Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2020


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Three Months Ended June 30:
2020
Solid Waste:
Tier 1	$	1,418	$	(271)	$	1,147	$	316
Tier 2		897		(190)		707		182
Tier 3		1,453		(275)		1,178		222
Solid Waste		3,768		(736)		3,032		720
Other (a)		554		(25)		529		(10)
		4,322		(761)		3,561		710
Corporate and Other (b)		—		—		—		(183)
Total	$	4,322	$	(761)	$	3,561	$	527

2019
Solid Waste:
Tier 1	$	1,573	$	(293)	$	1,280	$	434
Tier 2		995		(199)		796		230
Tier 3		1,631		(311)		1,320		282
Solid Waste		4,199		(803)		3,396		946
Other (a)		580		(30)		550		(49)
		4,779		(833)		3,946		897
Corporate and Other (b)		—		—		—		(201)
Total	$	4,779	$	(833)	$	3,946	$	696


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Six Months Ended June 30:
2020
Solid Waste:
Tier 1	$	2,921	$	(551)	$	2,370	$	709
Tier 2		1,829		(388)		1,441		370
Tier 3		2,994		(569)		2,425		486
Solid Waste		7,744		(1,508)		6,236		1,565
Other (a)		1,108		(54)		1,054		(35)
		8,852		(1,562)		7,290		1,530
Corporate and Other (b)		—		—		—		(430)
Total	$	8,852	$	(1,562)	$	7,290	$	1,100

2019
Solid Waste:
Tier 1	$	3,026	$	(558)	$	2,468	$	832
Tier 2		1,899		(381)		1,518		430
Tier 3		3,139		(590)		2,549		552
Solid Waste		8,064		(1,529)		6,535		1,814
Other (a)		1,168		(61)		1,107		(67)
		9,232		(1,590)		7,642		1,747
Corporate and Other (b)		—		—		—		(430)
Total	$	9,232	$	(1,590)	$	7,642	$	1,317

(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.

Summary of operating revenues mix

The mix of operating revenues from our major lines of business are as follows (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Commercial	$	928	$	1,052	$	1,991	$	2,078
Residential		657		655		1,307		1,295
Industrial		625		744		1,318		1,424
Other collection		115		122		227		231
Total collection		2,325		2,573		4,843		5,028
Landfill		874		1,023		1,761		1,887
Transfer		439		474		880		886
Recycling		275		264		529		555
Other (a)		409		445		839		876
Intercompany (b)		(761)		(833)		(1,562)		(1,590)
Total	$	3,561	$	3,946	$	7,290	$	7,642

(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.