Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 22, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-12154 | |
Entity Registrant Name | WASTE MANAGEMENT INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1309529 | |
Entity Address, Address Line One | 1001 Fannin Street | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 512-6200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | WM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 424,232,181 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000823768 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 2,250 | $ 61 |
Accounts receivable, net of allowance for doubtful accounts of $28 and $29, respectively | 2,017 | 1,931 |
Other receivables | 243 | 344 |
Parts and supplies | 104 | 102 |
Other assets | 222 | 207 |
Total current assets | 4,836 | 2,645 |
Property and equipment, net of accumulated depreciation and amortization of $18,619 and $18,264, respectively | 12,665 | 11,942 |
Goodwill | 6,512 | 6,430 |
Other intangible assets, net | 547 | 572 |
Restricted trust and escrow accounts | 354 | 296 |
Investments in unconsolidated entities | 333 | 406 |
Other assets | 739 | 359 |
Total assets | 25,986 | 22,650 |
Current liabilities: | ||
Accounts payable | 908 | 1,037 |
Accrued liabilities | 1,296 | 1,117 |
Deferred revenues | 526 | 522 |
Current portion of long-term debt | 116 | 432 |
Total current liabilities | 2,846 | 3,108 |
Long-term debt, less current portion | 12,623 | 9,594 |
Deferred income taxes | 1,289 | 1,291 |
Landfill and environmental remediation liabilities | 1,900 | 1,828 |
Other liabilities | 861 | 553 |
Total liabilities | 19,519 | 16,374 |
Commitments and contingencies | ||
Waste Management, Inc. stockholders' equity: | ||
Common stock, $0.01 par value; 1,500,000,000 shares authorized; 630,282,461 shares issued | 6 | 6 |
Additional paid-in capital | 4,962 | 4,993 |
Retained earnings | 10,088 | 9,797 |
Accumulated other comprehensive income (loss) | (22) | (87) |
Treasury stock at cost, 206,481,746 and 206,299,352 shares, respectively | (8,568) | (8,434) |
Total Waste Management, Inc. stockholders' equity | 6,466 | 6,275 |
Noncontrolling interests | 1 | 1 |
Total equity | 6,467 | 6,276 |
Total liabilities and equity | $ 25,986 | $ 22,650 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 28 | $ 29 |
Accumulated depreciation and amortization | $ 18,619 | $ 18,264 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 630,282,461 | 630,282,461 |
Treasury stock, shares | 206,481,746 | 206,299,352 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Operating revenues | $ 3,946 | $ 3,739 | $ 7,642 | $ 7,250 |
Costs and expenses: | ||||
Operating | 2,443 | 2,313 | 4,741 | 4,497 |
Selling, general and administrative | 391 | 365 | 800 | 738 |
Depreciation and amortization | 409 | 384 | 775 | 731 |
Restructuring | 1 | 2 | 3 | |
(Gain) loss from divestitures, asset impairments and unusual items, net | 7 | (39) | 7 | (42) |
Total costs and expenses | 3,250 | 3,024 | 6,325 | 5,927 |
Income from operations | 696 | 715 | 1,317 | 1,323 |
Other income (expense): | ||||
Interest expense, net | (100) | (93) | (196) | (184) |
Loss on early extinguishment of debt | (84) | (84) | ||
Equity in net losses of unconsolidated entities | (16) | (13) | (25) | (20) |
Other, net | 1 | (53) | 1 | |
Total other income (expense) | (199) | (106) | (358) | (203) |
Income before income taxes | 497 | 609 | 959 | 1,120 |
Income tax expense | 115 | 110 | 230 | 226 |
Consolidated net income | 382 | 499 | 729 | 894 |
Less: Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | |
Net income attributable to Waste Management, Inc. | $ 381 | $ 499 | $ 728 | $ 895 |
Basic earnings per common share | $ 0.90 | $ 1.16 | $ 1.71 | $ 2.07 |
Diluted earnings per common share | $ 0.89 | $ 1.15 | $ 1.70 | $ 2.06 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Consolidated net income | $ 382 | $ 499 | $ 729 | $ 894 |
Derivative instruments, net | 2 | 2 | 4 | 4 |
Available-for-sale securities, net | 4 | 9 | (1) | |
Foreign currency translation adjustments | 25 | (23) | 53 | (55) |
Post-retirement benefit obligations, net | (1) | |||
Other comprehensive income (loss), net of tax | 31 | (21) | 65 | (52) |
Comprehensive income | 413 | 478 | 794 | 842 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | |
Comprehensive income attributable to Waste Management, Inc. | $ 412 | $ 478 | $ 793 | $ 843 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 729 | $ 894 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 775 | 731 |
Deferred income tax expense (benefit) | (12) | (21) |
Interest accretion on landfill liabilities | 47 | 47 |
Provision for bad debts | 19 | 22 |
Equity-based compensation expense | 43 | 41 |
Net gain on disposal of assets | (5) | (10) |
(Gain) loss from divestitures, asset impairments and other, net | 78 | (42) |
Equity in net losses of unconsolidated entities, net of dividends | 25 | 20 |
Loss on early extinguishment of debt | 84 | |
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||
Receivables | 19 | 202 |
Other current assets | (5) | (9) |
Other assets | 4 | (2) |
Accounts payable and accrued liabilities | 127 | 31 |
Deferred revenues and other liabilities | (28) | (120) |
Net cash provided by operating activities | 1,900 | 1,784 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (440) | (263) |
Capital expenditures | (1,049) | (836) |
Proceeds from divestitures of businesses and other assets (net of cash divested) | 20 | 96 |
Other, net | (96) | (7) |
Net cash used in investing activities | (1,565) | (1,010) |
Cash flows from financing activities: | ||
New borrowings | 3,971 | 83 |
Debt repayments | (385) | (196) |
Premiums paid on early extinguishment of debt | (84) | |
Net commercial paper borrowings (repayments) | (1,001) | 443 |
Common stock repurchase program | (248) | (550) |
Cash dividends | (440) | (406) |
Exercise of common stock options | 45 | 33 |
Tax payments associated with equity-based compensation transactions | (30) | (28) |
Other, net | (6) | (26) |
Net cash provided by (used in) financing activities | 1,822 | (647) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 2 | (1) |
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 2,159 | 126 |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 183 | 293 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 2,342 | $ 419 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period: | ||
Cash and cash equivalents | $ 2,250 | $ 47 |
Restricted cash and cash equivalents included in other current assets | 18 | 70 |
Restricted cash and cash equivalents included in restricted trust and escrow accounts | 74 | 302 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 2,342 | $ 419 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Total |
Beginning balance at Dec. 31, 2017 | $ 6 | $ 4,933 | $ 8,588 | $ 8 | $ (7,516) | $ 23 | $ 6,042 |
Beginning balance, shares at Dec. 31, 2017 | 630,282 | (196,964) | |||||
Equity roll forward | |||||||
Adoption of new accounting standards | 85 | (5) | 80 | ||||
Consolidated net income | 895 | (1) | 894 | ||||
Other comprehensive income (loss), net of tax | (52) | (52) | |||||
Cash dividends declared | (406) | (406) | |||||
Equity-based compensation transactions, net | 2 | 4 | $ 62 | 68 | |||
Equity-based compensation transaction, shares | 1,624 | ||||||
Common stock repurchase program | $ (550) | (550) | |||||
Common stock repurchase program, shares | (6,568) | ||||||
Divestiture of noncontrolling interest | (19) | (19) | |||||
Other, net | (1) | (1) | |||||
Other, net, shares | 2 | ||||||
Ending balance at Jun. 30, 2018 | $ 6 | 4,935 | 9,166 | (49) | $ (8,004) | 2 | 6,056 |
Ending balance, shares at Jun. 30, 2018 | 630,282 | (201,906) | |||||
Beginning balance at Mar. 31, 2018 | $ 6 | 4,916 | 8,867 | (28) | $ (7,717) | 21 | 6,065 |
Beginning balance, shares at Mar. 31, 2018 | 630,282 | (198,511) | |||||
Equity roll forward | |||||||
Consolidated net income | 499 | 499 | |||||
Other comprehensive income (loss), net of tax | (21) | (21) | |||||
Cash dividends declared | (200) | (200) | |||||
Equity-based compensation transactions, net | 19 | $ 5 | 24 | ||||
Equity-based compensation transaction, shares | 141 | ||||||
Common stock repurchase program | $ (292) | (292) | |||||
Common stock repurchase program, shares | (3,537) | ||||||
Divestiture of noncontrolling interest | (19) | (19) | |||||
Other, net, shares | 1 | ||||||
Ending balance at Jun. 30, 2018 | $ 6 | 4,935 | 9,166 | (49) | $ (8,004) | 2 | 6,056 |
Ending balance, shares at Jun. 30, 2018 | 630,282 | (201,906) | |||||
Beginning balance at Dec. 31, 2018 | $ 6 | 4,993 | 9,797 | (87) | $ (8,434) | 1 | 6,276 |
Beginning balance, shares at Dec. 31, 2018 | 630,282 | (206,299) | |||||
Ending balance at Mar. 31, 2019 | $ 6 | 4,978 | 9,924 | (53) | $ (8,440) | 2 | 6,417 |
Ending balance, shares at Mar. 31, 2019 | 630,282 | (205,556) | |||||
Beginning balance at Dec. 31, 2018 | $ 6 | 4,993 | 9,797 | (87) | $ (8,434) | 1 | 6,276 |
Beginning balance, shares at Dec. 31, 2018 | 630,282 | (206,299) | |||||
Equity roll forward | |||||||
Consolidated net income | 728 | 1 | 729 | ||||
Other comprehensive income (loss), net of tax | 65 | 65 | |||||
Cash dividends declared | (440) | (440) | |||||
Equity-based compensation transactions, net | 5 | 3 | $ 74 | 82 | |||
Equity-based compensation transaction, shares | 1,808 | ||||||
Common stock repurchase program | (36) | $ (208) | (244) | ||||
Common stock repurchase program, shares | (1,993) | ||||||
Other, net | (1) | (1) | |||||
Other, net, shares | 2 | ||||||
Ending balance at Jun. 30, 2019 | $ 6 | 4,962 | 10,088 | (22) | $ (8,568) | 1 | 6,467 |
Ending balance, shares at Jun. 30, 2019 | 630,282 | (206,482) | |||||
Beginning balance at Mar. 31, 2019 | $ 6 | 4,978 | 9,924 | (53) | $ (8,440) | 2 | 6,417 |
Beginning balance, shares at Mar. 31, 2019 | 630,282 | (205,556) | |||||
Equity roll forward | |||||||
Consolidated net income | 381 | 1 | 382 | ||||
Other comprehensive income (loss), net of tax | 31 | 31 | |||||
Cash dividends declared | (217) | (217) | |||||
Equity-based compensation transactions, net | 20 | $ 16 | 36 | ||||
Equity-based compensation transaction, shares | 387 | ||||||
Common stock repurchase program | (36) | $ (144) | (180) | ||||
Common stock repurchase program, shares | (1,314) | ||||||
Other, net | (2) | (2) | |||||
Other, net, shares | 1 | ||||||
Ending balance at Jun. 30, 2019 | $ 6 | $ 4,962 | $ 10,088 | $ (22) | $ (8,568) | $ 1 | $ 6,467 |
Ending balance, shares at Jun. 30, 2019 | 630,282 | (206,482) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | ||||
Cash dividends declared per common share | $ 0.5125 | $ 0.465 | $ 1.025 | $ 0.93 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | 1. The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 14. Waste Management, Inc. is a holding company and all operations are conducted by its subsidiaries. When the terms “the Company,” “we,” “us” or “our” are used in this document, those terms refer to Waste Management, Inc., its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WM,” we are referring only to Waste Management, Inc., the parent holding company. We are North America’s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our “Solid Waste” business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States (“U.S.”). We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments is included in Note 8. The Condensed Consolidated Financial Statements as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, 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 our Annual Report on Form 10-K for the year ended December 31, 2018. In preparing our financial statements, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with precision from available data or simply cannot be calculated. In some cases, these estimates are difficult to determine, and we must exercise significant judgment. In preparing our financial statements, the most difficult, subjective and complex estimates and the assumptions that present the greatest amount of uncertainty relate to our accounting for landfills, environmental remediation liabilities, long-lived asset impairments and reserves associated with our insured and self-insured claims. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. Revenue Recognition We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is collected, tons are received at our landfills or transfer stations, or recycling commodities are collected or delivered as product. We bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided. Substantially all our deferred revenues during the reported periods are realized as revenues within one to three months when the related services are performed. Contract Acquisition Costs Our incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are generally deferred and amortized to selling, general and administrative expense over the estimated life of the relevant customer relationship, ranging from 5 to 13 years. Contract acquisition costs that are paid to the customer are deferred and amortized as a reduction in revenue over the contract life. Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and are included in other assets in our Condensed Consolidated Balance Sheet. As of June 30, 2019 and December 31, 2018, we had $149 million and $145 million, respectively, of deferred contract costs, of which $113 million and $109 million, respectively, was related to deferred sales incentives. During the three and six months ended June 30, 2019, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $5 million and $11 million of other contract acquisition costs as a reduction in revenue, respectively. During the three and six months ended June 30, 2018, we amortized $5 million and $11 million of sales incentives to selling, general and administrative expense, and $9 million and $19 million of other contract acquisition costs as a reduction in revenue, respectively. Adoption of New Accounting Standard Leases — We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. In addition, we applied (i) the practical expedient for land easements, which allows the Company to not apply the lease standard to certain existing land easements at transition and (ii) the practical expedient to include both the lease and non-lease components as a single component and account for it as a lease. The impact of adopting the amended guidance primarily relates to the recognition of lease assets and lease liabilities on the balance sheet for all leases previously classified as operating leases. We recognized $385 million of right-of-use assets and $385 million of related lease liabilities as of January 1, 2019 for our contracts that are classified as operating leases. Leases with an initial term of 12 months, which are not expected to be renewed beyond one year, are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. Our accounting for financing leases, which were formerly referred to as capital leases, remained substantially unchanged. There were no other material impacts on our consolidated financial statements. See Note 4 for additional information and disclosures related to our adoption of this amended guidance. New Accounting Standard Pending Adoption Financial Instrument Credit Losses — The amended guidance is effective for the Company on January 1, 2020. We are assessing the provisions of this amended guidance and evaluating the impact on our consolidated financial statements. Reclassifications When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our consolidated financial statements. |
Landfill and Environmental Reme
Landfill and Environmental Remediation Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Landfill and Environmental Remediation Liabilities | |
Landfill and Environmental Remediation Liabilities | 2. Landfill and Environmental Remediation Liabilities Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): June 30, 2019 December 31, 2018 Environmental Environmental Landfill Remediation Total Landfill Remediation Total Current (in accrued liabilities) $ 125 $ 26 $ 151 $ 143 $ 26 $ 169 Long-term 1,685 215 1,900 1,617 211 1,828 $ 1,810 $ 241 $ 2,051 $ 1,760 $ 237 $ 1,997 The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2019 are reflected in the table below (in millions): Environmental Landfill Remediation December 31, 2018 $ 1,760 $ 237 Obligations incurred and capitalized 36 — Obligations settled (41) (9) Interest accretion 47 3 Revisions in estimates and interest rate assumptions (a) 3 10 Acquisitions, divestitures and other adjustments 5 — June 30, 2019 $ 1,810 $ 241 (a) The amount reported for our environmental remediation liabilities includes an increase of $8 million due to a decrease in the risk-free discount rate used to measure our liabilities from 2.75% at December 31, 2018 to 2.0% at June 30, 2019. At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling our final capping, closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements. See Note 14 for additional information related to these trusts. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt | |
Debt | 3. Debt The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2019: June 30, December 31, 2019 2018 $2.75 billion revolving credit facility (weighted average interest rate of 3.1% as of December 31, 2018) $ — $ 11 Commercial paper program (weighted average interest rate of 2.9% as of December 31, 2018) — 990 Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of June 30, 2019 and 4.3% as of December 31, 2018) 9,965 6,222 Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 1.35% to 4.3% (weighted average interest rate of 2.4% as of June 30, 2019 and 2.35% as of December 31, 2018) 2,294 2,388 Financing leases and other, maturing through 2056, interest rates up to 9% 563 467 Debt issuance costs, discounts and other (83) (52) 12,739 10,026 Current portion of long-term debt 116 432 $ 12,623 $ 9,594 Debt Classification As of June 30, 2019, we had $1.2 billion of debt maturing within the next 12 months, including (i) $600 million of 4.75% senior notes that mature in June 2020; (ii) $524 million of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities, and (iii) $116 million of other debt with scheduled maturities within the next 12 months, including $42 million of tax-exempt bonds. As of June 30, 2019, we have classified $1.1 billion of debt maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $2.75 billion long-term U.S. and Canadian revolving credit facility (“$2.75 billion revolving credit facility”), as discussed below. The remaining $116 million is classified as current obligations. As of June 30, 2019, we also have $268 million of variable-rate tax-exempt bonds that are supported by letters of credit under our $2.75 billion revolving credit facility. The interest rates on our variable-rate tax-exempt bonds are generally reset on either a daily or weekly basis through a remarketing process. All recent tax-exempt bond remarketings have successfully placed Company bonds with investors at market-driven rates and we currently expect future remarketings to be successful. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the availability under our $2.75 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have also classified these borrowings as long-term in our Condensed Consolidated Balance Sheet as of June 30, 2019. Access to and Utilization of Credit Facilities and Commercial Paper Program $2.75 Billion Revolving Credit Facility — of June 30, 2019. WM Holdings, a wholly-owned subsidiary of WM, guarantees all of the obligations under the $2.75 billion revolving credit facility. Commercial Paper Program Other Letter of Credit Facilities — Debt Borrowings and Repayments $2.75 Billion Revolving Credit Facility Senior Notes ● $750 million of 2.95% senior notes due June 15, 2024; ● $750 million of 3.20% senior notes due June 15, 2026; ● $1.0 billion of 3.45% senior notes due June 15, 2029; ● $500 million of 4.00% senior notes due July 15, 2039; and ● $1.0 billion of 4.15% senior notes due July 15, 2049. The net proceeds from these debt issuances were $3.97 billion. Concurrently, we used $344 million of the net proceeds from the newly issued senior notes to retire $257 million of certain high-coupon senior notes. The cash paid includes the principal amount of the debt retired, $84 million of related premiums, which are classified as loss on early extinguishment of debt in our Condensed Consolidated Statement of Operations, and $3 million of accrued interest. The principal amount of senior notes redeemed within each series was as follows: ● $304 million of WM Holdings 7.10% senior notes due 2026, of which $56 million were tendered; ● $395 million of WM 7.00% senior notes due 2028, of which $64 million were tendered; ● $139 million of WM 7.375% senior notes due 2029, of which $58 million were tendered; ● $210 million of WM 7.75% senior notes due 2032, of which $57 million were tendered; and ● $274 million of WM 6.125% senior notes due 2039, of which $22 million were tendered. We used a portion of the proceeds to repay our commercial paper borrowings as discussed further below. We intend to use the remaining net proceeds to pay a portion of the consideration related to our pending acquisition of Advanced Disposal Services, Inc. (“Advanced Disposal”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) which is discussed further in Note 9, and for general corporate purposes. The newly-issued senior notes due 2024, 2026, 2029 and 2039 include a special mandatory redemption feature, which provides that if the acquisition of Advanced Disposal is not completed on or prior to July 14, 2020, or if, prior to such date, the Merger Agreement is terminated for any reason, we will be required to redeem all of the outstanding notes equal to 101% of the aggregate principal amounts of such notes, plus accrued but unpaid interest on the principal amount of such notes. Commercial Paper Program Tax-Exempt Bonds Financing Leases and Other |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Leases | 4. Leases Our operating lease activities primarily consist of leases for real estate, landfills and operating equipment. Our financing lease activities primarily consist of leases for operating equipment, railcars and landfill assets. Leases with an initial term of 12 months or less, which are not expected to be renewed beyond one year, are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms generally ranging from one to 10 years. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on usage and other lease agreements include rental payments adjusted periodically for inflation; these payments are treated as variable lease payments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. When the implicit interest rate is not readily available for our operating leases, we discount future cash flows of the remaining lease payments using the current interest rate that would be paid to borrow on collateralized debt over a similar term, or incremental borrowing rate, at the commencement date. Supplemental balance sheet information for our leases is as follows (in millions): Leases Classification June 30, 2019 Assets Long-term: Operating Other assets $ 378 Financing Property and equipment, net of accumulated depreciation and amortization 349 Total lease assets $ 727 Liabilities Current: Operating Accrued liabilities $ 89 Financing Current portion of long-term debt 33 Long-term: Operating Other liabilities 300 Financing Long-term debt, less current portion 296 Total lease liabilities $ 718 Our operating lease expense for the three and six months ended June 30, 2019 was $31 million and $59 million, respectively, and is included in operating and selling, general and administrative expenses in our Condensed Consolidated Statement of Operations. Our financing lease expense for the three and six months ended June 30, 2019 was $11 million and $25 million, respectively, and is included in depreciation and amortization expense and interest expense, net in our Condensed Consolidated Statement of Operations. Minimum contractual obligations for our leases (undiscounted) as of June 30, 2019 are as follows (in millions): Operating Financing 2019 (excluding six months ended June 30, 2019) $ 45 $ 22 2020 87 42 2021 55 40 2022 45 39 2023 37 38 Thereafter 268 235 Total lease payments $ 537 $ 416 Less: interest (148) (87) Discounted lease liabilities $ 389 $ 329 As of June 30, 2019, we entered into leases, primarily for real estate, that have not yet commenced with future lease payments of $167 million that are not reflected in the table above. These leases will commence through 2020 with non-cancelable lease terms up to 15 years. Cash paid for our operating and financing leases was $44 million and $17 million, respectively, for the six months ended June 30, 2019. Right-of-use assets obtained in exchange for lease obligations for our operating and financing leases were $32 million and $110 million, respectively, for the six months ended June 30, 2019. As of June 30, 2019, the weighted average remaining lease terms of our operating and financing leases were 16 years and 15 years, respectively. The weighted average discount rates used to determine the lease liabilities as of June 30, 2019 for our operating and financing leases were 3.79% and 4.16%, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes | |
Income Taxes | 5. Income Taxes Our income tax expense was $115 million and $230 million for the three and six months ended June 30, 2019, respectively, compared to $110 million and $226 million for the three and six months ended June 30, 2018, respectively. Our effective income tax rate was 23.3% and 24.0% for the three and six months ended June 30, 2019, respectively, compared with 18.1% and 20.2% for the three and six months ended June 30, 2018, respectively. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant. The increase in our effective income tax rate when comparing the three and six months ended June 30, 2019 with the prior year periods is due to a $33 million income tax benefit related to the settlement of various tax audits during 2018 and a $52 million impairment charge in the first quarter of 2019 which was not deductible for tax purposes. The differences between federal income taxes computed at the federal statutory rate and reported income taxes for the three and six months ended June 30, 2019 were primarily due to the unfavorable impact of state and local income taxes offset, in part, by the favorable impact of federal tax credits and excess tax benefits related to equity-based compensation. The six months ended June 30, 2019 was also unfavorably impacted by an impairment as discussed below. The differences between federal income taxes computed at the federal statutory rate and reported income taxes for the three and six months ended June 30, 2018 were primarily due to the favorable impact of tax audit settlements and federal tax credits offset, in part, by the unfavorable impact of state and local income taxes. The six months ended June 30, 2018 was also favorably impacted by excess tax benefits related to equity-based compensation. Investments Qualifying for Federal Tax Credits During the three and six months ended June 30, 2019, we recognized $12 million and $21 million of net losses and a reduction in our income tax expense of $18 million and $33 million, respectively, primarily due to tax credits realized from these investments. In addition, during the three and six months ended June 30, 2019, we recognized interest expense of $2 million and $4 million, respectively, associated with our investments in low-income housing properties. During the three and six months ended June 30, 2018, we recognized $6 million and $12 million of net losses and a reduction in our income tax expense of $12 million and $22 million, respectively, primarily due to tax credits realized from these investments. Interest expense associated with our investments in low-income housing properties was not material for the three and six months ended June 30, 2018. See Note 14 for additional information related to these unconsolidated variable interest entities. Tax Audit Settlements Equity-Based Compensation Tax Implications of Impairment |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Earnings Per Share | 6. Earnings Per Share Basic and diluted earnings per share were computed using the following common share data (shares in millions): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Number of common shares outstanding at end of period 423.8 428.4 423.8 428.4 Effect of using weighted average common shares outstanding 1.0 1.5 0.8 3.2 Weighted average basic common shares outstanding 424.8 429.9 424.6 431.6 Dilutive effect of equity-based compensation awards and other contingently issuable shares 2.7 2.4 2.6 2.5 Weighted average diluted common shares outstanding 427.5 432.3 427.2 434.1 Potentially issuable shares 7.2 8.0 7.2 8.0 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 1.1 1.9 1.9 1.9 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 7. Commitments and Contingencies Financial Instruments — Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our financial condition, results of operations or cash flows. We have not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for our current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, we continue to evaluate various options to access cost-effective sources of financial assurance. Insurance — We have retained a significant portion of the risks related to our general liability, automobile liability and workers’ compensation claims programs. “General liability” refers to the self-insured portion of specific third-party claims made against us that may be covered under our commercial General Liability Insurance Policy. For our self-insured portions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation or internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from such valuations and estimates. We use a wholly-owned insurance captive to insure the deductibles for our general liability, automobile liability and workers’ compensation claims programs. We do not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on our financial condition, results of operations or cash flows. Guarantees — As of June 30, 2019, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including (i) guarantees to cover certain market value losses for approximately 850 homeowners’ properties adjacent to or near 18 of our landfills and (ii) guarantees totaling $73 million for performance obligations of our Wheelabrator business, divested in 2014. In February 2019, Wheelabrator was acquired by a third party, at which time we agreed to continue to provide such guarantees through July 2019. We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets or other market conditions are achieved post-closing, and we have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. We do not believe that these contingent obligations will have a material adverse effect on the Company’s financial condition, results of operations or cash flows, and we do not expect the financial impact of operational and financial performance guarantees to materially exceed the recorded fair value. Environmental Matters — Estimating our degree of responsibility for remediation is inherently difficult. We recognize and accrue for an estimated remediation liability when we determine that such liability is both probable and reasonably estimable. Determining the method and ultimate cost of remediation requires that a number of assumptions be made. There can sometimes be a range of reasonable estimates of the costs associated with the likely site remediation alternatives identified in the environmental impact investigation. In these cases, we use the amount within the range that is our best estimate. If no amount within a range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we used the high ends of such ranges, our aggregate potential liability would be approximately $145 million higher than the $241 million recorded in the Condensed Consolidated Balance Sheet as of June 30, 2019. Our ultimate responsibility may differ materially from current estimates. It is possible that technological, regulatory or enforcement developments, the results of environmental studies, the inability to identify other PRPs, the inability of other PRPs to contribute to the settlements of such liabilities, or other factors could require us to record additional liabilities. Our ongoing review of our remediation liabilities, in light of relevant internal and external facts and circumstances, could result in revisions to our accruals that could cause upward or downward adjustments to our balance sheet and income from operations. These adjustments could be material in any given period. As of June 30, 2019, we have been notified by the government that we are a PRP in connection with 75 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List (“NPL”). Of the 75 sites at which claims have been made against us, 15 are sites we own. Each of the NPL sites we own was initially developed by others as a landfill disposal facility. At each of these facilities, we are working in conjunction with the government to evaluate or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement. We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures. The other 60 NPL sites, which we do not own, are at various procedural stages under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, known as CERCLA or Superfund. The majority of proceedings involving NPL sites that we do not own are based on allegations that certain of our subsidiaries (or their predecessors) transported hazardous substances to the sites, often prior to our acquisition of these subsidiaries. CERCLA generally provides for liability for those parties owning, operating, transporting to or disposing at the sites. Proceedings arising under Superfund typically involve numerous waste generators and other waste transportation and disposal companies and seek to allocate or recover costs associated with site investigation and remediation, which costs could be substantial and could have a material adverse effect on our consolidated financial statements. At some of the sites at which we have been identified as a PRP, our liability is well defined as a consequence of a governmental decision and an agreement among liable parties as to the share each will pay for implementing that remedy. At other sites, where no remedy has been selected or the liable parties have been unable to agree on an appropriate allocation, our future costs are uncertain. On October 11, 2017, the EPA issued its Record of Decision (“ROD”) with respect to the previously proposed remediation plan for the San Jacinto waste pits in Harris County, Texas. McGinnes Industrial Maintenance Corporation (“MIMC”), an indirect wholly-owned subsidiary of WM, operated some of the waste pits from 1965 to 1966 and has been named as a site PRP. In 1998, WM acquired the stock of the parent entity of MIMC. MIMC has been working with the EPA and other named PRPs as the process of addressing the site proceeds. On April 9, 2018, MIMC and International Paper Company entered into an Administrative Order on Consent agreement with the EPA to develop a remedial design for the EPA’s selected remedy for the site. Allocation of responsibility among the PRPs for the selected remedy has not been established. As of June 30, 2019 and December 31, 2018, the recorded liability for MIMC’s estimated potential share of the EPA’s selected remedy and related costs was $56 million and $55 million, respectively. MIMC’s ultimate liability could be materially different from current estimates. Item 103 of the SEC’s Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings, or such proceedings are known to be contemplated, unless we reasonably believe that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $100,000. The following matters are disclosed in accordance with that requirement. We do not currently believe that the eventual outcome of any such matters, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. On July 10, 2013, the EPA issued a Notice of Violation ("NOV") to Waste Management of Wisconsin, Inc., an indirect wholly-owned subsidiary of WM, alleging violations of the Resource Conservation Recovery Act concerning acceptance of certain waste that was not permitted to be disposed of at the Metro Recycling & Disposal Facility in Franklin, Wisconsin. The parties are exchanging information and working to resolve the NOV. The Hawaii Department of Health and the EPA have asserted civil penalty claims against Waste Management of Hawaii, Inc. (“WMHI”), an indirect wholly-owned subsidiary of WM, based on stormwater discharges at the Waimanalo Gulch Sanitary Landfill following two major rainstorms in December 2010 and January 2011 and alleged violations of stormwater permit requirements prior to and after the storms. WMHI operates the landfill for the City and County of Honolulu. On July 3, 2019, this matter was resolved through a consent decree, and WMHI subsequently made payment of $300,000. From time to time, we are also named as defendants in personal injury and property damage lawsuits, including purported class actions, on the basis of having owned, operated or transported waste to a disposal facility that is alleged to have contaminated the environment or, in certain cases, on the basis of having conducted environmental remediation activities at sites. Some of the lawsuits may seek to have us pay the costs of monitoring of allegedly affected sites and health care examinations of allegedly affected persons for a substantial period of time even where no actual damage is proven. While we believe we have meritorious defenses to these lawsuits, the ultimate resolution is often substantially uncertain due to the difficulty of determining the cause, extent and impact of alleged contamination (which may have occurred over a long period of time), the potential for successive groups of complainants to emerge, the diversity of the individual plaintiffs’ circumstances, and the potential contribution or indemnification obligations of co-defendants or other third parties, among other factors. Additionally, we often enter into agreements with landowners imposing obligations on us to meet certain regulatory or contractual conditions upon site closure or upon termination of the agreements. Compliance with these agreements inherently involves subjective determinations and may result in disputes, including litigation. Litigation — WM’s charter and bylaws provide that WM shall indemnify against all liabilities and expenses, and upon request shall advance expenses to any person, who is subject to a pending or threatened proceeding because such person is or was a director or officer of the Company. Such indemnification is required to the maximum extent permitted under Delaware law. Accordingly, the director or officer must execute an undertaking to reimburse the Company for any fees advanced if it is later determined that the director or officer was not permitted to have such fees advanced under Delaware law. Additionally, the Company has direct contractual obligations to provide indemnification to each of the members of WM’s Board of Directors and each of WM’s executive officers. The Company may incur substantial expenses in connection with the fulfillment of its advancement of costs and indemnification obligations in connection with actions or proceedings that may be brought against its former or current officers, directors and employees. Multiemployer Defined Benefit Pension Plans — We do not believe that any future liability relating to our past or current participation in, or withdrawals from, the Multiemployer Pension Plans to which we contribute will have a material adverse effect on our business, financial condition or liquidity. However, liability for future withdrawals could have a material adverse effect on our results of operations or cash flows for a particular reporting period, depending on the number of employees withdrawn and the financial condition of the Multiemployer Pension Plan(s) at the time of such withdrawal(s). Tax Matters — also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2013. Additionally, we are under audit by the Canada Revenue Agency for the 2014 tax year. We maintain 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 effect on our financial condition, results of operations or cash flows. |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment and Related Information | |
Segment and Related Information | 8. Segment and Related Information We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. The 17 Areas constitute our operating segments and we have evaluated the aggregation criteria and concluded that, based on the similarities between our Areas, including the fact that our Solid Waste business is homogenous across geographies with the same services offered across the Areas, aggregation of our Areas is appropriate for purposes of presenting our reportable segments. Accordingly, we have aggregated our 17 Areas into three tiers that we believe have similar economic characteristics and future prospects based in large part on a review of the Areas’ income from operations margins. The economic variations experienced by our Areas are attributable to a variety of factors, including regulatory environment of the Area; economic environment of the Area, including level of commercial and industrial activity; population density; service offering mix and disposal logistics, with no one factor being singularly determinative of an Area’s current or future economic performance. Tier 1 is comprised of our operations across the Southern U.S., with the exception of Southern California and the Florida peninsula, and also includes the New England states, the tri-state area of Michigan, Indiana and Ohio, and Western Canada. Tier 2 includes Southern California, Eastern Canada, Wisconsin and Minnesota. Tier 3 encompasses all the remaining operations including the Pacific Northwest and Northern California, the Mid-Atlantic region of the U.S., the Florida peninsula, Illinois and Missouri. The operating segments not evaluated and overseen through the 17 Areas are presented herein as “Other” as these operating segments do not meet the criteria to be aggregated with other operating segments and do not meet the quantitative criteria to be separately reported. Summarized financial information concerning our reportable segments is shown in the following table (in millions): Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues Revenues Operations Three Months Ended June 30: 2019 Solid Waste: Tier 1 $ 1,608 $ (298) $ 1,310 $ 432 Tier 2 703 (134) 569 148 Tier 3 1,888 (371) 1,517 341 Solid Waste 4,199 (803) 3,396 921 Other (a) 580 (30) 550 (60) 4,779 (833) 3,946 861 Corporate and Other — — — (165) Total $ 4,779 $ (833) $ 3,946 $ 696 2018 Solid Waste: Tier 1 $ 1,485 $ (269) $ 1,216 $ 395 Tier 2 663 (123) 540 141 Tier 3 1,776 (350) 1,426 295 Solid Waste 3,924 (742) 3,182 831 Other (a) 613 (56) 557 13 4,537 (798) 3,739 844 Corporate and Other — — — (129) Total $ 4,537 $ (798) $ 3,739 $ 715 Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues Revenues Operations Six Months Ended June 30: 2019 Solid Waste: Tier 1 $ 3,094 $ (569) $ 2,525 $ 826 Tier 2 1,346 (255) 1,091 284 Tier 3 3,624 (705) 2,919 654 Solid Waste 8,064 (1,529) 6,535 1,764 Other (a) 1,168 (61) 1,107 (88) 9,232 (1,590) 7,642 1,676 Corporate and Other — — — (359) Total $ 9,232 $ (1,590) $ 7,642 $ 1,317 2018 Solid Waste: Tier 1 $ 2,858 $ (510) $ 2,348 $ 760 Tier 2 1,276 (234) 1,042 263 Tier 3 3,409 (659) 2,750 586 Solid Waste 7,543 (1,403) 6,140 1,609 Other (a) 1,220 (110) 1,110 (10) 8,763 (1,513) 7,250 1,599 Corporate and Other — — — (276) Total $ 8,763 $ (1,513) $ 7,250 $ 1,323 (a) “Other” includes (i) our Strategic Business Solutions (“WMSBS”) organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services (“EES”) and WM Renewable Energy organizations that are not included in the operations of our reportable segments; (iii) our recycling brokerage services and (iv) certain other expanded service offerings and solutions. In addition, our “Other” segment reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. The mix of operating revenues from our major lines of business are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Commercial $ 1,052 $ 986 $ 2,078 $ 1,941 Residential 655 632 1,295 1,246 Industrial 744 708 1,424 1,345 Other 122 115 231 216 Total collection 2,573 2,441 5,028 4,748 Landfill 1,023 915 1,887 1,720 Transfer 474 437 886 812 Recycling 264 305 555 617 Other (a) 445 439 876 866 Intercompany (b) (833) (798) (1,590) (1,513) Total $ 3,946 $ 3,739 $ 7,642 $ 7,250 (a) The “Other” line of business includes (i) our WMSBS organization; (ii) our landfill gas-to-energy operations; (iii) certain services within our EES organization, including our construction and remediation services and our services associated with the disposal of fly ash and (iv) certain other expanded service offerings and solutions. In addition, our “Other” line of business reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. (b) Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included within this report. Fluctuations in our operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. In addition, our revenues and income from operations typically reflect seasonal patterns. Our operating revenues tend to be somewhat higher in summer months, primarily due to the higher construction and demolition waste volumes. The volumes of industrial and residential waste in certain regions where we operate also tend to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends. Service disruptions caused by severe storms, extended periods of inclement weather or climate extremes resulting from climate change can significantly affect the operating results of the Areas affected. On the other hand, certain destructive weather and climate conditions, such as wildfires in the Western U.S. and hurricanes that most often impact our operations in the Southern and Eastern U.S. during the second half of the year, can increase our revenues in the Areas affected. While weather-related and other event driven special projects can boost revenues through additional work for a limited time, as a result of significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Acquisitions | |
Acquisitions | 9. Acquisitions Pending Acquisition On April 14, 2019, we entered into the Merger Agreement to acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash, representing a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt. Advanced Disposal’s solid waste network includes 95 collection operations, 73 transfer stations, 41 owned or operated landfills and 22 owned or operated recycling facilities. The transaction is expected to close during the first quarter of 2020, subject to the satisfaction of customary closing conditions, including regulatory approvals. On June 28, 2019, Advanced Disposal announced that 85.9% of the outstanding shares of its common stock entitled to vote were voted in favor of the proposal to adopt the Merger Agreement at a special meeting of stockholders held that day. Acquisition Petro Waste |
Asset Impairments and Unusual I
Asset Impairments and Unusual Items | 6 Months Ended |
Jun. 30, 2019 | |
Asset Impairments and Unusual Items | |
Asset Impairments and Unusual Items | 10. Asset Impairments and Unusual Items (Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net During the six months ended June 30, 2018, we sold certain ancillary operations resulting in net gains of $42 million. Other, Net During the first quarter of 2019, we recognized a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business . We wrote down our investment to its estimated fair value as the result of recent third-party investor’s transactions in these securities. The fair value of our investment was not readily determinable ; thus, we determined the fair value utilizing a combination of quoted price inputs for the equity in our investment (Level 2) and certain management assumptions pertaining to investment value (Level 3) . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | 11. Accumulated Other Comprehensive Income (Loss) The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of Waste Management, Inc. stockholders’ equity, are as follows (in millions, with amounts in parentheses representing decreases to accumulated other comprehensive income): Foreign Post- Available- Currency Retirement Derivative for-Sale Translation Benefit Instruments Securities Adjustments Obligations Total Balance, December 31, 2018 $ (32) $ 23 $ (76) $ (2) $ (87) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $0, respectively — 9 53 — 62 Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $1, $0, $0 and $0, respectively 4 — — (1) 3 Net current period other comprehensive income (loss) 4 9 53 (1) 65 Balance, June 30, 2019 $ (28) $ 32 $ (23) $ (3) $ (22) We had no active derivatives outstanding during the reported period. Amounts reclassified out of accumulated other comprehensive income (loss) associated with our previously terminated cash flow hedges were not material for the periods presented. |
Common Stock Repurchase Program
Common Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2019 | |
Common Stock Repurchase Program | |
Common Stock Repurchase Program | 12. Common Stock Repurchase Program The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors. In January 2019, we paid $4 million in cash for share repurchases executed in December 2018. In addition, during the first quarter of 2019, we repurchased 0.7 million shares of our common stock in open market transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act. Cash paid for these share repurchases was $64 million, inclusive of per-share commissions, which represents a weighted average price per share of $94.35. These repurchases were made under our prior $1.25 billion Board of Directors authorization announced in December 2017. We announced in December 2018 that the Board of Directors authorized up to $1.5 billion in future share repurchases, which superseded and replaced remaining authority under any prior Board of Directors authorization for share repurchases after the completion of our open market repurchases noted above. As a result of the pending acquisition of Advanced Disposal discussed in Note 9, we decided to limit 2019 share repurchases to an amount sufficient to offset dilution impacts from our stock-based compensation plans. In May 2019, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $180 million of our common stock. At the beginning of the repurchase period, we delivered $180 million cash and received 1.3 million shares based on a stock price of $109.59. The final number of shares to be repurchased and the final average price per share under the ASR agreement will depend on the volume-weighted average price of our stock, less a discount, during the term of the agreement. Purchases under the ASR agreement are expected to be completed by September 2019. As of June 30, 2019, the Company has authorization for $1.3 billion of future share repurchases. Any future share repurchases pursuant to this authorization of our Board of Directors will be made at the discretion of management and will depend on factors similar to those considered by the Board of Directors in making dividend declarations, including our net earnings, financial condition, cash required for future business plans, growth and acquisitions and other factors the Board of Directors may deem relevant. As a result of the pending acquisition discussed in Note 9, we do not expect additional share repurchases in 2019. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | 13. Fair Value Measurements Assets and Liabilities Accounted for at Fair Value Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): June 30, December 31, 2019 2018 Fair Value Measurements Using: Quoted prices in active markets (Level 1): Money market funds (a) $ 2,249 $ 70 2,249 70 Significant other observable inputs (Level 2): Available-for-sale securities (b) 382 288 382 288 Significant unobservable inputs (Level 3): Redeemable preferred stock (c) 46 66 46 66 Total Assets $ 2,677 $ 424 (a) The increase in 2019 is primarily due to proceeds from our May 2019 issuance of senior notes, a portion of which we intend to use to support the pending acquisition of Advanced Disposal and other business needs, and are invested in high-yield secure and stable funds. This increase is partially offset by changes in our investments portfolio associated with a wholly-owned insurance captive from money market funds to available-for-sale securities. (b) The increase in 2019 is primarily attributable to changes in our investments portfolio, as discussed above. Our available-for-sale securities generally mature over the next ten years. (c) When available, Level 3 investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. When this evidence is not available, we use other valuation techniques as appropriate and available. These valuation methodologies may include transactions in similar instruments, discounted cash flow techniques, third-party appraisals or industry multiples and public company comparable transactions. In the first quarter of 2019, we redeemed our preferred stock received in conjunction with the 2014 sale of our Puerto Rico operations for $17 million. At the time of redemption, the value of redeemable preferred stock was $20 million, resulting in a $3 million loss on investment. Fair Value of Debt As of June 30, 2019 and December 31, 2018, the carrying value of our debt was $12.7 billion and $10.0 billion, respectively. The estimated fair value of our debt was approximately $13.6 billion and $10.1 billion as of June 30, 2019 and December 31, 2018, respectively. The increase in the fair value of our debt when comparing June 30, 2019 with December 31, 2018 is due to $2.6 billion of net borrowings (inclusive of net commercial paper repayments) which are discussed further in Note 3. Although we have determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, our estimates are not necessarily indicative of the amounts that we, or holders of the instruments, could realize in a current market exchange. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. The fair value estimates are based on Level 2 inputs of the fair value hierarchy available as of June 30, 2019 and December 31, 2018. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the amounts presented. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
Variable Interest Entities | |
Variable Interest Entities | 14. Variable Interest Entities Following is a description of our financial interests in unconsolidated and consolidated variable interest entities that we consider significant: Low-Income Housing Properties and Refined Coal Facility Investments We do not consolidate our investments in entities established to manage low-income housing properties and a refined coal facility because we are not the primary beneficiary of these entities as we do not have the power to individually direct the activities of these entities. Accordingly, we account for these investments under the equity method of accounting. Our aggregate investment balance in these entities was $172 million and $189 million as of June 30, 2019 and December 31, 2018, respectively. The debt balance related to our investments in low-income housing properties was $147 million and $151 million as of June 30, 2019 and December 31, 2018, respectively. Additional information related to these investments is discussed in Note 5. Trust Funds for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations Unconsolidated Variable Interest Entities — Consolidated Variable Interest Entities — |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Consolidating Financial Statements | |
Condensed Consolidating Financial Statements | 15. Condensed Consolidating Financial Statements WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness. WM has fully and unconditionally guaranteed all of WM Holdings’ senior indebtedness. None of WM’s other subsidiaries have guaranteed any of WM’s or WM Holdings’ debt. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information (in millions): CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2019 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 2,200 $ — $ 50 $ — $ 2,250 Other current assets 94 6 2,578 (92) 2,586 2,294 6 2,628 (92) 4,836 Property and equipment, net — — 12,665 — 12,665 Investments in affiliates 25,646 26,150 — (51,796) — Advances to affiliates — — 17,651 (17,651) — Other assets 5 10 8,470 — 8,485 Total assets $ 27,945 $ 26,166 $ 41,414 $ (69,539) $ 25,986 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 116 $ — $ 116 Accounts payable and other current liabilities 92 9 2,721 (92) 2,730 92 9 2,837 (92) 2,846 Long-term debt, less current portion 10,412 248 1,963 — 12,623 Due to affiliates 17,680 265 6,709 (24,654) — Other liabilities 4 — 4,046 — 4,050 Total liabilities 28,188 522 15,555 (24,746) 19,519 Equity: Stockholders’ equity 6,466 25,644 26,152 (51,796) 6,466 Advances to affiliates (6,709) — (294) 7,003 — Noncontrolling interests — — 1 — 1 (243) 25,644 25,859 (44,793) 6,467 Total liabilities and equity $ 27,945 $ 26,166 $ 41,414 $ (69,539) $ 25,986 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2018 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 61 $ — $ 61 Other current assets 2 5 2,577 — 2,584 2 5 2,638 — 2,645 Property and equipment, net — — 11,942 — 11,942 Investments in affiliates 24,676 25,097 — (49,773) — Advances to affiliates — — 17,258 (17,258) — Other assets 8 31 8,024 — 8,063 Total assets $ 24,686 $ 25,133 $ 39,862 $ (67,031) $ 22,650 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 258 $ — $ 174 $ — $ 432 Accounts payable and other current liabilities 82 9 2,585 — 2,676 340 9 2,759 — 3,108 Long-term debt, less current portion 7,377 304 1,913 — 9,594 Due to affiliates 17,398 146 6,709 (24,253) — Other liabilities 5 — 3,667 — 3,672 Total liabilities 25,120 459 15,048 (24,253) 16,374 Equity: Stockholders’ equity 6,275 24,674 25,099 (49,773) 6,275 Advances to affiliates (6,709) — (286) 6,995 — Noncontrolling interests — — 1 — 1 (434) 24,674 24,814 (42,778) 6,276 Total liabilities and equity $ 24,686 $ 25,133 $ 39,862 $ (67,031) $ 22,650 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2019 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 3,992 $ (46) $ 3,946 Costs and expenses 46 — 3,250 (46) 3,250 Income from operations (46) — 742 — 696 Other income (expense): Interest expense, net (86) (5) (9) — (100) Loss on early extinguishment of debt (70) (14) — — (84) Equity in earnings of subsidiaries, net of tax 530 545 — (1,075) — Other, net — (1) (14) — (15) 374 525 (23) (1,075) (199) Income before income taxes 328 525 719 (1,075) 497 Income tax expense (benefit) (53) (5) 173 — 115 Consolidated net income 381 530 546 (1,075) 382 Less: Net income (loss) attributable to noncontrolling interests — — 1 — 1 Net income attributable to Waste Management, Inc. $ 381 $ 530 $ 545 $ (1,075) $ 381 Three Months Ended June 30, 2018 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 3,783 $ (44) $ 3,739 Costs and expenses 44 — 3,024 (44) 3,024 Income from operations (44) — 759 — 715 Other income (expense): Interest expense, net (78) (4) (11) — (93) Equity in earnings of subsidiaries, net of tax 588 591 — (1,179) — Other, net — — (13) — (13) 510 587 (24) (1,179) (106) Income before income taxes 466 587 735 (1,179) 609 Income tax expense (benefit) (33) (1) 144 — 110 Consolidated net income 499 588 591 (1,179) 499 Less: Net income (loss) attributable to noncontrolling interests — — — — — Net income attributable to Waste Management, Inc. $ 499 $ 588 $ 591 $ (1,179) $ 499 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued) Six Months Ended June 30, 2019 (Unaudited) WM Non ‑ Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 7,734 $ (92) $ 7,642 Costs and expenses 92 — 6,325 (92) 6,325 Income from operations (92) — 1,409 — 1,317 Other income (expense): Interest expense, net (166) (10) (20) — (196) Loss on early extinguishment of debt (70) (14) — — (84) Equity in earnings of subsidiaries, net of tax 970 992 — (1,962) — Other, net — (4) (74) — (78) 734 964 (94) (1,962) (358) Income before income taxes 642 964 1,315 (1,962) 959 Income tax expense (benefit) (86) (6) 322 — 230 Consolidated net income 728 970 993 (1,962) 729 Less: Net income (loss) attributable to noncontrolling interests — — 1 — 1 Net income attributable to Waste Management, Inc. $ 728 $ 970 $ 992 $ (1,962) $ 728 Six Months Ended June 30, 2018 (Unaudited) WM Non ‑ Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 7,338 $ (88) $ 7,250 Costs and expenses 88 — 5,927 (88) 5,927 Income from operations (88) — 1,411 — 1,323 Other income (expense): Interest expense, net (154) (9) (21) — (184) Equity in earnings of subsidiaries, net of tax 1,073 1,080 — (2,153) — Other, net — — (19) — (19) 919 1,071 (40) (2,153) (203) Income before income taxes 831 1,071 1,371 (2,153) 1,120 Income tax expense (benefit) (64) (2) 292 — 226 Consolidated net income 895 1,073 1,079 (2,153) 894 Less: Net income (loss) attributable to noncontrolling interests — — (1) — (1) Net income attributable to Waste Management, Inc. $ 895 $ 1,073 $ 1,080 $ (2,153) $ 895 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Three Months Ended June 30: 2019 Comprehensive income $ 383 $ 530 $ 575 $ (1,075) $ 413 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Waste Management, Inc. $ 383 $ 530 $ 574 $ (1,075) $ 412 2018 Comprehensive income $ 501 $ 588 $ 568 $ (1,179) $ 478 Less: Comprehensive income (loss) attributable to noncontrolling interests — — — — — Comprehensive income attributable to Waste Management, Inc. $ 501 $ 588 $ 568 $ (1,179) $ 478 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Six Months Ended June 30: 2019 Comprehensive income $ 732 $ 970 $ 1,054 $ (1,962) $ 794 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Waste Management, Inc. $ 732 $ 970 $ 1,053 $ (1,962) $ 793 2018 Comprehensive income $ 899 $ 1,073 $ 1,023 $ (2,153) $ 842 Less: Comprehensive income (loss) attributable to noncontrolling interests — — (1) — (1) Comprehensive income attributable to Waste Management, Inc. $ 899 $ 1,073 $ 1,024 $ (2,153) $ 843 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (Unaudited) WM Non-Guarantor WM(a) Holdings(a) Subsidiaries(a) Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 1,900 $ — $ 1,900 Investing activities — — (1,565) — (1,565) Financing activities — — 1,822 — 1,822 Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — 2 — 2 Intercompany activity 2,200 — (2,200) — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 2,200 — (41) — 2,159 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 183 — 183 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 2,200 $ — $ 142 $ — $ 2,342 Six Months Ended June 30, 2018 (Unaudited) WM Non-Guarantor WM(a) Holdings(a) Subsidiaries(a) Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 1,784 $ — $ 1,784 Investing activities — — (1,010) — (1,010) Financing activities — — (647) — (647) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — (1) — (1) Intercompany activity — — — — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents — — 126 — 126 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 293 — 293 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ — $ — $ 419 $ — $ 419 (a) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of June 30, 2019 include remaining proceeds from our May 2019 issuance of senior notes which are discussed further in Notes 3 and 13. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Basis of Presentation | |
Basis of Presentation | 1. The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 14. Waste Management, Inc. is a holding company and all operations are conducted by its subsidiaries. When the terms “the Company,” “we,” “us” or “our” are used in this document, those terms refer to Waste Management, Inc., its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WM,” we are referring only to Waste Management, Inc., the parent holding company. We are North America’s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our “Solid Waste” business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States (“U.S.”). We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments is included in Note 8. The Condensed Consolidated Financial Statements as of June 30, 2019 and for the three and six months ended June 30, 2019 and 2018 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, 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 our Annual Report on Form 10-K for the year ended December 31, 2018. In preparing our financial statements, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with precision from available data or simply cannot be calculated. In some cases, these estimates are difficult to determine, and we must exercise significant judgment. In preparing our financial statements, the most difficult, subjective and complex estimates and the assumptions that present the greatest amount of uncertainty relate to our accounting for landfills, environmental remediation liabilities, long-lived asset impairments and reserves associated with our insured and self-insured claims. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. |
Revenue Recognition | Revenue Recognition We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is collected, tons are received at our landfills or transfer stations, or recycling commodities are collected or delivered as product. We bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided. Substantially all our deferred revenues during the reported periods are realized as revenues within one to three months when the related services are performed. Contract Acquisition Costs Our incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are generally deferred and amortized to selling, general and administrative expense over the estimated life of the relevant customer relationship, ranging from 5 to 13 years. Contract acquisition costs that are paid to the customer are deferred and amortized as a reduction in revenue over the contract life. Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and are included in other assets in our Condensed Consolidated Balance Sheet. As of June 30, 2019 and December 31, 2018, we had $149 million and $145 million, respectively, of deferred contract costs, of which $113 million and $109 million, respectively, was related to deferred sales incentives. During the three and six months ended June 30, 2019, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $5 million and $11 million of other contract acquisition costs as a reduction in revenue, respectively. During the three and six months ended June 30, 2018, we amortized $5 million and $11 million of sales incentives to selling, general and administrative expense, and $9 million and $19 million of other contract acquisition costs as a reduction in revenue, respectively. |
Adoption of New Accounting Standard and New Accounting Standard Pending Adoption | Adoption of New Accounting Standard Leases — We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. In addition, we applied (i) the practical expedient for land easements, which allows the Company to not apply the lease standard to certain existing land easements at transition and (ii) the practical expedient to include both the lease and non-lease components as a single component and account for it as a lease. The impact of adopting the amended guidance primarily relates to the recognition of lease assets and lease liabilities on the balance sheet for all leases previously classified as operating leases. We recognized $385 million of right-of-use assets and $385 million of related lease liabilities as of January 1, 2019 for our contracts that are classified as operating leases. Leases with an initial term of 12 months, which are not expected to be renewed beyond one year, are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. Our accounting for financing leases, which were formerly referred to as capital leases, remained substantially unchanged. There were no other material impacts on our consolidated financial statements. See Note 4 for additional information and disclosures related to our adoption of this amended guidance. New Accounting Standard Pending Adoption Financial Instrument Credit Losses — The amended guidance is effective for the Company on January 1, 2020. We are assessing the provisions of this amended guidance and evaluating the impact on our consolidated financial statements. |
Reclassifications | Reclassifications When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our consolidated financial statements. |
Landfill and Environmental Re_2
Landfill and Environmental Remediation Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Landfill and Environmental Remediation Liabilities | |
Liabilities for Landfill and Environmental Remediation Costs | Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): June 30, 2019 December 31, 2018 Environmental Environmental Landfill Remediation Total Landfill Remediation Total Current (in accrued liabilities) $ 125 $ 26 $ 151 $ 143 $ 26 $ 169 Long-term 1,685 215 1,900 1,617 211 1,828 $ 1,810 $ 241 $ 2,051 $ 1,760 $ 237 $ 1,997 |
Changes to Landfill and Environmental Remediation Liabilities | The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2019 are reflected in the table below (in millions): Environmental Landfill Remediation December 31, 2018 $ 1,760 $ 237 Obligations incurred and capitalized 36 — Obligations settled (41) (9) Interest accretion 47 3 Revisions in estimates and interest rate assumptions (a) 3 10 Acquisitions, divestitures and other adjustments 5 — June 30, 2019 $ 1,810 $ 241 (a) The amount reported for our environmental remediation liabilities includes an increase of $8 million due to a decrease in the risk-free discount rate used to measure our liabilities from 2.75% at December 31, 2018 to 2.0% at June 30, 2019. |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt | |
Components of Debt | The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2019: June 30, December 31, 2019 2018 $2.75 billion revolving credit facility (weighted average interest rate of 3.1% as of December 31, 2018) $ — $ 11 Commercial paper program (weighted average interest rate of 2.9% as of December 31, 2018) — 990 Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of June 30, 2019 and 4.3% as of December 31, 2018) 9,965 6,222 Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 1.35% to 4.3% (weighted average interest rate of 2.4% as of June 30, 2019 and 2.35% as of December 31, 2018) 2,294 2,388 Financing leases and other, maturing through 2056, interest rates up to 9% 563 467 Debt issuance costs, discounts and other (83) (52) 12,739 10,026 Current portion of long-term debt 116 432 $ 12,623 $ 9,594 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases | |
Summary of lease balance sheet information | Supplemental balance sheet information for our leases is as follows (in millions): Leases Classification June 30, 2019 Assets Long-term: Operating Other assets $ 378 Financing Property and equipment, net of accumulated depreciation and amortization 349 Total lease assets $ 727 Liabilities Current: Operating Accrued liabilities $ 89 Financing Current portion of long-term debt 33 Long-term: Operating Other liabilities 300 Financing Long-term debt, less current portion 296 Total lease liabilities $ 718 |
Summary of maturities of operating lease liabilities | Minimum contractual obligations for our leases (undiscounted) as of June 30, 2019 are as follows (in millions): Operating Financing 2019 (excluding six months ended June 30, 2019) $ 45 $ 22 2020 87 42 2021 55 40 2022 45 39 2023 37 38 Thereafter 268 235 Total lease payments $ 537 $ 416 Less: interest (148) (87) Discounted lease liabilities $ 389 $ 329 As of June 30, 2019, we entered into leases, primarily for real estate, that have not yet commenced with future lease payments of $167 million that are not reflected in the table above. These leases will commence through 2020 with non-cancelable lease terms up to 15 years. |
Summary of maturities of finance lease liabilities | Operating Financing 2019 (excluding six months ended June 30, 2019) $ 45 $ 22 2020 87 42 2021 55 40 2022 45 39 2023 37 38 Thereafter 268 235 Total lease payments $ 537 $ 416 Less: interest (148) (87) Discounted lease liabilities $ 389 $ 329 As of June 30, 2019, we entered into leases, primarily for real estate, that have not yet commenced with future lease payments of $167 million that are not reflected in the table above. These leases will commence through 2020 with non-cancelable lease terms up to 15 years. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share | |
Common Share Data Used for Computing Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were computed using the following common share data (shares in millions): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Number of common shares outstanding at end of period 423.8 428.4 423.8 428.4 Effect of using weighted average common shares outstanding 1.0 1.5 0.8 3.2 Weighted average basic common shares outstanding 424.8 429.9 424.6 431.6 Dilutive effect of equity-based compensation awards and other contingently issuable shares 2.7 2.4 2.6 2.5 Weighted average diluted common shares outstanding 427.5 432.3 427.2 434.1 Potentially issuable shares 7.2 8.0 7.2 8.0 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 1.1 1.9 1.9 1.9 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment and Related Information | |
Reportable Segments | Summarized financial information concerning our reportable segments is shown in the following table (in millions): Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues Revenues Operations Three Months Ended June 30: 2019 Solid Waste: Tier 1 $ 1,608 $ (298) $ 1,310 $ 432 Tier 2 703 (134) 569 148 Tier 3 1,888 (371) 1,517 341 Solid Waste 4,199 (803) 3,396 921 Other (a) 580 (30) 550 (60) 4,779 (833) 3,946 861 Corporate and Other — — — (165) Total $ 4,779 $ (833) $ 3,946 $ 696 2018 Solid Waste: Tier 1 $ 1,485 $ (269) $ 1,216 $ 395 Tier 2 663 (123) 540 141 Tier 3 1,776 (350) 1,426 295 Solid Waste 3,924 (742) 3,182 831 Other (a) 613 (56) 557 13 4,537 (798) 3,739 844 Corporate and Other — — — (129) Total $ 4,537 $ (798) $ 3,739 $ 715 Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues Revenues Operations Six Months Ended June 30: 2019 Solid Waste: Tier 1 $ 3,094 $ (569) $ 2,525 $ 826 Tier 2 1,346 (255) 1,091 284 Tier 3 3,624 (705) 2,919 654 Solid Waste 8,064 (1,529) 6,535 1,764 Other (a) 1,168 (61) 1,107 (88) 9,232 (1,590) 7,642 1,676 Corporate and Other — — — (359) Total $ 9,232 $ (1,590) $ 7,642 $ 1,317 2018 Solid Waste: Tier 1 $ 2,858 $ (510) $ 2,348 $ 760 Tier 2 1,276 (234) 1,042 263 Tier 3 3,409 (659) 2,750 586 Solid Waste 7,543 (1,403) 6,140 1,609 Other (a) 1,220 (110) 1,110 (10) 8,763 (1,513) 7,250 1,599 Corporate and Other — — — (276) Total $ 8,763 $ (1,513) $ 7,250 $ 1,323 (a) “Other” includes (i) our Strategic Business Solutions (“WMSBS”) organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services (“EES”) and WM Renewable Energy organizations that are not included in the operations of our reportable segments; (iii) our recycling brokerage services and (iv) certain other expanded service offerings and solutions. In addition, our “Other” segment reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. |
Summary of operating revenues mix | The mix of operating revenues from our major lines of business are as follows (in millions): Three Months Ended Six Months Ended June 30, June 30, 2019 2018 2019 2018 Commercial $ 1,052 $ 986 $ 2,078 $ 1,941 Residential 655 632 1,295 1,246 Industrial 744 708 1,424 1,345 Other 122 115 231 216 Total collection 2,573 2,441 5,028 4,748 Landfill 1,023 915 1,887 1,720 Transfer 474 437 886 812 Recycling 264 305 555 617 Other (a) 445 439 876 866 Intercompany (b) (833) (798) (1,590) (1,513) Total $ 3,946 $ 3,739 $ 7,642 $ 7,250 (a) The “Other” line of business includes (i) our WMSBS organization; (ii) our landfill gas-to-energy operations; (iii) certain services within our EES organization, including our construction and remediation services and our services associated with the disposal of fly ash and (iv) certain other expanded service offerings and solutions. In addition, our “Other” line of business reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. (b) Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included within this report. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) | |
Components of Accumulated Other Comprehensive Income (Loss), net of tax | The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of Waste Management, Inc. stockholders’ equity, are as follows (in millions, with amounts in parentheses representing decreases to accumulated other comprehensive income): Foreign Post- Available- Currency Retirement Derivative for-Sale Translation Benefit Instruments Securities Adjustments Obligations Total Balance, December 31, 2018 $ (32) $ 23 $ (76) $ (2) $ (87) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $0, respectively — 9 53 — 62 Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $1, $0, $0 and $0, respectively 4 — — (1) 3 Net current period other comprehensive income (loss) 4 9 53 (1) 65 Balance, June 30, 2019 $ (28) $ 32 $ (23) $ (3) $ (22) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Measurements | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): June 30, December 31, 2019 2018 Fair Value Measurements Using: Quoted prices in active markets (Level 1): Money market funds (a) $ 2,249 $ 70 2,249 70 Significant other observable inputs (Level 2): Available-for-sale securities (b) 382 288 382 288 Significant unobservable inputs (Level 3): Redeemable preferred stock (c) 46 66 46 66 Total Assets $ 2,677 $ 424 (a) The increase in 2019 is primarily due to proceeds from our May 2019 issuance of senior notes, a portion of which we intend to use to support the pending acquisition of Advanced Disposal and other business needs, and are invested in high-yield secure and stable funds. This increase is partially offset by changes in our investments portfolio associated with a wholly-owned insurance captive from money market funds to available-for-sale securities. (b) The increase in 2019 is primarily attributable to changes in our investments portfolio, as discussed above. Our available-for-sale securities generally mature over the next ten years. (c) When available, Level 3 investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. When this evidence is not available, we use other valuation techniques as appropriate and available. These valuation methodologies may include transactions in similar instruments, discounted cash flow techniques, third-party appraisals or industry multiples and public company comparable transactions. In the first quarter of 2019, we redeemed our preferred stock received in conjunction with the 2014 sale of our Puerto Rico operations for $17 million. At the time of redemption, the value of redeemable preferred stock was $20 million, resulting in a $3 million loss on investment. |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Condensed Consolidating Financial Statements | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2019 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 2,200 $ — $ 50 $ — $ 2,250 Other current assets 94 6 2,578 (92) 2,586 2,294 6 2,628 (92) 4,836 Property and equipment, net — — 12,665 — 12,665 Investments in affiliates 25,646 26,150 — (51,796) — Advances to affiliates — — 17,651 (17,651) — Other assets 5 10 8,470 — 8,485 Total assets $ 27,945 $ 26,166 $ 41,414 $ (69,539) $ 25,986 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ — $ — $ 116 $ — $ 116 Accounts payable and other current liabilities 92 9 2,721 (92) 2,730 92 9 2,837 (92) 2,846 Long-term debt, less current portion 10,412 248 1,963 — 12,623 Due to affiliates 17,680 265 6,709 (24,654) — Other liabilities 4 — 4,046 — 4,050 Total liabilities 28,188 522 15,555 (24,746) 19,519 Equity: Stockholders’ equity 6,466 25,644 26,152 (51,796) 6,466 Advances to affiliates (6,709) — (294) 7,003 — Noncontrolling interests — — 1 — 1 (243) 25,644 25,859 (44,793) 6,467 Total liabilities and equity $ 27,945 $ 26,166 $ 41,414 $ (69,539) $ 25,986 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2018 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 61 $ — $ 61 Other current assets 2 5 2,577 — 2,584 2 5 2,638 — 2,645 Property and equipment, net — — 11,942 — 11,942 Investments in affiliates 24,676 25,097 — (49,773) — Advances to affiliates — — 17,258 (17,258) — Other assets 8 31 8,024 — 8,063 Total assets $ 24,686 $ 25,133 $ 39,862 $ (67,031) $ 22,650 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 258 $ — $ 174 $ — $ 432 Accounts payable and other current liabilities 82 9 2,585 — 2,676 340 9 2,759 — 3,108 Long-term debt, less current portion 7,377 304 1,913 — 9,594 Due to affiliates 17,398 146 6,709 (24,253) — Other liabilities 5 — 3,667 — 3,672 Total liabilities 25,120 459 15,048 (24,253) 16,374 Equity: Stockholders’ equity 6,275 24,674 25,099 (49,773) 6,275 Advances to affiliates (6,709) — (286) 6,995 — Noncontrolling interests — — 1 — 1 (434) 24,674 24,814 (42,778) 6,276 Total liabilities and equity $ 24,686 $ 25,133 $ 39,862 $ (67,031) $ 22,650 |
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended June 30, 2019 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 3,992 $ (46) $ 3,946 Costs and expenses 46 — 3,250 (46) 3,250 Income from operations (46) — 742 — 696 Other income (expense): Interest expense, net (86) (5) (9) — (100) Loss on early extinguishment of debt (70) (14) — — (84) Equity in earnings of subsidiaries, net of tax 530 545 — (1,075) — Other, net — (1) (14) — (15) 374 525 (23) (1,075) (199) Income before income taxes 328 525 719 (1,075) 497 Income tax expense (benefit) (53) (5) 173 — 115 Consolidated net income 381 530 546 (1,075) 382 Less: Net income (loss) attributable to noncontrolling interests — — 1 — 1 Net income attributable to Waste Management, Inc. $ 381 $ 530 $ 545 $ (1,075) $ 381 Three Months Ended June 30, 2018 (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 3,783 $ (44) $ 3,739 Costs and expenses 44 — 3,024 (44) 3,024 Income from operations (44) — 759 — 715 Other income (expense): Interest expense, net (78) (4) (11) — (93) Equity in earnings of subsidiaries, net of tax 588 591 — (1,179) — Other, net — — (13) — (13) 510 587 (24) (1,179) (106) Income before income taxes 466 587 735 (1,179) 609 Income tax expense (benefit) (33) (1) 144 — 110 Consolidated net income 499 588 591 (1,179) 499 Less: Net income (loss) attributable to noncontrolling interests — — — — — Net income attributable to Waste Management, Inc. $ 499 $ 588 $ 591 $ (1,179) $ 499 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued) Six Months Ended June 30, 2019 (Unaudited) WM Non ‑ Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 7,734 $ (92) $ 7,642 Costs and expenses 92 — 6,325 (92) 6,325 Income from operations (92) — 1,409 — 1,317 Other income (expense): Interest expense, net (166) (10) (20) — (196) Loss on early extinguishment of debt (70) (14) — — (84) Equity in earnings of subsidiaries, net of tax 970 992 — (1,962) — Other, net — (4) (74) — (78) 734 964 (94) (1,962) (358) Income before income taxes 642 964 1,315 (1,962) 959 Income tax expense (benefit) (86) (6) 322 — 230 Consolidated net income 728 970 993 (1,962) 729 Less: Net income (loss) attributable to noncontrolling interests — — 1 — 1 Net income attributable to Waste Management, Inc. $ 728 $ 970 $ 992 $ (1,962) $ 728 Six Months Ended June 30, 2018 (Unaudited) WM Non ‑ Guarantor WM Holdings Subsidiaries Eliminations Consolidated Operating revenues $ — $ — $ 7,338 $ (88) $ 7,250 Costs and expenses 88 — 5,927 (88) 5,927 Income from operations (88) — 1,411 — 1,323 Other income (expense): Interest expense, net (154) (9) (21) — (184) Equity in earnings of subsidiaries, net of tax 1,073 1,080 — (2,153) — Other, net — — (19) — (19) 919 1,071 (40) (2,153) (203) Income before income taxes 831 1,071 1,371 (2,153) 1,120 Income tax expense (benefit) (64) (2) 292 — 226 Consolidated net income 895 1,073 1,079 (2,153) 894 Less: Net income (loss) attributable to noncontrolling interests — — (1) — (1) Net income attributable to Waste Management, Inc. $ 895 $ 1,073 $ 1,080 $ (2,153) $ 895 |
Condensed Consolidating Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Three Months Ended June 30: 2019 Comprehensive income $ 383 $ 530 $ 575 $ (1,075) $ 413 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Waste Management, Inc. $ 383 $ 530 $ 574 $ (1,075) $ 412 2018 Comprehensive income $ 501 $ 588 $ 568 $ (1,179) $ 478 Less: Comprehensive income (loss) attributable to noncontrolling interests — — — — — Comprehensive income attributable to Waste Management, Inc. $ 501 $ 588 $ 568 $ (1,179) $ 478 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Six Months Ended June 30: 2019 Comprehensive income $ 732 $ 970 $ 1,054 $ (1,962) $ 794 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Waste Management, Inc. $ 732 $ 970 $ 1,053 $ (1,962) $ 793 2018 Comprehensive income $ 899 $ 1,073 $ 1,023 $ (2,153) $ 842 Less: Comprehensive income (loss) attributable to noncontrolling interests — — (1) — (1) Comprehensive income attributable to Waste Management, Inc. $ 899 $ 1,073 $ 1,024 $ (2,153) $ 843 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended June 30, 2019 (Unaudited) WM Non-Guarantor WM(a) Holdings(a) Subsidiaries(a) Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 1,900 $ — $ 1,900 Investing activities — — (1,565) — (1,565) Financing activities — — 1,822 — 1,822 Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — 2 — 2 Intercompany activity 2,200 — (2,200) — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 2,200 — (41) — 2,159 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 183 — 183 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 2,200 $ — $ 142 $ — $ 2,342 Six Months Ended June 30, 2018 (Unaudited) WM Non-Guarantor WM(a) Holdings(a) Subsidiaries(a) Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 1,784 $ — $ 1,784 Investing activities — — (1,010) — (1,010) Financing activities — — (647) — (647) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — (1) — (1) Intercompany activity — — — — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents — — 126 — 126 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 293 — 293 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ — $ — $ 419 $ — $ 419 (a) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of June 30, 2019 include remaining proceeds from our May 2019 issuance of senior notes which are discussed further in Notes 3 and 13. |
Basis of Presentation (Detail)
Basis of Presentation (Detail) | 6 Months Ended |
Jun. 30, 2019area | |
Solid Waste [Member] | |
Segment Reporting Information [Line Items] | |
Number of areas | 17 |
Basis of Presentation - Revenue
Basis of Presentation - Revenue Recognition (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Contract Acquisition Costs | |||||
Deferred contract costs | $ 149 | $ 149 | $ 145 | ||
Minimum [Member] | |||||
Contract Acquisition Costs | |||||
Deferred revenue recognition period | 1 month | ||||
Contract amortization period | 5 years | 5 years | |||
Maximum [Member] | |||||
Contract Acquisition Costs | |||||
Deferred revenue recognition period | 3 months | ||||
Contract amortization period | 13 years | 13 years | |||
Selling, General and Administrative Expenses [Member] | |||||
Contract Acquisition Costs | |||||
Deferred contract costs amortization | $ 6 | $ 5 | $ 11 | $ 11 | |
Reduction to Sales [Member] | |||||
Contract Acquisition Costs | |||||
Deferred contract costs amortization | 5 | $ 9 | 11 | $ 19 | |
Deferred Sales Incentives [Member] | |||||
Contract Acquisition Costs | |||||
Deferred contract costs | $ 113 | $ 113 | $ 109 |
Basis of Presentation - Adoptio
Basis of Presentation - Adoption of New Accounting Standards (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jan. 01, 2019 | |
New ASU | ||
Lease, Practical Expedients, Package | true | |
Right-of-use assets | $ 378 | |
Operating lease liability | $ 389 | |
Lease, Practical Expedient, Land Easement [true false] | true | |
Accounting Standards Update 2016-02 [Member] | Adjustment [Member] | ||
New ASU | ||
Right-of-use assets | $ 385 | |
Operating lease liability | $ 385 |
Landfill and Environmental Re_3
Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Landfill and environmental remediation liabilities | ||
Total, Environmental Remediation | $ 241 | |
Current (in accrued liabilities) | 151 | $ 169 |
Long-term | 1,900 | 1,828 |
Total | 2,051 | 1,997 |
Landfill [Member] | ||
Landfill and environmental remediation liabilities | ||
Current (in accrued liabilities), Landfill | 125 | 143 |
Long-term, Landfill | 1,685 | 1,617 |
Total, Landfill | 1,810 | 1,760 |
Environmental Remediation Liabilities [Member] | ||
Landfill and environmental remediation liabilities | ||
Current (in accrued liabilities), Environmental Remediation | 26 | 26 |
Long-term, Environmental Remediation | 215 | 211 |
Total, Environmental Remediation | $ 241 | $ 237 |
Landfill and Environmental Re_4
Landfill and Environmental Remediation Liabilities - Changes (Detail) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Landfill and environmental remediation liabilities | |||
Interest accretion | $ 47 | $ 47 | |
Ending balance, environmental remediation | 241 | ||
Landfill [Member] | |||
Landfill and environmental remediation liabilities | |||
Beginning balance, landfill | 1,760 | ||
Obligations incurred and capitalized | 36 | ||
Obligations settled | (41) | ||
Interest accretion | 47 | ||
Revisions in estimates and interest rate assumptions | 3 | ||
Acquisitions, divestitures and other adjustments | 5 | ||
Ending balance, landfill | 1,810 | ||
Environmental Remediation Liabilities [Member] | |||
Landfill and environmental remediation liabilities | |||
Beginning balance, environmental remediation | 237 | ||
Obligations settled | (9) | ||
Interest accretion | 3 | ||
Revisions in estimates and interest rate assumptions | 10 | ||
Ending balance, environmental remediation | $ 241 | ||
Risk-free discount rate of the obligations | 2.00% | 2.75% | |
Increase (decrease) operating expenses due to change in discount rate | $ 8 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Debt | ||
Debt | $ 12,739 | $ 10,026 |
Debt issuance costs, discounts and other | (83) | (52) |
Current portion of long-term debt | 116 | 432 |
Long-term debt, less current portion | 12,623 | 9,594 |
Revolving Credit Facility [Member] | ||
Debt | ||
Debt | $ 11 | |
Weighted average interest rate | 3.10% | |
Commercial Paper Program [Member] | ||
Debt | ||
Debt | $ 990 | |
Weighted average interest rate | 2.90% | |
Senior Notes, Aggregate [Member] | ||
Debt | ||
Debt | $ 9,965 | $ 6,222 |
Weighted average interest rate | 3.90% | 4.30% |
Tax Exempt Bonds [Member] | ||
Debt | ||
Debt | $ 2,294 | $ 2,388 |
Current portion of long-term debt | $ 42 | |
Weighted average interest rate | 2.40% | 2.35% |
Financing leases and other [Member] | ||
Debt | ||
Debt | $ 563 | $ 467 |
Current portion of long-term debt | $ 116 | |
Minimum [Member] | Senior Notes, Aggregate [Member] | ||
Debt | ||
Interest rate (as a percent) | 2.40% | |
Minimum [Member] | Tax Exempt Bonds [Member] | ||
Debt | ||
Interest rate (as a percent) | 1.35% | |
Maximum [Member] | Senior Notes, Aggregate [Member] | ||
Debt | ||
Interest rate (as a percent) | 7.75% | |
Maximum [Member] | Tax Exempt Bonds [Member] | ||
Debt | ||
Interest rate (as a percent) | 4.30% | |
Maximum [Member] | Financing leases and other [Member] | ||
Debt | ||
Interest rate (as a percent) | 9.00% |
Debt - Classification and Utili
Debt - Classification and Utilization (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Debt | ||
Debt maturing or subject to remarketing within twelve months | $ 1,200 | |
Current portion of long-term debt | 116 | $ 432 |
4.75% senior notes due June 2020 [Member] | ||
Debt | ||
Debt instrument face amount | $ 600 | |
Interest rate (as a percent) | 4.75% | |
Tax Exempt Bonds [Member] | ||
Debt | ||
Debt with interest rate periods that expire in the next 12 months | $ 524 | |
Current portion of long-term debt | 42 | |
Debt maturing or subject to remarketing within twelve months classified as long-term | 1,100 | |
Variable-rate tax-exempt bonds | $ 268 | |
Tax Exempt Bonds [Member] | Minimum [Member] | ||
Debt | ||
Interest rate (as a percent) | 1.35% | |
Tax Exempt Bonds [Member] | Maximum [Member] | ||
Debt | ||
Interest rate (as a percent) | 4.30% | |
Financing leases and other [Member] | ||
Debt | ||
Current portion of long-term debt | $ 116 | |
Financing leases and other [Member] | Maximum [Member] | ||
Debt | ||
Interest rate (as a percent) | 9.00% | |
Revolving Credit Facility [Member] | ||
Debt | ||
Outstanding borrowings under credit facility | $ 0 | |
Maximum capacity | 2,750 | |
Letters of credit outstanding | 512 | |
Unused and available credit capacity | 2,200 | |
Commercial Paper Program [Member] | ||
Debt | ||
Commercial paper, borrowings | $ 0 | |
Debt term | 397 days | |
Other Letter of Credit Facilities [Member] | ||
Debt | ||
Letters of credit outstanding | $ 542 |
Debt - Borrowings and Repayment
Debt - Borrowings and Repayments (Detail) $ in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
May 31, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019CAD ($) | Jun. 30, 2018USD ($) | May 01, 2019USD ($) | |
Debt | |||||||
Debt repayments | $ 385 | $ 196 | |||||
New borrowings | 3,971 | 83 | |||||
Loss on early extinguishment of debt | $ (84) | $ (84) | (84) | ||||
Net commercial borrowings (repayments) | (1,001) | $ 443 | |||||
Revolving Credit Facility [Member] | |||||||
Debt | |||||||
Debt repayments | $ 11 | $ 15 | |||||
Senior Notes, Aggregate [Member] | |||||||
Debt | |||||||
Debt instrument face amount | 4,000 | ||||||
New borrowings | 3,970 | ||||||
Amount of debt tendered, including interest | 344 | ||||||
Early extinguishment of high-coupon senior notes | 257 | ||||||
Accrued interest | 3 | ||||||
Senior Notes, Aggregate [Member] | Minimum [Member] | |||||||
Debt | |||||||
Interest rate (as a percent) | 2.40% | 2.40% | 2.40% | ||||
Senior Notes, Aggregate [Member] | Maximum [Member] | |||||||
Debt | |||||||
Interest rate (as a percent) | 7.75% | 7.75% | 7.75% | ||||
2.95% senior notes due June 2024 [Member] | |||||||
Debt | |||||||
Debt instrument face amount | $ 750 | ||||||
Interest rate (as a percent) | 2.95% | ||||||
Redemption price percentage | 101.00% | ||||||
3.20% senior notes due June 2026 [Member] | |||||||
Debt | |||||||
Debt instrument face amount | $ 750 | ||||||
Interest rate (as a percent) | 3.20% | ||||||
Redemption price percentage | 101.00% | ||||||
3.45% senior notes due June 2029 [Member] | |||||||
Debt | |||||||
Debt instrument face amount | $ 1,000 | ||||||
Interest rate (as a percent) | 3.45% | ||||||
Redemption price percentage | 101.00% | ||||||
4.00% senior notes due July 2039 [Member] | |||||||
Debt | |||||||
Debt instrument face amount | $ 500 | ||||||
Interest rate (as a percent) | 4.00% | ||||||
Redemption price percentage | 101.00% | ||||||
4.15% senior notes due July 2049 [Member] | |||||||
Debt | |||||||
Debt instrument face amount | $ 1,000 | ||||||
Interest rate (as a percent) | 4.15% | ||||||
7.10% senior notes due 2026 [Member] | |||||||
Debt | |||||||
Debt repayments | $ 56 | ||||||
Interest rate (as a percent) | 7.10% | ||||||
Face amount of tender offer | $ 304 | ||||||
7.00% senior notes due 2028 [Member] | |||||||
Debt | |||||||
Debt repayments | $ 64 | ||||||
Interest rate (as a percent) | 7.00% | ||||||
Face amount of tender offer | 395 | ||||||
7.375% senior notes due 2029 [Member] | |||||||
Debt | |||||||
Debt repayments | $ 58 | ||||||
Interest rate (as a percent) | 7.375% | ||||||
Face amount of tender offer | 139 | ||||||
7.75% senior notes due 2032 [Member] | |||||||
Debt | |||||||
Debt repayments | $ 57 | ||||||
Interest rate (as a percent) | 7.75% | ||||||
Face amount of tender offer | 210 | ||||||
6.125% senior notes due 2039 [Member] | |||||||
Debt | |||||||
Debt repayments | $ 22 | ||||||
Interest rate (as a percent) | 6.125% | ||||||
Face amount of tender offer | $ 274 | ||||||
Commercial Paper Program [Member] | |||||||
Debt | |||||||
Net commercial borrowings (repayments) | $ 357 | $ 1,000 | |||||
Tax Exempt Bonds [Member] | |||||||
Debt | |||||||
Debt repayments | $ 94 | ||||||
Tax Exempt Bonds [Member] | Minimum [Member] | |||||||
Debt | |||||||
Interest rate (as a percent) | 1.35% | 1.35% | 1.35% | ||||
Tax Exempt Bonds [Member] | Maximum [Member] | |||||||
Debt | |||||||
Interest rate (as a percent) | 4.30% | 4.30% | 4.30% | ||||
Financing leases and other [Member] | |||||||
Debt | |||||||
Debt repayments | $ 23 | ||||||
Non-cash financing lease incurred | $ 119 | ||||||
Financing leases and other [Member] | Maximum [Member] | |||||||
Debt | |||||||
Interest rate (as a percent) | 9.00% | 9.00% | 9.00% |
Leases (Detail)
Leases (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Minimum [Member] | |
Leases | |
Renewal term | 1 year |
Maximum [Member] | |
Leases | |
Renewal term | 10 years |
Leases - Balance sheet (Detail)
Leases - Balance sheet (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Assets | |
Operating leases | $ 378 |
Operating right of use asset extensible list | us-gaap:OtherAssetsCurrent |
Financing lease | $ 349 |
Financing Lease, right of use asset extensible list | us-gaap:PropertyPlantAndEquipmentNet |
Total leased assets | $ 727 |
Liabilities | |
Operating, current | $ 89 |
Operating Lease, Liability current extensible list | us-gaap:AccruedLiabilitiesCurrent |
Financing, current | $ 33 |
Financing Lease, Liability current extensible list | us-gaap:DebtCurrent |
Operating, non current | $ 300 |
Operating lease, liability noncurrent extensible list | us-gaap:OtherLiabilitiesNoncurrent |
Financing, non current | $ 296 |
Financing lease, liability noncurrent extensible list | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Total lease liabilities | $ 718 |
Leases - Expense (Detail)
Leases - Expense (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases | ||
Operating lease cost | $ 31 | $ 59 |
Finance lease cost | $ 11 | $ 25 |
Leases - Maturities (Detail)
Leases - Maturities (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Operating | |
2019 (excluding six months ended June 30, 2019) | $ 45 |
2020 | 87 |
2021 | 55 |
2022 | 45 |
2023 | 37 |
Thereafter | 268 |
Total lease payments | 537 |
Less: interest | (148) |
Discounted lease liabilities | 389 |
Operating leases not yet commenced | $ 167 |
Operating leases not yet commenced term | 15 years |
Financing | |
2019 (excluding six months ended June 30, 2019) | $ 22 |
2020 | 42 |
2021 | 40 |
2022 | 39 |
2023 | 38 |
Thereafter | 235 |
Total lease payments | 416 |
Less: interest | (87) |
Discounted lease liabilities | $ 329 |
Leases - Cash flow (Detail)
Leases - Cash flow (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Operating cash flows from operating leases | |
Operating cash flows from operating leases | $ 44 |
Financing cash flows from finance leases | 17 |
Right-of-use assets obtained in exchange for operating lease obligations | 32 |
Right-of-use assets obtained in exchange for financing leases obligations | $ 110 |
Leases - Other (Detail)
Leases - Other (Detail) | Jun. 30, 2019 |
Lessee, Lease, Description [Line Items] | |
Weighted-average remaining lease term for operating lease | 16 years |
Weighted-average remaining lease term for financing lease | 15 years |
Weighted-average discount rate for operating lease | 3.79% |
Weighted-average discount rate for financing lease | 4.16% |
Income Taxes - Quarter informat
Income Taxes - Quarter information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes | |||||
Income tax expense | $ 115 | $ 110 | $ 230 | $ 226 | |
Effective tax rate of income (loss) before income taxes | 23.30% | 18.10% | 24.00% | 20.20% | |
Tax audit settlement | $ (33) | $ (33) | |||
Investment impairment | $ 52 | ||||
Equity in net losses of unconsolidated entities | $ 16 | 13 | $ 25 | 20 | |
Excess tax benefits associated with equity-based compensation | 5 | 1 | 17 | 12 | |
Investments Qualifying for Federal Tax Credits [Member] | |||||
Income Taxes | |||||
Interest expense recognized | 2 | 4 | |||
Equity in net losses of unconsolidated entities | 12 | 6 | 21 | 12 | |
Income tax (expense) benefit, including tax credits, from equity method investment | $ 18 | $ 12 | $ 33 | $ 22 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share | ||||
Number of common shares outstanding at end of period | 423.8 | 428.4 | 423.8 | 428.4 |
Effect of using weighted average common shares outstanding | 1 | 1.5 | 3.2 | |
Net reduction, Effect of using weighted average common shares outstanding | 0.8 | |||
Weighted average basic common shares outstanding | 424.8 | 429.9 | 424.6 | 431.6 |
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 2.7 | 2.4 | 2.6 | 2.5 |
Weighted average diluted common shares outstanding | 427.5 | 432.3 | 427.2 | 434.1 |
Potentially issuable shares | 7.2 | 8 | 7.2 | 8 |
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 1.1 | 1.9 | 1.9 | 1.9 |
Commitments and Contingencies -
Commitments and Contingencies - Quarter (Details) | Jul. 03, 2019USD ($) | Jan. 31, 2011item | Jun. 30, 2019USD ($)siteitem | Dec. 31, 2018USD ($) |
Commitments And Contingencies [Line Items] | ||||
Approximate number of homeowners' properties adjacent to or near certain of our landfills with agreements guaranteeing market value | item | 850 | |||
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value | item | 18 | |||
Environmental remediation reasonably possible additional losses high estimate | $ 145,000,000 | |||
Environmental remediation liabilities | $ 241,000,000 | |||
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 75 | |||
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 15 | |||
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 60 | |||
Dollar threshold for environmental matters requiring disclosure under item 103 of the SEC's Regulation S-K | $ 100,000 | |||
Approximate percentage of workforce covered by collective bargaining agreements | 20.00% | |||
Expected time of completion of IRS audits | 21 months | |||
San Jacinto Waste Pits [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Environmental remediation liabilities | $ 56,000,000 | $ 55,000,000 | ||
Waimanalo Gulch Sanitary Landfill | ||||
Commitments And Contingencies [Line Items] | ||||
Number of major rainfalls | item | 2 | |||
Payment made for litigation | $ 300,000 | |||
Wheelabrator [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Maximum future payments | 73,000,000 | |||
Revolving Credit Facility [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Credit Facility, aggregate capacity | $ 2,750,000,000 |
Segment and Related Informati_3
Segment and Related Information - Information (Detail) - Solid Waste [Member] | 6 Months Ended |
Jun. 30, 2019areasegment | |
Segment Reporting Information [Line Items] | |
Number of areas | area | 17 |
Number of reportable segments | segment | 3 |
Segment and Related Informati_4
Segment and Related Information - Summary (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Operating revenues | $ 3,946 | $ 3,739 | $ 7,642 | $ 7,250 |
Income from operations | 696 | 715 | 1,317 | 1,323 |
Operating Group Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,946 | 3,739 | 7,642 | 7,250 |
Income from operations | 861 | 844 | 1,676 | 1,599 |
Solid Waste [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 3,396 | 3,182 | 6,535 | 6,140 |
Income from operations | 921 | 831 | 1,764 | 1,609 |
Tier 1 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,310 | 1,216 | 2,525 | 2,348 |
Income from operations | 432 | 395 | 826 | 760 |
Tier 2 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 569 | 540 | 1,091 | 1,042 |
Income from operations | 148 | 141 | 284 | 263 |
Tier 3 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,517 | 1,426 | 2,919 | 2,750 |
Income from operations | 341 | 295 | 654 | 586 |
Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 550 | 557 | 1,107 | 1,110 |
Income from operations | (60) | 13 | (88) | (10) |
Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4,779 | 4,537 | 9,232 | 8,763 |
Operating Segments [Member] | Operating Group Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4,779 | 4,537 | 9,232 | 8,763 |
Operating Segments [Member] | Solid Waste [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 4,199 | 3,924 | 8,064 | 7,543 |
Operating Segments [Member] | Tier 1 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,608 | 1,485 | 3,094 | 2,858 |
Operating Segments [Member] | Tier 2 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 703 | 663 | 1,346 | 1,276 |
Operating Segments [Member] | Tier 3 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 1,888 | 1,776 | 3,624 | 3,409 |
Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | 580 | 613 | 1,168 | 1,220 |
Intercompany Operating Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (833) | (798) | (1,590) | (1,513) |
Intercompany Operating Revenues [Member] | Operating Group Total [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (833) | (798) | (1,590) | (1,513) |
Intercompany Operating Revenues [Member] | Solid Waste [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (803) | (742) | (1,529) | (1,403) |
Intercompany Operating Revenues [Member] | Tier 1 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (298) | (269) | (569) | (510) |
Intercompany Operating Revenues [Member] | Tier 2 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (134) | (123) | (255) | (234) |
Intercompany Operating Revenues [Member] | Tier 3 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (371) | (350) | (705) | (659) |
Intercompany Operating Revenues [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating revenues | (30) | (56) | (61) | (110) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Income from operations | $ (165) | $ (129) | $ (359) | $ (276) |
Segment and Related Informati_5
Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from External Customer [Line Items] | ||||
Operating revenues | $ 3,946 | $ 3,739 | $ 7,642 | $ 7,250 |
Operating Segments [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 4,779 | 4,537 | 9,232 | 8,763 |
Operating Segments [Member] | Collection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 2,573 | 2,441 | 5,028 | 4,748 |
Operating Segments [Member] | Commercial [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 1,052 | 986 | 2,078 | 1,941 |
Operating Segments [Member] | Residential [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 655 | 632 | 1,295 | 1,246 |
Operating Segments [Member] | Industrial [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 744 | 708 | 1,424 | 1,345 |
Operating Segments [Member] | Other Collection [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 122 | 115 | 231 | 216 |
Operating Segments [Member] | Landfill [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 1,023 | 915 | 1,887 | 1,720 |
Operating Segments [Member] | Transfer [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 474 | 437 | 886 | 812 |
Operating Segments [Member] | Recycling [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 264 | 305 | 555 | 617 |
Operating Segments [Member] | Other Revenue [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | 445 | 439 | 876 | 866 |
Intercompany Operating Revenues [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Operating revenues | $ (833) | $ (798) | $ (1,590) | $ (1,513) |
Acquisitions (Detail)
Acquisitions (Detail) $ / shares in Units, $ in Billions | Apr. 14, 2019USD ($)item$ / shares | Mar. 08, 2019item | Jun. 28, 2019 |
Advanced Disposal Services [Member] | |||
Business Acquisition [Line Items] | |||
Price per share | $ / shares | $ 33.15 | ||
Total enterprise value | $ | $ 4.9 | ||
Advanced Disposal's net debt | $ | $ 1.9 | ||
Number of collection operations | 95 | ||
Number of transfer stations | 73 | ||
Number of landfills | 41 | ||
Number of owned or operated recycling facilities | 22 | ||
Merger approval percentage | 85.90% | ||
Petro Waste Environmental [Member] | |||
Business Acquisition [Line Items] | |||
Number of landfills | 7 |
Asset Impairments and Unusual_2
Asset Impairments and Unusual Items (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Mar. 31, 2019 | Jun. 30, 2018 | |
Divestitures | ||
Investment impairment | $ 52 | |
Disposed of by Sale, Not Discontinued Operations [Member] | ||
Divestitures | ||
Gain (loss) on sale of assets | $ 42 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
AOCI roll forward | ||||
Beginning balance | $ 6,417 | $ 6,065 | $ 6,276 | $ 6,042 |
Other comprehensive income (loss), net of tax | 31 | (21) | 65 | (52) |
Ending balance | 6,467 | 6,056 | 6,467 | 6,056 |
Accumulated Other Comprehensive Loss [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (53) | (28) | (87) | 8 |
Other comprehensive income (loss) before reclassifications, net of tax | 62 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 3 | |||
Other comprehensive income (loss), net of tax | 31 | (21) | 65 | (52) |
Ending balance | (22) | $ (49) | (22) | $ (49) |
Derivative Instruments [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (32) | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | 4 | |||
Other comprehensive income (loss), net of tax | 4 | |||
Ending balance | (28) | (28) | ||
Derivative Instruments [Member] | Foreign Currency Derivatives [Member] | ||||
AOCI roll forward | ||||
Outstanding derivatives | 0 | 0 | ||
Available for sale Securities [Member] | ||||
AOCI roll forward | ||||
Beginning balance | 23 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 9 | |||
Other comprehensive income (loss), net of tax | 9 | |||
Ending balance | 32 | 32 | ||
Foreign Currency Translation Adjustments [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (76) | |||
Other comprehensive income (loss) before reclassifications, net of tax | 53 | |||
Other comprehensive income (loss), net of tax | 53 | |||
Ending balance | (23) | (23) | ||
Post - Retirement Benefit Obligation [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (2) | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax | (1) | |||
Other comprehensive income (loss), net of tax | (1) | |||
Ending balance | $ (3) | $ (3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Tax Impact (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative Instruments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive income (loss) before reclassifications, tax | $ 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 1 |
Available for sale Securities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive income (loss) before reclassifications, tax | 2 |
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 0 |
Foreign Currency Translation Adjustments [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive income (loss) before reclassifications, tax | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 0 |
Post - Retirement Benefit Obligation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Other comprehensive income (loss) before reclassifications, tax | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss, tax | $ 0 |
Common Stock Repurchase Progr_2
Common Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
May 31, 2019 | Jan. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accelerated Share Repurchases [Line Items] | |||||||||
Total repurchases | $ 180 | $ 292 | $ 244 | $ 550 | |||||
Authorized share repurchases | $ 1,300 | 1,300 | $ 1,500 | $ 1,250 | |||||
Cash paid for repurchase of common stock | $ 248 | $ 550 | |||||||
10b5-1 Plan [Member] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Shares repurchased | 0.7 | ||||||||
Total repurchases | $ 64 | ||||||||
Weighted average per share purchase price | $ 94.35 | ||||||||
Cash paid for repurchase of common stock | $ 4 | ||||||||
Accelerated Share Repurchase Agreement (ASR) [Member] | |||||||||
Accelerated Share Repurchases [Line Items] | |||||||||
Authorized share repurchases | $ 180 | ||||||||
Cash paid for repurchase of common stock | $ 180 | ||||||||
Shares received (in shares) | 1.3 | ||||||||
Stock price (in dollars per share) | $ 109.59 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 2,677 | $ 424 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 2,249 | 70 |
Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 2,249 | 70 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 382 | 288 |
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 382 | 288 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 46 | 66 |
Significant Unobservable Inputs (Level 3) [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 46 | $ 66 |
Significant Unobservable Inputs (Level 3) [Member] | Redeemable Preferred Stock [Member] | Disposed of by Sale, Not Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20 | |
Redemption of preferred stock | 17 | |
Loss on investment | $ 3 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Detail) - USD ($) $ in Billions | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net borrowings | $ 2.6 | |
Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Debt | 12.7 | $ 10 |
Significant Other Observable Inputs (Level 2) [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of Debt | $ 13.6 | $ 10.1 |
Variable Interest Entities (Det
Variable Interest Entities (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Variable Interest Entity, Not Primary Beneficiary [Member] | Other Receivables Investments in Unconsolidated Entities and Other Assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate investment balance | $ 98 | $ 92 |
Investments Qualifying for Federal Tax Credits [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Aggregate investment balance | 172 | 189 |
Investment In Low Income Housing Properties [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity [Line Items] | ||
Equity method investments debt balance | 147 | 151 |
Trust For Final Capping, Closure, Post-closure Or Environmental Remediation Obligations [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Long-term other assets [Member] | ||
Variable Interest Entity [Line Items] | ||
Value of consolidated VIEs | $ 107 | $ 103 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements - Balance Sheets (Detail) - USD ($) $ in Millions | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 2,250 | $ 61 | $ 47 | |||
Other current assets | 2,586 | 2,584 | ||||
Total current assets | 4,836 | 2,645 | ||||
Property and equipment, net | 12,665 | 11,942 | ||||
Other assets | 8,485 | 8,063 | ||||
Total assets | 25,986 | 22,650 | ||||
Current liabilities: | ||||||
Current portion of long-term debt | 116 | 432 | ||||
Accounts payable and other current liabilities | 2,730 | 2,676 | ||||
Total current liabilities | 2,846 | 3,108 | ||||
Long-term debt, less current portion | 12,623 | 9,594 | ||||
Other liabilities | 4,050 | 3,672 | ||||
Total liabilities | 19,519 | 16,374 | ||||
Equity: | ||||||
Stockholders' equity | 6,466 | 6,275 | ||||
Noncontrolling interests | 1 | 1 | ||||
Total equity | 6,467 | $ 6,417 | 6,276 | $ 6,056 | $ 6,065 | $ 6,042 |
Total liabilities and equity | 25,986 | 22,650 | ||||
Eliminations [Member] | ||||||
Current assets: | ||||||
Other current assets | (92) | |||||
Total current assets | (92) | |||||
Investments in affiliates | (51,796) | (49,773) | ||||
Advances to affiliates | (17,651) | (17,258) | ||||
Total assets | (69,539) | (67,031) | ||||
Current liabilities: | ||||||
Accounts payable and other current liabilities | (92) | |||||
Total current liabilities | (92) | |||||
Due to affiliates | (24,654) | (24,253) | ||||
Total liabilities | (24,746) | (24,253) | ||||
Equity: | ||||||
Stockholders' equity | (51,796) | (49,773) | ||||
Advances to affiliates | 7,003 | 6,995 | ||||
Total equity | (44,793) | (42,778) | ||||
Total liabilities and equity | (69,539) | (67,031) | ||||
WM [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 2,200 | |||||
Other current assets | 94 | 2 | ||||
Total current assets | 2,294 | 2 | ||||
Investments in affiliates | 25,646 | 24,676 | ||||
Other assets | 5 | 8 | ||||
Total assets | 27,945 | 24,686 | ||||
Current liabilities: | ||||||
Current portion of long-term debt | 258 | |||||
Accounts payable and other current liabilities | 92 | 82 | ||||
Total current liabilities | 92 | 340 | ||||
Long-term debt, less current portion | 10,412 | 7,377 | ||||
Due to affiliates | 17,680 | 17,398 | ||||
Other liabilities | 4 | 5 | ||||
Total liabilities | 28,188 | 25,120 | ||||
Equity: | ||||||
Stockholders' equity | 6,466 | 6,275 | ||||
Advances to affiliates | (6,709) | (6,709) | ||||
Total equity | (243) | (434) | ||||
Total liabilities and equity | 27,945 | 24,686 | ||||
WM Holdings [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Other current assets | 6 | 5 | ||||
Total current assets | 6 | 5 | ||||
Investments in affiliates | 26,150 | 25,097 | ||||
Other assets | 10 | 31 | ||||
Total assets | 26,166 | 25,133 | ||||
Current liabilities: | ||||||
Accounts payable and other current liabilities | 9 | 9 | ||||
Total current liabilities | 9 | 9 | ||||
Long-term debt, less current portion | 248 | 304 | ||||
Due to affiliates | 265 | 146 | ||||
Total liabilities | 522 | 459 | ||||
Equity: | ||||||
Stockholders' equity | 25,644 | 24,674 | ||||
Total equity | 25,644 | 24,674 | ||||
Total liabilities and equity | 26,166 | 25,133 | ||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||||
Current assets: | ||||||
Cash and cash equivalents | 50 | 61 | ||||
Other current assets | 2,578 | 2,577 | ||||
Total current assets | 2,628 | 2,638 | ||||
Property and equipment, net | 12,665 | 11,942 | ||||
Advances to affiliates | 17,651 | 17,258 | ||||
Other assets | 8,470 | 8,024 | ||||
Total assets | 41,414 | 39,862 | ||||
Current liabilities: | ||||||
Current portion of long-term debt | 116 | 174 | ||||
Accounts payable and other current liabilities | 2,721 | 2,585 | ||||
Total current liabilities | 2,837 | 2,759 | ||||
Long-term debt, less current portion | 1,963 | 1,913 | ||||
Due to affiliates | 6,709 | 6,709 | ||||
Other liabilities | 4,046 | 3,667 | ||||
Total liabilities | 15,555 | 15,048 | ||||
Equity: | ||||||
Stockholders' equity | 26,152 | 25,099 | ||||
Advances to affiliates | (294) | (286) | ||||
Noncontrolling interests | 1 | 1 | ||||
Total equity | 25,859 | 24,814 | ||||
Total liabilities and equity | $ 41,414 | $ 39,862 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements - Statements of Operations (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 31, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenues | $ 3,946 | $ 3,739 | $ 7,642 | $ 7,250 | |
Costs and expenses | 3,250 | 3,024 | 6,325 | 5,927 | |
Income from operations | 696 | 715 | 1,317 | 1,323 | |
Other income (expense): | |||||
Interest expense, net | (100) | (93) | (196) | (184) | |
Loss on early extinguishment of debt | $ (84) | (84) | (84) | ||
Other, net | (15) | (13) | (78) | (19) | |
Total other income (expense) | (199) | (106) | (358) | (203) | |
Income before income taxes | 497 | 609 | 959 | 1,120 | |
Income tax expense (benefit) | 115 | 110 | 230 | 226 | |
Consolidated net income | 382 | 499 | 729 | 894 | |
Less: Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | ||
Net income attributable to Waste Management, Inc. | 381 | 499 | 728 | 895 | |
Eliminations [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenues | (46) | (44) | (92) | (88) | |
Costs and expenses | (46) | (44) | (92) | (88) | |
Other income (expense): | |||||
Equity in earnings of subsidiaries, net of tax | (1,075) | (1,179) | (1,962) | (2,153) | |
Total other income (expense) | (1,075) | (1,179) | (1,962) | (2,153) | |
Income before income taxes | (1,075) | (1,179) | (1,962) | (2,153) | |
Consolidated net income | (1,075) | (1,179) | (1,962) | (2,153) | |
Net income attributable to Waste Management, Inc. | (1,075) | (1,179) | (1,962) | (2,153) | |
WM [Member] | Reportable Legal Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Costs and expenses | 46 | 44 | 92 | 88 | |
Income from operations | (46) | (44) | (92) | (88) | |
Other income (expense): | |||||
Interest expense, net | (86) | (78) | (166) | (154) | |
Loss on early extinguishment of debt | (70) | (70) | |||
Equity in earnings of subsidiaries, net of tax | 530 | 588 | 970 | 1,073 | |
Total other income (expense) | 374 | 510 | 734 | 919 | |
Income before income taxes | 328 | 466 | 642 | 831 | |
Income tax expense (benefit) | (53) | (33) | (86) | (64) | |
Consolidated net income | 381 | 499 | 728 | 895 | |
Net income attributable to Waste Management, Inc. | 381 | 499 | 728 | 895 | |
WM Holdings [Member] | Reportable Legal Entities [Member] | |||||
Other income (expense): | |||||
Interest expense, net | (5) | (4) | (10) | (9) | |
Loss on early extinguishment of debt | (14) | (14) | |||
Equity in earnings of subsidiaries, net of tax | 545 | 591 | 992 | 1,080 | |
Other, net | (1) | (4) | |||
Total other income (expense) | 525 | 587 | 964 | 1,071 | |
Income before income taxes | 525 | 587 | 964 | 1,071 | |
Income tax expense (benefit) | (5) | (1) | (6) | (2) | |
Consolidated net income | 530 | 588 | 970 | 1,073 | |
Net income attributable to Waste Management, Inc. | 530 | 588 | 970 | 1,073 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Operating revenues | 3,992 | 3,783 | 7,734 | 7,338 | |
Costs and expenses | 3,250 | 3,024 | 6,325 | 5,927 | |
Income from operations | 742 | 759 | 1,409 | 1,411 | |
Other income (expense): | |||||
Interest expense, net | (9) | (11) | (20) | (21) | |
Other, net | (14) | (13) | (74) | (19) | |
Total other income (expense) | (23) | (24) | (94) | (40) | |
Income before income taxes | 719 | 735 | 1,315 | 1,371 | |
Income tax expense (benefit) | 173 | 144 | 322 | 292 | |
Consolidated net income | 546 | 591 | 993 | 1,079 | |
Less: Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | ||
Net income attributable to Waste Management, Inc. | $ 545 | $ 591 | $ 992 | $ 1,080 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements - Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Statement Of Income Captions [Line Items] | ||||
Comprehensive income | $ 413 | $ 478 | $ 794 | $ 842 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | |
Comprehensive income attributable to Waste Management, Inc. | 412 | 478 | 793 | 843 |
Eliminations [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Comprehensive income | (1,075) | (1,179) | (1,962) | (2,153) |
Comprehensive income attributable to Waste Management, Inc. | (1,075) | (1,179) | (1,962) | (2,153) |
WM [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Comprehensive income | 383 | 501 | 732 | 899 |
Comprehensive income attributable to Waste Management, Inc. | 383 | 501 | 732 | 899 |
WM Holdings [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Comprehensive income | 530 | 588 | 970 | 1,073 |
Comprehensive income attributable to Waste Management, Inc. | 530 | 588 | 970 | 1,073 |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||||
Condensed Statement Of Income Captions [Line Items] | ||||
Comprehensive income | 575 | 568 | 1,054 | 1,023 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | |
Comprehensive income attributable to Waste Management, Inc. | $ 574 | $ 568 | $ 1,053 | $ 1,024 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Statements - Cash Flows (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Condensed Cash Flow Statements Captions [Line Items] | ||
Operating activities | $ 1,900 | $ 1,784 |
Investing activities | (1,565) | (1,010) |
Financing activities | 1,822 | (647) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 2 | (1) |
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 2,159 | 126 |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 183 | 293 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | 2,342 | 419 |
WM [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
Intercompany activity | 2,200 | |
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | 2,200 | |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | 2,200 | |
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | ||
Condensed Cash Flow Statements Captions [Line Items] | ||
Operating activities | 1,900 | 1,784 |
Investing activities | (1,565) | (1,010) |
Financing activities | 1,822 | (647) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | 2 | (1) |
Intercompany activity | (2,200) | |
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents | (41) | 126 |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 183 | 293 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 142 | $ 419 |