Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Consolidating Financial Statements

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

June 30, 2019

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	2,200	$	—	$	50	$	—	$	2,250
Other current assets		94		6		2,578		(92)		2,586
		2,294		6		2,628		(92)		4,836
Property and equipment, net		—		—		12,665		—		12,665
Investments in affiliates		25,646		26,150		—		(51,796)		—
Advances to affiliates		—		—		17,651		(17,651)		—
Other assets		5		10		8,470		—		8,485
Total assets	$	27,945	$	26,166	$	41,414	$	(69,539)	$	25,986
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	—	$	—	$	116	$	—	$	116
Accounts payable and other current liabilities		92		9		2,721		(92)		2,730
		92		9		2,837		(92)		2,846
Long-term debt, less current portion		10,412		248		1,963		—		12,623
Due to affiliates		17,680		265		6,709		(24,654)		—
Other liabilities		4		—		4,046		—		4,050
Total liabilities		28,188		522		15,555		(24,746)		19,519
Equity:
Stockholders’ equity		6,466		25,644		26,152		(51,796)		6,466
Advances to affiliates		(6,709)		—		(294)		7,003		—
Noncontrolling interests		—		—		1		—		1
		(243)		25,644		25,859		(44,793)		6,467
Total liabilities and equity	$	27,945	$	26,166	$	41,414	$	(69,539)	$	25,986

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2018

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	61	$	—	$	61
Other current assets		2		5		2,577		—		2,584
		2		5		2,638		—		2,645
Property and equipment, net		—		—		11,942		—		11,942
Investments in affiliates		24,676		25,097		—		(49,773)		—
Advances to affiliates		—		—		17,258		(17,258)		—
Other assets		8		31		8,024		—		8,063
Total assets	$	24,686	$	25,133	$	39,862	$	(67,031)	$	22,650
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	258	$	—	$	174	$	—	$	432
Accounts payable and other current liabilities		82		9		2,585		—		2,676
		340		9		2,759		—		3,108
Long-term debt, less current portion		7,377		304		1,913		—		9,594
Due to affiliates		17,398		146		6,709		(24,253)		—
Other liabilities		5		—		3,667		—		3,672
Total liabilities		25,120		459		15,048		(24,253)		16,374
Equity:
Stockholders’ equity		6,275		24,674		25,099		(49,773)		6,275
Advances to affiliates		(6,709)		—		(286)		6,995		—
Noncontrolling interests		—		—		1		—		1
		(434)		24,674		24,814		(42,778)		6,276
Total liabilities and equity	$	24,686	$	25,133	$	39,862	$	(67,031)	$	22,650

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended June 30, 2019

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,992	$	(46)	$	3,946
Costs and expenses		46		—		3,250		(46)		3,250
Income from operations		(46)		—		742		—		696
Other income (expense):
Interest expense, net		(86)		(5)		(9)		—		(100)
Loss on early extinguishment of debt		(70)		(14)		—		—		(84)
Equity in earnings of subsidiaries, net of tax		530		545		—		(1,075)		—
Other, net		—		(1)		(14)		—		(15)
		374		525		(23)		(1,075)		(199)
Income before income taxes		328		525		719		(1,075)		497
Income tax expense (benefit)		(53)		(5)		173		—		115
Consolidated net income		381		530		546		(1,075)		382
Less: Net income (loss) attributable to noncontrolling interests		—		—		1		—		1
Net income attributable to Waste Management, Inc.	$	381	$	530	$	545	$	(1,075)	$	381

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 income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	499	$	588	$	591	$	(1,179)	$	499

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS (Continued)

Six Months Ended June 30, 2019

(Unaudited)

			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	7,734	$	(92)	$	7,642
Costs and expenses		92		—		6,325		(92)		6,325
Income from operations		(92)		—		1,409		—		1,317
Other income (expense):
Interest expense, net		(166)		(10)		(20)		—		(196)
Loss on early extinguishment of debt		(70)		(14)		—		—		(84)
Equity in earnings of subsidiaries, net of tax		970		992		—		(1,962)		—
Other, net		—		(4)		(74)		—		(78)
		734		964		(94)		(1,962)		(358)
Income before income taxes		642		964		1,315		(1,962)		959
Income tax expense (benefit)		(86)		(6)		322		—		230
Consolidated net income		728		970		993		(1,962)		729
Less: Net income (loss) attributable to noncontrolling interests		—		—		1		—		1
Net income attributable to Waste Management, Inc.	$	728	$	970	$	992	$	(1,962)	$	728

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 income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Net income attributable to Waste Management, Inc.	$	895	$	1,073	$	1,080	$	(2,153)	$	895

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended June 30:
2019
Comprehensive income	$	383	$	530	$	575	$	(1,075)	$	413
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		1		—		1
Comprehensive income attributable to Waste Management, Inc.	$	383	$	530	$	574	$	(1,075)	$	412
2018
Comprehensive income	$	501	$	588	$	568	$	(1,179)	$	478
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	501	$	588	$	568	$	(1,179)	$	478

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Six Months Ended June 30:
2019
Comprehensive income	$	732	$	970	$	1,054	$	(1,962)	$	794
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		1		—		1
Comprehensive income attributable to Waste Management, Inc.	$	732	$	970	$	1,053	$	(1,962)	$	793
2018
Comprehensive income	$	899	$	1,073	$	1,023	$	(2,153)	$	842
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1)		—		(1)
Comprehensive income attributable to Waste Management, Inc.	$	899	$	1,073	$	1,024	$	(2,153)	$	843

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Six Months Ended June 30, 2019

(Unaudited)

			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	1,900	$	—	$	1,900
Investing activities		—		—		(1,565)		—		(1,565)
Financing activities		—		—		1,822		—		1,822
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		2		—		2
Intercompany activity		2,200		—		(2,200)		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		2,200		—		(41)		—		2,159
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		183		—		183
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	2,200	$	—	$	142	$	—	$	2,342

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 (decrease) 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

(a) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of June 30, 2019 include remaining proceeds from our May 2019 issuance of senior notes which are discussed further in Notes 3 and 13.