Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2017

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2017


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	22	$	—	$	22
Other current assets		5		5		2,592		—		2,602
		5		5		2,614		—		2,624
Property and equipment, net		—		—		11,559		—		11,559
Investments in affiliates		22,393		22,893		—		(45,286)		—
Advances to affiliates		—		—		15,349		(15,349)		—
Other assets		9		31		7,606		—		7,646
Total assets	$	22,407	$	22,929	$	37,128	$	(60,635)	$	21,829

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	537	$	—	$	202	$	—	$	739
Accounts payable and other current liabilities		55		9		2,459		—		2,523
		592		9		2,661		—		3,262
Long-term debt, less current portion		6,457		304		1,991		—		8,752
Due to affiliates		15,404		224		6,073		(21,701)		—
Other liabilities		8		—		3,765		—		3,773
Total liabilities		22,461		537		14,490		(21,701)		15,787
Equity:
Stockholders’ equity		6,019		22,392		22,894		(45,286)		6,019
Advances to affiliates		(6,073)		—		(279)		6,352		—
Noncontrolling interests		—		—		23		—		23
		(54)		22,392		22,638		(38,934)		6,042
Total liabilities and equity	$	22,407	$	22,929	$	37,128	$	(60,635)	$	21,829

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

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2017
Operating revenues (a)	$	—	$	—	$	15,040	$	(555)	$	14,485
Costs and expenses (a)		555		—		11,849		(555)		11,849
Income from operations		(555)		—		3,191		—		2,636
Other income (expense):
Interest expense, net		(299)		(20)		(44)		—		(363)
Loss on early extinguishment of debt		(6)		—		—		—		(6)
Equity in earnings of subsidiaries, net of tax		2,469		2,482		—		(4,951)		—
Other, net		2		(1)		(77)		—		(76)
		2,166		2,461		(121)		(4,951)		(445)
Income before income taxes		1,611		2,461		3,070		(4,951)		2,191
Income tax expense (benefit)		(338)		(8)		588		—		242
Consolidated net income		1,949		2,469		2,482		(4,951)		1,949
Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	1,949	$	2,469	$	2,482	$	(4,951)	$	1,949

2016
Operating revenues	$	—	$	—	$	13,609	$	—	$	13,609
Costs and expenses		—		—		11,313		—		11,313
Income from operations		—		—		2,296		—		2,296
Other income (expense):
Interest expense, net		(303)		(20)		(53)		—		(376)
Loss on early extinguishment of debt		(1)		—		(3)		—		(4)
Equity in earnings of subsidiaries, net of tax		1,367		1,381		—		(2,748)		—
Other, net		—		—		(94)		—		(94)
		1,063		1,361		(150)		(2,748)		(474)
Income before income taxes		1,063		1,361		2,146		(2,748)		1,822
Income tax expense (benefit)		(119)		(8)		769		—		642
Consolidated net income		1,182		1,369		1,377		(2,748)		1,180
Less: Net income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,182	$	1,369	$	1,379	$	(2,748)	$	1,182

2015
Operating revenues	$	—	$	—	$	12,961	$	—	$	12,961
Costs and expenses		—		(1)		10,917		—		10,916
Income from operations		—		1		2,044		—		2,045
Other income (expense):
Interest expense, net		(298)		(22)		(65)		—		(385)
Loss on early extinguishment of debt		(500)		(52)		(3)		—		(555)
Equity in earnings of subsidiaries, net of tax		1,245		1,289		—		(2,534)		—
Other, net		—		—		(45)		—		(45)
		447		1,215		(113)		(2,534)		(985)
Income before income taxes		447		1,216		1,931		(2,534)		1,060
Income tax expense (benefit)		(306)		(29)		643		—		308
Consolidated net income		753		1,245		1,288		(2,534)		752
Less: Net income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	753	$	1,245	$	1,289	$	(2,534)	$	753

(a)

For 2017, costs and expenses for WM and operating revenues for Non-Guarantor Subsidiaries include $555 million related to insurance premiums for a wholly-owned insurance captive, which are eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2017
Comprehensive income	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037

2016
Comprehensive income	$	1,189	$	1,369	$	1,417	$	(2,748)	$	1,227
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,189	$	1,369	$	1,419	$	(2,748)	$	1,229

2015
Comprehensive income	$	762	$	1,245	$	1,129	$	(2,534)	$	602
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	762	$	1,245	$	1,130	$	(2,534)	$	603

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Years Ended December 31:
2017
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,180	$	—	$	3,180
Investing activities		—		—		(1,379)		—		(1,379)
Financing activities		—		—		(1,811)		—		(1,811)
Effect of exchange rate changes on cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Decrease in cash and cash equivalents		—		—		(10)		—		(10)
Cash and cash equivalents at beginning of period		—		—		32		—		32
Cash and cash equivalents at end of period	$	—	$	—	$	22	$	—	$	22

2016
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,006	$	—	$	3,006
Investing activities		—		—		(1,932)		—		(1,932)
Financing activities		—		—		(1,081)		—		(1,081)
Effect of exchange rate changes on cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Decrease in cash and cash equivalents		—		—		(7)		—		(7)
Cash and cash equivalents at beginning of period		—		—		39		—		39
Cash and cash equivalents at end of period	$	—	$	—	$	32	$	—	$	32

2015
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	2,528	$	—	$	2,528
Investing activities		—		—		(1,608)		—		(1,608)
Financing activities		—		—		(2,185)		—		(2,185)
Effect of exchange rate changes on cash and cash equivalents		—		—		(3)		—		(3)
Intercompany activity		(1,235)		—		1,235		—		—
Decrease in cash and cash equivalents		(1,235)		—		(33)		—		(1,268)
Cash and cash equivalents at beginning of period		1,235		—		72		—		1,307
Cash and cash equivalents at end of period	$	—	$	—	$	39	$	—	$	39

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