Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2018

CONDENSED CONSOLIDATING BALANCE SHEETS

June 30, 2018

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	47	$	—	$	47
Other current assets		91		7		2,326		—		2,424
		91		7		2,373		—		2,471
Property and equipment, net		—		—		11,625		—		11,625
Investments in affiliates		23,466		23,921		—		(47,387)		—
Advances to affiliates		—		—		15,969		(15,969)		—
Other assets		8		31		7,879		—		7,918
Total assets	$	23,565	$	23,959	$	37,846	$	(63,356)	$	22,014

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	491	$	—	$	337	$	—	$	828
Accounts payable and other current liabilities		84		9		2,384		—		2,477
		575		9		2,721		—		3,305
Long-term debt, less current portion		6,936		304		1,728		—		8,968
Due to affiliates		16,069		181		6,073		(22,323)		—
Other liabilities		4		—		3,681		—		3,685
Total liabilities		23,584		494		14,203		(22,323)		15,958
Equity:
Stockholders’ equity		6,054		23,465		23,922		(47,387)		6,054
Advances to affiliates		(6,073)		—		(281)		6,354		—
Noncontrolling interests		—		—		2		—		2
		(19)		23,465		23,643		(41,033)		6,056
Total liabilities and equity	$	23,565	$	23,959	$	37,846	$	(63,356)	$	22,014

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 June 30, 2018

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,783	$	(44)	$	3,739
Costs and expenses		44		—		3,024		(44)		3,024
Income from operations		(44)		—		759		—		715
Other income (expense):
Interest expense, net		(78)		(4)		(11)		—		(93)
Equity in earnings of subsidiaries, net of tax		588		591		—		(1,179)		—
Other, net		—		—		(13)		—		(13)
		510		587		(24)		(1,179)		(106)
Income before income taxes		466		587		735		(1,179)		609
Income tax expense (benefit)		(33)		(1)		144		—		110
Consolidated net income		499		588		591		(1,179)		499
Less: Net loss attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	499	$	588	$	591	$	(1,179)	$	499

Three Months Ended June 30, 2017

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,677	$	—	$	3,677
Costs and expenses		—		—		3,004		—		3,004
Income from operations		—		—		673		—		673
Other income (expense):
Interest expense, net		(74)		(5)		(11)		—		(90)
Equity in earnings of subsidiaries, net of tax		406		409		—		(815)		—
Other, net		—		—		(13)		—		(13)
		332		404		(24)		(815)		(103)
Income before income taxes		332		404		649		(815)		570
Income tax expense (benefit)		(30)		(2)		241		—		209
Consolidated net income		362		406		408		(815)		361
Less: Net loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	362	$	406	$	409	$	(815)	$	362

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued)

Six Months Ended June 30, 2018

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	7,338	$	(88)	$	7,250
Costs and expenses		88		—		5,927		(88)		5,927
Income from operations		(88)		—		1,411		—		1,323
Other income (expense):
Interest expense, net		(154)		(9)		(21)		—		(184)
Equity in earnings of subsidiaries, net of tax		1,073		1,080		—		(2,153)		—
Other, net		—		—		(19)		—		(19)
		919		1,071		(40)		(2,153)		(203)
Income before income taxes		831		1,071		1,371		(2,153)		1,120
Income tax expense (benefit)		(64)		(2)		292		—		226
Consolidated net income		895		1,073		1,079		(2,153)		894
Less: Net loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	895	$	1,073	$	1,080	$	(2,153)	$	895

Six Months Ended June 30, 2017

(Unaudited)


			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	7,117	$	—	$	7,117
Costs and expenses		—		—		5,886		—		5,886
Income from operations		—		—		1,231		—		1,231
Other income (expense):
Interest expense, net		(148)		(10)		(24)		—		(182)
Equity in earnings of subsidiaries, net of tax		749		755		—		(1,504)		—
Other, net		—		—		(45)		—		(45)
		601		745		(69)		(1,504)		(227)
Income before income taxes		601		745		1,162		(1,504)		1,004
Income tax expense (benefit)		(59)		(4)		409		—		346
Consolidated net income		660		749		753		(1,504)		658
Less: Net loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	660	$	749	$	755	$	(1,504)	$	660

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended June 30:
2018
Comprehensive income	$	501	$	588	$	568	$	(1,179)	$	478
Less: Comprehensive loss attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	501	$	588	$	568	$	(1,179)	$	478

2017
Comprehensive income	$	364	$	406	$	439	$	(815)	$	394
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	364	$	406	$	440	$	(815)	$	395


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Six Months Ended June 30:
2018
Comprehensive income	$	899	$	1,073	$	1,023	$	(2,153)	$	842
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	899	$	1,073	$	1,024	$	(2,153)	$	843

2017
Comprehensive income	$	664	$	749	$	796	$	(1,504)	$	705
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	664	$	749	$	798	$	(1,504)	$	707

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2018

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	1,784	$	—	$	1,784
Investing activities		—		—		(1,010)		—		(1,010)
Financing activities		—		—		(647)		—		(647)
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		—		—		126		—		126
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	$	—	$	—	$	419	$	—	$	419

Six Months Ended June 30, 2017

(Unaudited)


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	1,535	$	—	$	1,535
Investing activities		—		—		(673)		—		(673)
Financing activities		—		—		(859)		—		(859)
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		—		—		3		—		3
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	$	—	$	—	$	97	$	—	$	97

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