Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2019

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.

Reconciliation of Segment Assets to Consolidated Total


	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

Changes in Goodwill by Reportable Segment


	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

Summary of operating revenues mix


	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

Summary of net revenue by geographic area

Net operating revenues relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	14,701	$	14,167	$	13,768
Canada		754		747		717
Total	$	15,455	$	14,914	$	14,485

Summary of Property and Equipment Net of Accumulated Depreciation and Amortization Relating to Operations by Geographic Location

Property and equipment, net of accumulated depreciation and amortization, relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	11,941	$	11,044	$	10,591
Canada		952		898		968
Total	$	12,893	$	11,942	$	11,559