0001558370-21-013486 | 10-Q | XBRL Viewer

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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2021	Oct. 21, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2021
Entity File Number	1-12154
Entity Registrant Name	Waste Management, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1309529
Entity Address, Address Line One	800 Capitol Street
Entity Address, City or Town	Houston
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	77002
City Area Code	713
Local Phone Number	512-6200
Title of 12(b) Security	Common Stock
Trading Symbol	WM
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		418,316,357
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000823768
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 116	$ 553
Accounts receivable, net of allowance for doubtful accounts of $27 and $33, respectively	2,323	2,097
Other receivables, net of allowance for doubtful accounts of $8 and $7, respectively	346	527
Parts and supplies	132	124
Other assets	267	239
Total current assets	3,184	3,540
Property and equipment, net of accumulated depreciation and amortization of $20,351 and $19,337, respectively	14,083	14,148
Goodwill	9,006	8,994
Other intangible assets, net	919	1,024
Restricted trust and escrow accounts	370	347
Investments in unconsolidated entities	402	426
Other assets	877	866
Total assets	28,841	29,345
Current liabilities:
Accounts payable	1,466	1,121
Accrued liabilities	1,473	1,342
Deferred revenues	562	539
Current portion of long-term debt	601	551
Total current liabilities	4,102	3,553
Long-term debt, less current portion	12,446	13,259
Deferred income taxes	1,708	1,806
Landfill and environmental remediation liabilities	2,345	2,222
Other liabilities	1,066	1,051
Total liabilities	21,667	21,891
Commitments and contingencies (Note 6)
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	5,111	5,129
Retained earnings	11,740	11,159
Accumulated other comprehensive income (loss)	12	39
Treasury stock at cost, 211,996,311 and 207,480,827 shares, respectively	(9,697)	(8,881)
Total Waste Management, Inc. stockholders' equity	7,172	7,452
Noncontrolling interests	2	2
Total equity	7,174	7,454
Total liabilities and equity	$ 28,841	$ 29,345

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 27	$ 33
Allowance for other receivables	8	7
Accumulated depreciation and amortization	$ 20,351	$ 19,337
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,500,000,000	1,500,000,000
Common stock, shares issued	630,282,461	630,282,461
Treasury stock, shares	211,996,311	207,480,827

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Operating revenues	$ 4,665	$ 3,861	$ 13,253	$ 11,151
Costs and expenses:
Operating	2,906	2,332	8,156	6,841
Selling, general and administrative	469	416	1,372	1,218
Depreciation and amortization	517	419	1,489	1,235
Restructuring	1	7	6	9
(Gain) loss from divestitures, asset impairments and unusual items, net	(34)	7	(17)	68
Total costs and expenses	3,859	3,181	11,006	9,371
Income from operations	806	680	2,247	1,780
Other income (expense):
Interest expense, net	(87)	(97)	(282)	(328)
Loss on early extinguishment of debt		(52)	(220)	(52)
Equity in net losses of unconsolidated entities	(14)	(16)	(34)	(56)
Other, net	1	1	(4)	2
Total other income (expense)	(100)	(164)	(540)	(434)
Income before income taxes	706	516	1,707	1,346
Income tax expense	167	126	396	288
Consolidated net income	539	390	1,311	1,058
Less: Net income (loss) attributable to noncontrolling interests	1		1
Net income attributable to Waste Management, Inc.	$ 538	$ 390	$ 1,310	$ 1,058
Basic earnings per common share	$ 1.28	$ 0.92	$ 3.11	$ 2.50
Diluted earnings per common share	$ 1.28	$ 0.92	$ 3.09	$ 2.49

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Consolidated net income	$ 539	$ 390	$ 1,311	$ 1,058
Other comprehensive income (loss), net of tax:
Derivative instruments, net	1	4	8	9
Available-for-sale securities, net	(1)	2	(3)	7
Foreign currency translation adjustments	(57)	19	(31)	(23)
Post-retirement benefit obligations, net	(1)		(1)	(1)
Other comprehensive income (loss), net of tax	(58)	25	(27)	(8)
Comprehensive income	481	415	1,284	1,050
Less: Comprehensive loss attributable to noncontrolling interests	1		1
Comprehensive income attributable to Waste Management, Inc.	$ 480	$ 415	$ 1,283	$ 1,050

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Consolidated net income	$ 1,311	$ 1,058
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	1,489	1,235
Deferred income tax (benefit) expense	(91)	61
Interest accretion on landfill and environmental remediation liabilities	82	75
Provision for bad debts	28	40
Equity-based compensation expense	81	74
Net gain on disposal of assets	(16)	(10)
(Gain) loss from divestitures, asset impairments and other, net	(17)	76
Equity in net losses of unconsolidated entities, net of dividends	36	48
Loss on early extinguishment of debt	220	52
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	(56)	76
Other current assets	(35)	(47)
Other assets	32	41
Accounts payable and accrued liabilities	389	(62)
Deferred revenues and other liabilities	(106)	(67)
Net cash provided by operating activities	3,347	2,650
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(11)	(3)
Capital expenditures	(1,130)	(1,238)
Proceeds from divestitures of businesses and other assets, net of cash divested	70	20
Other, net	(35)	(20)
Net cash used in investing activities	(1,106)	(1,241)
Cash flows from financing activities:
New borrowings	6,428	2,650
Debt repayments	(7,237)	(5,764)
Premiums and other paid on early extinguishment of debt	(211)	(30)
Common stock repurchase program	(1,000)	(402)
Cash dividends	(730)	(696)
Exercise of common stock options	60	49
Tax payments associated with equity-based compensation transactions	(28)	(34)
Other, net	32	(17)
Net cash used in financing activities	(2,686)	(4,244)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	2	1
Decrease in cash, cash equivalents and restricted cash and cash equivalents	(443)	(2,834)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	648	3,647
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 205	$ 813

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Sep. 30, 2021	Sep. 30, 2020
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:
Cash and cash equivalents	$ 116	$ 703
Restricted cash and cash equivalents included in other current assets	16	42
Restricted cash and cash equivalents included in restricted trust and escrow accounts	73	68
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 205	$ 813

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Millions	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interests [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Beginning balance at Dec. 31, 2019	$ 6	$ 5,049	$ (2)	$ 10,592	$ (8)	$ (8,571)	$ 2	$ (2)	$ 7,070
Beginning balance, shares at Dec. 31, 2019	630,282					(205,956)
Equity roll forward
Consolidated net income				1,058					1,058
Other comprehensive income (loss), net of tax					(8)				(8)
Cash dividends declared				(696)					(696)
Equity-based compensation transactions, net		55		1		$ 82			138
Equity-based compensation transactions, net, shares						1,945
Common stock repurchase program						$ (402)			(402)
Common stock repurchase program, shares						(3,687)
Other, net				(1)					(1)
Other, net, shares						3
Ending balance at Sep. 30, 2020	$ 6	5,104		10,952	(16)	$ (8,891)	2		7,157
Ending balance, shares at Sep. 30, 2020	630,282					(207,695)
Beginning balance at Jun. 30, 2020	$ 6	5,040		10,795	(41)	$ (8,909)	2		6,893
Beginning balance, shares at Jun. 30, 2020	630,282					(208,118)
Equity roll forward
Consolidated net income				390					390
Other comprehensive income (loss), net of tax					25				25
Cash dividends declared				(230)					(230)
Equity-based compensation transactions, net		64		(2)		$ 18			80
Equity-based compensation transactions, net, shares						422
Other, net				(1)					(1)
Other, net, shares						1
Ending balance at Sep. 30, 2020	$ 6	5,104		10,952	(16)	$ (8,891)	2		7,157
Ending balance, shares at Sep. 30, 2020	630,282					(207,695)
Beginning balance at Dec. 31, 2020	$ 6	5,129		11,159	39	$ (8,881)	2		7,454
Beginning balance, shares at Dec. 31, 2020	630,282					(207,481)
Equity roll forward
Consolidated net income				1,310			1		1,311
Other comprehensive income (loss), net of tax					(27)				(27)
Cash dividends declared				(730)					(730)
Equity-based compensation transactions, net		82		1		$ 84			167
Equity-based compensation transactions, net, shares						1,957
Common stock repurchase program		(100)				$ (900)			(1,000)
Common stock repurchase program, shares						(6,472)
Other, net							(1)		(1)
Ending balance at Sep. 30, 2021	$ 6	5,111		11,740	12	$ (9,697)	2		7,174
Ending balance, shares at Sep. 30, 2021	630,282					(211,996)
Beginning balance at Jun. 30, 2021	$ 6	5,104		11,444	70	$ (9,272)	2		7,354
Beginning balance, shares at Jun. 30, 2021	630,282					(209,467)
Equity roll forward
Consolidated net income				538			1		539
Other comprehensive income (loss), net of tax					(58)				(58)
Cash dividends declared				(241)					(241)
Equity-based compensation transactions, net		57		(1)		$ 25			81
Equity-based compensation transactions, net, shares						558
Common stock repurchase program		(50)				$ (450)			(500)
Common stock repurchase program, shares						(3,087)
Other, net							(1)		(1)
Ending balance at Sep. 30, 2021	$ 6	$ 5,111		$ 11,740	$ 12	$ (9,697)	$ 2		$ 7,174
Ending balance, shares at Sep. 30, 2021	630,282					(211,996)

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Cash dividends declared per common share	$ 0.575	$ 0.545	$ 1.725	$ 1.635

Basis of Presentation

9 Months Ended

Sep. 30, 2021

Basis of Presentation

Basis of Presentation

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, providing services throughout the United States (“U.S.”) and Canada. 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 U.S.

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our Areas. In the second quarter of 2021, we combined our Eastern and Western Canada Areas reducing the number of Areas we manage from 17 to 16. On October 30, 2020, we acquired Advanced Disposal Services, Inc. (“Advanced Disposal”), the operations of which are presented in this report within our existing Solid Waste tiers. 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 and our acquisition of Advanced Disposal is included in Notes 7 and 8, respectively.

The Condensed Consolidated Financial Statements as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 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, 2020.

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, the fair value of assets and liabilities acquired in business combinations or asset acquisitions 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.

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 five 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 September 30, 2021 and December 31, 2020, we had $172 million and $159 million, respectively, of deferred contract costs, of which $122 million and $118 million, respectively, were related to deferred sales incentives. During each of the three- and nine-month periods ended September 30, 2021 and 2020, we amortized $6 million and $17 million, respectively, of sales incentives to selling, general and administrative expense.

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. Right-of-use assets obtained in exchange for lease obligations for our operating leases for the nine months ended September 30, 2021 and 2020 were $57 million and $80 million, respectively. 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.

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. Our prior year accumulated depreciation and gross property and equipment balances as of December 31, 2020 were overstated and subsequently corrected in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

Landfill and Environmental Remediation Liabilities

9 Months Ended

Sep. 30, 2021

Landfill and Environmental Remediation Liabilities

Landfill and Environmental Remediation Liabilities

2. Landfill and Environmental Remediation Liabilities

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


	September 30, 2021						December 31, 2020
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	135	$	26	$	161	$	138	$	26	$	164
Long-term		2,155		190		2,345		2,018		204		2,222
	$	2,290	$	216	$	2,506	$	2,156	$	230	$	2,386

The changes to landfill and environmental remediation liabilities for the nine months ended September 30, 2021 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2020	$	2,156	$	230
Obligations incurred and capitalized		88		—
Obligations settled		(72)		(14)
Interest accretion		80		2
Revisions in estimates and interest rate assumptions (a)		27		(2)
Acquisitions, divestitures and other adjustments (b)		11		—
September 30, 2021	$	2,290	$	216

(a)	The amount reported for our landfill liabilities includes an increase of $15 million due to a business decision to accelerate the closure timing of a landfill in our Tier 3 segment, which resulted in the acceleration of the expected timing of capping, closure and post-closure activities.

(b)	The amount reported for our landfill liabilities includes an increase of $13 million related to changes in the preliminary fair values assigned to certain acquired Advanced Disposal sites.

At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling 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 13 for additional information related to these trusts.

Debt

9 Months Ended

Sep. 30, 2021

Debt

Debt

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 September 30, 2021:


	September 30,		December 31,
	2021		2020
Commercial paper program (weighted average interest rate of 0.3% as of September 30, 2021 and 0.4% as of December 31, 2020)	$	1,380	$	1,814
Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.1% as of September 30, 2021 and 3.3% as of December 31, 2020)		8,126		8,465
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		394		393
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.1% to 4.3% (weighted average interest rate of 1.5% as of September 30, 2021 and 1.7% as of December 31, 2020)		2,633		2,571
Financing leases and other, maturing through 2085, weighted average interest rate of 4.7% as of September 30, 2021 and 4.6% as of December 31, 2020 (a)		595		652
Debt issuance costs, discounts and other		(81)		(85)
		13,047		13,810
Current portion of long-term debt		601		551
	$	12,446	$	13,259

(a)	Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059.

Debt Classification

As of September 30, 2021, we had $2.8 billion of debt maturing within the next 12 months, including (i) $1.4 billion of short-term borrowings under our commercial paper program (net of related discount on issuance); (ii) $745 million of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities; (iii) $500 million of 2.90% senior notes that mature in September 2022 and (iv) $168 million of other debt with scheduled maturities within the next 12 months, including $64 million of tax-exempt bonds. As of September 30, 2021, we have classified $2.2 billion 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 $3.5 billion long-term U.S. and Canadian revolving credit facility (“$3.5 billion revolving credit facility”), as discussed below. The remaining $601 million of debt maturing in the next 12 months is classified as current obligations.

As of September 30, 2021, we also had $54 million of variable-rate tax-exempt bonds with long-term scheduled maturities supported by letters of credit under our $3.5 billion revolving credit facility. The interest rates on our variable-rate tax-exempt bonds reset on a 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 $3.5 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have classified the $54 million of variable-rate tax-exempt bonds with maturities of more than one year as long-term in our Condensed Consolidated Balance Sheet as of September 30, 2021.

Access to and Utilization of Credit Facilities and Commercial Paper Program

$3.5 Billion Revolving Credit Facility — Our $3.5 billion revolving credit facility, maturing November 2024, provides us with credit capacity to be used for cash borrowings, to support letters of credit and to support our commercial paper program. 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 September 30, 2021, we had no outstanding borrowings under this facility. We had $167 million of letters of credit issued and $1.4 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program, both supported by the facility, leaving unused and available credit capacity of $1.9 billion as of September 30, 2021. WM Holdings, a wholly-owned subsidiary of WM, guarantees all of the obligations under the $3.5 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 $3.5 billion revolving credit facility. As of September 30, 2021, we had $1.4 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program.

Other Letter of Credit Lines — As of September 30, 2021, we had utilized $720 million of other uncommitted letter of credit lines with terms maturing through April 2023.

Debt Borrowings and Repayments

Commercial Paper Program — During the nine months ended September 30, 2021, we made cash repayments of $5.8 billion, which were partially offset by $5.4 billion of cash borrowings (net of related discount on issuance).

Senior Notes — In May 2021, WM issued $950 million of senior notes consisting of $475 million of 2.00% senior notes due June 1, 2029 and $475 million of 2.95% senior notes due June 1, 2041. The net proceeds from these debt issuances were $942 million, all of which were used, along with available cash on hand, to retire $1.3 billion of certain high-coupon senior notes. The cash paid included the principal amount of the debt retired, $211 million of related premiums and other third-party costs, and $15 million of accrued interest.

During the second quarter of 2021, we recognized a $220 million loss on early extinguishment of debt in our Condensed Consolidated Statement of Operations related to the tender offer, including $211 million of premiums and other third-party costs and $9 million primarily related to unamortized discounts and debt issuance costs. We also recognized $6 million of charges to interest expense for the write-off of cash flow hedges associated with the tendered notes, which was previously being amortized to interest expense through the notes’ stated maturities. The following table summarizes the principal amount of senior notes redeemed within each series in order of acceptance priority level (in millions):


	Principal
	Outstanding		Notes Tendered
Description	Prior to Tender		and Redeemed
6.125% WM senior notes due 2039	$	252	$	6
7.75% WM senior notes due 2032		153		9
7.375% WM senior notes due 2029		81		—
4.15% WM senior notes due 2049		1,000		316
4.10% WM senior notes due 2045		750		334
3.90% WM senior notes due 2035		450		153
7.00% WM senior notes due 2028		330		73
7.10% WM Holdings senior notes due 2026		249		26
3.50% WM senior notes due 2024		350		194
3.125% WM senior notes due 2025		600		178
3.15% WM senior notes due 2027		750		—
2.90% WM senior notes due 2022		500		—
2.40% WM senior notes due 2023		500		—
Total	$	5,965	$	1,289

In conjunction with the tender offer, we entered into a reverse Treasury rate lock with a total notional value of $450 million to hedge our interest rate exposure. We did not designate the reverse Treasury rate lock as a cash flow hedge. Upon completion of the tender offer, we terminated the reverse Treasury rate lock and paid $8 million in cash. The related loss is included in other, net in the Condensed Consolidated Statement of Operations.

Tax-Exempt Bonds — We issued $125 million of new tax-exempt bonds in 2021. The proceeds from the issuance of these bonds were deposited directly into a restricted trust fund and may only be used for the specific purpose for which the money was raised, which is generally to finance expenditures for solid waste disposal facility and material recovery facility construction and development. Additionally, during the nine months ended September 30, 2021, we repaid $63 million of our tax-exempt bonds with available cash at their scheduled maturities.

Financing Leases and Other — The decrease during the nine months ended September 30, 2021 is due to $87 million of cash repayments of debt at maturity, partially offset by an increase of $30 million primarily associated with non-cash financing leases.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Income Taxes

9 Months Ended

Sep. 30, 2021

Income Taxes

Income Taxes

4. Income Taxes

Our effective income tax rate was 23.7% and 23.2% for the three and nine months ended September 30, 2021, respectively, compared with 24.5% and 21.4% for the three and nine months ended September 30, 2020, respectively.

The decrease in our effective income tax rate when comparing the three months ended September 30, 2021 with the prior year period was due to the detrimental impact of non-deductible transaction costs incurred during the prior year period related to our acquisition of Advanced Disposal which did not reoccur in the current period. The decrease was partially offset by a net nominal increase in our effective income tax rate during the current year period resulting from a pre-tax gain from the recognition of cumulative translation adjustments on the divestiture of certain non-strategic Canadian

operations in 2021 which was not taxable and unfavorable adjustments to accruals and related deferred taxes primarily due to a change from our initial expectations of the tax effects of the Advanced Disposal acquisition and related divestitures.

The increase in our effective income tax rate for the nine-month period ended September 30, 2021 as compared with the prior year period was due to (i) lower federal tax credits in 2021; (ii) unfavorable adjustments to accruals and related deferred taxes discussed above and (iii) a decrease in excess tax benefits associated with equity-based compensation in the current year period, partially offset by a pre-tax gain from the recognition of cumulative translation adjustments on the divestiture of certain non-strategic Canadian operations in 2021 which was not taxable. In addition, our effective income tax rate in 2020 included the detrimental impact of non-deductible transaction costs related to closing the acquisition of Advanced Disposal in 2020.

These items are discussed further below. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant.

Investments Qualifying for Federal Tax Credits — We have significant financial interests in entities established to invest in and manage low-income housing properties. 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 qualify for federal tax credits that we expect to realize through 2030 under Section 42 or Section 45D of the Internal Revenue Code. We also held a residual financial interest in an entity that owned a refined coal facility that qualified for federal tax credits under Section 45 of the Internal Revenue Code through 2019. The entity sold the majority of its assets in the first quarter of 2020, which resulted in a $7 million non-cash impairment of our investment at that time. 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, within our Condensed Consolidated Statements of Operations.

During the three and nine months ended September 30, 2021, we recognized $15 million and $36 million, respectively, of net losses for these investments. We also recognized a reduction in our income tax expense for the three and nine months ended September 30, 2021 of $21 million and $53 million, respectively, due to federal tax credits realized from these investments as well as the tax benefits from the pre-tax losses realized. In addition, during the three and nine months ended September 30, 2021, we recognized interest expense of $2 million and $7 million, respectively, associated with our investments in low-income housing properties.

During the three and nine months ended September 30, 2020, we recognized $16 million and $59 million, respectively, (including the $7 million impairment of the refined coal facility noted above for the nine-month period) of net losses for these investments. We also recognized a reduction in our income tax expense for the three and nine months ended September 30, 2020 of $24 million and $65 million, respectively, due to federal tax credits realized from these investments as well as the tax benefits from the pre-tax losses realized. In addition, during the three and nine months ended September 30, 2020, we recognized interest expense of $3 million and $9 million, respectively, associated with our investments in low-income housing properties.

See Note 13 for additional information related to these unconsolidated variable interest entities.

Adjustments to Accruals and Related Deferred Taxes — Adjustments to accruals and related deferred taxes increased our income tax expense by $10 million for the three and nine months ended September 30, 2021. The unfavorable adjustments to accruals and related deferred taxes are primarily due to a change from our initial expectations of the tax effects of the Advanced Disposal acquisition and related divestitures. During the three and nine months ended September 30, 2020, adjustments to accruals and related deferred taxes impacted our income tax expense with a nominal increase and a $6 million decrease, respectively.

Equity-Based Compensation — During the three and nine months ended September 30, 2021, we recognized a reduction in income tax expense of $5 million and $16 million, respectively, for excess tax benefits related to the vesting or exercise of equity-based compensation awards compared with $2 million and $25 million, respectively, for the comparable prior year periods.

Tax Implications of Divestitures – During the third quarter of 2021, we recognized a pre-tax gain from the recognition of cumulative translation adjustments on the divestiture of certain non-strategic Canadian operations. This gain was not taxable, which caused a beneficial impact to our effective income tax rate for the three and nine months ended September 30, 2021.

Non-Deductible Transaction Costs — During the three months ended September 30, 2020, we recognized the detrimental tax impact of $19 million of non-deductible transaction costs related to our acquisition of Advanced Disposal. The tax rules require the capitalization of certain facilitative costs on the acquisition of stock of a company resulting in the applicable costs not being deductible for tax purposes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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+ Details

Earnings Per Share

9 Months Ended

Sep. 30, 2021

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

Basic and diluted earnings per share were computed using the following common share data (shares in millions):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Number of common shares outstanding at end of period	418.3	422.6	418.3	422.6
Effect of using weighted average common shares outstanding	1.2	0.1	3.0	0.5
Weighted average basic common shares outstanding	419.5	422.7	421.3	423.1
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.5	1.9	2.3	1.9
Weighted average diluted common shares outstanding	422.0	424.6	423.6	425.0
Potentially issuable shares	5.8	6.3	5.8	6.3
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.6	1.3	0.6	1.7

Commitments and Contingencies

9 Months Ended

Sep. 30, 2021

Commitments and Contingencies.

Commitments and Contingencies

6. 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 $3.5 billion revolving credit facility and other credit lines 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-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, cyber incident 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 health and welfare, 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.

As of September 30, 2021, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover certain market value losses for certain properties adjacent to or near 18 of our landfills. We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale. 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.

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 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 $135 million higher than the $216 million recorded in the Condensed Consolidated Balance Sheet as of September 30, 2021. 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 September 30, 2021, we have been notified by the government that we are a PRP in connection with 73 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List (“NPL”). Of the 73 sites at which claims have been made against us, 14 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 59 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 proposed remedy for the site. Allocation of responsibility among the PRPs for the proposed remedy has not been established. As of September 30, 2021 and December 31, 2020, the recorded liability for MIMC’s estimated potential share of the EPA’s proposed remedy and related costs was $53 million and $55 million, respectively. MIMC’s ultimate liability could be materially different from current estimates.

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, below a stated threshold. In accordance with this SEC regulation, the Company uses a threshold of $1 million for purposes of determining whether disclosure of any such environmental proceedings is required. As of the date of this filing, we are not aware of any matters that are required to be disclosed pursuant to this standard.

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 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. During the first quarter of 2020, we recognized a $3 million charge to operating expenses for the withdrawal from an underfunded Multiemployer Pension Plan.

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, 2020 and 2021 tax years and expect these audits to be completed within the next 18 months. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2014. 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.

Segment and Related Information

9 Months Ended

Sep. 30, 2021

Segment and Related Information

Segment and Related Information

7. Segment and Related Information

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our Areas. In the second quarter of 2021, we combined our Eastern and Western Canada Areas reducing the number of Areas we manage from 17 to 16. The 16 Areas constitute 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 16 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.

As a result of the combination of our Eastern and Western Canada Areas, we analyzed all 16 Areas’ income from operations margins for purposes of segment reporting and realigned our Solid Waste tiers to reflect changes in their relative economic characteristics and prospects. Reclassifications have been made to our prior period condensed consolidated financial information to conform to the current year presentation.

The operating segments not evaluated and overseen through the 16 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 is shown in the following table (in millions):


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
Three Months Ended September 30:
2021
Solid Waste:
Tier 1	$	1,249	$	(233)	$	1,016	$	357
Tier 2		1,533		(327)		1,206		338
Tier 3		2,054		(390)		1,664		392
Solid Waste (a)		4,836		(950)		3,886		1,087
Other (b)		807		(28)		779		9
		5,643		(978)		4,665		1,096
Corporate and Other (c)		—		—		—		(290)
Total	$	5,643	$	(978)	$	4,665	$	806

2020
Solid Waste:
Tier 1	$	1,055	$	(194)	$	861	$	314
Tier 2		1,276		(274)		1,002		307
Tier 3		1,746		(340)		1,406		323
Solid Waste (a)		4,077		(808)		3,269		944
Other (b)		615		(23)		592		(7)
		4,692		(831)		3,861		937
Corporate and Other (c)		—		—		—		(257)
Total	$	4,692	$	(831)	$	3,861	$	680


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
Nine Months Ended September 30:
2021
Solid Waste:
Tier 1	$	3,551	$	(662)	$	2,889	$	1,014
Tier 2		4,423		(952)		3,471		960
Tier 3		5,874		(1,099)		4,775		1,087
Solid Waste (a)		13,848		(2,713)		11,135		3,061
Other (b)		2,201		(83)		2,118		31
		16,049		(2,796)		13,253		3,092
Corporate and Other (c)		—		—		—		(845)
Total	$	16,049	$	(2,796)	$	13,253	$	2,247

2020
Solid Waste:
Tier 1	$	3,054	$	(554)	$	2,500	$	872
Tier 2		3,726		(791)		2,935		784
Tier 3		5,041		(971)		4,070		855
Solid Waste (a)		11,821		(2,316)		9,505		2,511
Other (b)		1,723		(77)		1,646		(42)
		13,544		(2,393)		11,151		2,469
Corporate and Other (c)		—		—		—		(689)
Total	$	13,544	$	(2,393)	$	11,151	$	1,780

(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.

The increase in income from operations across the Tiers for the three and nine months ended September 30, 2021, as compared to the prior year periods, was primarily due to (i) revenue growth in our collection and disposal businesses driven by both volume and yield; (ii) improved profitability in our recycling business from higher market prices for recycling commodities and improved costs at facilities where we have made investments in enhanced technology and equipment and (iii) a pre-tax gain from the recognition of cumulative translation adjustments on the divestiture of certain non-strategic Canadian operations in our Tier 3 segment during the third quarter of 2021. The nine months ended September 30, 2021 also benefited from a reduction in the provision for bad debts because these expenses were higher during the nine months ended September 30, 2020 due to the impacts of the pandemic on our outlook for customer receipts. These increases were partially offset by (i) labor cost pressure from frontline employee wage adjustments, increased turnover driving up training costs and accelerated overtime due to driver shortages and volume growth; (ii) inflationary cost pressures; (iii) higher incentive compensation costs and (iv) a landfill amortization charge in our Tier 3 segment due to management’s decision to close a landfill earlier than expected.

Additionally, the prior year periods were impacted by non-cash impairment charges, as further discussed below. The positive earnings contributions of Advanced Disposal were offset by elevated depreciation and amortization of acquired assets.

During the nine months ended September 30, 2020, income from operations was impacted by $61 million of non-cash impairments consisting of (i) $41 million of non-cash asset impairment charges in our Tier 2 segment primarily related to two landfills and an oil field waste injection facility and (ii) a $20 million non-cash impairment charge in our Tier 3

segment related to management’s decision during the second quarter of 2020 to close a landfill once its constructed airspace is filled and abandon any remaining permitted airspace.

(b)

“Other” includes (i) elements of our Strategic Business Solutions (“WMSBS”) business; (ii) elements of our landfill gas-to-energy operations managed by our WM Renewable Energy business and not included in the operations of our reportable segments; (iii) elements of our third-party subcontract and administration revenues managed by our Energy and Environmental Services (“EES”) business and not included in the operations of our reportable segments; (iv) our recycling brokerage services and (v) certain other expanded service offerings and solutions. In addition, our “Other” segment reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity.

The increase in income from operations was primarily driven by increased market values for renewable energy credits generated by our WM Renewable Energy business. The increase in income from operations for the nine months ended September 30, 2021, as compared with the prior year period, was also due to a gain from the divestitures of certain ancillary operations during the first quarter of 2021.

(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.

These costs have increased during the three and nine months ended September 30, 2021 due to (i) increased labor, support and integration costs from our acquisition of Advanced Disposal; (ii) strategic investments in our digital platform; (iii) higher incentive compensation costs and (iv) increased health and welfare costs attributable to medical care activity generally returning to pre-pandemic levels from the lower levels experienced during 2020. The nine months ended September 30, 2021, as compared with the prior year period, was further impacted by a charge pertaining to reserves for certain loss contingencies during 2021, as well as changes in the measurement of our environmental remediation obligations and recovery assets in both the first quarter of 2020 and 2021. These increases were partially offset by lower consulting, advisory and legal fees following the completion of our acquisition of Advanced Disposal in the fourth quarter of 2020.

(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.

The mix of operating revenues from our major lines of business are as follows (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Commercial	$	1,214	$	1,025	$	3,523	$	3,016
Residential		795		662		2,371		1,969
Industrial		829		709		2,383		2,027
Other collection		140		120		391		347
Total collection		2,978		2,516		8,668		7,359
Landfill		1,100		946		3,090		2,707
Transfer		550		482		1,547		1,362
Recycling		464		290		1,203		819
Other (a)		551		458		1,541		1,297
Intercompany (b)		(978)		(831)		(2,796)		(2,393)
Total	$	4,665	$	3,861	$	13,253	$	11,151

(a)	The “Other” line of business includes (i) certain services provided by our WMSBS business; (ii) our landfill

gas-to-energy operations; (iii) certain services within our EES business, including our construction and remediation services and our services associated with the disposal of fly ash and (iv) certain other expanded service offerings and solutions. In addition, our “Other” line of business 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.

Fluctuations in our operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. Our revenues and income from operations typically reflect seasonal patterns. Our operating revenues tend to be somewhat higher in summer months, primarily due to the higher construction and demolition waste volumes. The volumes of industrial and residential waste in certain regions where we operate also tend to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends.

Prior year period operating results were negatively impacted by COVID-19, as volume declines began in March 2020 in our landfill, industrial and commercial collection businesses due to steps taken by national and local governments to slow the spread of the virus, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing.

Service disruptions caused by severe storms, extended periods of inclement weather or climate events can significantly impact the operating results of the Areas affected. On the other hand, certain destructive weather and climate conditions, such as wildfires in the Western U.S. and hurricanes that most often impact our operations in the Southern and Eastern U.S. during the second half of the year, can increase our revenues in the Areas affected as a result of the waste volumes generated by these events. While weather-related and other event-driven special projects can boost revenues through additional work for a limited time, as a result of significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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+ Details

Acquisition of Advanced Disposal

9 Months Ended

Sep. 30, 2021

Acquisition of Advanced Disposal

Acquisition of Advanced Disposal

8. Acquisition of Advanced Disposal

On October 30, 2020, we completed the acquisition of all outstanding shares of Advanced Disposal for $30.30 per share in cash, pursuant to an Agreement and Plan of Merger dated April 14, 2019, as amended on June 24, 2020. Total enterprise value of the acquisition was $4.6 billion when including approximately $1.8 billion of Advanced Disposal’s net debt. This acquisition grows our footprint and allows us to provide differentiated, sustainable waste management and recycling services to approximately three million new commercial, industrial, and residential customers, primarily located in the Eastern half of the U.S. The acquisition was funded using a $3.0 billion, 364-day, U.S. revolving credit facility and our commercial paper program. In November 2020, we issued $2.5 billion of senior notes and used a portion of the proceeds to repay all outstanding borrowings under the $3.0 billion, 364-day, U.S. revolver and terminated the facility.

Our consolidated financial statements have not been retroactively restated to include Advanced Disposal’s historical financial position or results of operations. The acquisition was accounted for as a business combination. In accordance with the purchase method of accounting, the purchase price paid has been allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill. We have substantially completed our valuation processes of all of the assets and liabilities acquired in the acquisition, however, until we have completed our valuation process, there may be adjustments to our estimates of fair value and resulting preliminary purchase price allocation, specifically those that require significant accounting estimates and assumptions, such as our landfills and intangibles.

Goodwill of $2.5 billion was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned to our Areas that have integrated these operations as they are benefiting from the synergies of the combination. Goodwill related to this acquisition is not deductible for income tax purposes.

The following table shows the preliminary purchase price allocation as of the date acquired, and adjustments to September 30, 2021 (in millions):


	October 30, 2020			Adjustments	September 30, 2021
Accounts and other receivables	$	159	$	1	$	160
Parts and supplies		8		(1)		7
Other current assets		17		(1)		16
Assets held for sale (a)		1,022		—		1,022
Property and equipment		1,278		(10)		1,268
Goodwill		2,470		25		2,495
Other intangible assets		604		(3)		601
Investments in unconsolidated entities		9		—		9
Other assets		27		(2)		25
Accounts payable		(107)		—		(107)
Accrued liabilities		(155)		(3)		(158)
Deferred revenues		(19)		—		(19)
Current portion of long-term debt		(12)		—		(12)
Liabilities held for sale (a)		(234)		—		(234)
Long-term debt, less current portion (b)		(441)		—		(441)
Landfill and environmental remediation liabilities		(242)		(13)		(255)
Deferred income taxes		(223)		9		(214)
Other liabilities		(79)		(2)		(81)
Total purchase price	$	4,082	$	—	$	4,082

(a)

In connection with our acquisition of Advanced Disposal, we were required by the U.S. Department of Justice to divest assets, including a portion of the assets acquired from Advanced Disposal. Upon acquisition these assets met the criteria for reporting discontinued operations and were classified as held for sale and included within the “Assets held for sale” and “Liabilities held for sale” line items in the above preliminary allocation of purchase price. Immediately following the closing of our acquisition of Advanced Disposal, the transactions contemplated by the U.S. Department of Justice were consummated and we sold the net assets to GFL Environmental for total consideration of $856 million.

(b)	At the time of acquisition, Advanced Disposal had outstanding $425 million of 5.625% senior notes due November 2024, the fair value of which was $438 million. In November 2020, we redeemed the notes pursuant to an optional redemption feature.

The preliminary allocation of $601 million as of September 30, 2021 for other intangibles includes $572 million for customer relationships with an amortization period of 15 years and $29 million of other intangibles with a weighted average amortization period of seven years.

Divestitures, Asset Impairments and Unusual Items

9 Months Ended

Sep. 30, 2021

Divestitures, Asset Impairments and Unusual Items

Divestitures, Asset Impairments and Unusual Items

9. Divestitures, Asset Impairments and Unusual Items

(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net

During the nine months ended September 30, 2021, we recognized net gains of $17 million consisting of (i) a $35 million pre-tax gain in the third quarter of 2021 from the recognition of cumulative translation adjustments on the divestiture of certain non-strategic Canadian operations in our Tier 3 segment and (ii) an $8 million gain in the first quarter of 2021 from divestitures of certain ancillary operations in our Other segment. These gains were partially offset by (i) a $20 million charge pertaining to reserves for loss contingencies in our Corporate and Other segment and (ii) $6 million of asset impairment charges primarily related to our WM Renewable Energy business within our Other segment.

During the nine months ended September 30, 2020, we recognized non-cash impairment charges of $68 million primarily related to the following:

Energy Services Asset Impairments— During the second quarter of 2020, the Company tested the recoverability of certain energy services assets in our Tier 2 segment. Indicators of impairment included (i) the sharp downturn in oil demand that has led to a significant decline in oil prices and production activities, which we project will have long-term impacts on the utilization of our assets and (ii) significant shifts in our business, including increases in competition and customers choosing to bury waste on site versus in a landfill, reducing our revenue outlook. The Company determined that the carrying amount of the asset group was not fully recoverable. As a result, we recognized $41 million of non-cash impairment charges primarily related to two landfills and an oil field waste injection facility in our Tier 2 segment. We wrote down the net book value of these assets to their estimated fair value using an income approach based on estimated future cash flow projections (Level 3). The aggregate fair value of the impaired asset group was $8 million as of June 30, 2020.

Other Impairments — In addition to the energy services impairments noted above, during the second quarter of 2020, we recognized a $20 million non-cash impairment charge in our Tier 3 segment due to management’s decision to close a landfill once its constructed airspace is filled and abandon any remaining permitted airspace, which was considered an impairment indicator. As the carrying value was not recoverable, we wrote off the entire net book value of the asset using an income approach based on estimated future cash flow projections (Level 3). The impairment charge was comprised of $12 million related to the carrying value of the asset and $8 million related to the acceleration of the expected timing of capping, closure and post-closure activities.

Additionally, during the third quarter of 2020, we recognized $7 million of net charges primarily related to non-cash impairments of certain assets within our WM Renewable Energy business in our Other segment. As the carrying values of the assets were not recoverable, we wrote off their entire net carrying value using an income approach based on estimated future cash flow projections (Level 3).

Equity in Net Losses of Unconsolidated Entities

During the first quarter of 2020, we recorded a non-cash impairment charge of $7 million related to our investment in a refined coal facility which is discussed further in Note 4. The fair value of our investment was not readily determinable; thus, we determined the fair value using management assumptions pertaining to investment value (Level 3). The remaining losses for each period were primarily related to our noncontrolling interests in entities established to invest in and manage low-income housing properties. We generate tax benefits, including tax credits, from the losses incurred from these investments. Refer to Note 4 for additional information related to these investments.

Accumulated Other Comprehensive Income (Loss)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

10. Accumulated Other Comprehensive Income (Loss)

The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of Waste Management, Inc. stockholders’ equity, are as follows (in millions, with amounts in parentheses representing decreases to accumulated other comprehensive income):


					Foreign		Post-
			Available-		Currency		Retirement
	Derivative		for-Sale		Translation		Benefit
	Instruments		Securities		Adjustments(a)		Obligations		Total
Balance, December 31, 2020	$	(9)	$	49	$	(1)	$	—	$	39
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $(1), $0 and $0, respectively		—		(3)		4		—		1
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		(35)		(1)		(28)
Net current period other comprehensive income (loss)		8		(3)		(31)		(1)		(27)
Balance, September 30, 2021	$	(1)	$	46	$	(32)	$	(1)	$	12

(a)

As a result of the divestiture of certain non-strategic Canadian operations in the third quarter of 2021, we reclassified $35 million of cumulative translation adjustments from accumulated other comprehensive income to gain from divestitures, asset impairments and unusual items within our Condensed Consolidated Statement of Operations.

Common Stock Repurchase Program

9 Months Ended

Sep. 30, 2021

Common Stock Repurchase Program

Common Stock Repurchase Program

11. Common Stock Repurchase Program

The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors.

In February 2021, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $250 million of our common stock. At the beginning of the repurchase period, we delivered $250 million cash and received 1.8 million shares based on a stock price of $110.56. The ASR agreement completed in the second quarter of 2021, at which time we received 0.2 million additional shares based on a final weighted average price of $126.83.

In May 2021, we entered into an ASR agreement to repurchase $250 million of our common stock. At the beginning of the repurchase period, we delivered $250 million cash and received 1.4 million shares based on a stock price of $141.42. The ASR agreement completed in the third quarter of 2021, at which time we received 0.4 million additional shares based on a final weighted average price of $140.04.

In August 2021, we entered into an ASR agreement to repurchase $500 million of our common stock. At the beginning of the repurchase period, we delivered $500 million cash and received 2.7 million shares based on a stock price of $147.27. The final number of shares to be repurchased and the final average price per share under the ASR agreement will depend on the volume-weighted average price of our stock, less a discount, during the term of the agreement. Purchases under the ASR agreement are expected to be completed in November 2021.

As of September 30, 2021, the Company has authorization for $350 million of future share repurchases. Any future share repurchases pursuant to this authorization of our Board of Directors will be made at the discretion of management and will depend on factors similar to those considered by the Board of Directors in making dividend declarations, including our net earnings, financial condition and cash required for future business plans, growth and acquisitions.

Fair Value Measurements

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Fair Value Measurements

12. Fair Value Measurements

Assets and Liabilities Accounted for at Fair Value

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):


	September 30,		December 31,
	2021		2020
Fair Value Measurements Using:
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds (a)	$	48	$	530
Equity securities		16		—
Significant other observable inputs (Level 2):
Available-for-sale securities (b)		413		390
Significant unobservable inputs (Level 3):
Redeemable preferred stock (c)		49		49
Total Assets	$	526	$	969

(a)	The decrease is primarily due to the use of available cash to retire certain high-coupon senior notes in May 2021, which is discussed further in Note 3.

(b)	Our available-for-sale securities primarily relate to debt securities with maturities over the next nine years.

(c)

When available, Level 3 investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. When this evidence is not available, we use other valuation techniques as appropriate and available. These valuation methodologies may include transactions in similar instruments, discounted cash flow techniques, third-party appraisals or industry multiples and public company comparable transactions.

See Note 8 for information related to the nonrecurring fair value measurement of assets and liabilities acquired in connection with our acquisition of Advanced Disposal. See Note 9 for information related to our nonrecurring fair value measurements and the impact of impairments.

Fair Value of Debt

As of September 30, 2021 and December 31, 2020, the carrying value of our debt was $13.0 billion and $13.8 billion, respectively. The estimated fair value of our debt was approximately $13.8 billion and $15.2 billion as of September 30, 2021 and December 31, 2020, respectively. The decrease in the fair value of debt is primarily related to net repayments of $809 million during 2021 and the replacement of debt balances with a relatively high fair value to carrying value ratio with new debt with a fair value that approximates carrying value (refer to Note 3 for additional information) and increases in current market rates of our senior notes.

Although we have determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting market data to develop the estimates of fair value. Accordingly, our estimates are not necessarily indicative of the amounts that we, or holders of the instruments, could realize in a current market exchange. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. The fair value estimates are based on Level 2 inputs of the fair value hierarchy available as of September 30, 2021 and December 31, 2020. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the amounts presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Variable Interest Entities

9 Months Ended

Sep. 30, 2021

Variable Interest Entities

Variable Interest Entities

13. Variable Interest Entities

Following is a description of our financial interests in unconsolidated and consolidated variable interest entities that we consider significant:

Low-Income Housing Properties

We do not consolidate our investments in entities established to manage low-income housing properties because we are not the primary beneficiary of these entities as we do not have the power to individually direct the activities of these entities. Accordingly, we account for these investments under the equity method of accounting. Our aggregate investment balance in these entities was $193 million and $228 million as of September 30, 2021 and December 31, 2020, respectively. The debt balance related to our investments in low-income housing properties was $169 million and $210 million as of September 30, 2021 and December 31, 2020, respectively.

Trust Funds for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations

Unconsolidated Variable Interest Entities — Trust funds that are established for both the benefit of the Company and the host community in which we operate are not consolidated because we are not the primary beneficiary of these entities as (i) we do not have the power to direct the significant activities of the trusts or (ii) power over the trusts’ significant activities is shared. Our interests in these trusts are accounted for as investments in unconsolidated entities and receivables. These amounts are recorded in other receivables, investments in unconsolidated entities and long-term other assets in our Condensed Consolidated Balance Sheets, as appropriate. We also reflect our share of the unrealized gains and losses on available-for-sale securities held by these trusts as a component of our accumulated other comprehensive income (loss). Our investments and receivables related to these trusts had an aggregate carrying value of $107 million and $106 million as of September 30, 2021 and December 31, 2020, respectively.

Consolidated Variable Interest Entities — Trust funds for which we are the sole beneficiary are consolidated because we are the primary beneficiary. These trust funds are recorded in restricted trust and escrow accounts in our Condensed Consolidated Balance Sheets. Unrealized gains and losses on available-for-sale securities held by these trusts are recorded as a component of accumulated other comprehensive income (loss). These trusts had a fair value of $117 million and $114 million as of September 30, 2021 and December 31, 2020, respectively.

Basis of Presentation (Policies)	9 Months Ended
Basis of Presentation (Policies)	Sep. 30, 2021
Basis of Presentation
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, providing services throughout the United States (“U.S.”) and Canada. 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 U.S. We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our Areas. In the second quarter of 2021, we combined our Eastern and Western Canada Areas reducing the number of Areas we manage from 17 to 16. On October 30, 2020, we acquired Advanced Disposal Services, Inc. (“Advanced Disposal”), the operations of which are presented in this report within our existing Solid Waste tiers. 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 and our acquisition of Advanced Disposal is included in Notes 7 and 8, respectively. The Condensed Consolidated Financial Statements as of September 30, 2021 and for the three and nine months ended September 30, 2021 and 2020 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, 2020. 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, the fair value of assets and liabilities acquired in business combinations or asset acquisitions 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	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. 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 five 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 September 30, 2021 and December 31, 2020, we had $172 million and $159 million, respectively, of deferred contract costs, of which $122 million and $118 million, respectively, were related to deferred sales incentives. During each of the three- and nine-month periods ended September 30, 2021 and 2020, we amortized $6 million and $17 million, respectively, of sales incentives to selling, general and administrative expense.
Leases	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. Right-of-use assets obtained in exchange for lease obligations for our operating leases for the nine months ended September 30, 2021 and 2020 were $57 million and $80 million, respectively. 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	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.
Reclassifications	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. Our prior year accumulated depreciation and gross property and equipment balances as of December 31, 2020 were overstated and subsequently corrected in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2021.

- Definition

Disclosure of accounting policy for revenue from contract with customer.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 17
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130561-203045

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 18
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18823-107790

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130564-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 20
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130566-203045

+ Details

Landfill and Environmental Remediation Liabilities (Tables)

9 Months Ended

Sep. 30, 2021

Landfill and Environmental Remediation Liabilities

Liabilities for Landfill and Environmental Remediation Costs

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


	September 30, 2021						December 31, 2020
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	135	$	26	$	161	$	138	$	26	$	164
Long-term		2,155		190		2,345		2,018		204		2,222
	$	2,290	$	216	$	2,506	$	2,156	$	230	$	2,386

Changes to Landfill and Environmental Remediation Liabilities

The changes to landfill and environmental remediation liabilities for the nine months ended September 30, 2021 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2020	$	2,156	$	230
Obligations incurred and capitalized		88		—
Obligations settled		(72)		(14)
Interest accretion		80		2
Revisions in estimates and interest rate assumptions (a)		27		(2)
Acquisitions, divestitures and other adjustments (b)		11		—
September 30, 2021	$	2,290	$	216

(a)	The amount reported for our landfill liabilities includes an increase of $15 million due to a business decision to accelerate the closure timing of a landfill in our Tier 3 segment, which resulted in the acceleration of the expected timing of capping, closure and post-closure activities.

(b)	The amount reported for our landfill liabilities includes an increase of $13 million related to changes in the preliminary fair values assigned to certain acquired Advanced Disposal sites.

Debt (Tables)

9 Months Ended

Sep. 30, 2021

Debt

Components of Debt


	September 30,		December 31,
	2021		2020
Commercial paper program (weighted average interest rate of 0.3% as of September 30, 2021 and 0.4% as of December 31, 2020)	$	1,380	$	1,814
Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.1% as of September 30, 2021 and 3.3% as of December 31, 2020)		8,126		8,465
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		394		393
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.1% to 4.3% (weighted average interest rate of 1.5% as of September 30, 2021 and 1.7% as of December 31, 2020)		2,633		2,571
Financing leases and other, maturing through 2085, weighted average interest rate of 4.7% as of September 30, 2021 and 4.6% as of December 31, 2020 (a)		595		652
Debt issuance costs, discounts and other		(81)		(85)
		13,047		13,810
Current portion of long-term debt		601		551
	$	12,446	$	13,259

(a)	Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059.

Summary of debt redeemed


	Principal
	Outstanding		Notes Tendered
Description	Prior to Tender		and Redeemed
6.125% WM senior notes due 2039	$	252	$	6
7.75% WM senior notes due 2032		153		9
7.375% WM senior notes due 2029		81		—
4.15% WM senior notes due 2049		1,000		316
4.10% WM senior notes due 2045		750		334
3.90% WM senior notes due 2035		450		153
7.00% WM senior notes due 2028		330		73
7.10% WM Holdings senior notes due 2026		249		26
3.50% WM senior notes due 2024		350		194
3.125% WM senior notes due 2025		600		178
3.15% WM senior notes due 2027		750		—
2.90% WM senior notes due 2022		500		—
2.40% WM senior notes due 2023		500		—
Total	$	5,965	$	1,289

Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2021

Earnings Per Share

Common Share Data Used for Computing Basic and Diluted Earnings Per Share

Basic and diluted earnings per share were computed using the following common share data (shares in millions):


	Three Months Ended		Nine Months Ended
	September 30,		September 30,
	2021	2020	2021	2020
Number of common shares outstanding at end of period	418.3	422.6	418.3	422.6
Effect of using weighted average common shares outstanding	1.2	0.1	3.0	0.5
Weighted average basic common shares outstanding	419.5	422.7	421.3	423.1
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.5	1.9	2.3	1.9
Weighted average diluted common shares outstanding	422.0	424.6	423.6	425.0
Potentially issuable shares	5.8	6.3	5.8	6.3
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.6	1.3	0.6	1.7

Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2021

Segment and Related Information

Reportable Segments


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
Three Months Ended September 30:
2021
Solid Waste:
Tier 1	$	1,249	$	(233)	$	1,016	$	357
Tier 2		1,533		(327)		1,206		338
Tier 3		2,054		(390)		1,664		392
Solid Waste (a)		4,836		(950)		3,886		1,087
Other (b)		807		(28)		779		9
		5,643		(978)		4,665		1,096
Corporate and Other (c)		—		—		—		(290)
Total	$	5,643	$	(978)	$	4,665	$	806

2020
Solid Waste:
Tier 1	$	1,055	$	(194)	$	861	$	314
Tier 2		1,276		(274)		1,002		307
Tier 3		1,746		(340)		1,406		323
Solid Waste (a)		4,077		(808)		3,269		944
Other (b)		615		(23)		592		(7)
		4,692		(831)		3,861		937
Corporate and Other (c)		—		—		—		(257)
Total	$	4,692	$	(831)	$	3,861	$	680


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
Nine Months Ended September 30:
2021
Solid Waste:
Tier 1	$	3,551	$	(662)	$	2,889	$	1,014
Tier 2		4,423		(952)		3,471		960
Tier 3		5,874		(1,099)		4,775		1,087
Solid Waste (a)		13,848		(2,713)		11,135		3,061
Other (b)		2,201		(83)		2,118		31
		16,049		(2,796)		13,253		3,092
Corporate and Other (c)		—		—		—		(845)
Total	$	16,049	$	(2,796)	$	13,253	$	2,247

2020
Solid Waste:
Tier 1	$	3,054	$	(554)	$	2,500	$	872
Tier 2		3,726		(791)		2,935		784
Tier 3		5,041		(971)		4,070		855
Solid Waste (a)		11,821		(2,316)		9,505		2,511
Other (b)		1,723		(77)		1,646		(42)
		13,544		(2,393)		11,151		2,469
Corporate and Other (c)		—		—		—		(689)
Total	$	13,544	$	(2,393)	$	11,151	$	1,780

(a)

segment related to management’s decision during the second quarter of 2020 to close a landfill once its constructed airspace is filled and abandon any remaining permitted airspace.

(b)

(c)

(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 are as follows (in millions):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Commercial	$	1,214	$	1,025	$	3,523	$	3,016
Residential		795		662		2,371		1,969
Industrial		829		709		2,383		2,027
Other collection		140		120		391		347
Total collection		2,978		2,516		8,668		7,359
Landfill		1,100		946		3,090		2,707
Transfer		550		482		1,547		1,362
Recycling		464		290		1,203		819
Other (a)		551		458		1,541		1,297
Intercompany (b)		(978)		(831)		(2,796)		(2,393)
Total	$	4,665	$	3,861	$	13,253	$	11,151

(a)	The “Other” line of business includes (i) certain services provided by our WMSBS business; (ii) our landfill

(b)	Intercompany revenues between lines of business are eliminated in the Condensed Consolidated Financial Statements included within this report.

Acquisition of Advanced Disposal (Tables)

9 Months Ended

Sep. 30, 2021

Acquisition of Advanced Disposal

Summary of purchase price allocation


	October 30, 2020			Adjustments	September 30, 2021
Accounts and other receivables	$	159	$	1	$	160
Parts and supplies		8		(1)		7
Other current assets		17		(1)		16
Assets held for sale (a)		1,022		—		1,022
Property and equipment		1,278		(10)		1,268
Goodwill		2,470		25		2,495
Other intangible assets		604		(3)		601
Investments in unconsolidated entities		9		—		9
Other assets		27		(2)		25
Accounts payable		(107)		—		(107)
Accrued liabilities		(155)		(3)		(158)
Deferred revenues		(19)		—		(19)
Current portion of long-term debt		(12)		—		(12)
Liabilities held for sale (a)		(234)		—		(234)
Long-term debt, less current portion (b)		(441)		—		(441)
Landfill and environmental remediation liabilities		(242)		(13)		(255)
Deferred income taxes		(223)		9		(214)
Other liabilities		(79)		(2)		(81)
Total purchase price	$	4,082	$	—	$	4,082

(a)

(b)	At the time of acquisition, Advanced Disposal had outstanding $425 million of 5.625% senior notes due November 2024, the fair value of which was $438 million. In November 2020, we redeemed the notes pursuant to an optional redemption feature.

Accumulated Other Comprehensive Income (Loss) (Tables)

9 Months Ended

Sep. 30, 2021

Accumulated Other Comprehensive Income (Loss)

Components of Accumulated Other Comprehensive Income (Loss), net of tax


					Foreign		Post-
			Available-		Currency		Retirement
	Derivative		for-Sale		Translation		Benefit
	Instruments		Securities		Adjustments(a)		Obligations		Total
Balance, December 31, 2020	$	(9)	$	49	$	(1)	$	—	$	39
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $(1), $0 and $0, respectively		—		(3)		4		—		1
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		(35)		(1)		(28)
Net current period other comprehensive income (loss)		8		(3)		(31)		(1)		(27)
Balance, September 30, 2021	$	(1)	$	46	$	(32)	$	(1)	$	12

(a)

Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2021

Fair Value Measurements

Fair Value of Assets and Liabilities Measured on Recurring Basis

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):


	September 30,		December 31,
	2021		2020
Fair Value Measurements Using:
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds (a)	$	48	$	530
Equity securities		16		—
Significant other observable inputs (Level 2):
Available-for-sale securities (b)		413		390
Significant unobservable inputs (Level 3):
Redeemable preferred stock (c)		49		49
Total Assets	$	526	$	969

(a)	The decrease is primarily due to the use of available cash to retire certain high-coupon senior notes in May 2021, which is discussed further in Note 3.

(b)	Our available-for-sale securities primarily relate to debt securities with maturities over the next nine years.

(c)

Basis of Presentation (Detail) - area		3 Months Ended	9 Months Ended
Basis of Presentation (Detail) - area	Mar. 31, 2021	Sep. 30, 2021	Sep. 30, 2021
Solid Waste [Member]
Segment Reporting Information [Line Items]
Number of areas	17	16	16

Basis of Presentation - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Contract Acquisition Costs
Deferred contract costs	$ 172		$ 172		$ 159
Right-of-use assets obtained in exchange for operating lease obligations			$ 57	$ 80
Minimum [Member]
Contract Acquisition Costs
Deferred revenue recognition period			1 month
Contract amortization period	5 years		5 years
Maximum [Member]
Contract Acquisition Costs
Deferred revenue recognition period			3 months
Contract amortization period	13 years		13 years
Deferred Sales Incentives [Member]
Contract Acquisition Costs
Deferred contract costs	$ 122		$ 122		$ 118
Deferred contract costs amortization	$ 6	$ 6	$ 17	$ 17

Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Landfill and environmental remediation liabilities
Total, Environmental Remediation	$ 216
Current (in accrued liabilities)	161	$ 164
Long-term	2,345	2,222
Total	2,506	2,386
Landfill [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Landfill	135	138
Long-term, Landfill	2,155	2,018
Total, Landfill	2,290	2,156
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Environmental Remediation	26	26
Long-term, Environmental Remediation	190	204
Total, Environmental Remediation	$ 216	$ 230

Landfill and Environmental Remediation Liabilities - Changes (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Landfill and environmental remediation liabilities
Ending balance, environmental remediation	$ 216
Landfill [Member]
Landfill and environmental remediation liabilities
Beginning balance, landfill	2,156
Obligations incurred and capitalized	88
Obligations settled	(72)
Interest accretion	80
Revisions in estimates and interest rate assumptions	27
Acquisitions, divestitures and other adjustments	11
Ending balance, landfill	2,290
Asset retirement obligation, increase (decrease) related to landfill closure	15
Landfill [Member] \| Advanced Disposal [Member]
Landfill and environmental remediation liabilities
Obligations incurred and capitalized	13
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Beginning balance, environmental remediation	230
Obligations settled	(14)
Interest accretion	2
Revisions in estimates and interest rate assumptions	(2)
Ending balance, environmental remediation	$ 216

Debt - Components (Detail) $ in Millions, $ in Millions	Sep. 30, 2021 USD ($)	Sep. 30, 2021 CAD ($)	Dec. 31, 2020 USD ($)
Debt
Debt	$ 13,047		$ 13,810
Debt issuance costs, discounts and other	(81)		(85)
Current portion of long-term debt	601		551
Long-term debt, less current portion	12,446		13,259
Commercial Paper Program [Member]
Debt
Debt	1,380		$ 1,814
Current portion of long-term debt	$ 1,400
Weighted average interest rate	0.30%	0.30%	0.40%
Senior Notes, Aggregate [Member]
Debt
Debt	$ 8,126		$ 8,465
Weighted average interest rate	3.10%	3.10%	3.30%
Senior Notes, Aggregate [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.75%	0.75%
Senior Notes, Aggregate [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	7.75%	7.75%
Canadian Senior Notes [Member]
Debt
Debt	$ 394	$ 500	$ 393
Interest rate (as a percent)	2.60%	2.60%
Tax Exempt Bonds [Member]
Debt
Debt	$ 2,633		$ 2,571
Current portion of long-term debt	$ 64
Weighted average interest rate	1.50%	1.50%	1.70%
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.10%	0.10%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	4.30%	4.30%
Financing leases and other [Member]
Debt
Debt	$ 595		$ 652
Current portion of long-term debt	$ 168
Weighted average interest rate	4.70%	4.70%	4.60%

Debt - Classification and Utilization (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	May 31, 2021	Dec. 31, 2020
Debt
Debt maturing or subject to remarketing within twelve months	$ 2,800
Current portion of long-term debt	601		$ 551
2.90% senior notes due 2022 [Member]
Debt
Current portion of long-term debt	$ 500
Interest rate (as a percent)	2.90%	2.90%
Tax Exempt Bonds [Member]
Debt
Current portion of long-term debt	$ 64
Debt with interest rate periods that expire in the next 12 months	745
Debt maturing or subject to remarketing within twelve months classified as long-term	2,200
Variable-rate tax-exempt bonds	54
Variable-rate tax-exempt bonds, non-current	$ 54
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.10%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	4.30%
Financing leases and other [Member]
Debt
Current portion of long-term debt	$ 168
Revolving Credit Facility [Member]
Debt
Maximum capacity	3,500
Outstanding borrowings under credit facility	0
Letters of credit outstanding	167
Unused and available credit capacity	1,900
Commercial Paper Program [Member]
Debt
Current portion of long-term debt	$ 1,400
Debt term	397 days
Commercial paper borrowings	$ 1,400
Other Letter Of Credit Lines [Member]
Debt
Letters of credit outstanding	$ 720

Debt - Borrowings and Repayments (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	May 31, 2021	Jun. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020	Nov. 30, 2020
Debt
New borrowings				$ 6,428	$ 2,650
Premiums paid on early extinguishment of debt				211	30
Loss on early extinguishment of debt			$ (52)	(220)	(52)
Unamortized discounts and debt issuance costs				81		$ 85
Debt repayments				7,237	$ 5,764
Non-cash financing lease incurred				30
Commercial Paper Program [Member]
Debt
Commercial paper repayments				5,800
Commercial paper borrowings				$ 5,400
Senior Notes, Aggregate [Member]
Debt
Debt instrument face amount	$ 950						$ 2,500
New borrowings	942
Early extinguishment of debt	1,289
Premiums paid on early extinguishment of debt	211	$ 211
Loss on early extinguishment of debt		(220)
Accrued interest	15
Write-off unamortized debt discounts and issuance costs		9
Principal amount outstanding	5,965
Senior Notes, Aggregate [Member] \| Cash Flow Hedging [Member]
Debt
Interest expense		$ 6
2.00% senior notes due June 1, 2029 [Member]
Debt
Debt instrument face amount	$ 475
Interest rate (as a percent)	2.00%
2.95% senior notes due June 1, 2041 [Member]
Debt
Debt instrument face amount	$ 475
Interest rate (as a percent)	2.95%
6.125% senior notes due 2039 [Member]
Debt
Interest rate (as a percent)	6.125%
Early extinguishment of debt	$ 6
Principal amount outstanding	$ 252
7.75% senior notes due 2032 [Member]
Debt
Interest rate (as a percent)	7.75%
Early extinguishment of debt	$ 9
Principal amount outstanding	$ 153
7.375% senior notes due 2029 [Member]
Debt
Interest rate (as a percent)	7.375%
Principal amount outstanding	$ 81
4.15% senior notes due 2049 [Member]
Debt
Interest rate (as a percent)	4.15%
Early extinguishment of debt	$ 316
Principal amount outstanding	$ 1,000
4.10% senior notes due 2045 [Member]
Debt
Interest rate (as a percent)	4.10%
Early extinguishment of debt	$ 334
Principal amount outstanding	$ 750
3.90% senior notes due 2035 [Member]
Debt
Interest rate (as a percent)	3.90%
Early extinguishment of debt	$ 153
Principal amount outstanding	$ 450
7.00% senior notes due 2028 [Member]
Debt
Interest rate (as a percent)	7.00%
Early extinguishment of debt	$ 73
Principal amount outstanding	$ 330
7.10% senior notes due 2026 [Member]
Debt
Interest rate (as a percent)	7.10%
Early extinguishment of debt	$ 26
Principal amount outstanding	$ 249
3.50% senior notes due 2024 [Member]
Debt
Interest rate (as a percent)	3.50%
Early extinguishment of debt	$ 194
Principal amount outstanding	$ 350
3.125% senior notes due 2025 [Member]
Debt
Interest rate (as a percent)	3.125%
Early extinguishment of debt	$ 178
Principal amount outstanding	$ 600
3.15% senior notes due 2027 [Member]
Debt
Interest rate (as a percent)	3.15%
Principal amount outstanding	$ 750
2.90% senior notes due 2022 [Member]
Debt
Interest rate (as a percent)	2.90%			2.90%
Principal amount outstanding	$ 500
2.40% senior notes due 2023 [Member]
Debt
Interest rate (as a percent)	2.40%
Principal amount outstanding	$ 500
Tax Exempt Bonds [Member]
Debt
New borrowings				$ 125
Debt repayments				63
Financing leases and other [Member]
Debt
Debt repayments				$ 87
Treasury Lock [Member] \| Senior Notes, Aggregate [Member]
Debt
Derivative notional value	450
Derivative payment	$ 8

Income Taxes - Quarter information (Detail) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Taxes
Effective tax rate of income (loss) before income taxes	23.70%	24.50%		23.20%	21.40%
Excess tax benefits associated with equity-based compensation	$ 5	$ 2		$ 16	$ 25
Equity in net losses of unconsolidated entities	14	16		34	56
Increase (decrease) to accruals and related deferred taxes	10			10	(6)
Nondeductible acquisition transaction costs		19
Investments Qualifying for Federal Tax Credits [Member]
Income Taxes
Equity in net losses of unconsolidated entities	15	16		36	59
Income tax (expense) benefit, including tax credits, from equity method investment	21	24		53	65
Interest expense	$ 2	$ 3		$ 7	9
Refined Coal Facility [Member]
Income Taxes
Equity method investments impairment charges			$ 7		$ 7

Earnings Per Share (Detail) - shares shares in Millions	3 Months Ended		9 Months Ended
Earnings Per Share (Detail) - shares shares in Millions	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share
Number of common shares outstanding at end of period	418.3	422.6	418.3	422.6
Effect of using weighted average common shares outstanding	1.2	0.1		0.5
Net reduction, Effect of using weighted average common shares outstanding			3.0
Weighted average basic common shares outstanding	419.5	422.7	421.3	423.1
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.5	1.9	2.3	1.9
Weighted average diluted common shares outstanding	422.0	424.6	423.6	425.0
Potentially issuable shares	5.8	6.3	5.8	6.3
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.6	1.3	0.6	1.7

Commitments and Contingencies - Quarter (Details) $ in Millions	3 Months Ended	9 Months Ended
	Mar. 31, 2020 USD ($)	Sep. 30, 2021 USD ($) site item	Dec. 31, 2020 USD ($)
Commitments And Contingencies [Line Items]
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value \| item		18
Environmental remediation reasonably possible additional losses high estimate		$ 135
Environmental remediation liabilities		$ 216
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP \| site		73
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP \| site		14
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP \| site		59
Dollar threshold for environmental matters requiring disclosure under item 103 of the SEC's Regulation S-K		$ 1
Workforce covered by collective bargaining (as a percent)		20.00%
Expected time of completion of IRS audits		18 months
San Jacinto Waste Pits [Member]
Commitments And Contingencies [Line Items]
Environmental remediation liabilities		$ 53	$ 55
Withdrawal from Multiemployer Pension Plans [Member]
Commitments And Contingencies [Line Items]
Charge to "Operating" expenses	$ 3
Revolving Credit Facility [Member]
Commitments And Contingencies [Line Items]
Credit Facility, aggregate capacity		$ 3,500

Segment and Related Information - Information (Detail) - Solid Waste [Member]		3 Months Ended	9 Months Ended
	Mar. 31, 2021 area	Sep. 30, 2021 area	Sep. 30, 2021 area segment
Segment Reporting Information [Line Items]
Number of areas \| area	17	16	16
Number of reportable segments \| segment			3

Segment and Related Information - Summary (Detail) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Operating revenues	$ 4,665		$ 3,861		$ 13,253	$ 11,151
Income from operations	806		680		2,247	1,780
Asset impairments		$ 6	7			61
Landfills and Oil Field Waste Injection Facility [Member]
Segment Reporting Information [Line Items]
Asset impairments				$ 41		41
Landfill [Member]
Segment Reporting Information [Line Items]
Asset impairments				$ 20		20
Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	4,665		3,861		13,253	11,151
Income from operations	1,096		937		3,092	2,469
Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	3,886		3,269		11,135	9,505
Income from operations	1,087		944		3,061	2,511
Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,016		861		2,889	2,500
Income from operations	357		314		1,014	872
Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,206		1,002		3,471	2,935
Income from operations	338		307		960	784
Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,664		1,406		4,775	4,070
Income from operations	392		323		1,087	855
Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	779		592		2,118	1,646
Income from operations	9		(7)		31	(42)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues	5,643		4,692		16,049	13,544
Operating Segments [Member] \| Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	5,643		4,692		16,049	13,544
Operating Segments [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	4,836		4,077		13,848	11,821
Operating Segments [Member] \| Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,249		1,055		3,551	3,054
Operating Segments [Member] \| Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,533		1,276		4,423	3,726
Operating Segments [Member] \| Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	2,054		1,746		5,874	5,041
Operating Segments [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	807		615		2,201	1,723
Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues	(978)		(831)		(2,796)	(2,393)
Intercompany Operating Revenues [Member] \| Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	(978)		(831)		(2,796)	(2,393)
Intercompany Operating Revenues [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	(950)		(808)		(2,713)	(2,316)
Intercompany Operating Revenues [Member] \| Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(233)		(194)		(662)	(554)
Intercompany Operating Revenues [Member] \| Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(327)		(274)		(952)	(791)
Intercompany Operating Revenues [Member] \| Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(390)		(340)		(1,099)	(971)
Intercompany Operating Revenues [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	(28)		(23)		(83)	(77)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income from operations	$ (290)		$ (257)		$ (845)	$ (689)

Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue from External Customer [Line Items]
Operating revenues	$ 4,665	$ 3,861	$ 13,253	$ 11,151
Operating Segments [Member]
Revenue from External Customer [Line Items]
Operating revenues	5,643	4,692	16,049	13,544
Operating Segments [Member] \| Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	2,978	2,516	8,668	7,359
Operating Segments [Member] \| Commercial [Member]
Revenue from External Customer [Line Items]
Operating revenues	1,214	1,025	3,523	3,016
Operating Segments [Member] \| Residential [Member]
Revenue from External Customer [Line Items]
Operating revenues	795	662	2,371	1,969
Operating Segments [Member] \| Industrial [Member]
Revenue from External Customer [Line Items]
Operating revenues	829	709	2,383	2,027
Operating Segments [Member] \| Other Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	140	120	391	347
Operating Segments [Member] \| Landfill [Member]
Revenue from External Customer [Line Items]
Operating revenues	1,100	946	3,090	2,707
Operating Segments [Member] \| Transfer [Member]
Revenue from External Customer [Line Items]
Operating revenues	550	482	1,547	1,362
Operating Segments [Member] \| Recycling [Member]
Revenue from External Customer [Line Items]
Operating revenues	464	290	1,203	819
Operating Segments [Member] \| Other Revenue [Member]
Revenue from External Customer [Line Items]
Operating revenues	551	458	1,541	1,297
Intercompany Operating Revenues [Member]
Revenue from External Customer [Line Items]
Operating revenues	$ (978)	$ (831)	$ (2,796)	$ (2,393)

Acquisition of Advanced Disposal (Detail) $ / shares in Units, customer in Millions, $ in Millions		3 Months Ended		9 Months Ended
	Oct. 30, 2020 USD ($) customer $ / shares	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)	May 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Nov. 30, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill		$ 9,006		$ 9,006			$ 8,994
Revenue		4,665	$ 3,861	13,253	$ 11,151
Operating expenses		2,906	2,332	8,156	6,841
Selling, general and administrative expenses		469	$ 416	1,372	$ 1,218
364-day revolving credit facility [Member]
Business Acquisition [Line Items]
Maximum capacity	$ 3,000
Senior Notes, Aggregate [Member]
Business Acquisition [Line Items]
Debt instrument face amount						$ 950		$ 2,500
Advanced Disposal [Member]
Business Acquisition [Line Items]
Price per share \| $ / shares	$ 30.30
Total consideration	$ 4,600
Debt incurred for acquisition	$ 1,800
Number of customers \| customer	3
Goodwill		$ 2,495		$ 2,495

Acquisition of Advanced Disposal - Purchase Allocation (Detail) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020	Oct. 30, 2020
Purchase price allocation
Goodwill	$ 9,006	$ 8,994
Carrying value of debt	13,047	$ 13,810
Advanced Disposal [Member]
Purchase price allocation
Accounts and other receivables	160
Parts and supplies	7
Other current assets	16
Assets held for sale	1,022
Property and equipment	1,268
Goodwill	2,495
Other intangible assets	601
Investments in unconsolidated entities	9
Other assets	25
Accounts payable	(107)
Accrued liabilities	(158)
Deferred revenues	(19)
Current portion of long-term debt	(12)
Liabilities held for sale	(234)
Long-term debt, less current portion	(441)
Landfill and environmental remediation liabilities	(255)
Deferred income taxes	(214)
Other liabilities	(81)
Total purchase price	$ 4,082
Advanced Disposal [Member] \| Advanced Disposal 5.625% senior notes due 2024 [Member]
Purchase price allocation
Carrying value of debt			$ 425
Interest rate (as a percent)			5.625%
Fair value of debt			$ 438
Advanced Disposal [Member] \| Previously Reported [Member]
Purchase price allocation
Accounts and other receivables			159
Parts and supplies			8
Other current assets			17
Assets held for sale			1,022
Property and equipment			1,278
Goodwill			2,470
Other intangible assets			604
Investments in unconsolidated entities			9
Other assets			27
Accounts payable			(107)
Accrued liabilities			(155)
Deferred revenues			(19)
Current portion of long-term debt			(12)
Liabilities held for sale			(234)
Long-term debt, less current portion			(441)
Landfill and environmental remediation liabilities			(242)
Deferred income taxes			(223)
Other liabilities			(79)
Total purchase price			4,082
Advanced Disposal [Member] \| Adjustment [Member]
Purchase price allocation
Accounts and other receivables			1
Parts and supplies			(1)
Other current assets			(1)
Property and equipment			(10)
Goodwill			25
Other intangible assets			(3)
Other assets			(2)
Accrued liabilities			(3)
Landfill and environmental remediation liabilities			(13)
Deferred income taxes			9
Other liabilities			$ (2)

Acquisition of Advanced Disposal - Intangible Allocation (Detail) - Advanced Disposal [Member] - USD ($) $ in Millions	Oct. 30, 2020	Sep. 30, 2021
Intangible assets
Other intangible assets		$ 601
Other Intangible Assets [Member]
Intangible assets
Other intangible assets		29
Weighted average amortization periods	7 years
Customer Relationships [Member]
Intangible assets
Other intangible assets		$ 572
Weighted average amortization periods	15 years

Acquisition of Advanced Disposal - Divestitures (Detail) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Oct. 30, 2020
Divestitures
Gain (loss) on sale of assets	$ 35	$ 8
Advanced Disposal [Member] \| Disposed of by Sale, Not Discontinued Operations [Member]
Divestitures
Divestiture consideration			$ 856

Divestitures, Asset Impairments and Unusual Items (Detail) - USD ($) $ in Millions	3 Months Ended					9 Months Ended
	Sep. 30, 2021	Mar. 31, 2021	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Sep. 30, 2021	Sep. 30, 2020
Asset Impairments and Unusual Items
(Gain) loss from divestitures, asset impairments and unusual items, net	$ (34)		$ 7			$ (17)	$ 68
Increase in legal accruals		$ 20
Asset impairments		6	$ 7				61
Gain (loss) on sale of assets	$ 35	$ 8
Refined Coal Facility [Member]
Asset Impairments and Unusual Items
Equity method investments impairment charges					$ 7		7
Landfills and Oil Field Waste Injection Facility [Member]
Asset Impairments and Unusual Items
Asset impairments				$ 41			41
Asset fair value				8
Landfill [Member]
Asset Impairments and Unusual Items
Asset impairments				20			$ 20
Landfill [Member] \| Carrying Value [Member]
Asset Impairments and Unusual Items
Asset impairments				12
Landfill [Member] \| Expected Timing [Member]
Asset Impairments and Unusual Items
Asset impairments				$ 8

Accumulated Other Comprehensive Loss - Changes (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
AOCI roll forward
Beginning balance	$ 7,354	$ 6,893	$ 7,454	$ 7,070
Other comprehensive income (loss), net of tax	(58)	25	(27)	(8)
Ending balance	7,174	7,157	7,174	7,157
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI roll forward
Beginning balance	70	(41)	39	(8)
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit			1
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit			(28)
Other comprehensive income (loss), net of tax	(58)	25	(27)	(8)
Ending balance	12	$ (16)	12	$ (16)
Derivative Instruments [Member]
AOCI roll forward
Beginning balance			(9)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit			8
Other comprehensive income (loss), net of tax			8
Ending balance	(1)		(1)
Available-for-Sale Debt Securities [Member]
AOCI roll forward
Beginning balance			49
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit			(3)
Other comprehensive income (loss), net of tax			(3)
Ending balance	46		46
Foreign Currency Translation Adjustments [Member]
AOCI roll forward
Beginning balance			(1)
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit			4
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit	35		(35)
Other comprehensive income (loss), net of tax			(31)
Ending balance	(32)		(32)
Post - Retirement Benefit Obligation [Member]
AOCI roll forward
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit			(1)
Other comprehensive income (loss), net of tax			(1)
Ending balance	$ (1)		$ (1)

Accumulated Other Comprehensive Loss - Tax Impact (Detail) $ in Millions	9 Months Ended
	Sep. 30, 2021 USD ($)
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	$ 0
Amounts reclassified from accumulated other comprehensive (income) loss, tax	3
Available-for-Sale Debt Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	(1)
Amounts reclassified from accumulated other comprehensive (income) loss, tax	0
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	0
Amounts reclassified from accumulated other comprehensive (income) loss, tax	0
Post - Retirement Benefit Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	0
Amounts reclassified from accumulated other comprehensive (income) loss, tax	$ 0

Common Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended			3 Months Ended		9 Months Ended
	Aug. 31, 2021	May 31, 2021	Feb. 28, 2021	Sep. 30, 2021	Jun. 30, 2021	Sep. 30, 2021	Sep. 30, 2020
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock						$ 1,000	$ 402
Authorized share repurchases				$ 350		$ 350
Accelerated Share Repurchase Agreement (ASR) [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock	$ 500	$ 250	$ 250
Shares repurchased (in shares)	2.7	1.4	1.8	0.4	0.2
Initial stock repurchase price (in dollars per share)	$ 147.27	$ 141.42	$ 110.56
Final weighted average share purchase price (in dollars per share)				$ 140.04	$ 126.83

Fair Value Measurements - Recurring (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment maturity	9 years
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 526	$ 969
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and money market funds	48	530
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member] \| Equity securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	16
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	413	390
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 49	$ 49

Fair Value Measurements - Debt (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net borrowings (repayments)	$ (809)
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	13,000	$ 13,800
Significant Other Observable Inputs (Level 2) [Member] \| Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of debt	$ 13,800	$ 15,200

Variable Interest Entities (Detail) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
Variable Interest Entities (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Sep. 30, 2020	Sep. 30, 2021	Dec. 31, 2020
Variable Interest Entity [Line Items]
Carrying value of debt			$ 13,047	$ 13,810
Assets			28,841	29,345
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Assets			117	114
Investment In Low Income Housing Properties [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate investment balance			193	228
Carrying value of debt			169	210
Refined Coal Facility [Member]
Variable Interest Entity [Line Items]
Equity method investments impairment charges	$ 7	$ 7
Trust For Final Capping, Closure, Post-closure Or Environmental Remediation Obligations [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate investment balance			$ 107	$ 106