wm_Current_Folio_10Q

 

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

 

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the Quarterly Period Ended March 31, 2019

 

 

or

 

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the transition period from              to

 

 

Commission file number 1-12154

 

Waste Management, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware

73-1309529

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

1001 Fannin Street

Houston, Texas 77002

(Address of principal executive offices)

 

(713) 512-6200

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   No 

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   No 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

 

 

Emerging growth company 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes   No 

 

The number of shares of Common Stock, $0.01 par value, of the registrant outstanding at April 22, 2019 was 424,759,439 (excluding treasury shares of 205,523,022).

 

 

 


 

 

PART I.

Item 1.    Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions, Except Share and Par Value Amounts)

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2019

    

2018

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

  

Cash and cash equivalents

 

$

57

 

$

61

Accounts receivable, net of allowance for doubtful accounts of $30 and $29, respectively

 

 

1,830

 

 

1,931

Other receivables

 

 

251

 

 

344

Parts and supplies

 

 

105

 

 

102

Other assets

 

 

245

 

 

207

Total current assets

 

 

2,488

 

 

2,645

Property and equipment, net of accumulated depreciation and amortization of $18,355 and $18,264, respectively

 

 

12,390

 

 

11,942

Goodwill

 

 

6,479

 

 

6,430

Other intangible assets, net

 

 

570

 

 

572

Restricted trust and escrow accounts

 

 

366

 

 

296

Investments in unconsolidated entities

 

 

334

 

 

406

Other assets

 

 

746

 

 

359

Total assets

 

$

23,373

 

$

22,650

LIABILITIES AND EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

  

 

 

  

Accounts payable

 

$

899

 

$

1,037

Accrued liabilities

 

 

1,158

 

 

1,117

Deferred revenues

 

 

512

 

 

522

Current portion of long-term debt

 

 

1,043

 

 

432

Total current liabilities

 

 

3,612

 

 

3,108

Long-term debt, less current portion

 

 

9,323

 

 

9,594

Deferred income taxes

 

 

1,297

 

 

1,291

Landfill and environmental remediation liabilities

 

 

1,866

 

 

1,828

Other liabilities

 

 

858

 

 

553

Total liabilities

 

 

16,956

 

 

16,374

Commitments and contingencies

 

 

  

 

 

  

Equity:

 

 

  

 

 

  

Waste Management, Inc. stockholders’ equity:

 

 

  

 

 

  

Common stock, $0.01 par value; 1,500,000,000 shares authorized; 630,282,461 shares issued

 

 

 6

 

 

 6

Additional paid-in capital

 

 

4,978

 

 

4,993

Retained earnings

 

 

9,924

 

 

9,797

Accumulated other comprehensive income (loss)

 

 

(53)

 

 

(87)

Treasury stock at cost, 205,555,810 and 206,299,352 shares, respectively

 

 

(8,440)

 

 

(8,434)

Total Waste Management, Inc. stockholders’ equity

 

 

6,415

 

 

6,275

Noncontrolling interests

 

 

 2

 

 

 1

Total equity

 

 

6,417

 

 

6,276

Total liabilities and equity

 

$

23,373

 

$

22,650

 

See Notes to Condensed Consolidated Financial Statements.

2

 


 

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except per Share Amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2019

    

2018

Operating revenues

 

$

3,696

 

$

3,511

Costs and expenses:

 

 

  

 

 

 

Operating

 

 

2,298

 

 

2,184

Selling, general and administrative

 

 

409

 

 

373

Depreciation and amortization

 

 

366

 

 

347

Restructuring

 

 

 2

 

 

 2

Net gain from divestitures

 

 

 —

 

 

(3)

 

 

 

3,075

 

 

2,903

Income from operations

 

 

621

 

 

608

Other income (expense):

 

 

  

 

 

 

Interest expense, net

 

 

(96)

 

 

(91)

Equity in net losses of unconsolidated entities

 

 

(9)

 

 

(7)

Other, net

 

 

(54)

 

 

 1

 

 

 

(159)

 

 

(97)

Income before income taxes

 

 

462

 

 

511

Income tax expense

 

 

115

 

 

116

Consolidated net income

 

 

347

 

 

395

Less: Net loss attributable to noncontrolling interests

 

 

 —

 

 

(1)

Net income attributable to Waste Management, Inc.

 

$

347

 

$

396

Basic earnings per common share

 

$

0.82

 

$

0.91

Diluted earnings per common share

 

$

0.81

 

$

0.91

 

 

 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2019

    

2018

Consolidated net income

 

$

347

 

$

395

Other comprehensive income (loss), net of tax:

 

 

  

 

 

  

Derivative instruments, net

 

 

 2

 

 

 2

Available-for-sale securities, net

 

 

 5

 

 

(1)

Foreign currency translation adjustments

 

 

28

 

 

(32)

Post-retirement benefit obligation, net

 

 

(1)

 

 

 —

Other comprehensive income (loss), net of tax

 

 

34

 

 

(31)

Comprehensive income

 

 

381

 

 

364

Less: Comprehensive loss attributable to noncontrolling interests

 

 

 —

 

 

(1)

Comprehensive income attributable to Waste Management, Inc.

 

$

381

 

$

365

 

See Notes to Condensed Consolidated Financial Statements.

 

3


 

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

March 31, 

 

    

2019

    

2018

Cash flows from operating activities:

 

 

  

 

 

  

Consolidated net income

 

$

347

 

$

395

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

 

 

 

 

 

  

Depreciation and amortization

 

 

366

 

 

347

Deferred income tax expense (benefit)

 

 

 1

 

 

(15)

Interest accretion on landfill liabilities

 

 

23

 

 

23

Provision for bad debts

 

 

10

 

 

12

Equity-based compensation expense

 

 

27

 

 

23

Net gain on disposal of assets

 

 

(2)

 

 

(5)

(Gain) loss from divestitures, asset impairments and other, net

 

 

55

 

 

(3)

Equity in net losses of unconsolidated entities, net of dividends

 

 

 9

 

 

 7

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

 

 

  

 

 

  

Receivables

 

 

212

 

 

183

Other current assets

 

 

(9)

 

 

(8)

Other assets

 

 

(3)

 

 

(1)

Accounts payable and accrued liabilities

 

 

(117)

 

 

(119)

Deferred revenues and other liabilities

 

 

(29)

 

 

(30)

Net cash provided by operating activities

 

 

890

 

 

809

Cash flows from investing activities:

 

 

  

 

 

  

Acquisitions of businesses, net of cash acquired

 

 

(394)

 

 

(246)

Capital expenditures

 

 

(471)

 

 

(400)

Proceeds from divestitures of businesses and other assets (net of cash divested)

 

 

12

 

 

14

Other, net

 

 

53

 

 

(5)

Net cash used in investing activities

 

 

(800)

 

 

(637)

Cash flows from financing activities:

 

 

  

 

 

  

New borrowings

 

 

 —

 

 

61

Debt repayments

 

 

(56)

 

 

(80)

Net commercial paper borrowings

 

 

357

 

 

471

Common stock repurchase program

 

 

(68)

 

 

(250)

Cash dividends

 

 

(223)

 

 

(206)

Exercise of common stock options

 

 

25

 

 

23

Tax payments associated with equity-based compensation transactions

 

 

(30)

 

 

(28)

Other, net

 

 

37

 

 

(29)

Net cash provided by (used in) financing activities

 

 

42

 

 

(38)

Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents

 

 

 —

 

 

(1)

Increase in cash, cash equivalents and restricted cash and cash equivalents

 

 

132

 

 

133

Cash, cash equivalents and restricted cash and cash equivalents at beginning of period

 

 

183

 

 

293

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

315

 

$

426

 

 

 

 

 

 

 

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:

 

 

 

 

 

 

Cash and cash equivalents

 

$

57

 

$

52

Restricted cash and cash equivalents included in other current assets

 

 

97

 

 

70

Restricted cash and cash equivalents included in restricted trust and escrow accounts

 

 

161

 

 

304

Cash, cash equivalents and restricted cash and cash equivalents at end of period

 

$

315

 

$

426

 

See Notes to Condensed Consolidated Financial Statements.

 

4


 

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(In Millions, Except Shares in Thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Waste Management, Inc. Stockholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

Paid-In

 

Retained

 

Comprehensive

 

Treasury Stock

 

Noncontrolling

 

  

Total

  

Shares

  

Amounts

  

Capital

  

Earnings

  

Income (Loss)

  

Shares

  

Amounts

  

Interests

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2018

 

$

6,276

 

630,282

 

$

 6

 

$

4,993

 

$

9,797

 

$

(87)

 

(206,299)

 

$

(8,434)

 

$

 1

Consolidated net income

 

 

347

 

 —

 

 

 —

 

 

 —

 

 

347

 

 

 —

 

 —

 

 

 —

 

 

 —

Other comprehensive income (loss), net of tax

 

 

34

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

34

 

 —

 

 

 —

 

 

 —

Cash dividends declared of $0.5125 per common share

 

 

(223)

 

 —

 

 

 —

 

 

 —

 

 

(223)

 

 

 —

 

 —

 

 

 —

 

 

 —

Equity-based compensation transactions, net

 

 

46

 

 —

 

 

 —

 

 

(15)

 

 

 3

 

 

 —

 

1,421

 

 

58

 

 

 —

Common stock repurchase program

 

 

(64)

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

(679)

 

 

(64)

 

 

 —

Other, net

 

 

 1

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 1

 

 

 —

 

 

 1

Balance, March 31, 2019

 

$

6,417

 

630,282

 

$

 6

 

$

4,978

 

$

9,924

 

$

(53)

 

(205,556)

 

$

(8,440)

 

$

 2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2017

 

$

6,042

 

630,282

 

$

 6

 

$

4,933

 

$

8,588

 

$

 8

 

(196,964)

 

$

(7,516)

 

$

23

Adoption of new accounting standards

 

 

80

 

 —

 

 

 —

 

 

 —

 

 

85

 

 

(5)

 

 —

 

 

 —

 

 

 —

Consolidated net income

 

 

395

 

 —

 

 

 —

 

 

 —

 

 

396

 

 

 —

 

 —

 

 

 —

 

 

(1)

Other comprehensive income (loss), net of tax

 

 

(31)

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

(31)

 

 —

 

 

 —

 

 

 —

Cash dividends declared of $0.465 per common share

 

 

(206)

 

 —

 

 

 —

 

 

 —

 

 

(206)

 

 

 —

 

 —

 

 

 —

 

 

 —

Equity-based compensation transactions, net

 

 

44

 

 —

 

 

 —

 

 

(17)

 

 

 4

 

 

 —

 

1,483

 

 

57

 

 

 —

Common stock repurchase program

 

 

(258)

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

(3,031)

 

 

(258)

 

 

 —

Other, net

 

 

(1)

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 

 —

 

 1

 

 

 —

 

 

(1)

Balance, March 31, 2018

 

$

6,065

 

630,282

 

$

 6

 

$

4,916

 

$

8,867

 

$

(28)

 

(198,511)

 

$

(7,717)

 

$

21

 

See Notes to Condensed Consolidated Financial Statements.

 

5


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

1.    Basis of Presentation

The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 14. Waste Management, Inc. is a holding company and all operations are conducted by its subsidiaries. When the terms “the Company,” “we,” “us” or “our” are used in this document, those terms refer to Waste Management, Inc., its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WM,” we are referring only to Waste Management, Inc., the parent holding company.

We are North America’s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our “Solid Waste” business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provides collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States (“U.S.”).

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments is included in Note 8.

The Condensed Consolidated Financial Statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in our Annual Report on Form 10‑K for the year ended December 31, 2018.

In preparing our financial statements, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with precision from available data or simply cannot be calculated. In some cases, these estimates are difficult to determine, and we must exercise significant judgment. In preparing our financial statements, the most difficult, subjective and complex estimates and the assumptions that present the greatest amount of uncertainty relate to our accounting for landfills, environmental remediation liabilities, long-lived asset impairments and reserves associated with our insured and self-insured claims. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.

Adoption of New Accounting Standard

Leases — In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016‑02 associated with lease accounting. There were further amendments, including practical expedients, with the issuance of ASU 2018-01 in January 2018,  ASU 2018-11 in July 2018 and ASU 2018-20 in December 2018. On January 1, 2019, we adopted these ASUs using the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. Accordingly, our financial statements for the reported periods after January 1, 2019 are presented under this amended guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance.

6

 


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance.  

The impact of adopting the amended guidance primarily relates to the recognition of lease assets and lease liabilities on the balance sheet for all leases previously classified as operating leases. We recognized $385 million of right-of-use assets and $385 million of related lease liabilities as of January 1, 2019 for our contracts that are classified as operating leases. Leases with an initial term of 12 months or less have not been recorded on the balance sheet. Our accounting for financing leases, which were formerly referred to as capital leases, remained substantially unchanged. There were no other material impacts on our consolidated financial statements. See Note 4 for additional information and disclosures related to our adoption of this amended guidance.

New Accounting Standard Pending Adoption 

Financial Instrument Credit Losses — In June 2016, the FASB issued ASU 2016‑13 associated with the measurement of credit losses on financial instruments. The amended guidance replaces the current incurred loss impairment methodology of recognizing credit losses when a loss is probable, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. The amended guidance is effective for the Company on January 1, 2020. We are assessing the provisions of this amended guidance and evaluating the impact on our consolidated financial statements.

Reclassifications

When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our consolidated financial statements.

2.    Landfill and Environmental Remediation Liabilities

Liabilities for landfill and environmental remediation costs are presented in the table below (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2019

 

December 31, 2018

 

 

 

 

 

Environmental

 

 

 

 

 

 

 

Environmental

 

 

 

 

    

Landfill

    

Remediation

    

Total

    

Landfill

    

Remediation

    

Total

Current (in accrued liabilities)

 

$

132

 

$

26

 

$

158

 

$

143

 

$

26

 

$

169

Long-term

 

 

1,659

 

 

207

 

 

1,866

  

 

1,617

 

 

211

 

 

1,828

 

 

$

1,791

 

$

233

 

$

2,024

 

$

1,760

 

$

237

 

$

1,997

 

The changes to landfill and environmental remediation liabilities for the three months ended March 31, 2019 are reflected in the table below (in millions):

 

 

 

 

 

 

 

 

 

 

 

 

Environmental

 

    

Landfill

    

Remediation

December 31, 2018

 

$

1,760

 

$

237

Obligations incurred and capitalized

 

 

17

  

 

 —

Obligations settled

 

 

(13)

  

 

(5)

Interest accretion

 

 

23

  

 

 1

Revisions in estimates and interest rate assumptions

 

 

 1

  

 

 —

Acquisitions, divestitures and other adjustments

 

 

 3

  

 

 —

March 31, 2019

 

$

1,791

 

$

233

 

7


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling our final capping, closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements. See Note 14 for additional information related to these trusts.

3.    Debt

The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of March 31, 2019:

 

 

 

 

 

 

 

 

 

March 31, 

 

December 31, 

 

    

2019

    

2018

$2.75 billion revolving credit facility (weighted average interest rate of 3.1% as of December 31, 2018)

 

$

 —

 

$

11

Commercial paper program (weighted average interest rate of 2.8% as of March 31, 2019 and 2.9% as of December 31, 2018)

 

 

1,354

 

 

990

Senior notes, maturing through 2045, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 4.3% as of March 31, 2019 and December 31, 2018)

 

 

6,222

 

 

6,222

Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 1.35% to 4.3% (weighted average interest rate of 2.4% as of March 31, 2019 and 2.35% as of December 31, 2018)

 

 

2,354

 

 

2,388

Financing leases and other, maturing through 2040, interest rates up to 9%

 

 

486

 

 

467

Debt issuance costs, discounts and other

 

 

(50)

 

 

(52)

 

 

 

10,366

 

 

10,026

Current portion of long-term debt

 

 

1,043

 

 

432

 

 

$

9,323

 

$

9,594

 

Debt Classification

As of March 31, 2019, we had $2.2 billion of debt maturing within the next 12 months, including (i) $1.4 billion of short-term borrowings under our commercial paper program; (ii) $680 million of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities and (iii) $139 million of other debt with scheduled maturities within the next 12 months, including $72 million of tax-exempt bonds. Of the $1.4 billion of short-term borrowings outstanding under our commercial paper program as of March 31, 2019 that are supported by our long-term U.S. and Canadian revolving credit facility (“$2.75 billion revolving credit facility”), we have the intent and ability to refinance or maintain approximately $450 million of these borrowings on a long-term basis and we have classified these amounts as long-term debt. As of March 31, 2019, we have classified an additional $680 million of debt maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $2.75 billion revolving credit facility, as discussed below. The remaining $1.0 billion is classified as current obligations. 

As of March 31, 2019, we also have $268 million of variable-rate tax-exempt bonds that are supported by letters of credit under our $2.75 billion revolving credit facility. The interest rates on our variable-rate tax-exempt bonds are generally reset on either a daily or weekly basis through a remarketing process. All recent tax-exempt bond remarketings have successfully placed Company bonds with investors at market-driven rates and we currently expect future remarketings to be successful. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the availability under our $2.75 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have also classified these borrowings as long-term in our Condensed Consolidated Balance Sheet as of March 31, 2019.

8


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

Access to and Utilization of Credit Facilities and Commercial Paper Program

$2.75 Billion Revolving Credit Facility — Our $2.75 billion revolving credit facility provides us with credit capacity to be used for either cash borrowings or to support letters of credit or commercial paper. The rates we pay for outstanding U.S. or Canadian loans are generally based on LIBOR or CDOR, respectively, plus a spread depending on the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. As of March 31, 2019, we had no borrowings outstanding under this facility. We had $572 million of letters of credit issued and $1.4 billion of outstanding borrowings under our commercial paper program, both supported by this facility, leaving unused and available credit capacity of $824 million as of March 31, 2019. WM Holdings, a wholly-owned subsidiary of WM, guarantees all of the obligations under the $2.75 billion revolving credit facility.

Commercial Paper Program — We have a commercial paper program that enables us to borrow funds for up to 397 days at competitive interest rates. The rates we pay for outstanding borrowings are based on the term of the notes. The commercial paper program is fully supported by our $2.75 billion revolving credit facility. As of March 31, 2019, we had $1.4 billion of outstanding borrowings under our commercial paper program.

Other Letter of Credit Facilities — As of March 31, 2019, we utilized $542 million of other letter of credit facilities, which are both committed and uncommitted, with terms maturing through December 2020.

Debt Borrowings and Repayments

$2.75 Billion Revolving Credit Facility — During the three months ended March 31, 2019, we repaid C$15 million, or $11 million, of Canadian borrowings under our $2.75 billion revolving credit facility with available cash.

Commercial Paper Program — During the three months ended March 31, 2019, we had net cash borrowings of $357 million (net of the related discount on issuance). The proceeds from these borrowings were primarily used to support our acquisition of Petro Waste Environmental LP (“Petro Waste”),  which is discussed further in Note 9, and for general corporate purposes.

Tax-Exempt Bonds — During the three months ended March 31, 2019, we repaid $34 million of our tax-exempt bonds with available cash.

Financing Leases and Other — The increase during the three months ended March 31, 2019, is primarily related to $30 million of non-cash financing arrangements, partially offset by $11 million of net cash repayments of debt at maturity.

4.    Leases

Our operating lease activities primarily consist of leases for real estate, landfills and heavy equipment. Our financing lease activities primarily consist of leases for heavy equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms generally ranging from one to 10 years. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on usage and other lease agreements include rental payments adjusted periodically for inflation; these payments are treated as variable lease payments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

9


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

Supplemental balance sheet information as of March 31, 2019 for our leases is as follows (in millions):

 

 

 

 

 

 

Leases

    

Classification

    

 

 

Assets

 

 

 

 

 

Long-term:

 

 

 

 

 

Operating

 

Other assets

 

$

388

Financing

 

Property and equipment, net of accumulated depreciation and amortization

 

 

228

Total lease assets

 

 

 

$

616

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Current:

 

 

 

 

 

Operating

 

Accrued liabilities

 

$

85

Financing

 

Current portion of long-term debt

 

 

22

Long-term:

 

 

 

 

 

Operating

 

Other liabilities

 

 

303

Financing

 

Long-term debt, less current portion

 

 

185

Total lease liabilities

 

 

 

$

595

 

Our operating lease expense for the three months ended March 31, 2019 was $28 million and is included in operating and selling, general and administrative expenses in our Condensed Consolidated Statement of Operations. Our financing lease expense for the three months ended March 31, 2019 was $14 million and is included in depreciation and amortization expense and interest expense, net in our Condensed Consolidated Statement of Operations.

Minimum contractual obligations for our leases (undiscounted) as of March 31, 2019 are as follows (in millions):

 

 

 

 

 

 

 

 

    

 

Operating(a)

    

 

Financing(a)

2019 (excluding three months ended March 31, 2019)

 

$

67

 

$

28

2020

 

 

82

 

 

34

2021

 

 

59

 

 

31

2022

 

 

46

 

 

31

2023

 

 

42

 

 

29

Thereafter

 

 

414

 

 

188

Total

 

$

710

 

$

341


(a)

Includes $167 million and $61 million of undiscounted future minimum obligations related to additional operating and financing leases, respectively, which have not yet commenced.

Cash paid for our operating and financing leases was $22 million and $8 million, respectively, for the three months ended March 31, 2019. Right-of-use assets obtained in exchange for lease obligations for our operating leases were $23 million for the three months ended March 31, 2019. The amount related to our financing leases was not material to our consolidated financial statements.

As of March 31, 2019, the weighted average remaining lease terms of our operating and financing leases  were 16 years and 12 years, respectively. The weighted average discount rates used to determine the lease liabilities as of March 31, 2019 for our operating and financing leases were 3.75% and 4.33%, respectively.

10


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

5.    Income Taxes

Our effective income tax rate for the three months ended March 31, 2019 and 2018 was 24.8% and 22.7%, respectively. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant. The differences between federal income taxes computed at the federal statutory rate and reported income taxes for the three months ended March 31, 2019 and 2018  were primarily due to the unfavorable impact of state and local income taxes offset, in part, by the favorable impact of federal tax credits and excess tax benefits related to equity-based compensation. The three months ended March  31, 2019 was also unfavorably impacted by an impairment as discussed below.

Investments Qualifying for Federal Tax Credits — We have significant financial interests in entities established to invest in and manage low-income housing properties and a refined coal facility. We support the operations of these entities in exchange for a pro-rata share of the tax credits they generate. The low-income housing investments and the coal facility’s refinement processes qualify for federal tax credits that we expect to realize through 2030 under Sections 42 and 45D, and through 2019 under Section 45, respectively, of the Internal Revenue Code.

We account for our investments in these entities using the equity method of accounting, recognizing our share of each entity’s results of operations and other reductions in the value of our investments in equity in net losses of unconsolidated entities, in our Condensed Consolidated Statements of Operations. During the three months ended March 31, 2019 and 2018, we recognized $9 million and $6 million of net losses and a reduction in our income tax expense of $15 million and $10 million, respectively, primarily because of tax credits realized from these investments. Interest expense associated with our investments in low-income housing properties was not material for the periods presented. See Note 14 for additional information related to these unconsolidated variable interest entities.

Tax Implications of Impairment  — We recognized a $52 million impairment charge during the three months ended March 31, 2019 which was not deductible for tax purposes. See Note 10 for additional information.

6.    Earnings Per Share

Basic and diluted earnings per share for the three months ended March 31 were computed using the following common share data (shares in millions):

 

 

 

 

 

 

    

2019

    

2018

Number of common shares outstanding at end of period

 

424.7

 

431.8

Effect of using weighted average common shares outstanding

 

(0.2)

 

1.5

Weighted average basic common shares outstanding

 

424.5

 

433.3

Dilutive effect of equity-based compensation awards and other contingently issuable shares

 

2.4

 

2.5

Weighted average diluted common shares outstanding

 

426.9

 

435.8

Potentially issuable shares

 

7.6

 

8.2

Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding

 

3.0

 

3.0

 

 

7.    Commitments and Contingencies

Financial Instruments — We have obtained letters of credit, surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill final capping, closure and post-closure requirements, environmental remediation and other obligations. Letters of credit generally are supported by our $2.75 billion revolving credit facility and other credit facilities established for that purpose. These facilities are discussed further in Note 3. Surety bonds and insurance policies are supported by (i) a diverse group of third-

11


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

party surety and insurance companies; (ii) an entity in which we have a noncontrolling financial interest or (iii) a wholly-owned insurance captive, the sole business of which is to issue surety bonds and/or insurance policies on our behalf.

Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our financial condition, results of operations or cash flows. We have not experienced any unmanageable difficulty in obtaining the required financial assurance instruments for our current operations. In an ongoing effort to mitigate risks of future cost increases and reductions in available capacity, we continue to evaluate various options to access cost-effective sources of financial assurance.

Insurance — We carry insurance coverage for protection of our assets and operations from certain risks including general liability, automobile liability, workers’ compensation, real and personal property, directors’ and officers’ liability, pollution legal liability and other coverages we believe are customary to the industry. Our exposure to loss for insurance claims is generally limited to the per incident deductible under the related insurance policy. Our exposure could increase if our insurers are unable to meet their commitments on a timely basis.

We have retained a significant portion of the risks related to our general liability, automobile liability and workers’ compensation claims programs. “General liability” refers to the self-insured portion of specific third-party claims made against us that may be covered under our commercial General Liability Insurance Policy. For our self-insured portions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation or internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from such valuations and estimates. We use a wholly-owned insurance captive to insure the deductibles for our general liability, automobile liability and workers’ compensation claims programs.

We do not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on our financial condition, results of operations or cash flows.

Guarantees — In the ordinary course of our business, WM and WM Holdings enter into guarantee agreements associated with their subsidiaries’ operations. Additionally, WM and WM Holdings have each guaranteed all of the senior debt of the other entity. No additional liabilities have been recorded for these intercompany guarantees because all of the underlying obligations are reflected in our Condensed Consolidated Balance Sheets. See Note 15 for additional information.

As of March 31, 2019, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including (i) guarantees to cover certain market value losses for approximately 775 homeowners’ properties adjacent to or near 18 of our landfills and (ii) guarantees totaling $73 million for performance obligations of our Wheelabrator business, divested in 2014. In February 2019, Wheelabrator was acquired by a third party, at which time we agreed to continue to provide such guarantees through July 2019. We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets or other market conditions are achieved post-closing, and we have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. We do not believe that these contingent obligations will have a material adverse effect on the Company’s financial condition, results of operations or cash flows, and we do not expect the financial impact of operational and financial performance guarantees to materially exceed the recorded fair value.

Environmental Matters — A significant portion of our operating costs and capital expenditures could be characterized as costs of environmental protection. The nature of our operations, particularly with respect to the construction, operation and maintenance of our landfills, subjects us to an array of laws and regulations relating to the protection of the environment. Under current laws and regulations, we may have liabilities for environmental damage caused by our operations, or for damage caused by conditions that existed before we acquired a site. In addition to remediation activity

12


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

required by state or local authorities, such liabilities include potentially responsible party (“PRP”) investigations. The costs associated with these liabilities can include settlements, certain legal and consultant fees, as well as incremental internal and external costs directly associated with site investigation and clean-up.

Estimating our degree of responsibility for remediation is inherently difficult. We recognize and accrue for an estimated remediation liability when we determine that such liability is both probable and reasonably estimable. Determining the method and ultimate cost of remediation requires that a number of assumptions be made. There can sometimes be a range of reasonable estimates of the costs associated with the likely site remediation alternatives identified in the environmental impact investigation. In these cases, we use the amount within the range that is our best estimate. If no amount within a range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we used the high ends of such ranges, our aggregate potential liability would be approximately $140 million higher than the $233 million recorded in the Condensed Consolidated Balance Sheet as of March 31, 2019. Our ultimate responsibility may differ materially from current estimates. It is possible that technological, regulatory or enforcement developments, the results of environmental studies, the inability to identify other PRPs, the inability of other PRPs to contribute to the settlements of such liabilities, or other factors could require us to record additional liabilities. Our ongoing review of our remediation liabilities, in light of relevant internal and external facts and circumstances, could result in revisions to our accruals that could cause upward or downward adjustments to our balance sheet and income from operations. These adjustments could be material in any given period.

As of March 31, 2019, we have been notified by the government that we are a PRP in connection with 75 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List (“NPL”). Of the 75 sites at which claims have been made against us, 15 are sites we own. Each of the NPL sites we own was initially developed by others as a landfill disposal facility. At each of these facilities, we are working in conjunction with the government to evaluate or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement. We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures. The other 60 NPL sites, which we do not own, are at various procedural stages under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, known as CERCLA or Superfund.

The majority of proceedings involving NPL sites that we do not own are based on allegations that certain of our subsidiaries (or their predecessors) transported hazardous substances to the sites, often prior to our acquisition of these subsidiaries. CERCLA generally provides for liability for those parties owning, operating, transporting to or disposing at the sites. Proceedings arising under Superfund typically involve numerous waste generators and other waste transportation and disposal companies and seek to allocate or recover costs associated with site investigation and remediation, which costs could be substantial and could have a material adverse effect on our consolidated financial statements. At some of the sites at which we have been identified as a PRP, our liability is well defined as a consequence of a governmental decision and an agreement among liable parties as to the share each will pay for implementing that remedy. At other sites, where no remedy has been selected or the liable parties have been unable to agree on an appropriate allocation, our future costs are uncertain.

On October 11, 2017, the EPA issued its Record of Decision (“ROD”) with respect to the previously proposed remediation plan for the San Jacinto waste pits in Harris County, Texas. McGinnes Industrial Maintenance Corporation (“MIMC”), an indirect wholly-owned subsidiary of WM, operated some of the waste pits from 1965 to 1966 and has been named as a site PRP. In 1998, WM acquired the stock of the parent entity of MIMC. MIMC has been working with the EPA and other named PRPs as the process of addressing the site proceeds. On April 9, 2018, MIMC and International Paper Company entered into an Administrative Order on Consent agreement with the EPA to develop a remedial design for the EPA’s selected remedy for the site. Allocation of responsibility among the PRPs for the selected remedy has not been established. As of March 31, 2019 and December 31, 2018, the recorded liability for MIMC’s estimated potential share of the EPA’s selected remedy and related costs was $55 million. MIMC’s ultimate liability could be materially different from current estimates.

13


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

Item 103 of the SEC’s Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings, or such proceedings are known to be contemplated, unless we reasonably believe that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $100,000. The following matters are disclosed in accordance with that requirement. We do not currently believe that the eventual outcome of any such matters, individually or in the aggregate, could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

On July 10, 2013, the EPA issued a Notice of Violation ("NOV") to Waste Management of Wisconsin, Inc., an indirect wholly-owned subsidiary of WM, alleging violations of the Resource Conservation Recovery Act concerning acceptance of certain waste that was not permitted to be disposed of at the Metro Recycling & Disposal Facility in Franklin, Wisconsin. The parties are exchanging information and working to resolve the NOV.

The Hawaii Department of Health and the EPA have asserted civil penalty claims against Waste Management of Hawaii, Inc. (“WMHI”), an indirect wholly-owned subsidiary of WM, based on stormwater discharges at the Waimanalo Gulch Sanitary Landfill following two major rainstorms in December 2010 and January 2011 and alleged violations of stormwater permit requirements prior to and after the storms. WMHI operates the landfill for the City and County of Honolulu.

From time to time, we are also named as defendants in personal injury and property damage lawsuits, including purported class actions, on the basis of having owned, operated or transported waste to a disposal facility that is alleged to have contaminated the environment or, in certain cases, on the basis of having conducted environmental remediation activities at sites. Some of the lawsuits may seek to have us pay the costs of monitoring of allegedly affected sites and health care examinations of allegedly affected persons for a substantial period of time even where no actual damage is proven. While we believe we have meritorious defenses to these lawsuits, the ultimate resolution is often substantially uncertain due to the difficulty of determining the cause, extent and impact of alleged contamination (which may have occurred over a long period of time), the potential for successive groups of complainants to emerge, the diversity of the individual plaintiffs’ circumstances, and the potential contribution or indemnification obligations of co-defendants or other third parties, among other factors. Additionally, we often enter into agreements with landowners imposing obligations on us to meet certain regulatory or contractual conditions upon site closure or upon termination of the agreements. Compliance with these agreements inherently involves subjective determinations and may result in disputes, including litigation.

Litigation — As a large company with operations across the U.S. and Canada, we are subject to various proceedings, lawsuits, disputes and claims arising in the ordinary course of our business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions that have been filed against us, and that may be filed against us in the future, include personal injury, property damage, commercial, customer, and employment-related claims, including purported state and national class action lawsuits related to: alleged environmental contamination, including releases of hazardous material and odors; sales and marketing practices, customer service agreements and prices and fees; and federal and state wage and hour and other laws. The plaintiffs in some actions seek unspecified damages or injunctive relief, or both. These actions are in various procedural stages, and some are covered, in part, by insurance. We currently do not believe that the eventual outcome of any such actions will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

WM’s charter and bylaws provide that WM shall indemnify against all liabilities and expenses, and upon request shall advance expenses to any person, who is subject to a pending or threatened proceeding because such person is or was a director or officer of the Company. Such indemnification is required to the maximum extent permitted under Delaware law. Accordingly, the director or officer must execute an undertaking to reimburse the Company for any fees advanced if it is later determined that the director or officer was not permitted to have such fees advanced under Delaware law. Additionally, the Company has direct contractual obligations to provide indemnification to each of the members of WM’s Board of Directors and each of WM’s executive officers. The Company may incur substantial expenses in connection with

14


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

the fulfillment of its advancement of costs and indemnification obligations in connection with actions or proceedings that may be brought against its former or current officers, directors and employees.

Multiemployer Defined Benefit Pension Plans — About 20% of our workforce is covered by collective bargaining agreements with various local unions across the U.S. and Canada. As a result of some of these agreements, certain of our subsidiaries are participating employers in a number of trustee-managed multiemployer defined benefit pension plans (“Multiemployer Pension Plans”) for the covered employees. In connection with our ongoing renegotiation of various collective bargaining agreements, we may discuss and negotiate for the complete or partial withdrawal from one or more of these Multiemployer Pension Plans. A complete or partial withdrawal from a Multiemployer Pension Plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them. Any other circumstance resulting in a decline in Company contributions to a Multiemployer Pension Plan through a reduction in the labor force, whether through attrition over time or through a business event (such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or discontinuance of certain operations) may also trigger a complete or partial withdrawal from one or more of these pension plans.

We do not believe that any future liability relating to our past or current participation in, or withdrawals from, the Multiemployer Pension Plans to which we contribute will have a material adverse effect on our business, financial condition or liquidity. However, liability for future withdrawals could have a material adverse effect on our results of operations or cash flows for a particular reporting period, depending on the number of employees withdrawn and the financial condition of the Multiemployer Pension Plan(s) at the time of such withdrawal(s).

Tax Matters — We participate in the IRS’s Compliance Assurance Process, which means we work with the IRS throughout the year towards resolving any material issues prior to the filing of our annual tax return. Any unresolved issues as of the tax return filing date are subject to routine examination procedures. We are currently in the examination phase of IRS audits for the 2017 through 2019 tax years and expect these audits to be completed within the next 24 months. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2013.  Additionally, we are under audit by the Canada Revenue Agency for the 2014 tax year. We maintain a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse effect on our financial condition, results of operations or cash flows.

8.    Segment and Related Information

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. The 17 Areas constitute our operating segments and we have evaluated the aggregation criteria and concluded that, based on the similarities between our Areas, including the fact that our Solid Waste business is homogenous across geographies with the same services offered across the Areas, aggregation of our Areas is appropriate for purposes of presenting our reportable segments. Accordingly, we have aggregated our 17 Areas into three tiers that we believe have similar economic characteristics and future prospects based in large part on a review of the Areas’ income from operations margins. The economic variations experienced by our Areas are attributable to a variety of factors, including regulatory environment of the Area; economic environment of the Area, including level of commercial and industrial activity; population density; service offering mix and disposal logistics, with no one factor being singularly determinative of an Area’s current or future economic performance.

Tier 1 is comprised of our operations across the Southern U.S., with the exception of Southern California and the Florida peninsula, and also includes the New England states, the tri-state area of Michigan, Indiana and Ohio, and Western Canada. Tier 2 includes Southern California, Eastern Canada, Wisconsin and Minnesota. Tier 3 encompasses all the remaining operations including the Pacific Northwest and Northern California, the Mid-Atlantic region of the U.S., the Florida peninsula, Illinois and Missouri.

15


 

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

The operating segments not evaluated and overseen through the 17 Areas are presented herein as “Other” as these operating segments do not meet the criteria to be aggregated with other operating segments and do not meet the quantitative criteria to be separately reported.

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

    

Revenues

    

Operations

2019

 

 

  

 

 

  

 

 

  

 

 

  

Solid Waste:

 

 

  

 

 

  

 

 

  

 

 

  

Tier 1

 

$

1,486

 

$

(271)

 

$

1,215

 

$

394

Tier 2

 

 

643

 

 

(121)

 

 

522

 

 

136

Tier 3

 

 

1,736

 

 

(334)

 

 

1,402

 

 

313

Solid Waste

 

 

3,865

 

 

(726)

 

 

3,139

 

 

843

Other (a)

 

 

588

 

 

(31)

 

 

557

 

 

(28)

 

 

 

4,453

 

 

(757)

 

 

3,696

 

 

815

Corporate and Other

 

 

 —

 

 

 —

 

 

 —

 

 

(194)

Total

 

$

4,453

 

$

(757)

 

$

3,696

 

$

621

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

  

 

 

  

 

 

  

 

 

  

Solid Waste:

 

 

  

 

 

  

 

 

  

 

 

  

Tier 1

 

$

1,373

 

$

(241)

 

$

1,132

 

$

365

Tier 2

 

 

613