Segment and Related Information

6 Months Ended

Jun. 30, 2011


9.	Segment and Related Information

We currently manage and evaluate our operations primarily through our Eastern, Midwest, Southern, Western and Wheelabrator Groups. These five Groups are presented below as our reportable segments. Our four geographic operating Groups provide collection, transfer, disposal (in both solid waste and hazardous waste landfills) and recycling services. Our fifth Group is the Wheelabrator Group, which provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants. We serve residential, commercial, industrial, and municipal customers throughout North America. The operations not managed through our five operating Groups are presented herein as “Other.”

Summarized financial information concerning our reportable segments for the three and six months ended June 30 is shown in the following table (in millions):


	Gross		Intercompany			Net
	Operating		Operating			Operating		Income from
	Revenues		Revenues			Revenues		Operations

Three Months Ended:
June 30, 2011
Eastern	$	800	$	(136	)	$	664	$	141
Midwest		828		(126	)		702		156
Southern		862		(105	)		757		193
Western		825		(114	)		711		142
Wheelabrator		226		(30	)		196		42
Other		330		(13	)		317		(21	)

		3,871		(524	)		3,347		653
Corporate and Other		—		—			—		(147	)

Total	$	3,871	$	(524	)	$	3,347	$	506

June 30, 2010
Eastern	$	774	$	(140	)	$	634	$	143
Midwest		780		(119	)		661		141
Southern		876		(104	)		772		206
Western		799		(112	)		687		141
Wheelabrator		217		(29	)		188		47
Other		225		(9	)		216		(26	)

		3,671		(513	)		3,158		652
Corporate and Other		—		—			—		(66	)

Total	$	3,671	$	(513	)	$	3,158	$	586

Six Months Ended:
June 30, 2011
Eastern	$	1,504	$	(248	)	$	1,256	$	261
Midwest		1,556		(232	)		1,324		285
Southern		1,700		(203	)		1,497		385
Western		1,615		(222	)		1,393		282
Wheelabrator		436		(61	)		375		55
Other		623		(18	)		605		(35	)

		7,434		(984	)		6,450		1,233
Corporate and Other		—		—			—		(300	)

Total	$	7,434	$	(984	)	$	6,450	$	933

June 30, 2010
Eastern	$	1,459	$	(253	)	$	1,206	$	252
Midwest		1,474		(217	)		1,257		223
Southern		1,699		(201	)		1,498		406
Western		1,563		(215	)		1,348		270
Wheelabrator		423		(60	)		363		83
Other		440		(19	)		421		(55	)

		7,058		(965	)		6,093		1,179
Corporate and Other		—		—			—		(181	)

Total	$	7,058	$	(965	)	$	6,093	$	998

Fluctuations in our operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business and operating segment and by general economic conditions. In addition, our revenues and income from operations typically reflect seasonal patterns. Our operating revenues normally tend to be somewhat higher in the summer months, primarily due to the traditional seasonal increase in the volume of construction and demolition waste. Historically, the volumes of industrial and residential waste in certain regions in which we operate have tended to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends.

Additionally, certain destructive weather conditions that tend to occur during the second half of the year, such as hurricanes that most often impact our Southern Group, can actually increase our revenues in the areas affected. While weather-related and other “one-time” occurrences can boost revenues through additional work, as a result of significant start-up costs and other factors, such revenue sometimes generates earnings at comparatively lower margins. Certain weather conditions, including severe winter storms, may result in the temporary suspension of our operations, which can significantly affect the operating results of the affected regions. The operating results of our first quarter also often reflect higher repair and maintenance expenses because we rely on the slower winter months, when waste flows are generally lower, to perform scheduled maintenance at our waste-to-energy facilities.

From time to time, the operating results of our reportable segments are significantly affected by unusual or infrequent transactions or events. During the first quarter of 2010, our Midwest Group recognized a $28 million charge as a result of bargaining unit employees in Michigan and Ohio agreeing to our proposal to withdraw them from an underfunded multiemployer pension plan. Refer to Note 8 for additional information related to our participation in multiemployer pension plans.