Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

September 30, 2015

(Unaudited)

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	113	$	—		$	113
Other current assets		3		6		2,277		—			2,286
		3		6		2,390		—			2,399
Property and equipment, net		—		—		10,659		—			10,659
Investments in and advances to affiliates		18,241		18,632		7,230		(44,103	)		—
Other assets		57		29		7,258		—			7,344
Total assets	$	18,301	$	18,667	$	27,537	$	(44,103	)	$	20,402
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	14	$	—	$	201	$	—		$	215
Accounts payable and other current liabilities		59		4		2,164		—			2,227
		73		4		2,365		—			2,442
Long-term debt, less current portion		5,856		304		2,675		—			8,835
Due to affiliates		7,112		118		—		(7,230	)		—
Other liabilities		25		—		3,843		—			3,868
Total liabilities		13,066		426		8,883		(7,230	)		15,145
Equity:
Stockholders’ equity		5,235		18,241		18,632		(36,873	)		5,235
Noncontrolling interests		—		—		22		—			22
		5,235		18,241		18,654		(36,873	)		5,257
Total liabilities and equity	$	18,301	$	18,667	$	27,537	$	(44,103	)	$	20,402

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2014

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,235	$	—	$	72	$	—		$	1,307
Other current assets		5		6		2,323		—			2,334
		1,240		6		2,395		—			3,641
Property and equipment, net		—		—		10,657		—			10,657
Investments in and advances to affiliates		17,312		17,782		6,745		(41,839	)		—
Other assets		50		28		7,036		—			7,114
Total assets	$	18,602	$	17,816	$	26,833	$	(41,839	)	$	21,412
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	957	$	—	$	133	$	—		$	1,090
Accounts payable and other current liabilities		86		13		2,296		—			2,395
		1,043		13		2,429		—			3,485
Long-term debt, less current portion		4,958		449		2,938		—			8,345
Due to affiliates		6,703		42		—		(6,745	)		—
Other liabilities		32		—		3,661		—			3,693
Total liabilities		12,736		504		9,028		(6,745	)		15,523
Equity:
Stockholders’ equity		5,866		17,312		17,782		(35,094	)		5,866
Noncontrolling interests		—		—		23		—			23
		5,866		17,312		17,805		(35,094	)		5,889
Total liabilities and equity	$	18,602	$	17,816	$	26,833	$	(41,839	)	$	21,412

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2015

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	3,360		$	—		$	3,360
Costs and expenses		—			—			2,759			—			2,759
Income from operations		—			—			601			—			601
Other income (expense):
Interest expense, net		(72	)		(5	)		(18	)		—			(95	)
Loss on early extinguishment of debt		—			—			—			—			—
Equity in earnings of subsidiaries, net of taxes		378			381			—			(759	)		—
Other, net		—			—			(10	)		—			(10	)
		306			376			(28	)		(759	)		(105	)
Income (loss) before income taxes		306			376			573			(759	)		496
Provision for (benefit from) income taxes		(29	)		(2	)		190			—			159
Consolidated net income (loss)		335			378			383			(759	)		337
Less: Net income (loss) attributable to noncontrolling interests		—			—			2			—			2
Net income (loss) attributable to Waste Management, Inc.	$	335		$	378		$	381		$	(759	)	$	335

Three Months Ended September 30, 2014

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	3,602		$	—		$	3,602
Costs and expenses		—			—			3,056			—			3,056
Income from operations		—			—			546			—			546
Other income (expense):
Interest expense, net		(89	)		(8	)		(19	)		—			(116	)
Equity in earnings of subsidiaries, net of taxes		324			329			—			(653	)		—
Other, net		—			—			(16	)		—			(16	)
		235			321			(35	)		(653	)		(132	)
Income (loss) before income taxes		235			321			511			(653	)		414
Provision for (benefit from) income taxes		(35	)		(3	)		171			—			133
Consolidated net income (loss)		270			324			340			(653	)		281
Less: Net income (loss) attributable to noncontrolling interests		—			—			11			—			11
Net income (loss) attributable to Waste Management, Inc.	$	270		$	324		$	329		$	(653	)	$	270

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued)

Nine Months Ended September 30, 2015

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	9,715		$	—		$	9,715
Costs and expenses		—			—			8,172			—			8,172
Income from operations		—			—			1,543			—			1,543
Other income (expense):
Interest expense, net		(226	)		(17	)		(51	)		—			(294	)
Loss on early extinguishment of debt		(500	)		(52	)		—			—			(552	)
Equity in earnings of subsidiaries, net of taxes		929			971			—			(1,900	)		—
Other, net		—			—			(34	)		—			(34	)
		203			902			(85	)		(1,900	)		(880	)
Income (loss) before income taxes		203			902			1,458			(1,900	)		663
Provision for (benefit from) income taxes		(277	)		(27	)		488			—			184
Consolidated net income (loss)		480			929			970			(1,900	)		479
Less: Net income (loss) attributable to noncontrolling interests		—			—			(1	)		—			(1	)
Net income (loss) attributable to Waste Management, Inc.	$	480		$	929		$	971		$	(1,900	)	$	480

Nine Months Ended September 30, 2014

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	10,559		$	—		$	10,559
Costs and expenses		—			(34	)		9,046			—			9,012
Income from operations		—			34			1,513			—			1,547
Other income (expense):
Interest expense, net		(263	)		(24	)		(65	)		—			(352	)
Equity in earnings of subsidiaries, net of taxes		867			848			—			(1,715	)		—
Other, net		—			—			(43	)		—			(43	)
		604			824			(108	)		(1,715	)		(395	)
Income (loss) before income taxes		604			858			1,405			(1,715	)		1,152
Provision for (benefit from) income taxes		(104	)		(9	)		525			—			412
Consolidated net income (loss)		708			867			880			(1,715	)		740
Less: Net income (loss) attributable to noncontrolling interests		—			—			32			—			32
Net income (loss) attributable to Waste Management, Inc.	$	708		$	867		$	848		$	(1,715	)	$	708

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Three Months Ended September 30, 2015
Comprehensive income (loss)	$	336	$	378	$	325	$	(759	)	$	280
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		2		—			2
Comprehensive income (loss) attributable to Waste Management, Inc.	$	336	$	378	$	323	$	(759	)	$	278
Three Months Ended September 30, 2014
Comprehensive income (loss)	$	271	$	324	$	281	$	(653	)	$	223
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		11		—			11
Comprehensive income (loss) attributable to Waste Management, Inc.	$	271	$	324	$	270	$	(653	)	$	212

	WM		WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Nine Months Ended September 30, 2015
Comprehensive income (loss)	$	487	$	929	$	849		$	(1,900	)	$	365
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1	)		—			(1	)
Comprehensive income (loss) attributable to Waste Management, Inc.	$	487	$	929	$	850		$	(1,900	)	$	366
Nine Months Ended September 30, 2014
Comprehensive income (loss)	$	708	$	867	$	803		$	(1,715	)	$	663
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		32			—			32
Comprehensive income (loss) attributable to Waste Management, Inc.	$	708	$	867	$	771		$	(1,715	)	$	631

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2015

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	480		$	929		$	970		$	(1,900	)	$	479
Equity in earnings of subsidiaries, net of taxes		(929	)		(971	)		—			1,900			—
Other adjustments		(17	)		(11	)		1,521			—			1,493
Net cash provided by (used in) operating activities		(466	)		(53	)		2,491			—			1,972
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(473	)		—			(473	)
Capital expenditures		—			—			(864	)		—			(864	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			114			—			114
Net receipts from restricted trust and escrow accounts and other, net		—			—			42			—			42
Net cash provided by (used in) investing activities		—			—			(1,181	)		—			(1,181	)
Cash flows from financing activities:
New borrowings		1,781			—			279			—			2,060
Debt repayments		(1,825	)		(145	)		(451	)		—			(2,421	)
Premiums paid on early extinguishment of debt		(503	)		(52	)		—			—			(555	)
Common stock repurchases		(600	)		—			—			—			(600	)
Cash dividends		(523	)		—			—			—			(523	)
Exercise of common stock options		53			—			—			—			53
Distributions paid to noncontrolling interests and other		5			—			(2	)		—			3
(Increase) decrease in intercompany and investments, net		843			250			(1,093	)		—			—
Net cash provided by (used in) financing activities		(769	)		53			(1,267	)		—			(1,983	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(2	)		—			(2	)
Increase (decrease) in cash and cash equivalents		(1,235	)		—			41			—			(1,194	)
Cash and cash equivalents at beginning of period		1,235			—			72			—			1,307
Cash and cash equivalents at end of period	$	—		$	—		$	113		$	—		$	113

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued)

Nine Months Ended September 30, 2014

(Unaudited)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	708		$	867		$	880		$	(1,715	)	$	740
Equity in earnings of subsidiaries, net of taxes		(867	)		(848	)		—			1,715			—
Other adjustments		(46	)		(8	)		1,125			—			1,071
Net cash provided by (used in) operating activities		(205	)		11			2,005			—			1,811
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(32	)		—			(32	)
Capital expenditures		—			—			(781	)		—			(781	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			42			277			—			319
Net receipts from restricted trust and escrow accounts and other, net		—			—			(82	)		—			(82	)
Net cash provided by (used in) investing activities		—			42			(618	)		—			(576	)
Cash flows from financing activities:
New borrowings		2,157			—			207			—			2,364
Debt repayments		(1,995	)		—			(397	)		—			(2,392	)
Common stock repurchases		(600	)		—			—			—			(600	)
Cash dividends		(521	)		—			—			—			(521	)
Exercise of common stock options		70			—			—			—			70
Distributions paid to noncontrolling interests and other		3			—			(31	)		—			(28	)
(Increase) decrease in intercompany and investments, net		1,091			(53	)		(1,038	)		—			—
Net cash provided by (used in) financing activities		205			(53	)		(1,259	)		—			(1,107	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(3	)		—			(3	)
Increase (decrease) in cash and cash equivalents		—			—			125			—			125
Cash and cash equivalents at beginning of period		—			—			58			—			58
Cash and cash equivalents at end of period	$	—		$	—		$	183		$	—		$	183