Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2020


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Three Months Ended September 30:
2020
Solid Waste:
Tier 1	$	1,521	$	(295)	$	1,226	$	430
Tier 2		984		(209)		775		226
Tier 3		1,572		(304)		1,268		290
Solid Waste		4,077		(808)		3,269		946
Other (a)		615		(23)		592		(7)
		4,692		(831)		3,861		939
Corporate and Other (b)		—		—		—		(259)
Total	$	4,692	$	(831)	$	3,861	$	680

2019
Solid Waste:
Tier 1	$	1,576	$	(295)	$	1,281	$	436
Tier 2		998		(199)		799		226
Tier 3		1,641		(310)		1,331		298
Solid Waste		4,215		(804)		3,411		960
Other (a)		589		(33)		556		(25)
		4,804		(837)		3,967		935
Corporate and Other (b)		—		—		—		(201)
Total	$	4,804	$	(837)	$	3,967	$	734


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Nine Months Ended September 30:
2020
Solid Waste:
Tier 1	$	4,442	$	(846)	$	3,596	$	1,139
Tier 2		2,813		(597)		2,216		596
Tier 3		4,566		(873)		3,693		776
Solid Waste		11,821		(2,316)		9,505		2,511
Other (a)		1,723		(77)		1,646		(42)
		13,544		(2,393)		11,151		2,469
Corporate and Other (b)		—		—		—		(689)
Total	$	13,544	$	(2,393)	$	11,151	$	1,780

2019
Solid Waste:
Tier 1	$	4,602	$	(853)	$	3,749	$	1,268
Tier 2		2,897		(580)		2,317		656
Tier 3		4,780		(900)		3,880		850
Solid Waste		12,279		(2,333)		9,946		2,774
Other (a)		1,757		(94)		1,663		(92)
		14,036		(2,427)		11,609		2,682
Corporate and Other (b)		—		—		—		(631)
Total	$	14,036	$	(2,427)	$	11,609	$	2,051

(a)

“Other” includes (i) our Strategic Business Solutions (“WMSBS”) business; (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 businesses 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.

Income from operations for the Other segment for the three and nine months ended September 30, 2020 was impacted primarily by an increase in revenue for our WMSBS and WM Renewable Energy businesses as a result of new contract activities in the current year periods and a new renewable energy facility coming online which drove an increase in commodity sales, respectively. Additionally, the nine month period is impacted by a $16 million non-cash charge to write off certain equipment costs recorded in the prior year period offset, in part, by (i) a decrease in revenue within our EES business and (ii) the non-cash impairment of certain assets within our WM Renewable Energy business in the current year period.

(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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Commercial	$	1,025	$	1,069	$	3,016	$	3,147
Residential		662		661		1,969		1,956
Industrial		709		766		2,027		2,190
Other collection		120		130		347		361
Total collection		2,516		2,626		7,359		7,654
Landfill		946		993		2,707		2,880
Transfer		482		471		1,362		1,357
Recycling		290		245		819		800
Other (a)		458		469		1,297		1,345
Intercompany (b)		(831)		(837)		(2,393)		(2,427)
Total	$	3,861	$	3,967	$	11,151	$	11,609

(a)

The “Other” line of business includes (i) our WMSBS business; (ii) our landfill gas-to-energy operations; (iii) certain services within our EES business, 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.