
Interest rate caps - liability position		(0.4)
Total recurring fair value measurements	20.1	10.1
Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Recurring fair value measurements
Cash and cash equivalents	6.9	6.8
Interest rate caps - asset position	0.0	0.0
Interest rate caps - liability position		0.0
Total recurring fair value measurements	6.9	6.8
Total Fair Value | Significant Other Observable Inputs (Level 2)
Recurring fair value measurements
Cash and cash equivalents	0.0	0.0
Interest rate caps - asset position	13.2	3.7
Interest rate caps - liability position		(0.4)
Total recurring fair value measurements	13.2	3.3
Carrying Value
Recurring fair value measurements
Cash and cash equivalents	6.9	6.8
Interest rate caps - asset position	13.2	3.7
Interest rate caps - liability position		(0.4)
Total recurring fair value measurements	$ 20.1	$ 10.1

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Fair Value Measurements - Estimated Fair Value of Company's Debt (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt instruments carrying value	$ 1,858.0	$ 1,914.0
Significant Other Observable Inputs (Level 2)
Debt Instrument [Line Items]
Estimated fair value debt	1,855.9	1,931.4
Significant Other Observable Inputs (Level 2) | Revolver
Debt Instrument [Line Items]
Estimated fair value debt	3.0	29.0
Significant Other Observable Inputs (Level 2) | Senior Notes
Debt Instrument [Line Items]
Estimated fair value debt	422.9	435.1
Significant Other Observable Inputs (Level 2) | Term Loan B
Debt Instrument [Line Items]
Estimated fair value debt	$ 1,430.0	$ 1,467.3