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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 June 30, 2020

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)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol

    

Name of each exchange on which registered

Common Stock, $0.01 par value

WM

New York Stock Exchange

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 July 27, 2020 was 422,461,187 (excluding treasury shares of 207,821,274).

PART I.

Item 1.    Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions, Except Share and Par Value Amounts)

June 30, 

December 31, 

    

2020

    

2019

(Unaudited)

ASSETS

Current assets:

 

 

  

Cash and cash equivalents

$

2,663

$

3,561

Accounts receivable, net of allowance for doubtful accounts of $46 and $28, respectively

 

1,888

 

1,949

Other receivables, net of allowance for doubtful accounts of $2 and $1, respectively

 

219

 

370

Parts and supplies

 

118

 

106

Other assets

 

218

 

223

Total current assets

 

5,106

 

6,209

Property and equipment, net of accumulated depreciation and amortization of $19,031 and $18,657, respectively

 

12,917

 

12,893

Goodwill

 

6,512

 

6,532

Other intangible assets, net

 

472

 

521

Restricted trust and escrow accounts

 

382

 

313

Investments in unconsolidated entities

 

439

 

483

Other assets

 

791

 

792

Total assets

$

26,619

$

27,743

LIABILITIES AND EQUITY

Current liabilities:

 

  

 

  

Accounts payable

$

904

$

1,065

Accrued liabilities

 

1,184

 

1,327

Deferred revenues

 

494

 

534

Current portion of long-term debt

 

3,190

 

218

Total current liabilities

 

5,772

 

3,144

Long-term debt, less current portion

 

9,598

 

13,280

Deferred income taxes

 

1,367

 

1,407

Landfill and environmental remediation liabilities

 

2,030

 

1,930

Other liabilities

 

959

 

912

Total liabilities

 

19,726

 

20,673

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

 

5,040

 

5,049

Retained earnings

 

10,795

 

10,592

Accumulated other comprehensive income (loss)

 

(41)

 

(8)

Treasury stock at cost, 208,118,292 and 205,956,366 shares, respectively

 

(8,909)

 

(8,571)

Total Waste Management, Inc. stockholders’ equity

 

6,891

 

7,068

Noncontrolling interests

 

2

 

2

Total equity

 

6,893

 

7,070

Total liabilities and equity

$

26,619

$

27,743

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

Six Months Ended

June 30, 

June 30, 

    

2020

    

2019

    

2020

    

2019

Operating revenues

$

3,561

$

3,946

$

7,290

$

7,642

Costs and expenses:

 

  

 

  

Operating

 

2,180

 

2,443

 

4,509

 

4,741

Selling, general and administrative

 

377

 

391

 

802

 

800

Depreciation and amortization

 

414

 

409

 

816

 

775

Restructuring

 

2

 

 

2

 

2

(Gain) loss from divestitures, asset impairments and unusual items, net

 

61

 

7

 

61

 

7

 

3,034

 

3,250

 

6,190

 

6,325

Income from operations

 

527

 

696

 

1,100

 

1,317

Other income (expense):

 

  

 

Interest expense, net

 

(119)

 

(100)

 

(231)

 

(196)

Loss on early extinguishment of debt

(84)

(84)

Equity in net losses of unconsolidated entities

 

(14)

 

(16)

 

(40)

 

(25)

Other, net

 

1

 

1

 

1

 

(53)

 

(132)

 

(199)

 

(270)

 

(358)

Income before income taxes

 

395

 

497

 

830

 

959

Income tax expense

 

88

 

115

 

162

 

230

Consolidated net income

 

307

 

382

 

668

 

729

Less: Net income (loss) attributable to noncontrolling interests

 

 

1

 

 

1

Net income attributable to Waste Management, Inc.

$

307

$

381

$

668

$

728

Basic earnings per common share

$

0.73

$

0.90

$

1.58

$

1.71

Diluted earnings per common share

$

0.72

$

0.89

$

1.57

$

1.70

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Millions)

(Unaudited)

Three Months Ended

Six Months Ended

June 30, 

June 30, 

    

2020

    

2019

    

2020

    

2019

Consolidated net income

$

307

$

382

$

668

$

729

Other comprehensive income (loss), net of tax:

 

  

 

  

 

  

 

  

Derivative instruments, net

 

3

 

2

 

5

 

4

Available-for-sale securities, net

 

14

 

4

 

5

 

9

Foreign currency translation adjustments

 

34

 

25

 

(42)

 

53

Post-retirement benefit obligation, net

 

(1)

 

(1)

 

(1)

Other comprehensive income (loss), net of tax

 

50

31

 

(33)

 

65

Comprehensive income

 

357

 

413

 

635

 

794

Less: Comprehensive loss attributable to noncontrolling interests

 

1

 

 

1

Comprehensive income attributable to Waste Management, Inc.

$

357

$

412

$

635

$

793

See Notes to Condensed Consolidated Financial Statements.

3

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

(Unaudited)

Six Months Ended

June 30, 

    

2020

    

2019

Cash flows from operating activities:

 

 

  

  

Consolidated net income

 

$

668

$

729

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

 

 

  

Depreciation and amortization

 

816

 

775

Deferred income tax benefit

 

(35)

 

(12)

Interest accretion on landfill liabilities

 

49

 

47

Provision for bad debts

 

36

 

19

Equity-based compensation expense

 

23

 

43

Net gain on disposal of assets

 

(7)

 

(5)

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

 

68

 

78

Equity in net losses of unconsolidated entities, net of dividends

 

33

 

25

Loss on early extinguishment of debt

84

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

 

  

 

  

Receivables

 

185

 

19

Other current assets

 

(1)

 

(5)

Other assets

 

14

 

4

Accounts payable and accrued liabilities

 

(171)

 

127

Deferred revenues and other liabilities

 

(57)

 

(28)

Net cash provided by operating activities

 

1,621

 

1,900

Cash flows from investing activities:

 

  

 

  

Acquisitions of businesses, net of cash acquired

 

(1)

 

(440)

Capital expenditures

 

(895)

 

(1,049)

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

 

15

 

20

Other, net

 

(37)

 

(96)

Net cash used in investing activities

 

(918)

 

(1,565)

Cash flows from financing activities:

 

  

 

  

New borrowings

 

 

3,971

Debt repayments

 

(705)

 

(385)

Premiums paid on early extinguishment of debt

(84)

Net commercial paper borrowings (repayments)

 

 

(1,001)

Common stock repurchase program

 

(402)

 

(248)

Cash dividends

 

(466)

 

(440)

Exercise of common stock options

 

42

 

45

Tax payments associated with equity-based compensation transactions

 

(34)

 

(30)

Other, net

 

(10)

 

(6)

Net cash (used in) provided by financing activities

 

(1,575)

 

1,822

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

 

(3)

 

2

Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents

 

(875)

 

2,159

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

 

3,647

 

183

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

 

$

2,772

$

2,342

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

Cash and cash equivalents

$

2,663

$

2,250

Restricted cash and cash equivalents included in other current assets

41

18

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

68

74

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

 

$

2,772

$

2,342

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

Three Months Ended June 30:

2020

Balance, March 31, 2020

$

6,745

630,282

$

6

$

5,026

$

10,718

$

(91)

 

(208,287)

$

(8,916)

$

2

Consolidated net income

 

307

 

 

 

307

 

 

 

 

Other comprehensive income (loss), net of tax

 

50

 

 

 

 

50

 

 

 

Cash dividends declared of $0.545 per common share

 

(230)

 

 

 

(230)

 

 

 

 

Equity-based compensation transactions, net

 

21

 

 

14

 

 

 

169

 

7

 

Common stock repurchase program

 

 

 

 

 

 

 

 

Other, net

 

 

 

 

 

 

 

 

Balance, June 30, 2020

$

6,893

630,282

$

6

$

5,040

$

10,795

$

(41)

 

(208,118)

$

(8,909)

$

2

2019

Balance, March 31, 2019

$

6,417

630,282

$

6

$

4,978

$

9,924

$

(53)

 

(205,556)

$

(8,440)

$

2

Consolidated net income

 

382

 

 

 

381

 

 

 

 

1

Other comprehensive income (loss), net of tax

 

31

 

 

 

 

31

 

 

 

Cash dividends declared of $0.5125 per common share

 

(217)

 

 

 

(217)

 

 

 

 

Equity-based compensation transactions, net

 

36

 

 

20

 

 

 

387

 

16

 

Common stock repurchase program

 

(180)

 

 

(36)

 

 

 

(1,314)

 

(144)

 

Other, net

 

(2)

 

 

 

 

 

1

 

 

(2)

Balance, June 30, 2019

$

6,467

630,282

$

6

$

4,962

$

10,088

$

(22)

 

(206,482)

$

(8,568)

$

1

See Notes to Condensed Consolidated Financial Statements.

5

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ─ (Continued)

(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

Six Months Ended June 30:

2020

Balance, December 31, 2019

$

7,070

630,282

$

6

$

5,049

$

10,592

$

(8)

 

(205,956)

$

(8,571)

$

2

Adoption of new accounting standard

 

(2)

 

 

 

(2)

 

 

 

 

Consolidated net income

 

668

 

 

 

668

 

 

 

 

Other comprehensive income (loss), net of tax

 

(33)

 

 

 

 

(33)

 

 

 

Cash dividends declared of $1.09 per common share

 

(466)

 

 

 

(466)

 

 

 

 

Equity-based compensation transactions, net

 

58

 

 

(9)

 

3

 

 

1,523

 

64

 

Common stock repurchase program

 

(402)

 

 

 

 

 

(3,687)

 

(402)

 

Other, net

 

 

 

 

 

 

2

 

 

Balance, June 30, 2020

$

6,893

630,282

$

6

$

5,040

$

10,795

$

(41)

 

(208,118)

$

(8,909)

$

2

2019

Balance, December 31, 2018

$

6,276

630,282

$

6

$

4,993

$

9,797

$

(87)

 

(206,299)

$

(8,434)

$

1

Consolidated net income

 

729

 

 

 

728

 

 

 

 

1

Other comprehensive income (loss), net of tax

 

65

 

 

 

 

65

 

 

 

Cash dividends declared of $1.025 per common share

 

(440)

 

 

 

(440)

 

 

 

 

Equity-based compensation transactions, net

 

82

 

 

5

 

3

 

 

1,808

 

74

 

Common stock repurchase program

 

(244)

 

 

(36)

 

 

 

(1,993)

 

(208)

 

Other, net

 

(1)

 

 

 

 

 

2

 

 

(1)

Balance, June 30, 2019

$

6,467

630,282

$

6

$

4,962

$

10,088

$

(22)

 

(206,482)

$

(8,568)

$

1

See Notes to Condensed Consolidated Financial Statements.

6

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 13. 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 provide 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 7.

The Condensed Consolidated Financial Statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 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, 2019.

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.

Revenue Recognition

We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is collected, tons are received at our landfills or transfer stations, or recycling commodities are collected or delivered as product. We bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided. Substantially all our deferred revenues during the reported periods are realized as revenues within one to three months when the related services are performed.

7

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Contract Acquisition Costs

Our incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are generally deferred and amortized to selling, general and administrative expense over the estimated life of the relevant customer relationship, ranging from 5 to 13 years. Contract acquisition costs that are paid to the customer are deferred and amortized as a reduction in revenue over the contract life. Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and are included in other assets in our Condensed Consolidated Balance Sheet.

As of June 30, 2020 and December 31, 2019, we had $159 million and $153 million, respectively, of deferred contract costs, of which $117 million at each date was related to deferred sales incentives. During the three and six months ended June 30, 2020, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $3 million and $5 million of other contract acquisition costs as a reduction in revenue, respectively. During the three and six months ended June 30, 2019, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $5 million and $11 million of other contract acquisition costs as a reduction in revenue, respectively.

Leases

Amounts for our operating lease right-of-use assets are recorded in long-term other assets in our Condensed Consolidated Balance Sheets. The current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets. Amounts for our financing leases are recorded in property and equipment, net of accumulated depreciation, and current or long-term debt in our Condensed Consolidated Balance Sheets, as appropriate.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within our restricted trust and escrow accounts, and accounts receivable. We make efforts to control our exposure to credit risk associated with these instruments by (i) placing our assets and other financial interests with a diverse group of credit-worthy financial institutions; (ii) holding high-quality financial instruments while limiting investments in any one instrument and (iii) maintaining strict policies over credit extension that include credit evaluations, credit limits and monitoring procedures, although generally we do not have collateral requirements for credit extensions. We also control our exposure associated with trade receivables by discontinuing service, to the extent allowable, to non-paying customers. However, our overall credit risk associated with trade receivables is limited due to the large number and diversity of customers we serve.

Adoption of New Accounting Standards

Financial Instruments-Credit Losses — In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 associated with the measurement of credit losses on financial instruments. On January 1, 2020, we adopted this ASU using the modified retrospective transition method. The amended guidance replaced the previous 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. This expected loss model generally results in earlier recognition of an allowance for losses. We recognized a net $2 million after tax decrease to retained earnings as of January 1, 2020 for the cumulative impact of adopting the amended guidance.

Our receivables, which are recorded when billed, when services are performed or when cash is advanced, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for

8

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

doubtful accounts, represents the estimated net realizable value. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. Also, we recognize interest income on long-term interest-bearing notes receivable as the interest accrues under the terms of the notes. We no longer accrue interest once the notes are deemed uncollectible.

For trade receivables the Company relies upon, among other factors, historical loss trends, the age of outstanding receivables, and existing as well as expected economic conditions. Due to the adoption of ASU 2016-13, we recognized a $1 million pre-tax decrease to our allowance for doubtful accounts on trade receivables. We determined that all of our trade receivables share similar risk characteristics. We monitor our credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics.

In January 2020, a novel strain of coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern and subsequently declared a global pandemic in March 2020. Throughout the COVID-19 pandemic, the Company has proactively taken steps to put our employees’ and customers’ needs first and we continue to work with the appropriate regulatory agencies to ensure we can provide our essential waste services safely and efficiently. With this in mind, we have extended payment terms and postponed discontinuing service for customers who have been negatively impacted by the COVID-19 pandemic which has contributed to an increase in the aging of outstanding balances.

As of June 30, 2020, we had $1,888 million of trade receivables, net of allowance of $46 million. The allowance for doubtful accounts has increased by $18 million during 2020, largely due to the COVID-19 pandemic. Based on an aging analysis as of June 30, 2020, approximately 85% of our trade receivables were outstanding less than 60 days.

The following table reflects the activity in our allowance for doubtful accounts of trade receivables for the six months ended June 30 (in millions):

    

2020

    

2019

Balance as of January 1,

$

28

$

29

Adoption of new accounting standard

 

(1)

 

Additions charged to expense

 

36

 

19

Accounts written-off, net of recoveries

 

(16)

 

(23)

Acquisitions, divestitures and other, net

 

(1)

 

3

Balance as of June 30,

$

46

$

28

For other receivables as well as loans and other instruments, the Company relies primarily on credit ratings and associated default rates based on the maturity of the instrument. All receivables, as well as other instruments, are adjusted for our expectation of future market conditions and trends. Due to the adoption of ASU 2016-13, we recognized a $4 million pre-tax increase to our allowance for doubtful accounts on notes and other receivables. As of June 30, 2020, we had $386 million of notes and other receivables, net of allowance of $4 million. Based on an aging analysis as of June 30, 2020, approximately 55% of our other receivables were due within 12 months or less.

Implementation Costs Incurred in a Cloud Computing Arrangement — In August 2018, the FASB issued ASU 2018-15 associated with a customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs for implementation activities in the application development stage are capitalized as prepayments depending on the nature of the costs, while costs incurred during the preliminary project and post-implementation stages are expensed as the activities are performed. The Company adopted this amended guidance on January 1, 2020 prospectively, and it did not have a material impact on our consolidated financial statements.

9

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Guarantor Financial Information In March 2020, the SEC adopted final rules that simplify the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rules 3-10 and 3-16, permitting registrants to provide certain alternative financial disclosures and non-financial disclosures in lieu of separate consolidating financial statements for subsidiary issuers and guarantors of registered debt securities (which we previously included within the notes to our financial statements included in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q) if certain conditions are met. The disclosure requirements, as amended, are now located in newly-created Rules 13-01 and 13-02 of Regulation S-X and are generally effective for filings on or after January 4, 2021, with early adoption permitted. We early adopted the new disclosure requirements effective as of April 1, 2020 and are providing the summarized financial information and related disclosures in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

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):

June 30, 2020

December 31, 2019

Environmental

Environmental

    

Landfill

    

Remediation

    

Total

    

Landfill

    

Remediation

    

Total

Current (in accrued liabilities)

 

$

108

$

26

$

134

$

138

$

27

$

165

Long-term

 

1,814

 

216

 

2,030

  

 

1,717

 

213

 

1,930

 

$

1,922

$

242

$

2,164

$