Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2017

CONDENSED CONSOLIDATING BALANCE SHEETS

September 30, 2017

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	35	$	—	$	35
Other current assets		3		5		2,257		—		2,265
		3		5		2,292		—		2,300
Property and equipment, net		—		—		11,136		—		11,136
Investments in affiliates		21,105		21,607		—		(42,712)		—
Advances to affiliates		—		—		14,171		(14,171)		—
Other assets		12		31		7,470		—		7,513
Total assets	$	21,120	$	21,643	$	35,069	$	(56,883)	$	20,949

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	736	$	—	$	114	$	—	$	850
Accounts payable and other current liabilities		61		4		2,344		—		2,409
		797		4		2,458		—		3,259
Long-term debt, less current portion		5,911		304		2,280		—		8,495
Due to affiliates		14,425		231		5,299		(19,955)		—
Other liabilities		8		—		3,887		—		3,895
Total liabilities		21,141		539		13,924		(19,955)		15,649
Equity:
Stockholders’ equity		5,278		21,104		21,608		(42,712)		5,278
Advances to affiliates		(5,299)		—		(485)		5,784		—
Noncontrolling interests		—		—		22		—		22
		(21)		21,104		21,145		(36,928)		5,300
Total liabilities and equity	$	21,120	$	21,643	$	35,069	$	(56,883)	$	20,949

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2016


			WM		Non-Guarantor
	WM		Holdings		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)		—
Advances 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 September 30, 2017

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,716	$	—	$	3,716
Costs and expenses		—		—		3,015		—		3,015
Income from operations		—		—		701		—		701
Other income (expense):
Interest expense, net		(75)		(5)		(10)		—		(90)
Equity in earnings of subsidiaries, net of tax		432		435		—		(867)		—
Other, net		—		—		(8)		—		(8)
		357		430		(18)		(867)		(98)
Income before income taxes		357		430		683		(867)		603
Income tax expense (benefit)		(29)		(2)		246		—		215
Consolidated net income		386		432		437		(867)		388
Less: Net income (loss) attributable to noncontrolling interests		—		—		2		—		2
Net income attributable to Waste Management, Inc.	$	386	$	432	$	435	$	(867)	$	386

Three Months Ended September 30, 2016

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,548	$	—	$	3,548
Costs and expenses		—		—		2,988		—		2,988
Income from operations		—		—		560		—		560
Other income (expense):
Interest expense, net		(77)		(5)		(12)		—		(94)
Equity in earnings of subsidiaries, net of tax		349		352		—		(701)		—
Other, net		—		—		(9)		—		(9)
		272		347		(21)		(701)		(103)
Income before income taxes		272		347		539		(701)		457
Income tax expense (benefit)		(30)		(2)		185		—		153
Consolidated net income		302		349		354		(701)		304
Less: Net income (loss) attributable to noncontrolling interests		—		—		2		—		2
Net income attributable to Waste Management, Inc.	$	302	$	349	$	352	$	(701)	$	302

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued)

Nine Months Ended September 30, 2017

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	10,833	$	—	$	10,833
Costs and expenses		—		—		8,901		—		8,901
Income from operations		—		—		1,932		—		1,932
Other income (expense):
Interest expense, net		(223)		(15)		(34)		—		(272)
Equity in earnings of subsidiaries, net of tax		1,181		1,190		—		(2,371)		—
Other, net		—		—		(53)		—		(53)
		958		1,175		(87)		(2,371)		(325)
Income before income taxes		958		1,175		1,845		(2,371)		1,607
Income tax expense (benefit)		(88)		(6)		655		—		561
Consolidated net income		1,046		1,181		1,190		(2,371)		1,046
Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	1,046	$	1,181	$	1,190	$	(2,371)	$	1,046

Nine Months Ended September 30, 2016

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	10,149	$	—	$	10,149
Costs and expenses		—		—		8,470		—		8,470
Income from operations		—		—		1,679		—		1,679
Other income (expense):
Interest expense, net		(227)		(15)		(40)		—		(282)
Equity in earnings of subsidiaries, net of tax		986		995		—		(1,981)		—
Other, net		(1)		—		(84)		—		(85)
		758		980		(124)		(1,981)		(367)
Income before income taxes		758		980		1,555		(1,981)		1,312
Income tax expense (benefit)		(89)		(6)		561		—		466
Consolidated net income		847		986		994		(1,981)		846
Less: Net income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	847	$	986	$	995	$	(1,981)	$	847

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended September 30:
2017
Comprehensive income	$	388	$	432	$	482	$	(867)	$	435
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		2		—		2
Comprehensive income attributable to Waste Management, Inc.	$	388	$	432	$	480	$	(867)	$	433

2016
Comprehensive income	$	303	$	349	$	339	$	(701)	$	290
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		2		—		2
Comprehensive income attributable to Waste Management, Inc.	$	303	$	349	$	337	$	(701)	$	288


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Nine Months Ended September 30:
2017
Comprehensive income	$	1,052	$	1,181	$	1,278	$	(2,371)	$	1,140
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	1,052	$	1,181	$	1,278	$	(2,371)	$	1,140

2016
Comprehensive income	$	852	$	986	$	1,053	$	(1,981)	$	910
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management Inc.	$	852	$	986	$	1,054	$	(1,981)	$	911

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2017

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	2,390	$	—	$	2,390
Investing activities		—		—		(984)		—		(984)
Financing activities		—		—		(1,404)		—		(1,404)
Effect of exchange rate changes on cash and cash equivalents		—		—		1		—		1
Intercompany activity		—		—		—		—		—
Increase (decrease) in cash and cash equivalents		—		—		3		—		3
Cash and cash equivalents at beginning of period		—		—		32		—		32
Cash and cash equivalents at end of period	$	—	$	—	$	35	$	—	$	35

Nine Months Ended September 30, 2016

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	2,252	$	—	$	2,252
Investing activities		—		—		(1,550)		—		(1,550)
Financing activities		—		—		(711)		—		(711)
Effect of exchange rate changes on cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Increase (decrease) in cash and cash equivalents		—		—		(9)		—		(9)
Cash and cash equivalents at beginning of period		—		—		39		—		39
Cash and cash equivalents at end of period	$	—	$	—	$	30	$	—	$	30

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