Reportable Segments |
Summarized financial information concerning our reportable segments as of December 31 and for the years then ended is shown in the following table (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Income | | | | | | | | | | | | Gross | | Intercompany | | Net | | from | | Depreciation | | Capital | | Total | | | Operating | | Operating | | Operating | | Operations | | and | | Expenditures | | Assets | | | Revenues | | Revenues(c) | | Revenues | | (d)(e) | | Amortization | | (f) | | (g)(h) | Years Ended December 31: | | | | | | | | | | | | | | | | | | | | | | 2019 | | | | | | | | | | | | | | | | | | | | | | Solid Waste: | | | | | | | | | | | | | | | | | | | | | | Tier 1 | | $ | 6,136 | | $ | (1,141) | | $ | 4,995 | | $ | 1,682 | | $ | 551 | | $ | 508 | | $ | 7,519 | Tier 2 | | | 3,865 | | | (777) | | | 3,088 | | | 854 | | | 327 | | | 329 | | | 5,558 | Tier 3 | | | 6,386 | | | (1,209) | | | 5,177 | | | 1,136 | | | 585 | | | 453 | | | 8,243 | Solid Waste | | | 16,387 | | | (3,127) | | | 13,260 | | | 3,672 | | | 1,463 | | | 1,290 | | | 21,320 | Other (a) | | | 2,317 | | | (122) | | | 2,195 | | | (203) | | | 75 | | | 118 | | | 1,648 | | | | 18,704 | | | (3,249) | | | 15,455 | | | 3,469 | | | 1,538 | | | 1,408 | | | 22,968 | Corporate and Other (b) | | | — | | | — | | | — | | | (763) | | | 36 | | | 407 | | | 5,042 | Total | | $ | 18,704 | | $ | (3,249) | | $ | 15,455 | | $ | 2,706 | | $ | 1,574 | | $ | 1,815 | | $ | 28,010 | | | | | | | | | | | | | | | | | | | | | | | 2018 | | | | | | | | | | | | | | | | | | | | | | Solid Waste: | | | | | | | | | | | | | | | | | | | | | | Tier 1 | | $ | 5,730 | | $ | (1,045) | | $ | 4,685 | | $ | 1,619 | | $ | 493 | | $ | 584 | | $ | 6,736 | Tier 2 | | | 3,675 | | | (724) | | | 2,951 | | | 784 | | | 317 | | | 322 | | | 5,224 | Tier 3 | | | 6,132 | | | (1,146) | | | 4,986 | | | 992 | | | 546 | | | 493 | | | 7,878 | Solid Waste | | | 15,537 | | | (2,915) | | | 12,622 | | | 3,395 | | | 1,356 | | | 1,399 | | | 19,838 | Other (a) | | | 2,487 | | | (195) | | | 2,292 | | | (66) | | | 91 | | | 72 | | | 1,571 | | | | 18,024 | | | (3,110) | | | 14,914 | | | 3,329 | | | 1,447 | | | 1,471 | | | 21,409 | Corporate and Other (b) | | | — | | | — | | | — | | | (540) | | | 30 | | | 200 | | | 1,487 | Total | | $ | 18,024 | | $ | (3,110) | | $ | 14,914 | | $ | 2,789 | | $ | 1,477 | | $ | 1,671 | | $ | 22,896 | | | | | | | | | | | | | | | | | | | | | | | 2017 | | | | | | | | | | | | | | | | | | | | | | Solid Waste: | | | | | | | | | | | | | | | | | | | | | | Tier 1 | | $ | 5,441 | | $ | (987) | | $ | 4,454 | | $ | 1,506 | | $ | 438 | | $ | 588 | | $ | 6,305 | Tier 2 | | | 3,599 | | | (654) | | | 2,945 | | | 777 | | | 274 | | | 308 | | | 5,214 | Tier 3 | | | 5,792 | | | (1,024) | | | 4,768 | | | 1,006 | | | 516 | | | 487 | | | 7,485 | Solid Waste | | | 14,832 | | | (2,665) | | | 12,167 | | | 3,289 | | | 1,228 | | | 1,383 | | | 19,004 | Other (a) | | | 2,538 | | | (220) | | | 2,318 | | | (68) | | | 103 | | | 93 | | | 1,785 | | | | 17,370 | | | (2,885) | | | 14,485 | | | 3,221 | | | 1,331 | | | 1,476 | | | 20,789 | Corporate and Other (b) | | | — | | | — | | | — | | | (585) | | | 45 | | | 92 | | | 1,327 | Total | | $ | 17,370 | | $ | (2,885) | | $ | 14,485 | | $ | 2,636 | | $ | 1,376 | | $ | 1,568 | | $ | 22,116 |
(a) | “Other” includes (i) our WMSBS organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our 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. |
(b) | Corporate operating results reflect certain costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, tax, |
| insurance, centralized service center processes, other administrative functions and the maintenance of our closed landfills. Income from operations for “Corporate and Other” also includes costs associated with our long-term incentive program and any administrative expenses or revisions to our estimated obligations associated with divested operations. |
(c) | Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service. |
(d) | For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 3. |
(e) | The income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling lines of business. From time to time, the operating results of our reportable segments are significantly affected by certain transactions or events that management believes are not indicative or representative of our results. Refer to Note 12 for explanations of certain transactions and events affecting our operating results. |
(f) | Includes non-cash items. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property and equipment balances and, therefore, may include amounts that have been accrued but not yet paid. |
(g) The reconciliation of total assets reported above to total assets in the Consolidated Balance Sheets as of December 31 is as follows (in millions): | | | | | | | | | | | | 2019 | | 2018 | | 2017 | Total assets, as reported above | | $ | 28,010 | | $ | 22,896 | | $ | 22,116 | Elimination of intercompany investments and advances | | | (267) | | | (246) | | | (287) | Total assets, per Consolidated Balance Sheet | | $ | 27,743 | | $ | 22,650 | | $ | 21,829 |
(h) Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities are included as a component of their respective Areas and our recycling brokerage services are included as part of our “Other” operations. The following table presents changes in goodwill during the reported periods by segment (in millions): | | | | | | | | | | | | | | | | | | Solid Waste | | | | | | | | | Tier 1 | | Tier 2 | | Tier 3 | | Other | | Total | Balance, December 31, 2017 | | $ | 2,117 | | $ | 1,595 | | $ | 2,414 | | $ | 121 | | $ | 6,247 | Acquired goodwill | | | 82 | | | 23 | | | 142 | | | 1 | | | 248 | Divested goodwill | | | (6) | | | — | | | — | | | (19) | | | (25) | Impairments | | | — | | | — | | | — | | | (6) | | | (6) | Foreign currency translation | | | — | | | (34) | | | — | | | — | | | (34) | Balance, December 31, 2018 | | $ | 2,193 | | $ | 1,584 | | $ | 2,556 | | $ | 97 | | $ | 6,430 | Acquired goodwill (a) | | | 90 | | | 12 | | | 6 | | | — | | | 108 | Divested goodwill | | | — | | | — | | | — | | | — | | | — | Impairments | | | — | | | — | | | — | | | (27) | | | (27) | Foreign currency translation | | | — | | | 21 | | | — | | | — | | | 21 | Balance, December 31, 2019 | | $ | 2,283 | | $ | 1,617 | | $ | 2,562 | | $ | 70 | | $ | 6,532 |
(a) | Includes $3 million of post-closing adjustments related to prior year acquisitions. |
The mix of operating revenues from our major lines of business for the years ended December 31 are as follows (in millions): | | | | | | | | | | | | 2019 | | 2018 | | 2017 | Commercial | | $ | 4,229 | | $ | 3,972 | | $ | 3,714 | Residential | | | 2,613 | | | 2,529 | | | 2,528 | Industrial | | | 2,916 | | | 2,773 | | | 2,583 | Other collection | | | 482 | | | 450 | | | 439 | Total collection | | | 10,240 | | | 9,724 | | | 9,264 | Landfill | | | 3,846 | | | 3,560 | | | 3,370 | Transfer | | | 1,820 | | | 1,711 | | | 1,591 | Recycling | | | 1,040 | | | 1,293 | | | 1,432 | Other (a) | | | 1,758 | | | 1,736 | | | 1,713 | Intercompany (b) | | | (3,249) | | | (3,110) | | | (2,885) | Total | | $ | 15,455 | | $ | 14,914 | | $ | 14,485 |
(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, net of intercompany activity. Activity related to collection, landfill, transfer and recycling has been reclassified to the appropriate line of business for purposes of presentation. |
(b) | Intercompany revenues between lines of business are eliminated in the Consolidated Financial Statements included within this report. |
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