Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2016


	WM			WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—	$	32		$	—		$	32
Other current assets		5			5		2,334			—			2,344

		5			5		2,366			—			2,376
Property and equipment, net		—			—		10,950			—			10,950
Investments in affiliates		19,924			20,331		—			(40,255	)		—
Advances to affiliates(a)		—			—		13,000			(13,000	)		—
Other assets		14			30		7,489			—			7,533

Total assets	$	19,943		$	20,366	$	33,805		$	(53,255	)	$	20,859


LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	269		$	—	$	148		$	—		$	417
Accounts payable and other current liabilities		81			9		2,287			—			2,377

		350			9		2,435			—			2,794
Long-term debt, less current portion(a)		6,229			304		2,360			—			8,893
Due to affiliates(a)		13,350			128		5,299			(18,777	)		—
Other liabilities		16			—		3,836			—			3,852

Total liabilities		19,945			441		13,930			(18,777	)		15,539
Equity:
Stockholders’ equity		5,297			19,925		20,330			(40,255	)		5,297
Advances to affiliates		(5,299	)		—		(478	)		5,777			—
Noncontrolling interests		—			—		23			—			23

		(2	)		19,925		19,875			(34,478	)		5,320

Total liabilities and equity	$	19,943		$	20,366	$	33,805		$	(53,255	)	$	20,859

(a)

In conjunction with the preparation of our June 30, 2016 Condensed Consolidating Balance Sheet, we identified and corrected the presentation of $126 million of tax-exempt bonds previously reported in Non-Guarantor Subsidiaries’ rather than WM’s “Long-term debt, less current portion,” which had corresponding impacts on “Advances to affiliates” and “Due to affiliates.” This immaterial correction has been reflected in our 2016 Condensed Consolidating Financial Statements.

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2015


	WM			WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—		$	—	$	39		$	—		$	39
Other current assets		3			6		2,297			—			2,306

		3			6		2,336			—			2,345
Property and equipment, net		—			—		10,665			—			10,665
Investments in affiliates(b)		18,557			18,925		—			(37,482	)		—
Advances to affiliates		—			—		12,113			(12,113	)		—
Other assets		23			29		7,305			—			7,357

Total assets	$	18,583		$	18,960	$	32,419		$	(49,595	)	$	20,367


LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	41		$	—	$	212		$	—		$	253
Accounts payable and other current liabilities		83			9		2,165			—			2,257

		124			9		2,377			—			2,510
Long-term debt, less current portion		5,801			304		2,571			—			8,676
Due to affiliates(b)		12,588			76		5,299			(17,963	)		—
Other liabilities		24			—		3,790			—			3,814

Total liabilities		18,537			389		14,037			(17,963	)		15,000
Equity:
Stockholders’ equity		5,345			18,571		18,911			(37,482	)		5,345
Advances to affiliates(b)		(5,299	)		—		(551	)		5,850			—
Noncontrolling interests		—			—		22			—			22

		46			18,571		18,382			(31,632	)		5,367

Total liabilities and equity	$	18,583		$	18,960	$	32,419		$	(49,595	)	$	20,367

(b)

In conjunction with the preparation of our September 30, 2016 Condensed Consolidating Balance Sheet, we identified $5.9 billion of intercompany loans between WM and Non-Guarantor Subsidiaries previously included in “Due to affiliates” and “Advances to affiliates” that based on intent are not expected to be collected, and as such are being presented as part of “Equity” in WM’s and Non-Guarantor Subsidiaries’ balance sheet. Accordingly, the 2015 Condensed Consolidating Balance Sheet included herein has been revised to reflect this presentation.

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


	WM			WM Holdings			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2016
Operating revenues	$	—		$	—		$	13,609		$	—		$	13,609
Costs and expenses		—			—			11,313			—			11,313

Income from operations		—			—			2,296			—			2,296

Other income (expense):
Interest expense, net		(303	)		(20	)		(53	)		—			(376	)
Loss on early extinguishment of debt		(1	)		—			(3	)		—			(4	)
Equity in earnings of subsidiaries, net of tax provision		1,367			1,381			—			(2,748	)		—
Other, net		—			—			(94	)		—			(94	)

		1,063			1,361			(150	)		(2,748	)		(474	)

Income before income taxes		1,063			1,361			2,146			(2,748	)		1,822
Provision for (benefit from) income taxes		(119	)		(8	)		769			—			642

Consolidated net income		1,182			1,369			1,377			(2,748	)		1,180
Less: Net income (loss) attributable to noncontrolling interests		—			—			(2	)		—			(2	)

Net income attributable to Waste Management, Inc.	$	1,182		$	1,369		$	1,379		$	(2,748	)	$	1,182

Year Ended December 31, 2015
Operating revenues	$	—		$	—		$	12,961		$	—		$	12,961
Costs and expenses		—			(1	)		10,917			—			10,916

Income from operations		—			1			2,044			—			2,045

Other income (expense):
Interest expense, net		(298	)		(22	)		(65	)		—			(385	)
Loss on early extinguishment of debt		(500	)		(52	)		(3	)		—			(555	)
Equity in earnings of subsidiaries, net of tax provision		1,245			1,289			—			(2,534	)		—
Other, net		—			—			(45	)		—			(45	)

		447			1,215			(113	)		(2,534	)		(985	)

Income before income taxes		447			1,216			1,931			(2,534	)		1,060
Provision for (benefit from) income taxes		(306	)		(29	)		643			—			308

Consolidated net income		753			1,245			1,288			(2,534	)		752
Less: Net income (loss) attributable to noncontrolling interests		—			—			(1	)		—			(1	)

Net income attributable to Waste Management, Inc.	$	753		$	1,245		$	1,289		$	(2,534	)	$	753

Year Ended December 31, 2014
Operating revenues	$	—		$	—		$	13,996		$	—		$	13,996
Costs and expenses		—			(459	)		12,156			—			11,697

Income from operations		—			459			1,840			—			2,299

Other income (expense):
Interest expense, net		(351	)		(31	)		(84	)		—			(466	)
Equity in earnings of subsidiaries, net of tax provision		1,510			1,070			—			(2,580	)		—
Other, net		—			—			(82	)		—			(82	)

		1,159			1,039			(166	)		(2,580	)		(548	)

Income before income taxes		1,159			1,498			1,674			(2,580	)		1,751
Provision for (benefit from) income taxes		(139	)		(12	)		564			—			413

Consolidated net income		1,298			1,510			1,110			(2,580	)		1,338
Less: Net income (loss) attributable to noncontrolling interests		—			—			40			—			40

Net income attributable to Waste Management, Inc.	$	1,298		$	1,510		$	1,070		$	(2,580	)	$	1,298

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME


	WM		WM Holdings		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Year Ended December 31, 2016
Comprehensive income	$	1,189	$	1,369	$	1,417		$	(2,748	)	$	1,227
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(2	)		—			(2	)

Comprehensive income attributable to Waste Management, Inc.	$	1,189	$	1,369	$	1,419		$	(2,748	)	$	1,229

Year Ended December 31, 2015
Comprehensive income	$	762	$	1,245	$	1,129		$	(2,534	)	$	602
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(1	)		—			(1	)

Comprehensive income attributable to Waste Management, Inc.	$	762	$	1,245	$	1,130		$	(2,534	)	$	603

Year Ended December 31, 2014
Comprehensive income	$	1,300	$	1,510	$	977		$	(2,580	)	$	1,207
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		40			—			40

Comprehensive income attributable to Waste Management, Inc.	$	1,300	$	1,510	$	937		$	(2,580	)	$	1,167

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


	WM(c)			WM Holdings(c)			Non-Guarantor Subsidiaries(c)			Eliminations			Consolidated
Year Ended December 31, 2016
Cash flows from operating activities:
Consolidated net income	$	1,182		$	1,369		$	1,377		$	(2,748	)	$	1,180
Equity in earnings of subsidiaries, net of tax provision		(1,367	)		(1,381	)		—			2,748			—
Other adjustments		185			12			1,583			—			1,780

Net cash provided by operating activities		—			—			2,960			—			2,960

Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(611	)		—			(611	)
Capital expenditures		—			—			(1,339	)		—			(1,339	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			43			—			43
Net receipts from restricted trust and escrow accounts and other, net		—			—			(25	)		—			(25	)

Net cash provided by (used in) investing activities		—			—			(1,932	)		—			(1,932	)

Cash flows from financing activities:
New borrowings		—			—			3,057			—			3,057
Debt repayments		—			—			(2,682	)		—			(2,682	)
Premiums paid on early extinguishment of debt		—			—			(2	)		—			(2	)
Common stock repurchase program		—			—			(725	)		—			(725	)
Cash dividends		—			—			(726	)		—			(726	)
Exercise of common stock options		—			—			63			—			63
Other, net		—			—			(20	)		—			(20	)
(Increase) decrease in intercompany and investments, net		—			—			—			—			—

Net cash provided by (used in) financing activities		—			—			(1,035	)		—			(1,035	)

Effect of exchange rate changes on cash and cash equivalents		—			—			—			—			—

Increase (decrease) in cash and cash equivalents		—			—			(7	)		—			(7	)
Cash and cash equivalents at beginning of year		—			—			39			—			39

Cash and cash equivalents at end of year	$	—		$	—		$	32		$	—		$	32

(c)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries.


	WM(d)			WM Holdings(d)			Non-Guarantor Subsidiaries(d)			Eliminations			Consolidated
Year Ended December 31, 2015
Cash flows from operating activities:
Consolidated net income	$	753		$	1,245		$	1,288		$	(2,534	)	$	752
Equity in earnings of subsidiaries, net of tax provision		(1,245	)		(1,289	)		—			2,534			—
Other adjustments		492			44			1,210			—			1,746

Net cash provided by operating activities		—			—			2,498			—			2,498

Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(554	)		—			(554	)
Capital expenditures		—			—			(1,233	)		—			(1,233	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			145			—			145
Net receipts from restricted trust and escrow accounts and other, net		—			—			34			—			34

Net cash provided by (used in) investing activities		—			—			(1,608	)		—			(1,608	)

Cash flows from financing activities:
New borrowings		—			—			2,337			—			2,337
Debt repayments		—			—			(2,764	)		—			(2,764	)
Premiums paid on early extinguishment of debt		—			—			(555	)		—			(555	)
Common stock repurchase program		—			—			(600	)		—			(600	)
Cash dividends		—			—			(695	)		—			(695	)
Exercise of common stock options		—			—			77			—			77
Other, net		—			—			45			—			45
(Increase) decrease in intercompany and investments, net		(1,235	)		—			1,235			—			—

Net cash provided by (used in) financing activities		(1,235	)		—			(920	)		—			(2,155	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(3	)		—			(3	)

Increase (decrease) in cash and cash equivalents		(1,235	)		—			(33	)		—			(1,268	)
Cash and cash equivalents at beginning of year		1,235			—			72			—			1,307

Cash and cash equivalents at end of year	$	—		$	—		$	39		$	—		$	39

(d)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. We have revised the prior year presentation to reflect all relevant cash flow activities in the Non-Guarantor Subsidiaries column.


	WM(e)			WM Holdings(e)			Non-Guarantor Subsidiaries(e)			Eliminations			Consolidated
Year Ended December 31, 2014
Cash flows from operating activities:
Consolidated net income	$	1,298		$	1,510		$	1,110		$	(2,580	)	$	1,338
Equity in earnings of subsidiaries, net of tax provision		(1,510	)		(1,070	)		—			2,580			—
Other adjustments		212			(440	)		1,221			—			993

Net cash provided by operating activities		—			—			2,331			—			2,331

Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		—			—			(35	)		—			(35	)
Capital expenditures		—			—			(1,151	)		—			(1,151	)
Proceeds from divestitures of businesses and other assets (net of cash divested)		—			—			2,253			—			2,253
Net receipts from restricted trust and escrow accounts and other, net		—			—			(72	)		—			(72	)

Net cash provided by (used in) investing activities		—			—			995			—			995

Cash flows from financing activities:
New borrowings		—			—			2,817			—			2,817
Debt repayments		—			—			(3,568	)		—			(3,568	)
Common stock repurchase program		—			—			(600	)		—			(600	)
Cash dividends		—			—			(693	)		—			(693	)
Exercise of common stock options		—			—			93			—			93
Other, net		—			—			(121	)		—			(121	)
(Increase) decrease in intercompany and investments, net		1,235			—			(1,235	)		—			—

Net cash provided by (used in) financing activities		1,235			—			(3,307	)		—			(2,072	)

Effect of exchange rate changes on cash and cash equivalents		—			—			(5	)		—			(5	)

Increase (decrease) in cash and cash equivalents		1,235			—			14			—			1,249
Cash and cash equivalents at beginning of year		—			—			58			—			58

Cash and cash equivalents at end of year	$	1,235		$	—		$	72		$	—		$	1,307

(e)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. We have revised the prior year presentation to reflect all relevant cash flow activities in the Non-Guarantor Subsidiaries column.