Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2017

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)
2017
Solid Waste:
Tier 1	$	5,576	$	(1,002)	$	4,574	$	1,538	$	451	$	603	$	6,528
Tier 2		2,559		(443)		2,116		552		203		185		3,749
Tier 3		6,697		(1,220)		5,477		1,199		574		595		8,727
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

2016
Solid Waste:
Tier 1	$	5,241	$	(911)	$	4,330	$	1,430	$	424	$	452	$	6,188
Tier 2		2,400		(404)		1,996		522		190		157		3,562
Tier 3		6,327		(1,137)		5,190		994		530		589		8,497
Solid Waste		13,968		(2,452)		11,516		2,946		1,144		1,198		18,247
Other (a)		2,278		(185)		2,093		(100)		101		104		1,489
		16,246		(2,637)		13,609		2,846		1,245		1,302		19,736
Corporate and Other (b)		—		—		—		(550)		56		45		1,401
Total	$	16,246	$	(2,637)	$	13,609	$	2,296	$	1,301	$	1,347	$	21,137

2015
Solid Waste:
Tier 1	$	5,083	$	(856)	$	4,227	$	1,290	$	428	$	382	$	6,098
Tier 2		2,322		(389)		1,933		446		190		147		3,497
Tier 3		5,880		(1,037)		4,843		991		469		516		7,827
Solid Waste		13,285		(2,282)		11,003		2,727		1,087		1,045		17,422
Other (a)		2,065		(107)		1,958		(160)		94		128		1,701
		15,350		(2,389)		12,961		2,567		1,181		1,173		19,123
Corporate and Other (b)		—		—		—		(522)		64		56		1,783
Total	$	15,350	$	(2,389)	$	12,961	$	2,045	$	1,245	$	1,229	$	20,906

(a)

Our “Other” net operating revenues and “Other” income from operations include (i) our Strategic Business Solutions (“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) our expanded service offerings and solutions, such as portable self-storage and long distance moving services, fluorescent lamp recycling and interests we hold in oil and gas producing properties. 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 11 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):


	2017		2016		2015
Total assets, as reported above	$	22,116	$	21,137	$	20,906
Elimination of intercompany investments and advances		(287)		(278)		(539)
Total assets, per Consolidated Balance Sheet	$	21,829	$	20,859	$	20,367

(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 is included as part of our “Other” operations. The goodwill associated with our acquisition of SWS in 2016 has been assigned to our Florida Area, in Tier 3. Other adjustments in 2016 relate to the finalization of purchase accounting for acquisitions executed in 2015. These adjustments primarily resulted in a decrease in the related contingent consideration liability. See Note 17 for additional information on our acquisitions. The following table presents changes in goodwill during 2016 and 2017 by reportable segment (in millions):


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2015	$	2,190	$	1,176	$	2,408	$	210	$	5,984
Acquired goodwill		11		12		254		3		280
Divested goodwill		—		—		(1)		—		(1)
Impairments		—		—		—		(12)		(12)
Foreign currency translation		2		10		—		—		12
Other adjustments		—		(2)		—		(46)		(48)
Balance, December 31, 2016	$	2,203	$	1,196	$	2,661	$	155	$	6,215
Acquired goodwill		12		20		7		—		39
Divested goodwill		—		(1)		—		—		(1)
Impairments		—		—		—		(34)		(34)
Foreign currency translation		6		22		—		—		28
Balance, December 31, 2017	$	2,221	$	1,237	$	2,668	$	121	$	6,247

Reconciliation of Segment Assets to Consolidated Total

The reconciliation of total assets reported above to total assets in the Consolidated Balance Sheets as of December 31 is as follows (in millions):


	2017		2016		2015
Total assets, as reported above	$	22,116	$	21,137	$	20,906
Elimination of intercompany investments and advances		(287)		(278)		(539)
Total assets, per Consolidated Balance Sheet	$	21,829	$	20,859	$	20,367

Changes in Goodwill by Reportable Segment

The following table presents changes in goodwill during 2016 and 2017 by reportable segment (in millions):


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2015	$	2,190	$	1,176	$	2,408	$	210	$	5,984
Acquired goodwill		11		12		254		3		280
Divested goodwill		—		—		(1)		—		(1)
Impairments		—		—		—		(12)		(12)
Foreign currency translation		2		10		—		—		12
Other adjustments		—		(2)		—		(46)		(48)
Balance, December 31, 2016	$	2,203	$	1,196	$	2,661	$	155	$	6,215
Acquired goodwill		12		20		7		—		39
Divested goodwill		—		(1)		—		—		(1)
Impairments		—		—		—		(34)		(34)
Foreign currency translation		6		22		—		—		28
Balance, December 31, 2017	$	2,221	$	1,237	$	2,668	$	121	$	6,247

Summary of operating revenues mix

The mix of operating revenues from our major lines of business for the years ended December 31 are as follows (in millions):


	2017		2016		2015
Commercial	$	3,714	$	3,480	$	3,332
Residential		2,528		2,487		2,499
Industrial		2,583		2,412		2,252
Other		439		423		356
Total collection		9,264		8,802		8,439
Landfill		3,370		3,110		2,919
Transfer		1,591		1,512		1,377
Recycling		1,432		1,221		1,163
Other (a)		1,713		1,601		1,452
Intercompany (b)		(2,885)		(2,637)		(2,389)
Total	$	14,485	$	13,609	$	12,961

(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) our expanded service offerings and solutions, such as portable self-storage and long distance moving services, and interests we hold in oil and gas producing properties. 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.

(b)

Intercompany revenues between lines of business are eliminated in the Consolidated Financial Statements included within this report.

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):


	2017		2016		2015
U.S.	$	13,768	$	12,915	$	12,196
Canada		717		694		765
Total	$	14,485	$	13,609	$	12,961

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):


	2017		2016		2015
U.S.	$	10,591	$	10,040	$	9,778
Canada		968		910		887
Total	$	11,559	$	10,950	$	10,665