0001558370-23-007024 | 10-Q | XBRL Viewer

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Current assets:
Cash and cash equivalents	$ 257	$ 351
Accounts receivable, net of allowance for doubtful accounts of $26 and $26, respectively	2,418	2,461
Other receivables, net of allowance for doubtful accounts of $5 and $7, respectively	190	291
Parts and supplies	170	164
Other assets	336	284
Total current assets	3,371	3,551
Property and equipment, net of accumulated depreciation and depletion of $22,027 and $21,627, respectively	15,705	15,719
Goodwill	9,344	9,323
Other intangible assets, net	823	827
Restricted funds	476	348
Investments in unconsolidated entities	569	578
Other assets	1,002	1,021
Total assets	31,290	31,367
Current liabilities:
Accounts payable	1,510	1,766
Accrued liabilities	1,426	1,625
Deferred revenues	584	589
Current portion of long-term debt	336	414
Total current liabilities	3,856	4,394
Long-term debt, less current portion	15,034	14,570
Deferred income taxes	1,784	1,733
Landfill and environmental remediation liabilities	2,729	2,700
Other liabilities	1,079	1,106
Total liabilities	24,482	24,503
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	5,244	5,314
Retained earnings	13,414	13,167
Accumulated other comprehensive (loss) income	(57)	(69)
Treasury stock at cost 223,491,127 and 222,396,166 shares, respectively	(11,813)	(11,569)
Total Waste Management, Inc. stockholders' equity	6,794	6,849
Noncontrolling interests	14	15
Total equity	6,808	6,864
Total liabilities and equity	$ 31,290	$ 31,367

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2023

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):


	March 31,		December 31,
	2023		2022
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	186	$	240
Equity securities		39		37
Significant other observable inputs (Level 2):
Available-for-sale securities (a)		451		360
Significant unobservable inputs (Level 3):
Redeemable preferred stock (b)		56		56
Total Assets	$	732	$	693

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

(b)

Our investment, which is classified as an available-for-sale debt security, has 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.

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022
Income Taxes
Effective tax rate of income (loss) before income taxes	23.60%		23.50%
Excess tax benefits associated with equity-based compensation	$ 7		$ 10
Equity in net losses of unconsolidated entities	11		15
Increase (decrease) to accruals and related deferred taxes	0		3
2017 Audit [Member]
Income Taxes
Income tax deposit paid		$ 103
Low income housing investments [Member]
Income Taxes
Equity in net losses of unconsolidated entities	13		14
Income tax benefit from low-income housing investments	22		23
Interest expense	$ 4		$ 3

Accumulated Other Comprehensive (Loss) Income - Tax Impact (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	$ 2
Amounts reclassified from accumulated other comprehensive (income) loss, tax	0
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

Accumulated Other Comprehensive (Loss) Income - Changes (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
AOCI roll forward
Beginning balance	$ 6,864	$ 7,126
Other comprehensive income (loss), net of tax	12	(2)
Ending balance	6,808	7,146
Accumulated Other Comprehensive Income (Loss) [Member]
AOCI roll forward
Beginning balance	(69)	17
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit	12
Other comprehensive income (loss), net of tax	12	(2)
Ending balance	(57)	$ 15
Derivative Instruments [Member]
AOCI roll forward
Beginning balance	3
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit	5
Other comprehensive income (loss), net of tax	5
Ending balance	8
Available-for-Sale Debt Securities [Member]
AOCI roll forward
Beginning balance	19
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit	5
Other comprehensive income (loss), net of tax	5
Ending balance	24
Foreign Currency Translation Adjustments [Member]
AOCI roll forward
Beginning balance	(94)
Other comprehensive income (loss) before reclassifications, net of tax (expense) benefit	2
Other comprehensive income (loss), net of tax	2
Ending balance	(92)
Post - Retirement Benefit Obligation [Member]
AOCI roll forward
Beginning balance	3
Ending balance	$ 3

- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

- Definition

Amount of stockholders' equity (deficit), net of receivables from officers, directors, owners, and affiliates of the entity, attributable to both the parent and noncontrolling interests. Amount excludes temporary equity. Alternate caption for the concept is permanent equity.

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+ Details

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2023	Apr. 24, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2023
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, Address Line Two	Suite 3000
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		406,816,705
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000823768
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Operating revenues	$ 4,892	$ 4,661
Costs and expenses:
Operating	3,086	2,903
Selling, general and administrative	476	491
Depreciation, depletion and amortization	505	482
Restructuring	3
(Gain) loss from divestitures, asset impairments and unusual items, net	(3)	17
Total costs and expenses	4,067	3,893
Income from operations	825	768
Other income (expense):
Interest expense, net	(120)	(85)
Equity in net losses of unconsolidated entities	(11)	(15)
Other, net	2	3
Total other income (expense)	(129)	(97)
Income before income taxes	696	671
Income tax expense	164	157
Consolidated net income	532	514
Less: Net income (loss) attributable to noncontrolling interests	(1)	1
Net income attributable to Waste Management, Inc.	$ 533	$ 513
Basic earnings per common share	$ 1.31	$ 1.24
Diluted earnings per common share	$ 1.30	$ 1.23

Basis of Presentation (Detail)	3 Months Ended
Basis of Presentation (Detail)	Mar. 31, 2023 segment
Basis of Presentation
Number of segments	2

Segment and Related Information - Summary (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($) segment	Mar. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Number of segments \| segment	2
Operating revenues	$ 4,892	$ 4,661
Income from operations	825	768
Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	4,091	3,854
East Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	2,108	1,938
West Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,983	1,916
Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	801	807
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues	6,034	5,646
Income from operations	1,118	1,081
Operating Segments [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	5,179	4,789
Income from operations	1,122	1,080
Operating Segments [Member] \| East Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	2,642	2,383
Income from operations	550	531
Operating Segments [Member] \| West Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	2,537	2,406
Income from operations	572	549
Operating Segments [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	855	857
Income from operations	(4)	1
Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues	(1,142)	(985)
Intercompany Operating Revenues [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	(1,088)	(935)
Intercompany Operating Revenues [Member] \| East Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	(534)	(445)
Intercompany Operating Revenues [Member] \| West Tier [Member]
Segment Reporting Information [Line Items]
Operating revenues	(554)	(490)
Intercompany Operating Revenues [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	(54)	(50)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income from operations	$ (293)	$ (313)

Commitments and Contingencies

3 Months Ended

Mar. 31, 2023

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 and any

amounts that exceed our insured limits. 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, WMI and WM Holdings enter into guarantee agreements associated with their subsidiaries’ operations. Additionally, WMI 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 March 31, 2023, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover the difference, if any, between the sale value and the guaranteed market or contractually-determined value of certain homeowner’s properties that are adjacent to or near 17 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 the remaining contingent obligations will have a material adverse effect on the Company’s business, 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 $130 million higher than the $200 million recorded in the Condensed Consolidated Balance Sheet as of March 31, 2023. Our ultimate responsibility may differ materially from current estimates. It is possible that technological, regulatory or enforcement developments, the results of environmental studies, the inability to identify other PRPs, the inability of other PRPs to contribute to the settlements of such liabilities, or other factors could require us to record additional liabilities. Our ongoing review of our remediation liabilities, in light of relevant internal and external facts and circumstances, could result in revisions to our accruals that could cause upward or downward adjustments to our balance sheet and income from operations. These adjustments could be material in any given period.

As of March 31, 2023, 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 characterize 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 River Waste Pits Site in Harris County, Texas. McGinnes Industrial Maintenance Corporation (“MIMC”), a subsidiary of Waste Management of Texas, Inc., operated some of the waste pits from 1965 to 1966 and has been named as a site PRP. In 1998, WMI 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, and we recorded a liability for MIMC’s estimated potential share of the EPA’s proposed remedy and related costs, although allocation of responsibility among the PRPs for the proposed remedy has not been established. MIMC and International Paper Company have continued to work on a remedial design to support the EPA’s proposed remedy; however, design investigations indicate that fundamental changes are required to the proposed remedy and MIMC maintains its prior position that the remedy set forth in the ROD is not the best solution to protect the environment and public health. Due to further increases in the estimated cost of the remedy set forth in the ROD, we recorded an additional liability of $17 million as of March 31, 2022 for MIMC’s estimated potential share of such costs. As of March 31, 2023 and December 31, 2022, the recorded liability for MIMC’s estimated potential share of the EPA’s proposed remedy was $69 million and $68 million, respectively. MIMC’s ultimate liability could be materially different from current estimates and MIMC will continue to engage the EPA regarding its proposed remedy.

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 — 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.

In June 2022, we and certain of our officers were named as defendants in a complaint alleging violation of the federal securities laws and seeking certification as a class action in the U.S. District Court for the Southern District of New York. A lead plaintiff has been appointed and an amended complaint was filed in January 2023. The amended complaint seeks damages on behalf of a putative class of secondary market purchasers of our senior notes with a special mandatory redemption feature issued in May 2019, asserting claims under the Securities Exchange Act based on alleged misrepresentations and omissions concerning the time for completion of our acquisition of Advanced Disposal. We will vigorously defend against this pending suit. We believe any potential recovery by the plaintiffs, in excess of applicable deductibles, will be covered by insurance, and we do not believe that the eventual outcome of this suit will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

WMI’s charter and bylaws provide that WMI 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 WMI’s Board of Directors and each of WMI’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.

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. In the fourth quarter of 2022, the Company received a notice of tax due for the 2017 tax year related to a remaining disagreement with the IRS. In response to the notice, the Company made a deposit of approximately $103 million with the IRS. The Company expects to seek a refund of the entire amount deposited with the IRS and litigate any denial of the claim for refund. As of March 31, 2023 and December 31, 2022, the IRS deposit, net of reserve for uncertain tax positions, is classified as a component of other long-term assets in the Company’s Condensed Consolidated Balance Sheets.

In addition, we are in the examination phase of IRS audits for the 2022 and 2023 tax years and expect the audits to be completed within the next 24 months. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 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.

Debt (Tables)

3 Months Ended

Mar. 31, 2023

Debt

Components of Debt

The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of March 31, 2023:


	March 31,		December 31,
	2023		2022
Commercial paper program (weighted average interest rate of 5.2% as of March 31, 2023 and 4.9% as of December 31, 2022)	$	863	$	1,730
Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.4% as of March 31, 2023 and 3.2% as of December 31, 2022)		9,876		8,626
Term Loan maturing May 2024, (interest rate of 5.6% as of March 31, 2023 and 5.1% as of December 31, 2022)		1,000		1,000
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		370		369
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.4% to 4.4% (weighted average interest rate of 2.8% as of March 31, 2023 and 2.7% as of December 31, 2022)		2,648		2,648
Financing leases and other, maturing through 2071 (weighted average interest rate of 4.7% as of March 31, 2023 and December 31, 2022) (a)		704		699
Debt issuance costs, discounts and other		(91)		(88)
		15,370		14,984
Current portion of long-term debt		336		414
Long-term debt, less current portion	$	15,034	$	14,570

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

Landfill and Environmental Remediation Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

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):


	March 31, 2023						December 31, 2022
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	136	$	32	$	168	$	137	$	31	$	168
Long-term		2,561		168		2,729		2,527		173		2,700
	$	2,697	$	200	$	2,897	$	2,664	$	204	$	2,868

Changes to Landfill and Environmental Remediation Liabilities

The changes to landfill and environmental remediation liabilities for the three months ended March 31, 2023 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2022	$	2,664	$	204
Obligations incurred and capitalized		20		—
Obligations settled		(22)		(6)
Interest accretion		30		2
Revisions in estimates and interest rate assumptions		5		—
Acquisitions, divestitures and other adjustments		—		—
March 31, 2023	$	2,697	$	200

(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($)
San Jacinto Waste Pits [Member]
Asset Impairments and Unusual Items
Revisions in estimates and interest rate assumptions	$ 17

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

3 Months Ended

Mar. 31, 2023

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

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

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

(Gain) loss from divestitures, asset impairments and unusual items, net for the first quarter of 2023 were nominal. During the first quarter of 2022, we recognized a $17 million charge pertaining to reserves for loss contingencies in our Corporate and Other segment to adjust an indirect wholly-owned subsidiary’s estimated potential share of the liability for a proposed environmental remediation plan at a closed site, as discussed in Note 6.

Segment and Related Information

3 Months Ended

Mar. 31, 2023

Segment and Related Information

Segment and Related Information

7. Segment and Related Information

Our senior management evaluates, oversees and manages the financial performance of our Solid Waste operations through two operating segments. Our East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and substantially all of Canada. Our West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region, and British Columbia, Canada. Each of our Solid Waste operating segments provides integrated environmental services, including collection, transfer, recycling, and disposal. The East and West Tiers are presented in this report and constitute our existing Solid Waste business.

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

Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following table (in millions):


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
2023
Solid Waste:
East Tier	$	2,642	$	(534)	$	2,108	$	550
West Tier		2,537		(554)		1,983		572
Solid Waste (a)		5,179		(1,088)		4,091		1,122
Other (b)		855		(54)		801		(4)
		6,034		(1,142)		4,892		1,118
Corporate and Other (c)		—		—		—		(293)
Total	$	6,034	$	(1,142)	$	4,892	$	825

2022
Solid Waste:
East Tier	$	2,383	$	(445)	$	1,938	$	531
West Tier		2,406		(490)		1,916		549
Solid Waste (a)		4,789		(935)		3,854		1,080
Other (b)		857		(50)		807		1
		5,646		(985)		4,661		1,081
Corporate and Other (c)		—		—		—		(313)
Total	$	5,646	$	(985)	$	4,661	$	768

(a)

Income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling lines of business. From time to time, the operating results of our reportable segments are significantly affected by certain transactions or events that management believes are not indicative or representative of our results.

Income from operations in our Solid Waste business increased primarily due to (i) revenue growth in our collection and disposal business driven by both yield and volume and (ii) fuel tax credits recognized in the current year which were nominal in the prior year period as the majority of our fuel tax credits were not recognized until August 2022 due to the timing of the Inflationary Reduction Act of 2022. These increases were partially offset by (i) inflationary cost pressures; (ii) labor cost increases from frontline employee wage adjustments and annual merit increases and (iii) reduced profitability in our recycling business from the decline in recycling commodity prices and lower volumes.

(b)

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

The decrease in income from operations was due to (i) reduced profitability in our WM Renewable Energy business due to lower market values for renewable fuel standard credits and lower energy prices and (ii) the decline in recycling brokerage commodity prices affecting profitability in our recycling business.

(c)

“Corporate and Other” operating results reflect certain costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, digital, tax, insurance, centralized service center processes, other administrative functions and the maintenance of our closed landfills. Income from operations for “Corporate and Other” also includes costs associated with our long-term incentive program.

The increase in income from operations was primarily driven by (i) lower annual incentive compensation and (ii) a charge during the first quarter of 2022 to adjust an indirect wholly-owned subsidiary’s estimated potential share of the liability for a proposed environmental remediation plan at a closed site. These were partially offset by an increase in health and welfare costs driven by higher inflation and utilization of employee medical benefits.

(d)	Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

The mix of operating revenues from our major lines of business for the three months ended March 31 are as follows (in millions):


	2023		2022
Commercial	$	1,412	$	1,287
Industrial		933		836
Residential		854		805
Other collection		172		153
Total collection		3,371		3,081
Landfill		1,152		1,051
Transfer		540		486
Recycling		358		453
Other (a)		613		575
Intercompany (b)		(1,142)		(985)
Total	$	4,892	$	4,661

(a)

The “Other” line of business includes (i) certain services provided by our WMSBS business; (ii) certain services within our sustainability business including our landfill gas to energy operations managed by our WM Renewable Energy business and (iii) certain other expanded service offerings and solutions and reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity. Revenue attributable to collection, landfill, transfer and recycling services provided by our “Other” businesses has been reflected as a component of the relevant line of business for purposes of presentation in this table.

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

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.

Service or operational disruptions caused by severe storms, extended periods of inclement weather or climate events can significantly affect the operating results of the geographic areas affected. Extreme weather events may also lead to

supply chain disruption and delayed project development, or disruption of our customers’ businesses, reducing the amount of waste generated by their operations.

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 geographic 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, due to 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

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Mar. 31, 2022
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:
Cash and cash equivalents	$ 257	$ 155
Restricted cash and cash equivalents included in other current assets	$ 62	$ 20
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration]	Other Assets, Current	Other Assets, Current
Restricted cash and cash equivalents included in restricted funds	$ 73	$ 71
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Restricted Cash and Investments, Noncurrent	Restricted Cash and Investments, Noncurrent
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 392	$ 246

Basis of Presentation - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Capitalized Costs
Deferred contract costs	$ 192
Minimum [Member]
Capitalized Costs
Deferred revenue recognition period	1 month
Contract amortization period	5 years
Maximum [Member]
Capitalized Costs
Deferred revenue recognition period	3 months
Contract amortization period	13 years
Deferred Sales Incentives [Member]
Capitalized Costs
Deferred contract costs	$ 139	$ 137

Debt - Components (Detail) $ in Millions, $ in Millions	Mar. 31, 2023 USD ($)	Mar. 31, 2023 CAD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2022 CAD ($)
Debt
Debt	$ 15,370		$ 14,984
Debt issuance costs, discounts and other	(91)		(88)
Current portion of long-term debt	336		414
Long-term debt, less current portion	15,034		14,570
Commercial Paper Program [Member]
Debt
Debt	$ 863		$ 1,730
Weighted average interest rate	5.20%	5.20%	4.90%	4.90%
Senior Notes, Aggregate [Member]
Debt
Debt	$ 9,876		$ 8,626
Weighted average interest rate	3.40%	3.40%	3.20%	3.20%
Senior Notes, Aggregate [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.75%	0.75%	0.75%	0.75%
Senior Notes, Aggregate [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	7.75%	7.75%	7.75%	7.75%
Term Loan maturing May 2024 [Member]
Debt
Debt	$ 1,000		$ 1,000
Effective interest rate (as a percent)	5.60%	5.60%	5.10%	5.10%
Canadian Senior Notes [Member]
Debt
Debt	$ 370	$ 500	$ 369	$ 500
Interest rate (as a percent)	2.60%	2.60%	2.60%	2.60%
Tax Exempt Bonds [Member]
Debt
Debt	$ 2,648		$ 2,648
Weighted average interest rate	2.80%	2.80%	2.70%	2.70%
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.40%	0.40%	0.40%	0.40%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	4.40%	4.40%	4.40%	4.40%
Financing leases and other [Member]
Debt
Debt	$ 704		$ 699
Weighted average interest rate	4.70%	4.70%	4.70%	4.70%

Debt - Borrowings and Repayments (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Mar. 31, 2022
Debt
New borrowings		$ 6,885	$ 2,362
Debt repayments		6,548	2,471
Net cash provided by operating activities		1,044	$ 1,258
Commercial Paper Program [Member]
Debt
Commercial paper repayments		6,500
Commercial paper borrowings		5,600
4.625% senior notes due 2030 and 2033 [Member]
Debt
Commercial paper repayments	$ 867
Interest rate (as a percent)	4.625%
New borrowings	$ 1,240
Cash remaining from borrowings after debt repayment	373
4.625% senior notes due 2030 [Member]
Debt
Debt instrument face amount	750
4.625% senior notes due 2033 [Member]
Debt
Debt instrument face amount	$ 500
Financing leases and other [Member]
Debt
Debt repayments		28
Non-cash financing lease incurred		$ 33

Basis of Presentation

3 Months Ended

Mar. 31, 2023

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 12. 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., together with its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WMI,” we are referring only to Waste Management, Inc., the parent holding company.

We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our 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 and our Waste Management Renewable Energy (“WM Renewable Energy”) business, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas, which is a significant source of fuel for our natural gas fleet.

The Condensed Consolidated Financial Statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 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, 2022.

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, intangible asset impairments and the fair value of assets and liabilities acquired in business combinations. 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 advanced 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 Sheets. As of both March 31, 2023 and December 31, 2022, we had $192 million of deferred contract costs, of which $139 million and $137 million, respectively, were related to deferred sales incentives.

Leases

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

Fair Value Measurements - Debt (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Net borrowings (repayments)	$ 337
Reported Value Measurement [Member]
Fair Value
Fair value of debt	15,400	$ 15,000
Significant Other Observable Inputs (Level 2) [Member] \| Estimate of Fair Value Measurement [Member]
Fair Value
Fair value of debt	$ 14,400	$ 13,800

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Consolidated net income	$ 532	$ 514
Other comprehensive income (loss), net of tax:
Derivative instruments, net	5	1
Available-for-sale securities, net	5	(13)
Foreign currency translation adjustments	2	10
Other comprehensive income (loss), net of tax	12	(2)
Comprehensive income	544	512
Less: Comprehensive income (loss) attributable to noncontrolling interests	(1)	1
Comprehensive income attributable to Waste Management, Inc.	$ 545	$ 511

Variable Interest Entities

3 Months Ended

Mar. 31, 2023

Variable Interest Entities

Variable Interest Entities

12. Variable Interest Entities

The 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 $309 million and $321 million as of March 31, 2023 and December 31, 2022, respectively. The debt balance related to our investments in low-income housing properties was $278 million and $295 million as of March 31, 2023 and December 31, 2022, respectively. Additional information related to these investments is discussed in Note 4.

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 $95 million and $93 million as of March 31, 2023 and December 31, 2022, 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 funds 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 $118 million and $113 million as of March 31, 2023 and December 31, 2022, respectively.

Income Taxes

3 Months Ended

Mar. 31, 2023

Income Taxes

Income Taxes

4. Income Taxes

Our effective income tax rate was 23.6% and 23.5% for the three months ended March 31, 2023 and 2022, respectively. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant.

Equity-Based Compensation — During the three months ended March 31, 2023, and 2022, we recognized a reduction in our income tax expense of $7 million and $10 million, respectively, for excess tax benefits related to the vesting or exercise of equity-based compensation awards.

Adjustments to Accruals and Related Deferred Taxes — There were no adjustments to accruals and related deferred taxes during the three months ended March 31, 2023. During the three months ended March 31, 2022, we recognized an increase in our income tax expense of $3 million for adjustments to accruals and related deferred taxes.

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 2033 under Section 42 or Section 45D of the Internal Revenue Code.

We account for our investments in these entities using the equity method of accounting, recognizing our share of each entity’s results of operations and other reductions in the value of our investments in equity in net losses of unconsolidated entities, within our Condensed Consolidated Statements of Operations. During the three months ended March 31, 2023 and 2022, we recognized $13 million and $14 million of net losses, respectively, and a reduction in our income tax expense of $22 million and $23 million, respectively, primarily 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 months ended March 31, 2023 and 2022, we recognized interest expense of $4 million and $3 million, respectively, associated with our investments in low-income housing properties. See Note 12 for additional information related to these unconsolidated variable interest entities.

- 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 (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share

Computing Basic and Diluted Earnings Per Share

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


	2023	2022
Number of common shares outstanding at end of period	406.8	415.2
Effect of using weighted average common shares outstanding	0.6	0.5
Weighted average basic common shares outstanding	407.4	415.7
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.1
Weighted average diluted common shares outstanding	409.0	417.8
Potentially issuable shares	5.6	5.9
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	1.8	1.8

Variable Interest Entities (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entity
Carrying value of debt	$ 15,370	$ 14,984
Assets	31,290	31,367
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity
Assets	118	113
Low income housing investments [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity
Aggregate investment balance	309	321
Carrying value of debt	278	295
Trust For Final Capping, Closure, Post-closure Or Environmental Remediation Obligations [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity
Aggregate investment balance	$ 95	$ 93

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Consolidated net income	$ 532	$ 514
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation, depletion and amortization	505	482
Deferred income tax expense (benefit)	42	(11)
Interest accretion on landfill and environmental remediation liabilities	32	28
Provision for bad debts	9	10
Equity-based compensation expense	26	25
Net gain on disposal of assets	(10)	(4)
(Gain) loss from divestitures, asset impairments and other, net	(3)	17
Equity in net losses of unconsolidated entities, net of dividends	11	15
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	138	93
Other current assets	(51)	(20)
Other assets	22	19
Accounts payable and accrued liabilities	(145)	101
Deferred revenues and other liabilities	(64)	(11)
Net cash provided by operating activities	1,044	1,258
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(34)	(9)
Capital expenditures	(660)	(418)
Proceeds from divestitures of businesses and other assets, net of cash divested	11	5
Other, net	(95)	(150)
Net cash used in investing activities	(778)	(572)
Cash flows from financing activities:
New borrowings	6,885	2,362
Debt repayments	(6,548)	(2,471)
Common stock repurchase program	(350)	(250)
Cash dividends	(289)	(275)
Exercise of common stock options	12	9
Tax payments associated with equity-based compensation transactions	(28)	(34)
Other, net	(1)	24
Net cash used in financing activities	(319)	(635)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		1
(Decrease) increase in cash, cash equivalents and restricted cash and cash equivalents	(53)	52
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	445	194
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 392	$ 246

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Treasury Stock [Member]	Noncontrolling Interests [Member]	Total
Beginning balance at Dec. 31, 2021	$ 6,000	$ 5,169,000	$ 12,004,000	$ 17,000	$ (10,072,000)	$ 2,000	$ 7,126,000
Beginning balance, common shares at Dec. 31, 2021	630,282,000
Beginning balance, treasury shares at Dec. 31, 2021					(214,159,000)
Equity roll forward
Consolidated net income			513,000			1,000	514,000
Other comprehensive income (loss), net of tax				(2,000)			(2,000)
Cash dividends declared			(275,000)				(275,000)
Equity-based compensation transactions, net		(11,000)	5,000		$ 40,000		34,000
Equity-based compensation transactions, net, shares					862,000
Common stock repurchase program		20,000			$ (270,000)		(250,000)
Common stock repurchase program, shares					(1,806,000)
Other, net						(1,000)	(1,000)
Other, net, shares					1,000
Ending balance at Mar. 31, 2022	$ 6,000	5,178,000	12,247,000	15,000	$ (10,302,000)	2,000	$ 7,146,000
Ending balance, common shares at Mar. 31, 2022	630,282,000						415,200,000
Ending balance, treasury shares at Mar. 31, 2022					(215,102,000)
Beginning balance at Dec. 31, 2022	$ 6,000	5,314,000	13,167,000	(69,000)	$ (11,569,000)	15,000	$ 6,864,000
Beginning balance, common shares at Dec. 31, 2022	630,282,000
Beginning balance, treasury shares at Dec. 31, 2022					(222,396,000)		(222,396,166)
Equity roll forward
Consolidated net income	$ 0	0	533,000	0	$ 0	(1,000)	$ 532,000
Other comprehensive income (loss), net of tax				12,000			12,000
Cash dividends declared			(289,000)				(289,000)
Equity-based compensation transactions, net			3,000		$ 39,000		42,000
Equity-based compensation transactions, net, shares					766,000
Common stock repurchase program		(70,000)			$ (283,000)		(353,000)
Common stock repurchase program, shares					(1,862,000)
Other, net, shares					1,000
Ending balance at Mar. 31, 2023	$ 6,000	$ 5,244,000	$ 13,414,000	$ (57,000)	$ (11,813,000)	$ 14,000	$ 6,808,000
Ending balance, common shares at Mar. 31, 2023	630,282,000						406,800,000
Ending balance, treasury shares at Mar. 31, 2023					(223,491,000)		(223,491,127)

Earnings Per Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

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


	2023	2022
Number of common shares outstanding at end of period	406.8	415.2
Effect of using weighted average common shares outstanding	0.6	0.5
Weighted average basic common shares outstanding	407.4	415.7
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.1
Weighted average diluted common shares outstanding	409.0	417.8
Potentially issuable shares	5.6	5.9
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	1.8	1.8

Refer to the Condensed Consolidated Statements of Operations for net income attributable to Waste Management, Inc.

Accumulated Other Comprehensive (Loss) Income

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive (Loss) Income

Accumulated Other Comprehensive (Loss) Income

9. Accumulated Other Comprehensive (Loss) Income

The changes in the balances of each component of accumulated other comprehensive (loss) income, 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		Obligations		Total
Balance, December 31, 2022	$	3	$	19	$	(94)	$	3	$	(69)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $2, $1, $0 and $0, respectively		5		5		2		—		12
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $0, $0, $0 and $0, respectively		—		—		—		—		—
Net current period other comprehensive income (loss)		5		5		2		—		12
Balance, March 31, 2023	$	8	$	24	$	(92)	$	3	$	(57)

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 26	$ 26
Allowance for other receivables	5	7
Accumulated depreciation and amortization	$ 22,027	$ 21,627
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	223,491,127	222,396,166

Landfill and Environmental Remediation Liabilities - Changes (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Landfill and environmental remediation liabilities
Ending balance, environmental remediation	$ 200
San Jacinto Waste Pits [Member]
Landfill and environmental remediation liabilities
Beginning balance, environmental remediation	68
Revisions in estimates and interest rate assumptions		$ 17
Ending balance, environmental remediation	69
Landfill [Member]
Landfill and environmental remediation liabilities
Beginning balance, landfill	2,664
Obligations incurred and capitalized	20
Obligations settled	(22)
Interest accretion	30
Revisions in estimates and interest rate assumptions	5
Ending balance, landfill	2,697
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Beginning balance, environmental remediation	204
Obligations settled	(6)
Interest accretion	2
Ending balance, environmental remediation	$ 200

Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from External Customer [Line Items]
Operating revenues	$ 4,892	$ 4,661
Operating Segments [Member]
Revenue from External Customer [Line Items]
Operating revenues	6,034	5,646
Operating Segments [Member] \| Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	3,371	3,081
Operating Segments [Member] \| Commercial [Member]
Revenue from External Customer [Line Items]
Operating revenues	1,412	1,287
Operating Segments [Member] \| Industrial [Member]
Revenue from External Customer [Line Items]
Operating revenues	933	836
Operating Segments [Member] \| Residential [Member]
Revenue from External Customer [Line Items]
Operating revenues	854	805
Operating Segments [Member] \| Other Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	172	153
Operating Segments [Member] \| Landfill [Member]
Revenue from External Customer [Line Items]
Operating revenues	1,152	1,051
Operating Segments [Member] \| Transfer [Member]
Revenue from External Customer [Line Items]
Operating revenues	540	486
Operating Segments [Member] \| Recycling [Member]
Revenue from External Customer [Line Items]
Operating revenues	358	453
Operating Segments [Member] \| Other Revenue [Member]
Revenue from External Customer [Line Items]
Operating revenues	613	575
Intercompany Operating Revenues [Member]
Revenue from External Customer [Line Items]
Operating revenues	$ (1,142)	$ (985)

Common Stock Repurchase Program - Repurchases (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Feb. 28, 2023	Mar. 31, 2023	Mar. 31, 2022
Common stock repurchase program
Cash paid for repurchase of common stock		$ 350	$ 250
Authorized share repurchases		$ 1,150
Accelerated Share Repurchase Agreement (ASR) [Member]
Common stock repurchase program
Shares repurchased (in shares)	1.9
Cash paid for repurchase of common stock	$ 350
Initial stock repurchase price (in dollars per share)	$ 150.34

Segment and Related Information (Tables)

3 Months Ended

Mar. 31, 2023

Segment and Related Information

Reportable Segments

Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following table (in millions):


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(d)		Revenues		Operations
2023
Solid Waste:
East Tier	$	2,642	$	(534)	$	2,108	$	550
West Tier		2,537		(554)		1,983		572
Solid Waste (a)		5,179		(1,088)		4,091		1,122
Other (b)		855		(54)		801		(4)
		6,034		(1,142)		4,892		1,118
Corporate and Other (c)		—		—		—		(293)
Total	$	6,034	$	(1,142)	$	4,892	$	825

2022
Solid Waste:
East Tier	$	2,383	$	(445)	$	1,938	$	531
West Tier		2,406		(490)		1,916		549
Solid Waste (a)		4,789		(935)		3,854		1,080
Other (b)		857		(50)		807		1
		5,646		(985)		4,661		1,081
Corporate and Other (c)		—		—		—		(313)
Total	$	5,646	$	(985)	$	4,661	$	768

(a)

(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 for the three months ended March 31 are as follows (in millions):


	2023		2022
Commercial	$	1,412	$	1,287
Industrial		933		836
Residential		854		805
Other collection		172		153
Total collection		3,371		3,081
Landfill		1,152		1,051
Transfer		540		486
Recycling		358		453
Other (a)		613		575
Intercompany (b)		(1,142)		(985)
Total	$	4,892	$	4,661

(a)

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

Common Stock Repurchase Program

3 Months Ended

Mar. 31, 2023

Common Stock Repurchase Program

Common Stock Repurchase Program

10. 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 2023, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $350 million of our common stock. At the beginning of the repurchase period, we delivered $350 million cash and received 1.9 million shares based on a stock price of $150.34, exclusive of the 1% excise tax discussed below. The final number of shares to be repurchased and the final average price per share under the ASR agreement, exclusive of the 1% excise tax, 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 April 2023.

The Inflation Reduction Act of 2022, which was enacted into law on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. During the three months ended March 31, 2023, we reflected the applicable excise tax in treasury stock as part of the cost basis of the stock repurchased

and recorded a corresponding liability for the excise taxes payable in accrued liabilities in our Condensed Consolidated Balance Sheet.

As of March 31, 2023, the Company has authorization for $1.15 billion 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.

Landfill and Environmental Remediation Liabilities

3 Months Ended

Mar. 31, 2023

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):


	March 31, 2023						December 31, 2022
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	136	$	32	$	168	$	137	$	31	$	168
Long-term		2,561		168		2,729		2,527		173		2,700
	$	2,697	$	200	$	2,897	$	2,664	$	204	$	2,868

The changes to landfill and environmental remediation liabilities for the three months ended March 31, 2023 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2022	$	2,664	$	204
Obligations incurred and capitalized		20		—
Obligations settled		(22)		(6)
Interest accretion		30		2
Revisions in estimates and interest rate assumptions		5		—
Acquisitions, divestitures and other adjustments		—		—
March 31, 2023	$	2,697	$	200

At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds 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 12 for additional information related to these trusts.

Basis of Presentation (Policies)	3 Months Ended
Basis of Presentation (Policies)	Mar. 31, 2023
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 12. 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., together with its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WMI,” we are referring only to Waste Management, Inc., the parent holding company. We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our 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 and our Waste Management Renewable Energy (“WM Renewable Energy”) business, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas, which is a significant source of fuel for our natural gas fleet. Our senior management evaluates, oversees and manages the financial performance of our Solid Waste operations through two operating segments. Our East Tier primarily consists of geographic areas located in the Eastern U.S., the Great Lakes region and substantially all of Canada. Our West Tier primarily includes geographic areas located in the Western U.S., including the upper Midwest region, and British Columbia, Canada. Each of our Solid Waste operating segments provides integrated environmental services, including collection, transfer, recycling, and disposal. The East and West Tiers are presented in this report and constitute our existing Solid Waste business. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments is included in Note 7. The Condensed Consolidated Financial Statements as of March 31, 2023 and for the three months ended March 31, 2023 and 2022 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, 2022. 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, intangible asset impairments and the fair value of assets and liabilities acquired in business combinations. 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 advanced 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 Sheets. As of both March 31, 2023 and December 31, 2022, we had $192 million of deferred contract costs, of which $139 million and $137 million, respectively, were related to deferred sales incentives.
Leases	Leases Amounts for our operating lease right-of-use assets are recorded in long-term other assets and the current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets. Amounts for our financing leases are recorded in property and equipment, net of accumulated depreciation and depletion, 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 restricted funds, 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.

- 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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

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

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 20
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
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-Paragraph 18
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130563-203045

Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Paragraph 20
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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-URI https://asc.fasb.org/extlink&oid=126920106&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 https://asc.fasb.org/extlink&oid=126920106&loc=SL49130566-203045

+ Details

Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Landfill and environmental remediation liabilities
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration]	Accrued Liabilities, Current	Accrued Liabilities, Current
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term	Long-term
Total, Environmental Remediation	$ 200
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration]	Long-term, Accrued Liabilities, Current	Long-term, Accrued Liabilities, Current
Current (in accrued liabilities)	$ 168	$ 168
Long-term	2,729	2,700
Total	2,897	2,868
Landfill [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Landfill	136	137
Long-term, Landfill	2,561	2,527
Total, Landfill	2,697	2,664
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Environmental Remediation	32	31
Long-term, Environmental Remediation	168	173
Total, Environmental Remediation	$ 200	$ 204

Debt - Classification and Utilization (Detail) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	May 31, 2022	Mar. 31, 2023	Dec. 31, 2022
Debt
Debt maturing or subject to remarketing within twelve months		$ 2,300
Current portion of long-term debt		336	$ 414
Debt classified as long-term due to intent and ability to refinance on long-term basis		1,900
Carrying value of debt		15,370	14,984
Revolving Credit Facility [Member]
Debt
Maximum capacity		3,500
Outstanding borrowings under credit facility		0
Letters of credit outstanding		165
Unused and available credit capacity		2,500
Term Loan maturing May 2024 [Member]
Debt
Maximum capacity	$ 1,000
Debt term	2 years
Carrying value of debt		1,000	1,000
Commercial Paper Program [Member]
Debt
Debt maturing or subject to remarketing within twelve months		$ 861
Debt term		397 days
Carrying value of debt		$ 863	1,730
Commercial paper borrowings		861
Tax Exempt Bonds [Member]
Debt
Debt maturing or subject to remarketing within twelve months		65
Debt with interest rate periods that expire in the next 12 months		725
Carrying value of debt		$ 2,648	$ 2,648
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)		0.40%	0.40%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)		4.40%	4.40%
2.40% senior notes due 2023 [Member]
Debt
Debt maturing or subject to remarketing within twelve months		$ 500
Interest rate (as a percent)		2.40%
Other Letter Of Credit Lines [Member]
Debt
Letters of credit outstanding		$ 796
Financing leases and other [Member]
Debt
Debt maturing or subject to remarketing within twelve months		186
Carrying value of debt		$ 704	$ 699

Earnings Per Share (Detail) - shares shares in Millions	3 Months Ended
Earnings Per Share (Detail) - shares shares in Millions	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share
Number of common shares outstanding at end of period	406.8	415.2
Effect of using weighted average common shares outstanding	0.6	0.5
Weighted average basic common shares outstanding	407.4	415.7
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.1
Weighted average diluted common shares outstanding	409.0	417.8
Potentially issuable shares	5.6	5.9
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	1.8	1.8

- Definition

Additional shares included in the calculation of diluted EPS as a result of the potentially dilutive effect of contingently issuable shares. Contingently issuable shares are those shares that are issuable for little or no cash contingent on certain conditions being met.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 54
-URI https://asc.fasb.org/extlink&oid=126958026&loc=d3e2603-109256

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Debt

3 Months Ended

Mar. 31, 2023

Debt

Debt

3. Debt


	March 31,		December 31,
	2023		2022
Commercial paper program (weighted average interest rate of 5.2% as of March 31, 2023 and 4.9% as of December 31, 2022)	$	863	$	1,730
Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.4% as of March 31, 2023 and 3.2% as of December 31, 2022)		9,876		8,626
Term Loan maturing May 2024, (interest rate of 5.6% as of March 31, 2023 and 5.1% as of December 31, 2022)		1,000		1,000
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		370		369
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.4% to 4.4% (weighted average interest rate of 2.8% as of March 31, 2023 and 2.7% as of December 31, 2022)		2,648		2,648
Financing leases and other, maturing through 2071 (weighted average interest rate of 4.7% as of March 31, 2023 and December 31, 2022) (a)		704		699
Debt issuance costs, discounts and other		(91)		(88)
		15,370		14,984
Current portion of long-term debt		336		414
Long-term debt, less current portion	$	15,034	$	14,570

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

Debt Classification

As of March 31, 2023, we had approximately $2.3 billion of debt maturing within the next 12 months, including (i) $861 million of short-term borrowings under our commercial paper program (net of related discount on issuance); (ii) $725 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 2.4% senior notes that mature in May 2023 and (iv) $186 million of other debt with scheduled maturities within the next 12 months, including $65 million of tax-exempt bonds. As of March 31, 2023, we have classified $1.9 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 $336 million of debt maturing in the next 12 months is classified as current obligations.

Access to and Utilization of Credit Facilities, Commercial Paper Program and Term Loan

$3.5 Billion Revolving Credit Facility — Our $3.5 billion revolving credit facility, maturing May 2027, provides us with credit capacity to be used for cash borrowings, to support letters of credit and to support our commercial paper program. The interest rates we pay on outstanding U.S. or Canadian loans are based on the Secured Overnight Financing Rate (“SOFR”) administered by the Federal Reserve Bank of New York or the Canadian Dollar Offered Rate (“CDOR”), respectively, plus a spread depending on WMI’s senior public debt rating assigned by Moody’s Investors Service, Inc. and Standard and Poor’s Global Ratings. As of March 31, 2023, we had no outstanding borrowings under this facility. We had $165 million of letters of credit issued and $861 million 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

$2.5 billion as of March 31, 2023. WM Holdings, a wholly-owned subsidiary of WMI, 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 March 31, 2023, we had $861 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program.

$1.0 Billion, Two-Year, Term Credit Agreement — In May 2022, we entered into a $1.0 billion, two-year, U.S. term credit agreement (“Term Loan”) maturing May 2024 to be used for general corporate purposes. The interest rate we pay on our outstanding balance is generally based on SOFR, plus a spread depending on WMI’s senior public debt rating assigned by Moody’s Investors Service, Inc. and Standard and Poor’s Global Ratings. As of March 31, 2023, we had $1.0 billion of outstanding borrowings under our Term Loan. WM Holdings also guarantees all of the obligations under the Term Loan.

Other Letter of Credit Lines — As of March 31, 2023, we had utilized $796 million of other uncommitted letter of credit lines, with terms maturing through December 2026.

Debt Borrowings and Repayments

Commercial Paper Program — During the three months ended March 31, 2023, we made cash repayments of $6.5 billion, which were partially offset by $5.6 billion of cash borrowings (net of related discount on issuance).

Senior Notes — In February 2023, WMI issued $750 million and $500 million of 4.625% senior notes due February 2030 and February 2033, respectively, the net proceeds of which were $1.24 billion. We used the net proceeds to repay $867 million of outstanding borrowings under our commercial paper program and utilized the remaining $373 million, combined with our net cash provided by operating activities of $1.04 billion, for general corporate purposes including for example, payment of dividends, common stock repurchases and investments in the business through capital expenditures and acquisitions.

Financing Leases and Other — The increase in our financing leases and other debt obligations during the three months ended March 31, 2023 is due to an increase of $33 million primarily related to non-cash financing leases, partially offset by $28 million of cash repayments of debt at maturity.

- 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

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
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-Publisher FASB
-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Commitments and Contingencies (Details) $ in Millions	3 Months Ended
Commitments and Contingencies (Details) $ in Millions	Mar. 31, 2023 USD ($) item site	Dec. 31, 2022 USD ($)	Mar. 31, 2022 USD ($)
Commitments And Contingencies [Line Items]
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value \| item	17
Environmental remediation reasonably possible additional losses high estimate	$ 130
Environmental remediation liabilities	$ 200
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	24 months
2017 Audit [Member]
Commitments And Contingencies [Line Items]
Income tax deposit paid		$ 103
San Jacinto Waste Pits [Member]
Commitments And Contingencies [Line Items]
Revisions in estimate			$ 17
Environmental remediation liabilities	$ 69	$ 68
Revolving Credit Facility [Member]
Commitments And Contingencies [Line Items]
Credit Facility, aggregate capacity	$ 3,500

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Cash dividends declared per common share	$ 0.70	$ 0.65

Accumulated Other Comprehensive (Loss) Income (Tables)

3 Months Ended

Mar. 31, 2023

Accumulated Other Comprehensive (Loss) Income

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


					Foreign		Post-
			Available-		Currency		Retirement
	Derivative		for-Sale		Translation		Benefit
	Instruments		Securities		Adjustments		Obligations		Total
Balance, December 31, 2022	$	3	$	19	$	(94)	$	3	$	(69)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $2, $1, $0 and $0, respectively		5		5		2		—		12
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $0, $0, $0 and $0, respectively		—		—		—		—		—
Net current period other comprehensive income (loss)		5		5		2		—		12
Balance, March 31, 2023	$	8	$	24	$	(92)	$	3	$	(57)

Fair Value Measurements - Recurring (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Available-for-sale Securities [Member]
Fair Value
Investment maturity	10 years
Fair Value, Measurements, Recurring [Member]
Fair Value
Total assets	$ 732	$ 693
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member]
Fair Value
Cash equivalents and money market funds	186	240
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member] \| Equity securities [Member]
Fair Value
Investments	39	37
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Available-for-sale Securities [Member]
Fair Value
Investments	451	360
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Redeemable Preferred Stock [Member]
Fair Value
Investments	$ 56	$ 56

Fair Value Measurements

3 Months Ended

Mar. 31, 2023

Fair Value Measurements

Fair Value Measurements

11. 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):


	March 31,		December 31,
	2023		2022
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	186	$	240
Equity securities		39		37
Significant other observable inputs (Level 2):
Available-for-sale securities (a)		451		360
Significant unobservable inputs (Level 3):
Redeemable preferred stock (b)		56		56
Total Assets	$	732	$	693

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

(b)

Fair Value of Debt

As of March 31, 2023 and December 31, 2022, the carrying value of our debt was $15.4 billion and $15.0 billion. The estimated fair value of our debt was approximately $14.4 billion and $13.8 billion as of March 31, 2023 and December 31, 2022, respectively. The increase in the fair value of debt is primarily due to net borrowings of $337 million in 2023 and, to a lesser extent, changes in the 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 March 31, 2023 and December 31, 2022. 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