Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2018

Condensed Consolidating Financial Statements

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2018


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	61	$	—	$	61
Other current assets		2		5		2,577		—		2,584
		2		5		2,638		—		2,645
Property and equipment, net		—		—		11,942		—		11,942
Investments in affiliates		24,676		25,097		—		(49,773)		—
Advances to affiliates		—		—		17,258		(17,258)		—
Other assets		8		31		8,024		—		8,063
Total assets	$	24,686	$	25,133	$	39,862	$	(67,031)	$	22,650

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	258	$	—	$	174	$	—	$	432
Accounts payable and other current liabilities		82		9		2,585		—		2,676
		340		9		2,759		—		3,108
Long-term debt, less current portion		7,377		304		1,913		—		9,594
Due to affiliates		17,398		146		6,709		(24,253)		—
Other liabilities		5		—		3,667		—		3,672
Total liabilities		25,120		459		15,048		(24,253)		16,374
Equity:
Stockholders’ equity		6,275		24,674		25,099		(49,773)		6,275
Advances to affiliates		(6,709)		—		(286)		6,995		—
Noncontrolling interests		—		—		1		—		1
		(434)		24,674		24,814		(42,778)		6,276
Total liabilities and equity	$	24,686	$	25,133	$	39,862	$	(67,031)	$	22,650

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2017


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	22	$	—	$	22
Other current assets		5		5		2,662		—		2,672
		5		5		2,684		—		2,694
Property and equipment, net		—		—		11,559		—		11,559
Investments in affiliates		22,393		22,893		—		(45,286)		—
Advances to affiliates		—		—		15,349		(15,349)		—
Other assets		9		31		7,536		—		7,576
Total assets	$	22,407	$	22,929	$	37,128	$	(60,635)	$	21,829

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	537	$	—	$	202	$	—	$	739
Accounts payable and other current liabilities		55		9		2,459		—		2,523
		592		9		2,661		—		3,262
Long-term debt, less current portion		6,457		304		1,991		—		8,752
Due to affiliates		15,404		224		6,073		(21,701)		—
Other liabilities		8		—		3,765		—		3,773
Total liabilities		22,461		537		14,490		(21,701)		15,787
Equity:
Stockholders’ equity		6,019		22,392		22,894		(45,286)		6,019
Advances to affiliates		(6,073)		—		(279)		6,352		—
Noncontrolling interests		—		—		23		—		23
		(54)		22,392		22,638		(38,934)		6,042
Total liabilities and equity	$	22,407	$	22,929	$	37,128	$	(60,635)	$	21,829

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2018
Operating revenues (a)	$	—	$	—	$	15,090	$	(176)	$	14,914
Costs and expenses (a)		176		—		12,125		(176)		12,125
Income from operations		(176)		—		2,965		—		2,789
Other income (expense):
Interest expense, net		(312)		(20)		(42)		—		(374)
Equity in earnings of subsidiaries, net of tax		2,284		2,298		—		(4,582)		—
Other, net		—		—		(39)		—		(39)
		1,972		2,278		(81)		(4,582)		(413)
Income before income taxes		1,796		2,278		2,884		(4,582)		2,376
Income tax expense (benefit)		(129)		(5)		587		—		453
Consolidated net income		1,925		2,283		2,297		(4,582)		1,923
Less: Net loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,925	$	2,283	$	2,299	$	(4,582)	$	1,925

2017
Operating revenues (a)	$	—	$	—	$	15,040	$	(555)	$	14,485
Costs and expenses (a)		555		—		11,849		(555)		11,849
Income from operations		(555)		—		3,191		—		2,636
Other income (expense):
Interest expense, net		(299)		(20)		(44)		—		(363)
Equity in earnings of subsidiaries, net of tax		2,469		2,482		—		(4,951)		—
Other, net		(4)		(1)		(77)		—		(82)
		2,166		2,461		(121)		(4,951)		(445)
Income before income taxes		1,611		2,461		3,070		(4,951)		2,191
Income tax expense (benefit)		(338)		(8)		588		—		242
Consolidated net income		1,949		2,469		2,482		(4,951)		1,949
Less: Net loss attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	1,949	$	2,469	$	2,482	$	(4,951)	$	1,949

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)
Equity in earnings of subsidiaries, net of tax		1,367		1,381		—		(2,748)		—
Other, net		(1)		—		(97)		—		(98)
		1,063		1,361		(150)		(2,748)		(474)
Income before income taxes		1,063		1,361		2,146		(2,748)		1,822
Income tax expense (benefit)		(119)		(8)		769		—		642
Consolidated net income		1,182		1,369		1,377		(2,748)		1,180
Less: Net loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,182	$	1,369	$	1,379	$	(2,748)	$	1,182

(a)

For 2018 and 2017, costs and expenses for WM and operating revenues for Non-Guarantor Subsidiaries include insurance premiums for a wholly-owned insurance captive, which are eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2018
Comprehensive income	$	1,933	$	2,283	$	2,199	$	(4,582)	$	1,833
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,933	$	2,283	$	2,201	$	(4,582)	$	1,835

2017
Comprehensive income	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037
Less: Comprehensive loss attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037

2016
Comprehensive income	$	1,189	$	1,369	$	1,417	$	(2,748)	$	1,227
Less: Comprehensive loss attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,189	$	1,369	$	1,419	$	(2,748)	$	1,229

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Years Ended December 31:
2018
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,570	$	—	$	3,570
Investing activities		—		—		(2,169)		—		(2,169)
Financing activities		—		—		(1,508)		—		(1,508)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		(3)		—		(3)
Intercompany activity		—		—		—		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		(110)		—		(110)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		293		—		293
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	183	$	—	$	183

2017
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,180	$	—	$	3,180
Investing activities		—		—		(1,620)		—		(1,620)
Financing activities		—		—		(1,361)		—		(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		199		—		199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		94		—		94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	293	$	—	$	293

2016
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,003	$	—	$	3,003
Investing activities		—		—		(1,929)		—		(1,929)
Financing activities		—		—		(1,084)		—		(1,084)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Intercompany activity		—		—		—		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		(10)		—		(10)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		104		—		104
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	94	$	—	$	94

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