Republic Services, Inc. Liquidation Value

Republic Services (RSG) presents a deeply negative liquidation recovery posture, consistent with its prior filings and typical of asset-heavy, goodwill-laden waste infrastructure operators. MFFAIS reports a cash liquidation value of approximately -$31.5B, liquid liquidation value of -$29.6B, and operating liquidation value of -$29.5B as of the March 31, 2026 period end. These figures reflect the structural asymmetry under the liquidation lens: haircutted assets are overwhelmed by face-value liabilities.

Asset side: Total reported assets of $34.6B are dominated by goodwill ($16.9B, zero recovery), net PP&E including landfill development costs ($12.7B, 50-70% recovery at best on specialized infrastructure), finite-lived intangibles ($647M, zero recovery), and other noncurrent assets including capitalized cloud implementation costs ($1.5B, zero to minimal recovery). Tangible liquid assets are thin: cash of $118M, net AR of $1.9B (90-95% recovery), and inventory of $114M (60% recovery). AR quality appears stable with DSO of 42.4 days and allowance of $60M against gross receivables.

Liability side stays at face value and is substantial. Total long-term debt and capital lease obligations including current maturities stand at $13.9B. This represents a quarter-over-quarter increase, driven by $437M in acquisition spend and $476M capex funded partly through net revolver draws and commercial paper expansion ($1.4B CP outstanding vs. $1.0B at year-end 2025). Environmental and closure liabilities are material: asset retirement obligations total $2.3B (current $97M, noncurrent $2.2B), accrued capping/closure/post-closure liabilities total $2.8B (current $159M, noncurrent $2.6B), and environmental loss contingency accruals total $440M. These obligations do not extinguish in a wind-down and represent a substantial incremental claim against any asset recovery. Self-insurance reserves (current $253M, noncurrent $454M) and deferred tax liabilities ($1.9B noncurrent) add further face-value burden.

Compared to the prior 10-K (December 31, 2025), the current quarter shows: goodwill up approximately $211M from acquisitions, net PP&E up modestly, debt up net ~$275M, and commercial paper up $400M. The leverage ratio of 2.6x debt/EBITDA (as defined by the credit facility) is well inside the 3.75x covenant maximum, but this metric uses going-concern EBITDA rather than liquidation values. The filing discusses environmental remediation liabilities ($440M) and landfill closure obligations extensively in MD&A but does not separately tag the total landfill closure obligation rollforward in XBRL beyond the ARO and accrued capping line items already captured. Goodwill impairment is not separately tagged in XBRL for this period, consistent with no impairment having been recorded.