Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2020

Condensed Consolidating Financial Statements

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

March 31, 2020

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,049	$	—	$	76	$	—	$	3,125
Other current assets		2		4		2,504		—		2,510
		3,051		4		2,580		—		5,635
Property and equipment, net		—		—		12,900		—		12,900
Investments in affiliates		26,650		27,021		—		(53,671)		—
Advances to affiliates		—		—		18,655		(18,655)		—
Other assets		5		10		8,628		—		8,643
Total assets	$	29,706	$	27,035	$	42,763	$	(72,326)	$	27,178
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	164	$	—	$	223	$	—	$	387
Accounts payable and other current liabilities		99		3		2,581		—		2,683
		263		3		2,804		—		3,070
Long-term debt, less current portion		10,589		248		2,228		—		13,065
Due to affiliates		18,818		137		6,709		(25,664)		—
Other liabilities		2		—		4,296		—		4,298
Total liabilities		29,672		388		16,037		(25,664)		20,433
Equity:
Stockholders’ equity		6,743		26,647		27,024		(53,671)		6,743
Advances to affiliates		(6,709)		—		(300)		7,009		—
Noncontrolling interests		—		—		2		—		2
		34		26,647		26,726		(46,662)		6,745
Total liabilities and equity	$	29,706	$	27,035	$	42,763	$	(72,326)	$	27,178

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2019

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,485	$	—	$	76	$	—	$	3,561
Other current assets		2		4		2,642		—		2,648
		3,487		4		2,718		—		6,209
Property and equipment, net		—		—		12,893		—		12,893
Investments in affiliates		26,221		26,673		—		(52,894)		—
Advances to affiliates		—		—		19,047		(19,047)		—
Other assets		6		10		8,625		—		8,641
Total assets	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	15	$	—	$	203	$	—	$	218
Accounts payable and other current liabilities		105		7		2,814		—		2,926
		120		7		3,017		—		3,144
Long-term debt, less current portion		10,736		248		2,296		—		13,280
Due to affiliates		19,131		214		7,345		(26,690)		—
Other liabilities		4		—		4,245		—		4,249
Total liabilities		29,991		469		16,903		(26,690)		20,673
Equity:
Stockholders’ equity		7,068		26,218		26,676		(52,894)		7,068
Advances to affiliates		(7,345)		—		(298)		7,643		—
Noncontrolling interests		—		—		2		—		2
		(277)		26,218		26,380		(45,251)		7,070
Total liabilities and equity	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2020

(Unaudited)

			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,729	$	—	$	3,729
Costs and expenses		—		—		3,156		—		3,156
Income from operations		—		—		573		—		573
Other income (expense):
Interest expense, net		(93)		(4)		(15)		—		(112)
Equity in earnings of subsidiaries, net of tax		429		432		—		(861)		—
Other, net		—		—		(26)		—		(26)
		336		428		(41)		(861)		(138)
Income before income taxes		336		428		532		(861)		435
Income tax expense (benefit)		(25)		(1)		100		—		74
Consolidated net income		361		429		432		(861)		361
Less: Net loss attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	361	$	429	$	432	$	(861)	$	361

Three Months Ended March 31, 2019

(Unaudited)

			WM		Non‑Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Operating revenues	$	—	$	—	$	3,696	$	—	$	3,696
Costs and expenses		—		—		3,075		—		3,075
Income from operations		—		—		621		—		621
Other income (expense):
Interest expense, net		(80)		(5)		(11)		—		(96)
Equity in earnings of subsidiaries, net of tax		406		413		—		(819)		—
Other, net		—		(3)		(60)		—		(63)
		326		405		(71)		(819)		(159)
Income before income taxes		326		405		550		(819)		462
Income tax expense (benefit)		(21)		(1)		137		—		115
Consolidated net income		347		406		413		(819)		347
Less: Net loss attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	347	$	406	$	413	$	(819)	$	347

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Three Months Ended March 31:
2020
Comprehensive income	$	363	$	429	$	347	$	(861)	$	278
Less: Comprehensive loss attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	363	$	429	$	347	$	(861)	$	278
2019
Comprehensive income	$	349	$	406	$	445	$	(819)	$	381
Less: Comprehensive loss attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	349	$	406	$	445	$	(819)	$	381

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

Three Months Ended March 31, 2020

(Unaudited)

			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	17	$	—	$	748	$	—	$	765
Investing activities		—		—		(503)		—		(503)
Financing activities		—		—		(668)		—		(668)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		(4)		—		(4)
Intercompany activity		(453)		—		453		—		—
Increase in cash, cash equivalents and restricted cash and cash equivalents		(436)		—		26		—		(410)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		3,485		—		162		—		3,647
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	3,049	$	—	$	188	$	—	$	3,237

Three Months Ended March 31, 2019

(Unaudited)

			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	890	$	—	$	890
Investing activities		—		—		(800)		—		(800)
Financing activities		—		—		42		—		42
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		—		—		132		—		132
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	$	—	$	—	$	315	$	—	$	315

(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 March 31, 2020 include remaining proceeds from our 2019 senior note issuances.