Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2014

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	1,235	$	—	$	72	$	—		$	1,307
Other current assets		5		6		2,323		—			2,334
		1,240		6		2,395		—			3,641
Property and equipment, net		—		—		10,657		—			10,657
Investments in and advances to affiliates		17,312		17,782		6,745		(41,839	)		—
Other assets		50		28		7,036		—			7,114
Total assets	$	18,602	$	17,816	$	26,833	$	(41,839	)	$	21,412
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	957	$	—	$	133	$	—		$	1,090
Accounts payable and other current liabilities		86		13		2,296		—			2,395
		1,043		13		2,429		—			3,485
Long-term debt, less current portion		4,958		449		2,938		—			8,345
Due to affiliates		6,703		42		—		(6,745	)		—
Other liabilities		32		—		3,661		—			3,693
Total liabilities		12,736		504		9,028		(6,745	)		15,523
Equity:
Stockholders’ equity		5,866		17,312		17,782		(35,094	)		5,866
Noncontrolling interests		—		—		23		—			23
		5,866		17,312		17,805		(35,094	)		5,889
Total liabilities and equity	$	18,602	$	17,816	$	26,833	$	(41,839	)	$	21,412

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2013

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	58	$	—		$	58
Other current assets		—		6		2,435		—			2,441
		—		6		2,493		—			2,499
Property and equipment, net		—		—		12,344		—			12,344
Investments in and advances to affiliates(a)		15,802		16,845		4,268		(36,915	)		—
Other assets		42		12		7,706		—			7,760
Total assets	$	15,844	$	16,863	$	26,811	$	(36,915	)	$	22,603
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	587	$	—	$	139	$	—		$	726
Accounts payable and other current liabilities		109		13		2,166		—			2,288
		696		13		2,305		—			3,014
Long-term debt, less current portion		5,772		449		3,279		—			9,500
Due to affiliates(a)		3,669		599		—		(4,268	)		—
Other liabilities		—		—		4,087		—			4,087
Total liabilities		10,137		1,061		9,671		(4,268	)		16,601
Equity:
Stockholders’ equity		5,707		15,802		16,845		(32,647	)		5,707
Noncontrolling interests		—		—		295		—			295
		5,707		15,802		17,140		(32,647	)		6,002
Total liabilities and equity	$	15,844	$	16,863	$	26,811	$	(36,915	)	$	22,603

(a) In conjunction with the preparation of our September 30, 2014 Condensed Consolidating Financial Statements, we identified corrections associated with the presentation of affiliate obligations previously reported in WM and WM Holdings’ “Investments in and advances to affiliates.” Accordingly, the 2013 Condensed Consolidating Balance Sheet included herein has been revised.

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2014
Operating revenues	$	—		$	—		$	13,996		$	—		$	13,996
Costs and expenses(b)		—			(459	)		12,156			—			11,697
Income from operations		—			459			1,840			—			2,299
Other income (expense):
Interest expense, net		(351	)		(31	)		(84	)		—			(466	)
Equity in earnings of subsidiaries, net of taxes		1,510			1,070			—			(2,580	)		—
Other, net		—			—			(82	)		—			(82	)
		1,159			1,039			(166	)		(2,580	)		(548	)
Income before income taxes		1,159			1,498			1,674			(2,580	)		1,751
Provision for (benefit from) income taxes		(139	)		(12	)		564			—			413
Consolidated net income		1,298			1,510			1,110			(2,580	)		1,338
Less: Net income attributable to noncontrolling interests		—			—			40			—			40
Net income attributable to Waste Management, Inc.	$	1,298		$	1,510		$	1,070		$	(2,580	)	$	1,298
Year Ended December 31, 2013
Operating revenues	$	—		$	—		$	13,983		$	—		$	13,983
Costs and expenses(b)		—			—			12,904			—			12,904
Income from operations		—			—			1,079			—			1,079
Other income (expense):
Interest expense, net		(355	)		(32	)		(90	)		—			(477	)
Equity in earnings of subsidiaries, net of taxes		313			332			—			(645	)		—
Other, net		—			—			(108	)		—			(108	)
		(42	)		300			(198	)		(645	)		(585	)
Income before income taxes		(42	)		300			881			(645	)		494
Provision for (benefit from) income taxes		(140	)		(13	)		517			—			364
Consolidated net income		98			313			364			(645	)		130
Less: Net income attributable to noncontrolling interests		—			—			32			—			32
Net income attributable to Waste Management, Inc.	$	98		$	313		$	332		$	(645	)	$	98
Year Ended December 31, 2012
Operating revenues	$	—		$	—		$	13,649		$	—		$	13,649
Costs and expenses(b)		—			(7	)		11,805			—			11,798
Income from operations		—			7			1,844			—			1,851
Other income (expense):
Interest expense, net		(358	)		(32	)		(94	)		—			(484	)
Equity in earnings of subsidiaries, net of taxes		1,034			1,046			—			(2,080	)		—
Other, net		—			—			(64	)		—			(64	)
		676			1,014			(158	)		(2,080	)		(548	)
Income before income taxes		676			1,021			1,686			(2,080	)		1,303
Provision for (benefit from) income taxes		(141	)		(13	)		597			—			443
Consolidated net income		817			1,034			1,089			(2,080	)		860
Less: Net income attributable to noncontrolling interests		—			—			43			—			43
Net income attributable to Waste Management, Inc.	$	817		$	1,034		$	1,046		$	(2,080	)	$	817

(b) Includes “Goodwill impairments” and “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” as reported in our Consolidated Statements of Operations.

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

	WM		WM Holdings		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Year Ended December 31, 2014
Comprehensive income	$	1,300	$	1,510	$	977	$	(2,580	)	$	1,207
Less: Comprehensive income attributable to noncontrolling interests		—		—		40		—			40
Comprehensive income attributable to Waste Management, Inc.	$	1,300	$	1,510	$	937	$	(2,580	)	$	1,167
Year Ended December 31, 2013
Comprehensive income	$	112	$	313	$	311	$	(645	)	$	91
Less: Comprehensive income attributable to noncontrolling interests		—		—		32		—			32
Comprehensive income attributable to Waste Management, Inc.	$	112	$	313	$	279	$	(645	)	$	59
Year Ended December 31, 2012
Comprehensive income	$	807	$	1,034	$	1,120	$	(2,080	)	$	881
Less: Comprehensive income attributable to noncontrolling interests		—		—		43		—			43
Comprehensive income attributable to Waste Management, Inc.	$	807	$	1,034	$	1,077	$	(2,080	)	$	838

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2014
Cash flows from operating activities:
Consolidated net income	$	1,298		$	1,510		$	1,110		$	(2,580	)	$	1,338
Equity in earnings of subsidiaries, net of taxes		(1,510	)		(1,070	)		—			2,580			—
Other adjustments		(36	)		(1	)		1,030			—			993
Net cash provided by (used in) operating activities		(248	)		439			2,140			—			2,331
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(35	)		—			(35	)
Capital expenditures		—			—			(1,151	)		—			(1,151	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			1,618			635			—			2,253
Net receipts from restricted trust and escrow accounts and other, net		—			—			(72	)		—			(72	)
Net cash provided by (used in) investing activities		—			1,618			(623	)		—			995
Cash flows from financing activities:
New borrowings		2,572			—			245			—			2,817
Debt repayments		(3,005	)					(563	)		—			(3,568	)
Common stock repurchases		(600	)		—			—			—			(600	)
Cash dividends		(693	)		—			—			—			(693	)
Exercise of common stock options		93			—			—			—			93
Acquisitions of and distributions paid to noncontrolling interests and other		5			—			(126	)		—			(121	)
(Increase) decrease in intercompany and investments, net		3,111			(2,057	)		(1,054	)		—			—
Net cash provided by (used in) financing activities		1,483			(2,057	)		(1,498	)		—			(2,072	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(5	)		—			(5	)
Increase (decrease) in cash and cash equivalents		1,235			—			14			—			1,249
Cash and cash equivalents at beginning of year		—			—			58			—			58
Cash and cash equivalents at end of year	$	1,235		$	—		$	72		$	—		$	1,307

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2013
Cash flows from operating activities:
Consolidated net income	$	98		$	313		$	364		$	(645	)	$	130
Equity in earnings of subsidiaries, net of taxes		(313	)		(332	)		—			645			—
Other adjustments		(2	)		—			2,327			—			2,325
Net cash provided by (used in) operating activities		(217	)		(19	)		2,691			—			2,455
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(724	)		—			(724	)
Capital expenditures		—			—			(1,271	)		—			(1,271	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			138			—			138
Net receipts from restricted trust and escrow accounts and other, net		—			—			(43	)		—			(43	)
Net cash provided by (used in) investing activities		—			—			(1,900	)		—			(1,900	)
Cash flows from financing activities:
New borrowings		1,140			—			1,092			—			2,232
Debt repayments		(1,120	)		—			(957	)		—			(2,077	)
Common stock repurchases		(239	)		—			—			—			(239	)
Cash dividends		(683	)		—			—			—			(683	)
Exercise of common stock options		132			—			—			—			132
Acquisitions of and distributions paid to noncontrolling interests and other		14			—			(66	)		—			(52	)
(Increase) decrease in intercompany and investments, net		913			19			(932	)		—			—
Net cash provided by (used in) financing activities		157			19			(863	)		—			(687	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(4	)		—			(4	)
Increase (decrease) in cash and cash equivalents		(60	)		—			(76	)		—			(136	)
Cash and cash equivalents at beginning of year		60			—			134			—			194
Cash and cash equivalents at end of year	$	—		$	—		$	58		$	—		$	58

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued)

	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2012
Cash flows from operating activities:
Consolidated net income	$	817		$	1,034		$	1,089		$	(2,080	)	$	860
Equity in earnings of subsidiaries, net of taxes		(1,034	)		(1,046	)		—			2,080			—
Other adjustments		81			—			1,354			—			1,435
Net cash provided by (used in) operating activities		(136	)		(12	)		2,443			—			2,295
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(250	)		—			(250	)
Capital expenditures		—			—			(1,510	)		—			(1,510	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			44			—			44
Net receipts from restricted trust and escrow accounts and other, net		—			—			(114	)		—			(114	)
Net cash provided by (used in) investing activities		—			—			(1,830	)		—			(1,830	)
Cash flows from financing activities:
New borrowings		1,145			—			475			—			1,620
Debt repayments		(835	)		—			(663	)		—			(1,498	)
Common stock repurchases		—			—			—			—			—
Cash dividends		(658	)		—			—			—			(658	)
Exercise of common stock options		43			—			—			—			43
Acquisitions of and distributions paid to noncontrolling interests and other		15			—			(52	)		—			(37	)
(Increase) decrease in intercompany and investments, net		367			12			(379	)		—			—
Net cash provided by (used in) financing activities		77			12			(619	)		—			(530	)
Effect of exchange rate changes on cash and cash equivalents		—			—			1			—			1
Increase (decrease) in cash and cash equivalents		(59	)		—			(5	)		—			(64	)
Cash and cash equivalents at beginning of year		119			—			139			—			258
Cash and cash equivalents at end of year	$	60		$	—		$	134		$	—		$	194