Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Consolidating Financial Statements

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

September 30, 2018

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	83	$	—	$	83
Other current assets		46		5		2,541		—		2,592
		46		5		2,624		—		2,675
Property and equipment, net		—		—		11,815		—		11,815
Investments in affiliates		24,055		24,544		—		(48,599)		—
Advances to affiliates		—		—		16,289		(16,289)		—
Other assets		7		31		8,063		—		8,101
Total assets	$	24,108	$	24,580	$	38,791	$	(64,888)	$	22,591
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	104	$	—	$	343	$	—	$	447
Accounts payable and other current liabilities		71		4		2,548		—		2,623
		175		4		2,891		—		3,070
Long-term debt, less current portion		7,409		304		1,856		—		9,569
Due to affiliates		16,353		219		6,073		(22,645)		—
Other liabilities		5		—		3,706		—		3,711
Total liabilities		23,942		527		14,526		(22,645)		16,350
Equity:
Stockholders’ equity		6,239		24,053		24,546		(48,599)		6,239
Advances to affiliates		(6,073)		—		(283)		6,356		—
Noncontrolling interests		—		—		2		—		2
		166		24,053		24,265		(42,243)		6,241
Total liabilities and equity	$	24,108	$	24,580	$	38,791	$	(64,888)	$	22,591

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

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended September 30, 2018

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,866	$	(44)	$	3,822
Costs and expenses		44		—		3,123		(44)		3,123
Income from operations		(44)		—		743		—		699
Other income (expense):
Interest expense, net		(78)		(6)		(9)		—		(93)
Equity in earnings of subsidiaries, net of tax		589		592		—		(1,181)		—
Other, net		—		—		(9)		—		(9)
		511		586		(18)		(1,181)		(102)
Income before income taxes		467		586		725		(1,181)		597
Income tax expense (benefit)		(32)		(2)		133		—		99
Consolidated net income		499		588		592		(1,181)		498
Less: Net income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	499	$	588	$	593	$	(1,181)	$	499

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

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued)

Nine Months Ended September 30, 2018

(Unaudited)

			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	11,204	$	(132)	$	11,072
Costs and expenses		132		—		9,050		(132)		9,050
Income from operations		(132)		—		2,154		—		2,022
Other income (expense):
Interest expense, net		(232)		(15)		(30)		—		(277)
Equity in earnings of subsidiaries, net of tax		1,662		1,672		—		(3,334)		—
Other, net		—		—		(28)		—		(28)
		1,430		1,657		(58)		(3,334)		(305)
Income before income taxes		1,298		1,657		2,096		(3,334)		1,717
Income tax expense (benefit)		(96)		(4)		425		—		325
Consolidated net income		1,394		1,661		1,671		(3,334)		1,392
Less: Net income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,394	$	1,661	$	1,673	$	(3,334)	$	1,394

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

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended September 30:
2018
Comprehensive income	$	501	$	588	$	623	$	(1,181)	$	531
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	501	$	588	$	624	$	(1,181)	$	532
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

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Nine Months Ended September 30:
2018
Comprehensive income	$	1,400	$	1,661	$	1,646	$	(3,334)	$	1,373
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,400	$	1,661	$	1,648	$	(3,334)	$	1,375
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

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Nine Months Ended September 30, 2018

(Unaudited)

			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	2,658	$	—	$	2,658
Investing activities		—		—		(1,506)		—		(1,506)
Financing activities		—		—		(1,015)		—		(1,015)
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		—		—		137		—		137
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	$	—	$	—	$	430	$	—	$	430

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	$	—	$	—	$	2,388	$	—	$	2,388
Investing activities		—		—		(1,050)		—		(1,050)
Financing activities		—		—		(1,331)		—		(1,331)
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		—		—		8		—		8
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	$	—	$	—	$	102	$	—	$	102

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