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Segment and Related Information (Tables)
3 Months Ended
Mar. 31, 2020
Segment and Related Information  
Reportable Segments

Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following table (in millions):

Gross

Intercompany

Net

Income

Operating

Operating

Operating

from

    

Revenues

    

Revenues(c)

    

Revenues

    

Operations(d)

2020

 

  

 

  

 

  

 

  

Solid Waste:

 

  

 

  

 

  

 

  

Tier 1

$

1,503

$

(280)

$

1,223

$

393

Tier 2

 

932

 

(198)

 

734

 

188

Tier 3

 

1,541

 

(294)

 

1,247

 

264

Solid Waste

 

3,976

 

(772)

 

3,204

 

845

Other (a)

 

554

 

(29)

 

525

 

(25)

4,530

(801)

3,729

820

Corporate and Other (b)

 

 

 

 

(247)

Total

$

4,530

$

(801)

$

3,729

$

573

2019

 

  

 

  

 

  

 

  

Solid Waste:

 

  

 

  

 

  

 

  

Tier 1

$

1,453

$

(265)

$

1,188

$

398

Tier 2

 

904

 

(182)

 

722

 

200

Tier 3

 

1,508

 

(279)

 

1,229

 

270

Solid Waste

 

3,865

 

(726)

 

3,139

 

868

Other (a)

 

588

 

(31)

 

557

 

(18)

 

4,453

 

(757)

 

3,696

 

850

Corporate and Other (b)

 

 

 

 

(229)

Total

$

4,453

$

(757)

$

3,696

$

621

(a)“Other” includes (i) our Strategic Business Solutions (“WMSBS”) organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services (“EES”) and WM Renewable Energy organizations that are not included in the operations of our reportable segments; (iii) our recycling brokerage services and (iv) certain other expanded service offerings and solutions. In addition, our “Other” segment reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity.
(b)Corporate operating results reflect certain costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, tax, insurance, centralized service center processes, other administrative functions and the maintenance of our closed landfills. Income from operations for “Corporate and Other” also includes costs associated with our long-term incentive program and any administrative expenses or revisions to our estimated obligations associated with divested operations.
(c)Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.
(d)Income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling lines of business. From time to time, the operating results of our reportable segments are significantly affected by certain transactions or events that management believes are not indicative or representative of our results. In 2020, we revised allocations between our segments including (i) the discontinuation of certain allocations from Corporate and Other to Solid Waste and (ii) allocating certain insurance costs from Other to Solid Waste. Reclassifications have been made to our prior period information for comparability purposes. Current quarter operating results were negatively impacted by revenue declines in March 2020 as a result of the COVID-19 pandemic. These declines were not material to the reported periods.
Summary of operating revenues mix

The mix of operating revenues from our major lines of business for the three months ended March 31 are as follows (in millions):

    

2020

    

2019

Commercial

$

1,063

$

1,026

Residential

 

650

 

640

Industrial

 

693

 

680

Other collection

 

112

 

109

Total collection

 

2,518

 

2,455

Landfill

 

887

 

864

Transfer

 

441

 

412

Recycling

 

254

 

291

Other (a)

 

430

 

431

Intercompany (b)

 

(801)

 

(757)

Total

$

3,729

$

3,696

(a)The “Other” line of business includes (i) our WMSBS organization; (ii) our landfill gas-to-energy operations; (iii) certain services within our EES organization, including our construction and remediation services and our services associated with the disposal of fly ash and (iv) certain other expanded service offerings and solutions. In addition, our “Other” line of business reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. Activity related to collection, landfill, transfer and recycling within “Other” has been reclassified to the appropriate line of business for purposes of the presentation in this table.
(b)Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included within this report.