Waste Management (WM) 10-Q 29 Apr 10 2010 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information (USD $)
In Billions, except Share data	3 Months Ended Mar. 31, 2010	Apr. 26, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	WASTE MANAGEMENT INC
Entity Central Index Key	0000823768
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			13.8
Entity Common Stock, Shares Outstanding (actual number)		483,019,919

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current assets:
Cash and cash equivalents	$871	$1,140
Accounts receivable, net of allowance for doubtful accounts of $29 and $31, respectively	1,380	1,408
Other receivables	113	119
Parts and supplies	107	110
Deferred income taxes	105	116
Other assets	143	117
Total current assets	2,719	3,010
Property and equipment, net of accumulated depreciation and amortization of $14,199 and $13,994, respectively	11,515	11,541
Goodwill	5,675	5,632
Other intangible assets, net	245	238
Other assets	841	733
Total assets	20,995	21,154
Current liabilities:
Accounts payable	500	567
Accrued liabilities	1,088	1,128
Deferred revenues	450	457
Current portion of long-term debt	632	749
Total current liabilities	2,670	2,901
Long-term debt, less current portion	8,191	8,124
Deferred income taxes	1,514	1,509
Landfill and environmental remediation liabilities	1,375	1,357
Other liabilities	704	672
Total liabilities	14,454	14,563
Commitments and contingencies
Waste Management, Inc. stockholders' equity:
Common stock, $0.01 par value; 1,500,000,000 shares authorized; 630,282,461 shares issued	6	6
Additional paid-in capital	4,514	4,543
Retained earnings	6,082	6,053
Accumulated other comprehensive income	234	208
Treasury stock at cost, 146,441,694 and 144,162,063 shares, respectively	(4,603)	(4,525)
Total Waste Management, Inc. stockholders' equity	6,233	6,285
Noncontrolling interests	308	306
Total equity	6,541	6,591
Total liabilities and equity	$20,995	$21,154

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
Current assets:
Allowance for doubtful accounts	$29	$31
Accumulated depreciation and amortization	$14,199	$13,994
Waste Management, Inc. stockholders' equity:
Common stock, par value	0.01	0.01
Common stock, shares authorized (actual number)	1,500,000,000	1,500,000,000
Common stock, shares issued (actual number)	630,282,461	630,282,461
Treasury stock, shares (actual number)	146,441,694	144,162,063

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Condensed Consolidated Statements of Operations (Unaudited) [Abstract]
Operating revenues	$2,935	$2,810
Costs and expenses:
Operating	1,881	1,725
Selling, general and administrative	351	337
Depreciation and amortization	291	289
Restructuring		38
(Income) expense from divestitures, asset impairments and unusual items		49
Total costs and expenses	2,523	2,438
Income from operations	412	372
Other income (expense):
Interest expense	(112)	(105)
Interest income		4
Other, net	2
Total other income (expense)	(110)	(101)
Income before income taxes	302	271
Provision for income taxes	110	101
Consolidated net income	192	170
Less: Net income attributable to noncontrolling interests	10	15
Net income attributable to Waste Management, Inc.	$182	$155
Basic earnings per common share	0.37	0.31
Diluted earnings per common share	0.37	0.31
Cash dividends declared per common share	0.315	0.29

2_Condensed Consolidated Statem

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Consolidated net income	$192	$170
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	291	289
Deferred income tax (benefit) provision	1	(10)
Interest accretion on landfill liabilities	20	19
Interest accretion on and discount rate adjustments to environmental remediation liabilities and recovery assets	1	(9)
Provision for bad debts	11	19
Equity-based compensation expense	12	6
Net gain on disposal of assets	(5)	(1)
Effect of (income) expense from divestitures, asset impairments and unusual items		49
Excess tax benefits associated with equity-based transactions
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	12	87
Other current assets	(31)	(23)
Other assets	4	(2)
Accounts payable and accrued liabilities	(24)	(40)
Deferred revenues and other liabilities	12	(35)
Net cash provided by operating activities	496	519
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(62)	(22)
Capital expenditures	(255)	(325)
Proceeds from divestitures of businesses (net of cash divested) and other sales of assets	12	5
Net receipts from restricted trust and escrow accounts	19	46
Investments in unconsolidated entities	(149)
Other
Net cash used in investing activities	(435)	(296)
Cash flows from financing activities:
New borrowings	114	895
Debt repayments	(169)	(452)
Common stock repurchases	(120)
Cash dividends	(153)	(143)
Exercise of common stock options	7	4
Excess tax benefits associated with equity-based transactions
Distributions paid to noncontrolling interests	(7)	(8)
Other	(3)	(51)
Net cash provided by (used in) financing activities	(331)	245
Effect of exchange rate changes on cash and cash equivalents	1	(1)
Increase (decrease) in cash and cash equivalents	(269)	467
Cash and cash equivalents at beginning of period	1,140	480
Cash and cash equivalents at end of period	$871	$947

3_Condensed Consolidated Statem

Condensed Consolidated Statements of Changes in Equity (Unaudited) (USD $)
In Millions, except Share data in Thousands	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests	Comprehensive Income	Total
Beginning Balance at Dec. 31, 2009	$6	$4,543	($4,525)	$6,053	$208	$306		$6,591
Shares, Beginning Balance (in thousand) at Dec. 31, 2009	630,282		(144,162)
Net income				182		10	192	192
Unrealized losses resulting from changes in fair value of derivative instruments, net of taxes of $7					(11)		(11)	(11)
Realized losses on derivative instruments reclassified into earnings, net of taxes of $5					9		9	9
Unrealized gains on marketable securities, net of taxes of $1					1		1	1
Foreign currency translation adjustments					27		27	27
Other comprehensive income (loss)							26	26
Comprehensive income							218	218
Cash dividends declared				(153)				(153)
Equity-based compensation transactions, including dividend equivalents, net of taxes		(29)	47					18
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares (in thousand)			1,497
Common stock repurchases			(125)					(125)
Common stock repurchases, shares (in thousand)			(3,780)
Distributions paid to noncontrolling interests						(7)		(7)
Noncontrolling interests in acquired businesses						30		30
Deconsolidation of variable interests entities						(31)		(31)
Other, shares			3
Ending Balance at Mar. 31, 2010	$6	$4,514	($4,603)	$6,082	$234	$308		$6,541
Shares, Ending Balance (in thousand) at Mar. 31, 2010	630,282		(146,442)

4_Condensed Consolidated Statem

Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010
Tax effects on unrealized gains (losses) resulting from changes in fair values of derivative instruments	$7
Tax effects on realized gains (losses) on derivative instruments reclassified into earnings	5
Tax effects on unrealized gains (losses) on marketable securities	1
Accumulated Other Comprehensive Income (Loss)
Tax effects on unrealized gains (losses) resulting from changes in fair values of derivative instruments	7
Tax effects on realized gains (losses) on derivative instruments reclassified into earnings	5
Tax effects on unrealized gains (losses) on marketable securities	1
Comprehensive Income
Tax effects on unrealized gains (losses) resulting from changes in fair values of derivative instruments	7
Tax effects on realized gains (losses) on derivative instruments reclassified into earnings	5
Tax effects on unrealized gains (losses) on marketable securities	$1

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Basis of Presentation [Abstract]
Basis of Presentation	1. Basis of Presentation The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; Waste Managements wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management or its subsidiaries are the primary beneficiary. Waste Management is a holding company and all operations are conducted by its subsidiaries. When the terms the Company, we, us or our are used in this document, those terms refer to Waste Management, Inc., its consolidated subsidiaries and consolidated variable interest entities. When we use the term WMI, we are referring only to Waste Management, Inc., the parent holding company. We manage and evaluate our principal operations through five Groups. Our four geographic operating Groups, which include our Eastern, Midwest, Southern and Western Groups, provide collection, transfer, recycling and disposal services. Our fifth operating group is the Wheelabrator Group, which provides waste-to-energy services. We also provide additional services that are not managed through our five Groups, which are presented in this report as Other. Additional information related to our segments can be found in Note10. The Condensed Consolidated Financial Statements as of and for the three months ended March31, 2010 and 2009 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, and cash flows 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 connection with the financial statements included in our Annual Report on Form10-K for the year ended December31, 2009. 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 a high degree of precision from data available or simply cannot be readily calculated based on generally accepted methods. In some cases, these estimates are particularly 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 deal with the greatest amount of uncertainty relate to our accounting for landfills, environmental remediation liabilities, asset impairments, and self-insurance reserves and recoveries. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. Subsequent events have been evaluated through the date and time the financial statements were issued. No material subsequent events have occurred since March31, 2010 that required recognition or disclosure in our current period

Landfill and Environmental Reme

Landfill and Environmental Remediation Liabilities
	3 Months Ended Mar. 31, 2010
Landfill and Environmental Remediation Liabilities [Abstract]
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): March31, 2010 December31, 2009 Environmental Environmental Landfill Remediation Total Landfill Remediation Total Current (in accrued liabilities) $ 128 $ 43 $ 171 $ 125 $ 41 $ 166 Long-term 1,161 214 1,375 1,142 215 1,357 $ 1,289 $ 257 $ 1,546 $ 1,267 $ 256 $ 1,523 The changes to landfill and environmental remediation liabilities for the year ended December31, 2009 and the three months ended March31, 2010 are reflected in the table below (in millions): Environmental Landfill Remediation December31, 2008 $ 1,218 $ 299 Obligations incurred and capitalized 39 Obligations settled (80 ) (43 ) Interest accretion 80 6 Revisions in cost estimates and interest rate assumptions 5 (7 ) Acquisitions, divestitures and other adjustments 5 1 December31, 2009 1,267 256 Obligations incurred and capitalized 10 Obligations settled (11 ) (6 ) Interest accretion 20 2 Revisions in cost estimates and interest rate assumptions (1 ) 8 Acquisitions, divestitures and other adjustments 4 (3 ) March31, 2010 $ 1,289 $ 257 At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements and we are the sole beneficiary of the restricted balances. However, certain of the funds have been established for the benefit of both the Company and the host community in which we operate. The fair value of trust funds and escrow accounts for which we are the sole beneficiary was $123million at March31, 2010. As discussed in Note1, effective January1, 2010, we deconsolidated the trusts for which power over significant activities of the trust is shared, which reduced our restricted trust and escrow accounts by $109million as of January1, 2010. Beginning in 2010, our interest in these trust funds has been accounted for as investments in unconsolidated entities. The fair value of our investment in these entities was $107million as of March31,

Debt

Debt
	3 Months Ended Mar. 31, 2010
Debt [Abstract]
Debt	3. Debt The following table summarizes the major components of debt at each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of March31, 2010: March31, December31, 2010 2009 Revolving credit facility $ $ Letter of credit facilities Canadian credit facility (weighted average interest rate of 1.3% at March31, 2010 and December31, 2009) 254 255 Senior notes and debentures, maturing through 2039, interest rates ranging from 5.0% to 7.75% (weighted average interest rate of 6.8% at March31, 2010 and December31, 2009) 5,462 5,465 Tax-exempt bonds maturing through 2039, fixed and variable interest rates ranging from 0.3% to 7.4% (weighted average interest rate of 3.3% at March31, 2010 and 3.5% at December31, 2009) 2,714 2,749 Tax-exempt project bonds, principal payable in periodic installments, maturing through 2029, fixed and variable interest rates ranging from 0.3% to 5.4% (weighted average interest rate of 3.1% at March31, 2010 and December31, 2009) 156 156 Capital leases and other, maturing through 2050, interest rates up to 12% 237 248 8,823 8,873 Current portion of long-term debt 632 749 $ 8,191 $ 8,124 Debt Classification As of March31, 2010, we had $1,108million of debt maturing within twelve months. We have classified $476million of these borrowings as long-term as of March31, 2010 based on our intent and ability to refinance these borrowings on a long-term basis. Net Debt Repayments During the three months ended March31, 2010, we repaid $35million of our tax-exempt bonds, $9million of advances outstanding under our Canadian credit facility and $11million of capital leases and other debt with available cash. Letter of Credit Facilities In addition to our $2.4billion revolving credit facility, we had an aggregate capacity of $580million for letters of credit under a $175million letter of credit facility expiring June 2010; a $105million letter of credit facility expiring June 2013; a $100million letter of credit facility expiring December 2014; and a $200million letter of credit facility expiring June 2015. These facilities provide for commitments from counterparties to issue letters of credit at our request. To the extent there are any unreimbursed draws on letters of credit under these facilities, the drawn amounts convert to term loans under the respective facility. Through March31, 2010, we had not experienced any unreimbursed draws on letters of credit under these facilities. As of March31, 2010, no borrowings were outstanding under our revolving credit facility or these letter of credit facilities. We currently have $1,447million of letters of credit outstanding under our revolving credit facility and an aggregate of $572million of letters of credit outstanding under our letter of

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	4. Derivative Instruments and Hedging Activities The following table summarizes the fair values of derivative instruments recorded in our Condensed Consolidated Balance Sheet as of March31, 2010 (in millions): Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Interest rate contracts Current other assets $ 9 Electricity commodity contracts Current other assets 1 Interest rate contracts Long-term other assets 29 Total derivative assets $ 39 Foreign exchange contracts Current accrued liabilities $ 30 Total derivative liabilities $ 30 The following table summarizes the fair values of derivative instruments recorded in our Condensed Consolidated Balance Sheet as of December31, 2009 (in millions): Derivatives Designated as Hedging Instruments Balance Sheet Location Fair Value Interest rate contracts Current other assets $ 13 Interest rate contracts Long-term other assets 32 Total derivative assets $ 45 Foreign exchange contracts Current accrued liabilities $ 18 Total derivative liabilities $ 18 For information related to the methods used to measure our derivative assets and liabilities at fair value, refer to Note12. Interest Rate Derivatives Interest Rate Swaps We use interest rate swaps to maintain a portion of our debt obligations at variable market interest rates. As of March31, 2010, the outstanding principal of our fixed-rate senior notes was approximately $5.4billion. The interest payments on $1.1billion, or 20%, of these senior notes have been swapped to variable interest rates to protect the debt against changes in fair value due to changes in benchmark interest rates. We have designated our interest rate swaps as fair value hedges of our fixed-rate senior notes. Fair value hedge accounting for interest rate swap contracts increased the carrying value of debt instruments by $87million as of March31, 2010 and $91million as of December31, 2009. Gains or losses on the derivatives as well as the offsetting losses or gains on the hedged items attributable to our interest rate swaps are recognized in current earnings. We include gains and losses on our interest rate swaps as adjustments to interest expense, which is the same financial statement line item where offsetting gains and losses on the related hedged items are recorded. The following table summarizes the impact of changes in the fair value of our interest rate swaps and the underlying hedged items on our results of operations (in millions): Three Months Ended Statement of Operations Gain (Loss) on Gain (Loss) on March 31, Classification Swap Fixed-Rate Debt 2010 Interest expense $ 1 $ (1 )

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Income Taxes [Abstract]
Income Taxes	5. Income Taxes Our effective tax rate for the three months ended March31, 2010 was 36.6% compared with 37.2% for the comparable prior-year period. The differences between federal income taxes computed at the federal statutory rate and reported income taxes for the three-month periods ended March31, 2010 and 2009 were primarily due to the unfavorable impact of state and local income taxes. We evaluate our effective tax rate at each interim period and adjust it accordingly as facts and circumstances warrant. The Patient Protection and Affordable Care Act, which was signed into law in March 2010, includes a provision that eliminates the tax deductibility of retiree health care costs to the extent that retiree prescription drug benefits are reimbursed under Medicare PartD coverage. Although this provision of the Act does not take effect until 2013, we were required to recognize the full accounting impact of the change in law on our deferred tax assets during the first quarter of 2010, the period in which the law was enacted. The remeasurement of our deferred tax assets did not affect our financial position or results of operations as of and for the three months ended March31, 2010.

Comprehensive Income

Comprehensive Income
	3 Months Ended Mar. 31, 2010
Comprehensive Income [Abstract]
Comprehensive Income	6. Comprehensive Income Comprehensive income was as follows (in millions): Three Months Ended March31, 2010 2009 Consolidated net income $ 192 $ 170 Other comprehensive income (loss), net of taxes: Unrealized gains (losses) resulting from changes in fair value of derivative instruments, net of taxes (11 ) 8 Realized (gains) losses on derivative instruments reclassified into earnings, net of taxes 9 (7 ) Unrealized gains (losses) on marketable securities, net of taxes 1 (3 ) Foreign currency translation adjustments 27 (21 ) Other comprehensive income (loss) 26 (23 ) Comprehensive income 218 147 Comprehensive income attributable to noncontrolling interests (10 ) (13 ) Comprehensive income attributable to Waste Management, Inc. $ 208 $ 134 The components of accumulated other comprehensive income, which is included as a component of Waste Management, Inc. stockholders equity, were as follows (in millions): March31, December31, 2010 2009 Accumulated unrealized loss on derivative instruments, net of taxes $ (10 ) $ (8 ) Accumulated unrealized gain on marketable securities, net of taxes 3 2 Foreign currency translation adjustments 239 212 Funded status of post-retirement benefit obligations, net of taxes 2 2 $ 234 $ 208

Earnings Per Share

Earnings Per Share
	3 Months Ended Mar. 31, 2010
Earnings Per Share [Abstract]
Earnings Per Share	7. Earnings Per Share Basic and diluted earnings per share were computed using the following common share data (shares in millions): Three Months Ended March31, 2010 2009 Number of common shares outstanding at end of period 483.8 491.9 Effect of using weighted average common shares outstanding 1.8 (0.1 ) Weighted average basic common shares outstanding 485.6 491.8 Dilutive effect of equity-based compensation awards and other contingently issuable shares 2.5 1.2 Weighted average diluted common shares outstanding 488.1 493.0 Potentially issuable shares 16.1 14.7 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 3.7 3.3

Commitments and Contingencies

Commitments and Contingencies
	3 Months Ended Mar. 31, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Financial instruments We have obtained letters of credit, performance bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill closure and post-closure requirements, environmental remediation, and other obligations. Letters of credit generally are supported by our revolving credit facility and other credit facilities established for that purpose. We obtain surety bonds and insurance policies from an entity in which we have a noncontrolling financial interest. We also obtain insurance from a wholly-owned insurance company, the sole business of which is to issue policies for us. In those instances where our use of financial assurance from entities we own or have financial interests in is not allowed, we generally have available alternative financial assurance mechanisms. Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our consolidated financial statements. 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 automobile liability, general liability, real and personal property, workers compensation, directors and officers liability, pollution legal liability and other coverages we believe are customary to the industry. Our exposure to loss for insurance claims is generally limited to the per incident deductible under the related insurance policy. Our exposure, however, could increase if our insurers were unable to meet their commitments on a timely basis. We have retained a significant portion of the risks related to our automobile, general liability and workers compensation insurance programs. For our self-insured retentions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation and internal estimates. The estimated accruals for these liabilities could be affected if future occurrences or loss development significantly differ from the assumptions used. 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. Purchase Commitments We continue to focus on the expansion of our waste-to-energy business and are actively pursuing various projects in the United States and internationally. As of December31, 2009, we had a commitment to purchase a 40% equity investment in Shanghai Environment Group (SEG), a subsidiary of Shanghai Chengtou Holding Co., Ltd. During the first quarter of 2010, the Ministry of Commerce of the Peoples Republic of China approved the transaction and we paid $142million for our investment. As a j

Restructuring

Restructuring
	3 Months Ended Mar. 31, 2010
Restructuring [Abstract]
Restructuring	9. Restructuring In January 2009, we took steps to streamline our organization by (i)consolidating many of our Market Areas; (ii)integrating the management of our recycling operations with the remainder of our solid waste business; and (iii)realigning our corporate organization with this new structure in order to provide support functions more efficiently. This reorganization eliminated over 1,500employee positions throughout the Company. During the three months ended March31, 2009, we recognized $38million of pre-tax restructuring charges associated with this reorganization, of which $36million were related to employee severance and benefit costs. During the remainder of 2009, we incurred an additional $12million of pre-tax restructuring charges associated with this reorganization, of which $5million were related to employee severance and benefit costs. The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized. The following table summarizes the charges recognized for this restructuring by each of our current reportable segments and our Corporate and Other organizations for the three months ended March31, 2009 (in millions): Three Months Ended March31, 2009 Eastern $ 8 Midwest 8 Southern 8 Western 5 Wheelabrator Corporate and Other 9 Total $ 38 Through March31, 2010, we had paid approximately $37million of the employee severance and benefit costs incurred as a result of this restructuring. The length of time we are obligated to make severance payments varies, with the longest obligation continuing through the fourth quarter of 2010.

Segment and Related Information

Segment and Related Information
	3 Months Ended Mar. 31, 2010
Segment and Related Information [Abstract]
Segment and Related Information	10. Segment and Related Information We currently manage and evaluate our operations primarily through our Eastern, Midwest, Southern, Western and Wheelabrator Groups. These five Groups are presented below as our reportable segments. Our segments provide integrated waste management services consisting of collection, disposal (solid waste and hazardous waste landfills), transfer, waste-to-energy facilities and independent power production plants that are managed by Wheelabrator, recycling services and other services to commercial, industrial, municipal and residential customers throughout the United States and in Puerto Rico and Canada. The operations not managed through our five operating Groups are presented herein as Other. Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following tables (in millions): Gross Intercompany Net Operating Operating Operating Income from Revenues Revenues Revenues Operations Three Months Ended: March31, 2010 Eastern $ 685 $ (113 ) $ 572 $ 109 Midwest 694 (98 ) 596 82 Southern 823 (97 ) 726 200 Western 764 (103 ) 661 129 Wheelabrator 206 (31 ) 175 36 Other 215 (10 ) 205 (29 ) 3,387 (452 ) 2,935 527 Corporate and Other (115 ) Total $ 3,387 $ (452 ) $ 2,935 $ 412 March31, 2009 Eastern $ 692 $ (122 ) $ 570 $ 92 Midwest 649 (95 ) 554 85 Southern 833 (107 ) 726 197 Western 757 (100 ) 657 128 Wheelabrator 201 (26 ) 175 39 Other 132 (4 ) 128 (31 ) 3,264 (454 ) 2,810 510 Corporate and Other (138 ) Total $ 3,264 $ (454 ) $ 2,810 $ 372 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 and operating segment and by general economic conditions. In addition, our revenues and inc

Sheet1

(Income) Expense from Divestitures, Asset Impairments and Unusual Items
	3 Months Ended Mar. 31, 2010
(Income) Expense from Divestitures, Asset Impairments and Unusual Items [Abstract]
(Income) Expense from Divestitures, Asset Impairments and Unusual Items	11. (Income) Expense from Divestitures, Asset Impairments and Unusual Items Through December31, 2008, we had capitalized $70million of accumulated costs associated with the development of a new waste and recycling revenue management system. A significant portion of these costs was specifically associated with the purchase of a license for waste and recycling revenue management software and the efforts required to develop and configure that software for our use. After a failed pilot implementation of the software in one of our smallest Market Areas, the development efforts associated with the revenue management system were suspended in 2007. During 2009, we determined to enhance and improve our existing revenue management system and not pursue alternatives associated with the development and implementation of the licensed software. Accordingly, in 2009, we recognized a non-cash charge of $51million, $49million of which was recognized during the first quarter of 2009 and $2million of which was recognized during the fourth quarter of 2009 for the abandonment of the licensed software. Refer to Note8 for additional information related to the licensed software.

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Fair Value Measurements [Abstract]
Fair Value Measurements	12. Fair Value Measurements Assets and Liabilities Accounted for at Fair Value As of March31, 2010, our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): Fair Value Measurements Using Quoted Significant Prices in Other Significant Active Observable Unobservable Markets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 782 $ 782 $ $ Available-for-sale securities 181 181 Interest in available-for-sale securities of unconsolidated entities 107 107 Interest rate derivatives 38 38 Electricity commodity derivatives 1 1 Total assets $ 1,109 $ 1,070 $ 39 $ Liabilities: Foreign currency derivatives $ 30 $ $ 30 $ Total liabilities $ 30 $ $ 30 $ Fair Value of Debt At March31, 2010, the carrying value of our debt was approximately $8.8billion compared with $8.9billion at December31, 2009. The carrying value of our debt includes adjustments for both the unamortized fair value adjustments related to terminated hedge arrangements and fair value adjustments of debt instruments that are currently hedged. The estimated fair value of our debt was approximately $9.1billion at March31, 2010 and approximately $9.3billion at December31, 2009. The estimated fair value of our senior notes is based on quoted market prices. The carrying value of remarketable debt approximates fair value due to the short-term nature of the attached interest rates. The fair value of our other debt is estimated using discounted cash flow analysis, based on rates we would currently pay for similar types of instruments. 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 and/or estimation methodologies could have a material effect on the estimated fair values. The fair value estimates are based on information available as of March31, 2010 and December31, 2009. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the

Condensed Consolidating Financi

Condensed Consolidating Financial Statements
	3 Months Ended Mar. 31, 2010
Condensed Consolidating Financial Statements [Abstract]
Condensed Consolidating Financial Statements	13. Condensed Consolidating Financial Statements WMHoldings has fully and unconditionally guaranteed all of WMIs senior indebtedness. WMI has fully and unconditionally guaranteed all of WMHoldings senior indebtedness. None of WMIs other subsidiaries have guaranteed any of WMIs or WMHoldings debt. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information (in millions): CONDENSED CONSOLIDATING BALANCE SHEETS March31, 2010 (Unaudited) WM Non-Guarantor WMI Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 777 $ $ 94 $ $ 871 Other current assets 11 3 1,834 1,848 788 3 1,928 2,719 Property and equipment, net 11,515 11,515 Investments in and advances to affiliates 10,441 12,953 2,344 (25,738 ) Other assets 59 14 6,688 6,761 Total assets $ 11,288 $ 12,970 $ 22,475 $ (25,738 ) $ 20,995 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 365 $ 152 $ 115 $ $ 632 Accounts payable and other current liabilities 80 6 1,952 2,038 445 158 2,067 2,670 Long-term debt, less current portion 4,610 449 3,132 8,191 Other liabilities 3,593 3,593 Total liabilities 5,055 607 8,792 14,454 Equity: Stockholders equity 6,233 12,363 13,375 (25,738 ) 6,233 Noncontrolling interests 308 308 6,233 12,363 13,683 (25,738 ) 6,541 Total liabilities and equity $ 11,288 $ 12,970 $ 22,475 $ (25,738 ) $ 20,995 December31, 2009 WM Non-Guarantor WMI

New Accounting Standards Pendin

New Accounting Standards Pending Adoption
	3 Months Ended Mar. 31, 2010
New Accounting Standards Pending Adoption [Abstract]
New Accounting Standards Pending Adoption	14. New Accounting Standards Pending Adoption Multiple-Deliverable Revenue Arrangements In September 2009, the FASB amended authoritative guidance associated with multiple-deliverable revenue arrangements. This amended guidance addresses the determination of when individual deliverables within an arrangement may be treated as separate units of accounting and modifies the manner in which consideration is allocated across the separately identifiable deliverables. The amendments to authoritative guidance associated with multiple-deliverable revenue arrangements are effective for the Company on January1, 2011, although the FASB does permit early adoption of the guidance provided that it is retroactively applied to the beginning of the year of adoption. The new accounting standard may be applied either retrospectively for all periods presented or prospectively to arrangements entered into or materially modified after the date of adoption. We are in the process of assessing the provisions of this new guidance and currently do not expect that the adoption will have a material impact on our consolidated financial statements. However, our adoption of this guidance may significantly impact our accounting and reporting for future revenue arrangements to the extent they are material.