22. Quarterly Financial Data (Unaudited)
The following table summarizes the unaudited quarterly results of
operations for 2016 and 2015 (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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2016
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Operating revenues
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$ |
3,176 |
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$ |
3,425 |
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$ |
3,548 |
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$ |
3,460 |
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Income from operations
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508 |
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611 |
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560 |
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617 |
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Consolidated net income
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256 |
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286 |
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304 |
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334 |
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Net income attributable to Waste Management, Inc.
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258 |
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287 |
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302 |
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335 |
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Basic earnings per common share
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0.58 |
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0.65 |
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0.68 |
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0.76 |
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Diluted earnings per common share
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0.58 |
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0.64 |
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0.68 |
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0.75 |
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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) per 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) per 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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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:
Second Quarter 2016
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• |
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The recognition of pre-tax charges of $45 million,
primarily related to the impairment of minority-owned, cost method
investments in waste diversion technology companies. These
impairments were substantially nondeductible for income taxes and
had a negative impact of $0.10 on our diluted earnings per
share. |
Third Quarter 2016
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• |
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The recognition of pre-tax charges of $106 million
consisting primarily of (i) a $43 million impairment due
to a loss of expected volumes for a landfill; (ii) a
$42 million charge to adjust our subsidiary’s estimated
environmental remediation liability related to a closed site in
Harris County, Texas; (iii) a $10 million goodwill
impairment charge related to our LampTracker® reporting unit
and (iv) an $8 million loss on the sale of a
majority-owned organics company. These charges had a negative
impact of $0.16 on our diluted earnings per share. |
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 make-whole redemption and
cash tender offers. These charges 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.
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 a minority-owned, cost method investment in a waste
diversion technology company. These charges had a negative impact
of $0.02 on our diluted earnings per share. |
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