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Segment and Related Information (Tables) | 3 Months Ended
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Mar. 31, 2023
Segment and Related Information |
Reportable Segments | Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following table (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Gross | ​ | Intercompany | ​ | Net | ​ | Income
​ | ​ | Operating | ​ | Operating | ​ | Operating | ​ | from
​ |  | Revenues |  | Revenues(d) |  | Revenues |  | Operations
2023 |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Solid Waste: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
East Tier | ​ | $ | 2,642 | ​ | $ | (534) | ​ | $ | 2,108 | ​ | $ | 550
West Tier | ​ |  | 2,537 | ​ |  | (554) | ​ |  | 1,983 | ​ |  | 572
Solid Waste (a) | ​ |  | 5,179 | ​ |  | (1,088) | ​ |  | 4,091 | ​ |  | 1,122
Other (b) | ​ |  | 855 | ​ |  | (54) | ​ |  | 801 | ​ |  | (4)
​ | ​ | ​ | 6,034 | ​ | ​ | (1,142) | ​ | ​ | 4,892 | ​ | ​ | 1,118
Corporate and Other (c) | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | (293)
Total | ​ | $ | 6,034 | ​ | $ | (1,142) | ​ | $ | 4,892 | ​ | $ | 825
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2022 | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Solid Waste: | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
East Tier | ​ | $ | 2,383 | ​ | $ | (445) | ​ | $ | 1,938 | ​ | $ | 531
West Tier | ​ |  | 2,406 | ​ |  | (490) | ​ |  | 1,916 | ​ |  | 549
Solid Waste (a) | ​ |  | 4,789 | ​ |  | (935) | ​ |  | 3,854 | ​ |  | 1,080
Other (b) | ​ |  | 857 | ​ |  | (50) | ​ |  | 807 | ​ |  | 1
​ | ​ |  | 5,646 | ​ | ​ | (985) | ​ | ​ | 4,661 | ​ | ​ | 1,081
Corporate and Other (c) | ​ |  | — | ​ |  | — | ​ |  | — | ​ |  | (313)
Total | ​ | $ | 5,646 | ​ | $ | (985) | ​ | $ | 4,661 | ​ | $ | 768
(a) | 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.
Income from operations in our Solid Waste business increased primarily due to (i) revenue growth in our collection and disposal business driven by both yield and volume and (ii) fuel tax credits recognized in the current year which were nominal in the prior year period as the majority of our fuel tax credits were not recognized until August 2022 due to the timing of the Inflationary Reduction Act of 2022. These increases were partially offset by (i) inflationary cost pressures; (ii) labor cost increases from frontline employee wage adjustments and annual merit increases and (iii) reduced profitability in our recycling business from the decline in recycling commodity prices and lower volumes.
(b) | “Other” includes (i) elements of our Strategic Business Solutions (“WMSBS”) business that are not included in the operations of our reportable segments; (ii) elements of our sustainability business that includes landfill gas-to-energy operations managed by our WM Renewable Energy business, our Sustainability and Environmental Solutions business and recycling brokerage services and not included in the operations of our reportable segments; (iii) certain other expanded service offerings and solutions and (iv) the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity.
The decrease in income from operations was due to (i) reduced profitability in our WM Renewable Energy business due to lower market values for renewable fuel standard credits and lower energy prices and (ii) the decline in recycling brokerage commodity prices affecting profitability in our recycling business.
(c) | “Corporate and Other” 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, digital, 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.
The increase in income from operations was primarily driven by (i) lower annual incentive compensation and (ii) a charge during the first quarter of 2022 to adjust an indirect wholly-owned subsidiary’s estimated potential share of the liability for a proposed environmental remediation plan at a closed site. These were partially offset by an increase in health and welfare costs driven by higher inflation and utilization of employee medical benefits.
(d) | 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.
Summary of operating revenues mix | The mix of operating revenues from our major lines of business for the three months ended March 31 are as follows (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2023 |  | 2022
Commercial | ​ | $ | 1,412 | ​ | $ | 1,287
Industrial | ​ |  | 933 | ​ |  | 836
Residential | ​ |  | 854 | ​ |  | 805
Other collection | ​ |  | 172 | ​ |  | 153
Total collection | ​ |  | 3,371 | ​ |  | 3,081
Landfill | ​ |  | 1,152 | ​ |  | 1,051
Transfer | ​ |  | 540 | ​ |  | 486
Recycling | ​ |  | 358 | ​ |  | 453
Other (a) | ​ |  | 613 | ​ |  | 575
Intercompany (b) | ​ |  | (1,142) | ​ |  | (985)
Total | ​ | $ | 4,892 | ​ | $ | 4,661
(a) | The “Other” line of business includes (i) certain services provided by our WMSBS business; (ii) certain services within our sustainability business including our landfill gas to energy operations managed by our WM Renewable Energy business and (iii) certain other expanded service offerings and solutions and reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. Revenue attributable to collection, landfill, transfer and recycling services provided by our “Other” businesses has been reflected as a component of the relevant line of business for purposes of presentation in this table.
(b) | Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included within this report.

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- Definition Tabular disclosure of entity-wide revenues from external customers for each product or service or each group of similar products or services if the information is not provided as part of the reportable operating segment information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 + Details
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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8813-108599 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI https://asc.fasb.org/extlink&oid=121556970&loc=d3e13816-109267 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599 + Details
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