Waste Connections, Inc. (NYSE:WCN) Q3 2023 Earnings Conference Call October 26, 2023 8:30 AM ET Company Participants Ron Mittelstaedt – President and Chief Executive Officer Mary Anne Whitney – Chief Financial Officer Conference Call Participants Toni Kaplan – Morgan Stanley Kevin Chiang – CIBC Jasper Bibb – Truist Securities Michael Hoffman – Stifel Bryan Burgmeier – Citi Tyler Brown – Raymond James Noah Kaye – Oppenheimer Jerry Revich – Goldman Sachs Stephanie Moore – Jefferies Stephanie Yee – JPMorgan Op ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-34370 WASTE CONNECTIONS, INC. (Exact name of registrant as specified in its charter) Ontario, Canada (State or ...

Waste Connections, Inc. (NYSE:WCN) Q2 2023 Earnings Conference Call August 3, 2023 8:30 AM ET Company Participants Ronald Mittelstaedt - Founder, CEO, President & Director Mary Whitney - EVP & CFO Conference Call Participants Toni Kaplan - Morgan Stanley Sean Eastman - KeyBanc Capital Markets Tyler Brown - Raymond James Noah Kaye - Oppenheimer Stephanie Yee - JPMorgan Chase & Co. Michael Hoffman - Stifel, Nicolaus & Company Harold Antor - Jefferies Kevin Chiang - CIBC Jerry Revich - Goldman Sachs Group Brya ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 WASTE CONNECTIONS, INC. (Exact name of registrant as specified in its charter) For the quarterly period ended June 30, 2023 Or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-34370 Ontario, Canada (State or ot ...

Waste Connections, Inc. (NYSE:WCN) Q1 2023 Earnings Conference Call April 27, 2023 8:30 AM ET Company Participants Ronald Mittelstaedt - President and Chief Executive Officer Mary Anne Whitney - Chief Financial Officer Conference Call Participants Tyler Brown - Raymond James & Associates, Inc. Kevin Chiang - CIBC Capital Markets Sean Eastman - KeyBanc Capital Markets, Inc. Michael Hoffman - Stifel Financial Corp. Noah Kaye - Oppenheimer & Co., Inc. Jasper Bibb - Truist Securities Hilary Lee - Morgan Stanley ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-34370 WASTE CONNECTIONS, INC. (Exact name of registrant as specified in its charter) Ontario, Canada (State or othe ...

Investor Presentation March 2023 SAFE HARBOR STATEMENT This document contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws. These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events ...

Financial Data and Key Metrics Changes - In Q4 2022, revenue reached $1.869 billion, exceeding expectations by $24 million and reflecting a year-over-year increase of 15.1% [22] - Adjusted EBITDA for Q4 was $564 million, up 13.8% year-over-year, resulting in an adjusted EBITDA margin of 30.2%, which was a 20 basis point beat to the outlook [28][29] - For the full year 2022, adjusted free cash flow was $1.165 billion, representing a 15% increase year-over-year, with capital expenditures (CapEx) of $913 million, up 23% year-over-year [14][30] Business Line Data and Key Metrics Changes - Solid waste pricing in Q4 increased by 10.6%, with core pricing contributing 9% and showing a sequential increase of 70 basis points from Q3 [23] - Commercial collection revenue rose by 14% year-over-year, primarily driven by pricing, while landfill rates per ton increased by about 7.5% [26] - Recycled commodity revenues were down approximately 70% year-over-year due to a significant decline in values since July [27] Market Data and Key Metrics Changes - The company experienced a 1.7% decline in solid waste volumes in Q4, attributed to the non-renewal of two municipal contracts [25] - The pricing acceleration in competitive regions during 2022 positioned the company for an estimated 9.5% total price increase in 2023, primarily from core pricing [24] Company Strategy and Development Direction - The company plans to continue its focus on sustainability and operational execution, with a significant increase in CapEx for sustainability-related projects expected in 2023 [15][17] - Acquisition activity in 2022 totaled approximately $640 million in annualized revenue, with a disciplined approach to market selection and risk profiles [18][19] - The company aims for double-digit revenue growth and adjusted EBITDA margin expansion in 2023, with potential upside from improved commodity values and additional acquisitions [7][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming inflationary pressures and commodity-related headwinds, with expectations for continued pricing momentum in 2023 [5][12] - The company anticipates a challenging operating environment but remains optimistic about the potential for margin expansion and revenue growth [41][42] - Management noted that improvements in recycled commodity prices have been observed in February, although these have not been factored into the current outlook [36] Other Important Information - The company returned $668 million to shareholders through dividends and share repurchases in 2022, marking a nearly 20% increase from the previous year [20] - The 2023 outlook includes an estimated revenue of $8.05 billion and adjusted EBITDA of approximately $2.5 billion, reflecting a 30 basis point increase in margin year-over-year [33][34] Q&A Session Summary Question: Can you expand on the margin cadence implied by guidance? - Management indicated that the first quarter is expected to have the toughest comparisons, with margin improvements anticipated in subsequent quarters [44][46] Question: What is the outlook for R&D and monetizing gas at facilities? - Management stated that there are currently 17 sites with electric generation facilities, but further details on monetization will depend on regulatory developments [51][53] Question: How is volume expected to trend in 2023? - Management expects volume growth to remain flat to down 1%, with potential episodic increases from new contracts [55][57] Question: What is the M&A pipeline looking like? - The company noted that while there have been larger transactions, the average size of targeted acquisitions remains consistent, focusing on companies with $20 million to $40 million in revenue [66][70] Question: What is the sustainability CapEx budget for 2023? - The sustainability CapEx budget for 2023 is expected to be between $75 million and $85 million, reflecting some shifts from previous expectations [85]

WASTE CONNECTIONS REPORTS FOURTH QUARTER 2022 RESULTS AND PROVIDES 2023 OUTLOOK Fourth Quarter Highlights - Price-led organic growth and acquisition activity drive Q4 results above expectations and provide higher entry point into 2023 - Revenue of $1.869 billion, net income(a) of $194.4 million, and adjusted EBITDA(b) of $563.6 million, or 30.2% of revenue, above expectations - Net income and adjusted net income(b) of $0.75 and $0.89 per share, respectively Full Year 2022 Highlights - Revenue of $7.212 bill ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) Waste Connections is a leading North American solid waste services company focused on secondary markets, growth through acquisitions, and decentralized operations - Waste Connections is the **third largest** solid waste services provider in North America, operating in **43 U.S. states** and **six Canadian provinces** and also provides non-hazardous exploration and production (E&P) waste services[9](index=9&type=chunk) - The company's operating strategy focuses on **secondary and rural markets** to achieve **high market share**, control the waste stream through **exclusive contracts**, optimize asset positioning, provide vertically integrated services, and manage on a **decentralized basis**[11](index=11&type=chunk)[12](index=12&type=chunk)[13](index=13&type=chunk) Acquisition Activity (2020-2022) | Year | Number of Acquisitions | Net Fair Value of Consideration | | :--- | :--- | :--- | | 2022 | 24 | $2.334 billion | | 2021 | 30 | $1.069 billion | | 2020 | 21 | $481.6 million | [Human Capital](index=7&type=section&id=Human%20Capital) The company prioritizes employee development, safety, and diversity, with over 22,000 employees and significant investments in training and wages Workforce Demographics (as of Dec 31, 2022) | Metric | Value | | :--- | :--- | | Total Active Employees | 22,109 | | - U.S. Employees | 18,799 | | - Canada Employees | 3,310 | | Commercial Truck Drivers | 10,866 | | Mechanics | 1,815 | | Employees under Collective Bargaining | ~15% | | Ethnic Minorities | 40% | | Women | 17% | | Armed Services Veterans | 8% | - The company has incurred over **$50 million** in incremental COVID-19-related costs through the end of 2022, including supplemental pay for frontline employees, and proactively raised its minimum wage target to **$17 per hour** in the U.S. (CAD $17 in Canada) in 2022[36](index=36&type=chunk)[37](index=37&type=chunk) - Safety is a core value, with a 'Drive to ZERO' goal for incidents; in 2022, approximately **60%** of operating locations had zero safety-related incidents or reduced incident frequency, and the **Total Recordable Incident Rate (TRIR) remains below industry averages**[38](index=38&type=chunk)[40](index=40&type=chunk) - The company promotes a 'Servant Leadership' culture and invests heavily in training; in 2022, approximately **72%** of all employees participated in training, and the number of sessions offered increased by **over 40%** from the prior year[43](index=43&type=chunk)[49](index=49&type=chunk) [Sustainability/Environmental Social and Governance (ESG)](index=15&type=section&id=Sustainability%2FEnvironmental%20Social%20and%20Governance%2C%20or%20ESG) The company commits $500 million to ESG targets, focusing on environmental impact reduction, safety, and employee engagement, with executive compensation linked to these goals - The company has committed **$500 million** to advance long-term, aspirational ESG targets established in 2020[61](index=61&type=chunk) - ESG targets include **reducing environmental impact**, **enhancing employee safety**, and **improving engagement**; in 2022, targets were expanded to include **reductions in absolute emissions and emissions intensity**[62](index=62&type=chunk) - Since 2021, the company has **incorporated its ESG targets into executive compensation metrics** to align leadership incentives with sustainability goals[62](index=62&type=chunk) [Waste Services](index=17&type=section&id=Waste%20Services) The company offers comprehensive waste services, including collection, transfer, recycling, and disposal at 100 landfills with significant remaining capacity, alongside E&P waste management Landfill Portfolio (as of Dec 31, 2022) | Landfill Type | Owned/Operated Count | | :--- | :--- | | Municipal Solid Waste (MSW) | 75 | | E&P Waste Only | 9 | | Non-MSW (e.g., C&D) | 16 | | **Total** | **100** | - The average remaining life for owned and operated landfills is estimated to be approximately **31 years** based on permitted capacity, and **35 years** when considering probable expansion capacity[68](index=68&type=chunk)[69](index=69&type=chunk)[71](index=71&type=chunk) Landfill Airspace Changes (in thousands of tons) | | 2022 | 2021 | | :--- | :--- | :--- | | **Beginning Balance (Permitted + Probable Expansion)** | **1,687,476** | **1,541,645** | | Acquired landfills | 92,270 | 41,374 | | Airspace consumed | (47,229) | (46,632) | | **Ending Balance (Permitted + Probable Expansion)** | **1,721,211** | **1,687,476** | - The company has landfill gas recovery systems at **55** of its landfills, converting methane into clean energy sources like electricity or pipeline-quality natural gas[77](index=77&type=chunk) [Competition](index=23&type=section&id=Competition) The company faces intense competition in both municipal solid waste and E&P waste sectors from large public, regional, and public sector operators, primarily on price and service quality - Key competitors in the municipal solid waste (MSW) industry include **Waste Management, Inc.**, **Republic Services, Inc.**, and **GFL Environmental, Inc.**, along with numerous regional and local companies[81](index=81&type=chunk) - Competition for collection, transfer, and disposal is based on **price and service quality**; the company also competes with **public sector operators** who may have financial advantages like access to tax revenues[81](index=81&type=chunk) - In the E&P waste market, competition comes from smaller regional companies and larger public and private firms such as **Waste Management, Inc.**, **Republic Services, Inc.**, and **Clean Harbors, Inc.**[84](index=84&type=chunk) [Regulation](index=25&type=section&id=Regulation) The company's operations are subject to extensive and evolving environmental, health, and safety regulations in the U.S. and Canada, including emerging rules on climate change and PFAS, potentially increasing costs - Operations are subject to **extensive environmental, health, and safety laws** in the U.S. and Canada, administered by agencies like the **EPA** and **Environment and Climate Change Canada**, which require permits and govern discharges, waste handling, and cleanup responsibilities[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) - Key U.S. regulations include the **Resource Conservation and Recovery Act (RCRA)** for waste management, the **Comprehensive Environmental Response, Compensation and Liability Act (CERCLA or "Superfund")** for cleanup liability, the **Clean Water Act** for discharges, and the **Clean Air Act** for air emissions[95](index=95&type=chunk)[100](index=100&type=chunk)[108](index=108&type=chunk) - The company faces **evolving regulations related to climate change and greenhouse gas (GHG) emissions**, including **Canada's Greenhouse Gas Pollution Pricing Act** and various EPA rules, which could **increase operating costs** for both the company and its E&P customers[136](index=136&type=chunk)[137](index=137&type=chunk)[138](index=138&type=chunk) - Emerging contaminants, particularly **per- and polyfluoroalkyl substances (PFAS)**, are under increasing regulatory scrutiny; potential designation as hazardous substances under CERCLA and other regulations could **significantly increase future cleanup liabilities and compliance costs**[144](index=144&type=chunk)[149](index=149&type=chunk)[154](index=154&type=chunk) [Risk Factors](index=63&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from intense competition, economic downturns, regulatory changes, operational hazards, and financial exposures including debt and acquisition integration challenges - The company faces **significant competition** from large national companies, regional players, and government service providers, which could affect its ability to win or retain contracts and maintain pricing[212](index=212&type=chunk)[213](index=213&type=chunk) - **Growth through acquisitions** is a key strategy, but competition for candidates and market conditions may **limit opportunities**; integrating acquired businesses **presents challenges** and may not always achieve anticipated financial objectives[215](index=215&type=chunk)[229](index=229&type=chunk) - Financial results are **vulnerable to economic conditions**, including inflation and recessions, which can **decrease waste generation**, **increase pricing pressure**, and **negatively impact recycled commodity prices**[271](index=271&type=chunk)[272](index=272&type=chunk)[275](index=275&type=chunk) - The business is subject to **extensive and evolving environmental, health, and safety laws**; changes in regulations, particularly regarding climate change (GHG emissions) and emerging contaminants (PFAS), could **significantly increase operating costs and liabilities**[291](index=291&type=chunk)[295](index=295&type=chunk) - The company's indebtedness of approximately **$6.963 billion** as of year-end 2022 could **increase vulnerability to adverse economic conditions** and expose it to **interest rate risk**, potentially **limiting financial flexibility**[250](index=250&type=chunk)[251](index=251&type=chunk) [Unresolved Staff Comments](index=91&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) There are no unresolved staff comments - None[304](index=304&type=chunk) [Properties](index=91&type=section&id=Item%202.%20Properties) As of December 31, 2022, the company owned or operated a vast network of 359 collection operations, 209 transfer stations, 100 landfills, 79 recycling facilities, and 22 E&P injection wells across North America Key Properties Owned or Operated (as of Dec 31, 2022) | Facility Type | Count | | :--- | :--- | | Solid waste collection operations | 359 | | Transfer stations | 209 (157 owned, 52 operated) | | MSW landfills | 75 (63 owned, 12 operated) | | E&P waste landfills | 9 | | Non-MSW landfills | 16 | | Recycling operations | 79 | | E&P liquid waste injection wells | 22 | [Legal Proceedings](index=93&type=section&id=Item%203.%20Legal%20Proceedings) Information on legal proceedings is incorporated by reference from Note 13 to the consolidated financial statements - Details on legal proceedings are located in Note 13 of the consolidated financial statements[308](index=308&type=chunk) [Mine Safety Disclosure](index=93&type=section&id=Item%204.%20Mine%20Safety%20Disclosure) There is no mine safety disclosure to report - None[309](index=309&type=chunk) Part II [Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities](index=94&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Shareholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Waste Connections' common shares trade on NYSE and TSX, with a regular dividend and active share repurchase program, demonstrating strong historical stock performance - The company's common shares trade on the **NYSE** and **TSX** under the symbol '**WCN**'[312](index=312&type=chunk) - A regular quarterly cash dividend of **$0.255 per common share** was approved on February 15, 2023[313](index=313&type=chunk) - The company renewed its **Normal Course Issuer Bid (NCIB)** to purchase up to **12,859,066 common shares** from August 10, 2022, to August 9, 2023[314](index=314&type=chunk) Five-Year Cumulative Total Shareholder Returns (Indexed) | Company / Index | Dec 2017 | Dec 2018 | Dec 2019 | Dec 2020 | Dec 2021 | Dec 2022 | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Waste Connections, Inc.** | **$100** | **$105.47** | **$129.93** | **$147.93** | **$197.93** | **$193.93** | | S&P 500 Index | $100 | $95.62 | $125.72 | $148.85 | $191.58 | $156.88 | | S&P/TSX 60 Index | $100 | $84.78 | $108.88 | $116.99 | $151.09 | $132.06 | | Dow Jones U.S. Waste & Disposal Services Index | $100 | $100.11 | $135.25 | $144.12 | $201.48 | $190.59 | [Reserved](index=95&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=97&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2022, revenues grew 17.2% to $7.212 billion, driven by acquisitions and pricing, with net income up 35.2% and adjusted EBITDA up 15.7%, despite margin compression and increased leverage from acquisition spending 2022 vs. 2021 Financial Performance | Metric | 2022 | 2021 | % Change | | :--- | :--- | :--- | :--- | | Revenues | $7.212 billion | $6.151 billion | +17.2% | | Net Income (attributable to WCN) | $835.7 million | $618.0 million | +35.2% | | Adjusted EBITDA | $2.221 billion | $1.919 billion | +15.7% | | Adjusted EBITDA Margin | 30.8% | 31.2% | -40 bps | | Adjusted Free Cash Flow | $1.165 billion | $1.010 billion | +15.3% | - The **17.2%** revenue growth in 2022 was primarily driven by acquisitions (contributing **$552.0 million**), solid waste pricing growth of **9.2%**, and a **1.2%** increase from higher E&P waste activity[340](index=340&type=chunk) - The company returned **$668.0 million** to shareholders in 2022, consisting of **$243.0 million** in cash dividends and **$425.0 million** in share repurchases[345](index=345&type=chunk) - The company's leverage ratio (Total Debt to EBITDA) increased from **2.50x** at year-end 2021 to **2.93x** at year-end 2022, primarily due to debt-funded acquisition spending[346](index=346&type=chunk) [Results of Operations](index=112&type=section&id=Results%20of%20Operations) In 2022, revenues increased 17.2% to $7.212 billion, driven by acquisitions and pricing, while operating income grew 19.5% to $1.242 billion, improving the operating margin to 17.2% despite higher costs of operations Consolidated Statements of Net Income Highlights (in thousands) | | 2022 | % of Rev | 2021 | % of Rev | | :--- | :--- | :--- | :--- | :--- | | **Revenues** | **$7,211,859** | **100.0%** | **$6,151,361** | **100.0%** | | Cost of operations | 4,336,012 | 60.1% | 3,654,074 | 59.4% | | Selling, general and administrative | 696,467 | 9.7% | 612,337 | 10.0% | | **Operating income** | **1,242,190** | **17.2%** | **1,039,625** | **16.9%** | | **Net income attributable to Waste Connections** | **$835,662** | **11.6%** | **$618,047** | **10.0%** | - Revenue growth in 2022 was primarily driven by acquisitions (**$563.1 million** net), price increases and surcharges (**$541.7 million**), and increased E&P waste revenues (**$75.8 million**)[383](index=383&type=chunk)[384](index=384&type=chunk)[386](index=386&type=chunk) - Cost of Operations as a percentage of revenue increased by **0.7 percentage points** to **60.1%**, mainly due to higher fuel expense, increased third-party transportation costs, and the impact of acquisitions with lower operating margins[394](index=394&type=chunk) - Operating income margin improved by **0.3 percentage points** to **17.2%**, benefiting from lower SG&A, depreciation, and impairment expenses as a percentage of revenue, which offset the increase in cost of operations[409](index=409&type=chunk) [Segment Reporting](index=120&type=section&id=Segment%20Reporting) In 2022, all five geographic segments reported revenue growth, with varying EBITDA margin performance influenced by factors like E&P activity, acquisitions, and operating costs Segment Revenue and EBITDA (2022) | Segment | Revenue (in millions) | EBITDA (in millions) | EBITDA Margin | | :--- | :--- | :--- | :--- | | Eastern | $1,890.7 | $486.6 | 25.7% | | Southern | $1,667.8 | $497.8 | 29.9% | | Western | $1,484.6 | $445.9 | 30.0% | | Central | $1,228.1 | $424.6 | 34.6% | | Canada | $940.6 | $349.4 | 37.1% | - The Southern segment's EBITDA margin increased from **27.3%** in 2021 to **29.9%** in 2022, driven by higher earnings in E&P operations and price-led revenue growth[432](index=432&type=chunk) - The Canada segment's EBITDA margin decreased from **39.7%** in 2021 to **37.1%** in 2022, primarily due to acquisitions with lower margins and increased fuel and disposal expenses[442](index=442&type=chunk) [Liquidity and Capital Resources](index=126&type=section&id=Liquidity%20and%20Capital%20Resources) In 2022, operating cash flow increased to $2.022 billion, but investing activities surged to $3.087 billion due to acquisitions and capital expenditures, leading to increased long-term debt of $6.963 billion Cash Flow Summary (in millions) | Cash Flow Activity | 2022 | 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,022.5 | $1,698.2 | | Net cash used in investing activities | $(3,087.2) | $(1,693.5) | | Net cash provided by (used in) financing activities | $1,028.5 | $(499.5) | - The increase in cash used in investing activities was driven by a **$1.246 billion** increase in cash paid for acquisitions and a **$168.4 million** increase in capital expenditures[449](index=449&type=chunk)[344](index=344&type=chunk) - As of December 31, 2022, the company had total long-term debt of **$6.963 billion** and contractual obligations including interest payments, leases, and landfill closure costs[473](index=473&type=chunk) - The company plans for total capital expenditures of approximately **$895 million** in 2023, to be funded by cash on hand, internally generated funds, and borrowings[454](index=454&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=144&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from interest rates, commodity prices, and foreign currency, with specific sensitivities outlined for unhedged debt, fuel, and recycled commodity price changes - The company uses interest rate swaps to fix the rate on a portion of its variable-rate debt; as of December 31, 2022, five swaps were outstanding with notional amounts totaling **$950 million**[497](index=497&type=chunk) - A **one percentage point** increase in interest rates on the **$1.115 billion** of unhedged variable-rate debt as of year-end 2022 would decrease annual pre-tax income by approximately **$11.1 million**[502](index=502&type=chunk)[503](index=503&type=chunk) - A **$0.10 per gallon** increase in the price of unhedged diesel fuel would decrease pre-tax income by approximately **$4.7 million** in 2023[505](index=505&type=chunk) - A **10%** decrease in average recycled commodity prices from 2022 levels would have reduced revenues by an estimated **$19.7 million**[506](index=506&type=chunk) [Financial Statements and Supplementary Data](index=147&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements for 2020-2022, along with the independent auditor's report from Grant Thornton LLP, highlighting key audit matters like landfill accounting and intangible asset valuation - The independent auditor's report from Grant Thornton LLP provides an **unqualified opinion** on the financial statements and the effectiveness of internal control over financial reporting as of December 31, 2022[513](index=513&type=chunk)[514](index=514&type=chunk) - Critical audit matters identified by the auditor include the significant judgments and estimates involved in **landfill accounting** (closure and post-closure liabilities) and the **valuation of intangible assets** acquired in business combinations[517](index=517&type=chunk)[518](index=518&type=chunk)[521](index=521&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=244&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements with accountants on accounting and financial disclosure - None[791](index=791&type=chunk) [Controls and Procedures](index=244&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of December 31, 2022, with no material changes in the fourth quarter - Management concluded that the company's disclosure controls and procedures were **effective** as of December 31, 2022[792](index=792&type=chunk) - Management concluded that the company's internal control over financial reporting was **effective** as of December 31, 2022; this assessment was audited by Grant Thornton LLP, which issued an **unqualified opinion**[794](index=794&type=chunk)[795](index=795&type=chunk) [Other Information](index=245&type=section&id=Item%209B.%20Other%20Information) There is no other information to report - None[797](index=797&type=chunk) [Disclosure Regarding Foreign Jurisdictions That Prevent Inspections](index=245&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20That%20Prevent%20Inspections) There is no disclosure regarding foreign jurisdictions that prevent inspections - None[798](index=798&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=245&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information for this item is incorporated by reference from the company's 2023 Management Information Circular and Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[799](index=799&type=chunk) [Executive Compensation](index=245&type=section&id=Item%2011.%20Executive%20Compensation) Information for this item is incorporated by reference from the company's 2023 Management Information Circular and Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[802](index=802&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=245&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Information for this item is incorporated by reference from the company's 2023 Management Information Circular and Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[803](index=803&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=245&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information for this item is incorporated by reference from the company's 2023 Management Information Circular and Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[804](index=804&type=chunk) [Principal Accounting Fees and Services](index=247&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information for this item is incorporated by reference from the company's 2023 Management Information Circular and Proxy Statement - Information is incorporated by reference from the 2023 Proxy Statement[807](index=807&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=247&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists exhibits filed with the Form 10-K, including corporate governance documents, debt agreements, and Financial Statement Schedule II - This section contains a list of all exhibits filed with the Form 10-K and includes Schedule II – Valuation and Qualifying Accounts[808](index=808&type=chunk) [Form 10-K Summary](index=251&type=section&id=Item%2016.%20Form%2010-K%20Summary) There is no Form 10-K summary provided - None[815](index=815&type=chunk)