Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data

Quarterly Financial Data (Unaudited)

21.  Quarterly Financial Data (Unaudited)

The following table summarizes the unaudited quarterly results of operations for 2019 and 2018 (in millions, except per share amounts):

	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
2019
Operating revenues	$	3,696	$	3,946		3,967		3,846
Income from operations		621		696		734		655
Consolidated net income		347		382		495		447
Net income attributable to Waste Management, Inc.		347		381		495		447
Basic earnings per common share		0.82		0.90		1.17		1.05
Diluted earnings per common share		0.81		0.89		1.16		1.05
2018
Operating revenues	$	3,511	$	3,739	$	3,822	$	3,842
Income from operations		608		715		699		767
Consolidated net income		395		499		498		531
Net income attributable to Waste Management, Inc.		396		499		499		531
Basic earnings per common share		0.91		1.16		1.16		1.25
Diluted earnings per common share		0.91		1.15		1.16		1.24

Basic and diluted earnings per common share for each of the quarters presented above is based on the respective weighted average number of common and dilutive potential common shares outstanding for each quarter and the sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per common share amounts.

Our operating revenues tend to be somewhat higher in summer months, primarily due to higher construction and demolition waste volumes. The volumes of industrial and residential waste in certain regions where we operate also tend to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends. Additionally, from time to time, our operating results are significantly affected by certain transactions or events that management believes are not indicative or representative of our ongoing results. The following items significantly impacted our operating results during the periods indicated:

First Quarter 2019

● The recognition of (i) a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business, which was not deductible for tax purposes and (ii) a $3 million loss upon redemption of a preferred stock investment, which is discussed further in Note 17. These charges had a negative impact of $0.13 on our diluted earnings per share.

Second Quarter 2019

● The recognition of a pre-tax loss of $84 million associated with the early extinguishment of $257 million of our high-coupon senior notes through a cash tender offer, which is discussed further in Note 7. The charge incurred for the redemption had a negative impact of $0.15 on our diluted earnings per share.

● The recognition of pre-tax charges of $32 million primarily related to (i) a $16 million non-cash charge to write-off certain equipment costs; (ii) $9 million of charges related to preparation for our pending acquisition of Advanced Disposal and (iii) $7 million of asset impairments primarily related to certain solid waste operations. These charges had a negative impact of $0.06 on our diluted earnings per share.

Third Quarter 2019

● The recognition of pre-tax charges of $8 million related to preparation for our pending acquisition of Advanced Disposal which had a negative impact of $0.02 on our diluted earnings per share.

Fourth Quarter 2019

● The recognition of pre-tax charges of $38 million primarily related to preparation for our pending acquisition of Advanced Disposal and, to a lesser extent, costs incurred to support our plan to implement a new enterprise resource planning system. These charges had a negative impact of $0.07 on our diluted earnings per share.

● The recognition of pre-tax charges of $37 million related to (i) goodwill impairment charges of $17 million related to our EES organization and $10 million related to our LampTracker^® reporting unit and (ii) $10 million of asset impairment charges primarily related to certain solid waste operations and, to a lesser extent, restructuring charges. These charges had a negative impact of $0.07 on our diluted earnings per share.

Second Quarter 2018

● The recognition of net pre-tax gains of $40 million related to the sale of certain ancillary operations, which had a favorable impact of $0.07 on our diluted earnings per share.

● An income tax benefit of $33 million due to the settlement of various tax audits, which had a favorable impact of $0.07 on our diluted earnings per share.

Third Quarter 2018

● Income tax benefits of $27 million primarily due to impacts of enactment of tax reform and changes in state laws, which had a favorable impact of $0.06 on our diluted earnings per share.

● The recognition of pre-tax charges of $32 million primarily related to a $29 million charge to impair a landfill in our Tier 3 segment, which is discussed further in Note 12. These charges had a negative impact of $0.05 on our diluted earnings per share.

Fourth Quarter 2018

● The recognition of a pre-tax gain of $52 million associated with the sale of certain hauling operations in our Tier 1 segment and $8 million of impairment charges primarily related to our LampTracker^® reporting unit. These items had a favorable impact of $0.07 on our diluted earnings per share.

● A reduction in our income tax expense of $17 million for an adjustment to our deferred taxes to reduce our deferred tax liability based on an analysis of certain deferred tax balances. This item had a favorable impact of $0.04 on our diluted earnings per share.