Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2018

CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2018

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	52	$	—	$	52
Other current assets		139		5		2,295		—		2,439
		139		5		2,347		—		2,491
Property and equipment, net		—		—		11,637		—		11,637
Investments in affiliates		22,878		23,351		—		(46,229)		—
Advances to affiliates		—		—		15,398		(15,398)		—
Other assets		5		31		7,942		—		7,978
Total assets	$	23,022	$	23,387	$	37,324	$	(61,627)	$	22,106

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	544	$	—	$	512	$	—	$	1,056
Accounts payable and other current liabilities		76		3		2,238		—		2,317
		620		3		2,750		—		3,373
Long-term debt, less current portion		6,954		304		1,643		—		8,901
Due to affiliates		15,472		203		6,073		(21,748)		—
Other liabilities		5		—		3,762		—		3,767
Total liabilities		23,051		510		14,228		(21,748)		16,041
Equity:
Stockholders’ equity		6,044		22,877		23,352		(46,229)		6,044
Advances to affiliates		(6,073)		—		(277)		6,350		—
Noncontrolling interests		—		—		21		—		21
		(29)		22,877		23,096		(39,879)		6,065
Total liabilities and equity	$	23,022	$	23,387	$	37,324	$	(61,627)	$	22,106

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

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 STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2018

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,555	$	(44)	$	3,511
Costs and expenses		44		—		2,903		(44)		2,903
Income from operations		(44)		—		652		—		608
Other income (expense):
Interest expense, net		(76)		(5)		(10)		—		(91)
Equity in earnings of subsidiaries, net of tax		485		489		—		(974)		—
Other, net		—		—		(6)		—		(6)
		409		484		(16)		(974)		(97)
Income before income taxes		365		484		636		(974)		511
Income tax expense (benefit)		(31)		(1)		148		—		116
Consolidated net income		396		485		488		(974)		395
Less: Net loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	396	$	485	$	489	$	(974)	$	396

Three Months Ended March 31, 2017

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		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		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

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended March 31:
2018
Comprehensive income	$	398	$	485	$	455	$	(974)	$	364
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	398	$	485	$	456	$	(974)	$	365

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

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2018

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	809	$	—	$	809
Investing activities		—		—		(637)		—		(637)
Financing activities		—		—		(38)		—		(38)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		(1)		—		(1)
Intercompany activity		—		—		—		—		—
Increase in cash, cash equivalents and restricted cash and cash equivalents		—		—		133		—		133
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		293		—		293
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	426	$	—	$	426

Three Months Ended March 31, 2017

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	722	$	—	$	722
Investing activities		—		—		(337)		—		(337)
Financing activities		—		—		(385)		—		(385)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Increase in cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		94		—		94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	94	$	—	$	94

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