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Financial Instruments | 9 Months Ended
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Sep. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The effect of our hedging relationships and derivative instruments on the consolidated statements of income for the three and nine months ended September 30, 2023 and 2022 follows (in millions):
| Classification and amount of gain (loss) recognized in income on hedging relationships and derivative instruments
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2023 |  | 2022 |  | 2023 |  | 2022
|  | Interest Expense |  | Interest Expense |  | Interest Expense |  | Interest Expense
Total amount of expense line items presented in the consolidated statements of income in which the effects of hedging relationships and derivative instruments are recorded |  | $ | (127.6) |  |  | $ | (105.2) |  |  | $ | (378.8) |  |  | $ | (282.7) |
The effects of fair value and cash flow hedging relationships in Subtopic 815-20: |  |  |  |  |  |  |  |
(Loss) gain on fair value hedging relationships: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Net swap settlements |  | $ | — |  |  | $ | 0.4 |  |  | $ | (2.2) |  |  | $ | 3.7 |
Net periodic (loss) earnings |  | $ | — |  |  | $ | (0.9) |  |  | $ | (1.1) |  |  | $ | (2.1) |
(Loss) gain on cash flow hedging relationships: |  |  |  |  |  |  |  |
Amount of (loss) gain reclassified from accumulated other comprehensive loss into earnings, net of tax: |  |  |  |  |  |  |  |
Interest rate swap locks |  | $ | (0.9) |  |  | $ | (1.1) |  |  | $ | (2.9) |  |  | $ | (3.2) |
2022 interest rate swap |  | $ | 3.2 |  |  | $ | 1.1 |  |  | $ | 10.0 |  |  | $ | 1.1 |
The effects of derivative instruments not in Subtopic 815-20: |  |  |  |  |  |  |  |
Gain (loss) on free-standing derivative instruments: |  |  |  |  |  |  |  |
Interest rate swaps: |  |  |  |  |  |  |  |
Gain (loss) on change in fair value of free-standing derivative instruments |  | $ | — |  |  | $ | (0.8) |  |  | $ | 1.0 |  |  | $ | (5.2) |
Interest rate contract: |  |  |  |  |  |  |  |
Net (loss) gain on change in fair value of free-standing derivative instruments |  | $ | (0.6) |  |  | $ | 0.5 |  |  | $ | (1.9) |  |  | $ | 2.2 |
Fair Value Measurements In measuring fair values of assets and liabilities, we use valuation techniques that maximize the use of observable inputs (Level 1) and minimize the use of unobservable inputs (Level 3). We also use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The carrying value for certain of our financial instruments, including cash, accounts receivable, current investments, accounts payable and certain other accrued liabilities, approximates fair value because of their short-term nature. As of September 30, 2023 and December 31, 2022, our assets and liabilities that are measured at fair value on a recurring basis include the following:
| September 30, 2023
|  |  | Fair Value
| Carrying Amount |  | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Money market mutual funds | $ | 41.9 |  |  | $ | 41.9 |  |  | $ | 41.9 |  |  | $ | — |  |  | $ | — |
Bonds - restricted cash and marketable securities and other assets | 57.3 |  |  | 57.3 |  |  | — |  |  | 57.3 |  |  | — |
Derivative and hedging assets - prepaid and other current assets and other assets | 120.8 |  |  | 120.8 |  |  | — |  |  | 120.8 |  |  | — |
Total assets | $ | 220.0 |  |  | $ | 220.0 |  |  | $ | 41.9 |  |  | $ | 178.1 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities | $ | 111.3 |  |  | $ | 111.3 |  |  | $ | — |  |  | $ | 111.3 |  |  | $ | — |
Contingent consideration - other accrued liabilities and other long-term liabilities | 64.1 |  |  | 64.1 |  |  | — |  |  | — |  |  | 64.1 |
Total liabilities | $ | 175.4 |  |  | $ | 175.4 |  |  | $ | — |  |  | $ | 111.3 |  |  | $ | 64.1 |
| December 31, 2022
|  |  | Fair Value
| Carrying Amount |  | Total |  | Quoted Prices in Active Markets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |  |  |
Money market mutual funds | $ | 38.3 |  |  | $ | 38.3 |  |  | $ | 38.3 |  |  | $ | — |  |  | $ | — |
Bonds - restricted cash and marketable securities and other assets | 56.9 |  |  | 56.9 |  |  | — |  |  | 56.9 |  |  | — |
Derivative and hedging assets - other assets | 105.8 |  |  | 105.8 |  |  | — |  |  | 105.8 |  |  | — |
Total assets | $ | 201.0 |  |  | $ | 201.0 |  |  | $ | 38.3 |  |  | $ | 162.7 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |
Derivative and hedging liabilities - other accrued liabilities and other long-term liabilities | $ | 102.0 |  |  | $ | 102.0 |  |  | $ | — |  |  | $ | 102.0 |  |  | $ | — |
Contingent consideration - other accrued liabilities and other long-term liabilities | 65.1 |  |  | 65.1 |  |  | — |  |  | — |  |  | 65.1 |
Total liabilities | $ | 167.1 |  |  | $ | 167.1 |  |  | $ | — |  |  | $ | 102.0 |  |  | $ | 65.1 |
Total Debt The carrying value of our total debt was $11.9 billion and $11.8 billion as of September 30, 2023 and December 31, 2022, respectively, and the fair value of our total debt was $11.0 billion and $11.1 billion, respectively. The estimated fair value of our fixed rate senior notes and debentures is based on quoted market prices. The fair value of our remaining notes payable, tax-exempt financings and borrowings under our credit facilities approximates the carrying value because the interest rates are variable. The fair value estimates were based on Level 2 inputs of the fair value hierarchy as of September 30, 2023 and December 31, 2022. See Note 7, Debt, for further information related to our debt. Contingent Consideration In 2015, we entered into a waste management contract with the County of Sonoma, California to operate the county's waste management facilities. As of September 30, 2023, the Sonoma contingent consideration represents the fair value of $59.3 million payable to the County of Sonoma based on the achievement of future annual tonnage targets through the expected remaining capacity of the landfill. The potential undiscounted amount of all future contingent payments that we could be required to make under the waste management contract is estimated to be between approximately $78 million and $113 million. During the nine months ended September 30, 2023, the activity in the contingent consideration liability included accretion, which was offset by concession payments made in the ordinary course of business. There were no changes to the estimate of fair value.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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