22. Quarterly Financial Data (Unaudited)
The following table summarizes the unaudited quarterly results of
operations for 2015 and 2014 (in millions, except per share
amounts):
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First
Quarter |
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Second
Quarter |
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Third
Quarter |
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Fourth
Quarter |
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2015
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Operating revenues
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$ |
3,040 |
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$ |
3,315 |
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$ |
3,360 |
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$ |
3,246 |
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Income from operations
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440 |
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502 |
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601 |
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502 |
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Consolidated net income (loss)
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(131 |
) |
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273 |
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337 |
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273 |
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Net income (loss) attributable to Waste Management, Inc.
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(129 |
) |
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274 |
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335 |
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273 |
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Basic earnings (loss) common share
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(0.28 |
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0.60 |
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0.75 |
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0.61 |
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Diluted earnings (loss) common share
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(0.28 |
) |
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0.60 |
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0.74 |
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0.61 |
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2014
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Operating revenues
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$ |
3,396 |
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$ |
3,561 |
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$ |
3,602 |
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$ |
3,437 |
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Income from operations
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469 |
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532 |
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546 |
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752 |
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Consolidated net income
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237 |
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222 |
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281 |
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598 |
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Net income attributable to Waste Management, Inc.
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228 |
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210 |
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270 |
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590 |
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Basic earnings per common share
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0.49 |
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0.45 |
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0.59 |
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1.29 |
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Diluted earnings per common share
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0.49 |
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0.45 |
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0.58 |
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1.28 |
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Basic and diluted earnings per common share for each of the
quarters presented above is based on the respective weighted
average number of common and dilutive potential common shares
outstanding for each quarter and the sum of the quarters may not
necessarily be equal to the full year basic and diluted earnings
per common share amounts.
Our operating revenues tend to be somewhat higher in the summer
months, primarily due to the higher volume of construction and
demolition waste. 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.
Additionally, from time to time, our operating results are
significantly affected by certain transactions or events that
management believes are not indicative or representative of our
results. The following significant items have affected the
comparison of our operating results during the periods
indicated:
First Quarter 2015
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• |
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The recognition of a pre-tax loss of
$550 million associated with the early extinguishment of almost $2
billion of our high-coupon senior notes through a make-whole
redemption and cash tender offer. We replaced substantially all of
the debt extinguished with new senior notes at significantly lower
coupon interest rates, which will reduce future interest expense
and extended the average maturity of our debt obligations. The
charges incurred for the redemption had a negative impact of $0.74
on our diluted loss per share. |
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• |
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The recognition of pre-tax charges of
$14 million associated with divestitures, impairments and
restructuring, which include a $7 million net loss associated with
the sale of our Wheelabrator business in December 2014 and a $5
million impairment charge related to a landfill in our Western
Canada Area. Combined, these charges had a negative impact of $0.03
on our diluted loss per share. |
Second Quarter 2015
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• |
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The recognition of a $55 million
charge associated with the withdrawal from certain underfunded
multiemployer pension plans had a negative impact of $0.07 on our
diluted earnings per share. |
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• |
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The recognition of net pre-tax losses
of $6 million primarily related to the impairment of various
recycling assets and certain adjustments associated with the sale
of our Wheelabrator business. Combined, these charges had a
favorable after-tax impact of $0.01 on our diluted earnings per
share. |
Fourth Quarter 2015
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• |
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The recognition of $70 million of
pre-tax charges primarily to impair our oil and gas producing
properties, which negatively affected our diluted earnings per
share by $0.09. |
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• |
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The recognition of $8 million of
pre-tax restructuring charges and a $4 million other-than-temporary
decline in the value of an investment in a waste diversion
technology company accounted for under the cost method. These
charges had a negative impact of $0.02 on our diluted earnings per
share. |
First Quarter 2014
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• |
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During the first quarter of 2014, we
experienced significantly higher revenues in our Wheelabrator
business and the renewable energy operations in Solid Waste from
temporarily higher electricity prices driven by weather-related
demand. This increase in revenues offset reduced revenues in our
collection and disposal operations due to inclement weather. |
Second Quarter 2014
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• |
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The recognition of a pre-tax loss of
$25 million on the divestiture of our Puerto Rico operations. No
tax benefit was recorded in connection with the loss. In addition,
we incurred $32 million of tax charges to repatriate accumulated
cash prior to the divestment. These charges had a negative impact
of $0.12 on our diluted earnings per share. |
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• |
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The recognition of other net pre-tax
charges of $16 million, primarily as a result of a $12 million
impairment charge due to the decision to close a waste processing
facility. These charges had a negative impact of $0.03 on our
diluted earnings per share. |
Third Quarter 2014
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• |
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The recognition of $67 million of
pre-tax restructuring charges primarily related to our August 2014
restructuring. These items had a negative impact of $0.09 on our
diluted earnings per share. |
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• |
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The recognition of pre-tax charges
aggregating $20 million comprised of (i) litigation reserves
and (ii) the write down of an investment in a waste diversion
technology company, partially offset by a gain on the sale of
certain landfill and collection operations in our Eastern Canada
Area. These items had a negative impact of $0.05 on our diluted
earnings per share. |
Fourth Quarter 2014
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• |
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The recognition of a pre-tax gain of
$519 million on the sale of our Wheelabrator business, which
positively affected our diluted earnings per share by $1.12. |
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• |
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Net income was negatively impacted by
the recognition of net pre-tax charges aggregating $364 million
comprised of (i) $270 million of charges to impair our oil and
gas producing properties; (ii) $25 million of charges to write
down assets related to waste diversion technology companies;
(iii) $20 million of other-than-temporary declines in the
value of investments in waste diversion technology companies
accounted for under the cost method; (iv) $10 million of
goodwill impairment charges associated with our recycling
operations and (v) other charges to write down the carrying
value of assets to their estimated fair values related to certain
of our operations. These items had a negative impact of $0.49 on
our diluted earnings per share. |
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• |
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Income from operations was negatively
impacted by pre-tax restructuring charges of $13 million, which
negatively affected our diluted earnings per share by $0.02. |
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