Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2017

CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2017

(Unaudited)


	WM			WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—	$	30		$	—		$	30
Other current assets		4			5		2,184			—			2,193

		4			5		2,214			—			2,223
Property and equipment, net		—			—		10,929			—			10,929
Investments in affiliates		20,267			20,686		—			(40,953	)		—
Advances to affiliates		—			—		13,389			(13,389	)		—
Other assets		14			36		7,448			—			7,498

Total assets	$	20,285		$	20,727	$	33,980		$	(54,342	)	$	20,650


LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	255		$	—	$	141		$	—		$	396
Accounts payable and other current liabilities		61			4		2,097			—			2,162

		316			4		2,238			—			2,558
Long-term debt, less current portion		6,027			304		2,315			—			8,646
Due to affiliates		13,712			153		5,299			(19,164	)		—
Other liabilities		12			—		3,896			—			3,908

Total liabilities		20,067			461		13,748			(19,164	)		15,112
Equity:
Stockholders’ equity		5,517			20,266		20,687			(40,953	)		5,517
Advances to affiliates		(5,299	)		—		(476	)		5,775			—
Noncontrolling interests		—			—		21			—			21

		218			20,266		20,232			(35,178	)		5,538

Total liabilities and equity	$	20,285		$	20,727	$	33,980		$	(54,342	)	$	20,650

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2016


	WM			WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—	$	32		$	—		$	32
Other current assets		5			5		2,334			—			2,344

		5			5		2,366			—			2,376
Property and equipment, net		—			—		10,950			—			10,950
Investments in affiliates		19,924			20,331		—			(40,255	)		—
Investments to affiliates		—			—		13,000			(13,000	)		—
Other assets		14			30		7,489			—			7,533

Total assets	$	19,943		$	20,366	$	33,805		$	(53,255	)	$	20,859


LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	269		$	—	$	148		$	—		$	417
Accounts payable and other current liabilities		81			9		2,287			—			2,377

		350			9		2,435			—			2,794
Long-term debt, less current portion		6,229			304		2,360			—			8,893
Due to affiliates		13,350			128		5,299			(18,777	)		—
Other liabilities		16			—		3,836			—			3,852

Total liabilities		19,945			441		13,930			(18,777	)		15,539
Equity:
Stockholders’ equity		5,297			19,925		20,330			(40,255	)		5,297
Advances to affiliates		(5,299	)		—		(478	)		5,777			—
Noncontrolling interests		—			—		23			—			23

		(2	)		19,925		19,875			(34,478	)		5,320

Total liabilities and equity	$	19,943		$	20,366	$	33,805		$	(53,255	)	$	20,859

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2017

(Unaudited)


	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	3,440		$	—		$	3,440
Costs and expenses		—			—			2,882			—			2,882

Income from operations		—			—			558			—			558

Other income (expense):
Interest expense, net		(74	)		(5	)		(13	)		—			(92	)
Equity in earnings of subsidiaries, net of tax expense		343			346			—			(689	)		—
Other, net		—			—			(32	)		—			(32	)

		269			341			(45	)		(689	)		(124	)

Income before income taxes		269			341			513			(689	)		434
Income tax expense (benefit)		(29	)		(2	)		168			—			137

Consolidated net income		298			343			345			(689	)		297
Less: Net loss attributable to noncontrolling interests		—			—			(1	)		—			(1	)

Net income attributable to Waste Management, Inc.	$	298		$	343		$	346		$	(689	)	$	298

Three Months Ended March 31, 2016

(Unaudited)


	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Operating revenues	$	—		$	—		$	3,176		$	—		$	3,176
Costs and expenses		—			—			2,668			—			2,668

Income from operations		—			—			508			—			508

Other income (expense):
Interest expense, net		(74	)		(5	)		(16	)		—			(95	)
Equity in earnings of subsidiaries, net of tax expense		304			307			—			(611	)		—
Other, net		(1	)		—			(16	)		—			(17	)

		229			302			(32	)		(611	)		(112	)

Income before income taxes		229			302			476			(611	)		396
Income tax expense (benefit)		(29	)		(2	)		171			—			140

Consolidated net income		258			304			305			(611	)		256
Less: Net loss attributable to noncontrolling interests		—			—			(2	)		—			(2	)

Net income attributable to Waste Management, Inc.	$	258		$	304		$	307		$	(611	)	$	258

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	WM		WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Three Months Ended March 31, 2017
Comprehensive income	$	300	$	343	$	357		$	(689	)	$	311
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(1	)		—			(1	)

Comprehensive income attributable to Waste Management, Inc.	$	300	$	343	$	358		$	(689	)	$	312

Three Months Ended March 31, 2016
Comprehensive income	$	260	$	304	$	372		$	(611	)	$	325
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(2	)		—			(2	)

Comprehensive income attributable to Waste Management, Inc.	$	260	$	304	$	374		$	(611	)	$	327

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2017

(Unaudited)


	WM(a)		WM Holdings(a)		Non-Guarantor Subsidiaries(a)			Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	721		$	—	$	721
Investing activities		—		—		(340	)		—		(340	)
Financing activities		—		—		(383	)		—		(383	)
Effect of exchange rate changes on cash and cash equivalents		—		—		—			—		—
Intercompany activity		—		—		—			—		—

Increase (decrease) in cash and cash equivalents		—		—		(2	)		—		(2	)
Cash and cash equivalents at beginning of period		—		—		32			—		32

Cash and cash equivalents at end of period	$	—	$	—	$	30		$	—	$	30

(a)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries.

Three Months Ended March 31, 2016

(Unaudited)


	WM(b)		WM Holdings(b)		Non-Guarantor Subsidiaries(b)			Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	732		$	—	$	732
Investing activities		—		—		(847	)		—		(847	)
Financing activities		—		—		180			—		180
Effect of exchange rate changes on cash and cash equivalents		—		—		—			—		—
Intercompany activity		—		—		—			—		—

Increase (decrease) in cash and cash equivalents		—		—		65			—		65
Cash and cash equivalents at beginning of period		—		—		39			—		39

Cash and cash equivalents at end of period	$	—	$	—	$	104		$	—	$	104

(b)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. We have revised the prior year presentation to reflect all relevant cash flow activities in the Non-Guarantor Subsidiaries column.