Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 06, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WM | ||
Entity Registrant Name | WASTE MANAGEMENT INC | ||
Entity Central Index Key | 823768 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 459,128,449 | ||
Entity Public Float | $20.80 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,307 | $58 |
Accounts receivable, net of allowance for doubtful accounts of $30 and $33, respectively | 1,587 | 1,699 |
Other receivables | 350 | 111 |
Investment in unconsolidated entity | 177 | |
Parts and supplies | 106 | 178 |
Deferred income taxes | 115 | 113 |
Other assets | 176 | 163 |
Total current assets | 3,641 | 2,499 |
Property and equipment, net of accumulated depreciation and amortization of $15,968 and $16,723, respectively | 10,657 | 12,344 |
Goodwill | 5,740 | 6,070 |
Other intangible assets, net | 440 | 529 |
Investments in unconsolidated entities | 408 | 414 |
Other assets | 526 | 747 |
Total assets | 21,412 | 22,603 |
Current liabilities: | ||
Accounts payable | 740 | 744 |
Accrued liabilities | 1,180 | 1,069 |
Deferred revenues | 475 | 475 |
Current portion of long-term debt | 1,090 | 726 |
Total current liabilities | 3,485 | 3,014 |
Long-term debt, less current portion | 8,345 | 9,500 |
Deferred income taxes | 1,453 | 1,842 |
Landfill and environmental remediation liabilities | 1,531 | 1,518 |
Other liabilities | 709 | 727 |
Total liabilities | 15,523 | 16,601 |
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 | 4,585 | 4,596 |
Retained earnings | 6,888 | 6,289 |
Accumulated other comprehensive income | 23 | 154 |
Treasury stock at cost, 171,745,077 and 165,961,646 shares, respectively | -5,636 | -5,338 |
Total Waste Management, Inc. stockholders' equity | 5,866 | 5,707 |
Noncontrolling interests | 23 | 295 |
Total equity | 5,889 | 6,002 |
Total liabilities and equity | $21,412 | $22,603 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $30 | $33 |
Accumulated depreciation and amortization | $15,968 | $16,723 |
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 | 171,745,077 | 165,961,646 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues: | |||
Service revenues | $12,646 | $12,566 | $12,327 |
Tangible product revenues | 1,350 | 1,417 | 1,322 |
Total operating revenues | 13,996 | 13,983 | 13,649 |
Operating costs: | |||
Cost of services | 7,856 | 7,880 | 7,765 |
Cost of tangible products | 1,146 | 1,232 | 1,114 |
Total operating costs | 9,002 | 9,112 | 8,879 |
Selling, general and administrative | 1,481 | 1,468 | 1,472 |
Depreciation and amortization | 1,292 | 1,333 | 1,297 |
Restructuring | 82 | 18 | 67 |
Goodwill impairments | 10 | 509 | 4 |
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | -170 | 464 | 79 |
Total costs and expenses | 11,697 | 12,904 | 11,798 |
Income from operations | 2,299 | 1,079 | 1,851 |
Other income (expense): | |||
Interest expense, net | -466 | -477 | -484 |
Equity in net losses of unconsolidated entities | -53 | -34 | -46 |
Other, net | -29 | -74 | -18 |
Total other income (expense) | -548 | -585 | -548 |
Income before income taxes | 1,751 | 494 | 1,303 |
Provision for income taxes | 413 | 364 | 443 |
Consolidated net income | 1,338 | 130 | 860 |
Less: Net income attributable to noncontrolling interests | 40 | 32 | 43 |
Net income attributable to Waste Management, Inc. | $1,298 | $98 | $817 |
Basic earnings per common share | $2.80 | $0.21 | $1.76 |
Diluted earnings per common share | $2.79 | $0.21 | $1.76 |
Cash dividends declared per common share | $1.50 | $1.46 | $1.42 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $1,338 | $130 | $860 |
Derivative instruments, net | 1 | 12 | -12 |
Available-for-sale securities, net | 4 | 2 | 2 |
Foreign currency translation adjustments | -124 | -68 | 33 |
Post-retirement benefit obligation, net | -12 | 15 | -2 |
Other comprehensive income (loss), net of taxes | -131 | -39 | 21 |
Comprehensive income | 1,207 | 91 | 881 |
Less: Comprehensive income attributable to noncontrolling interests | 40 | 32 | 43 |
Comprehensive income attributable to Waste Management, Inc. | $1,167 | $59 | $838 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Consolidated net income | $1,338 | $130 | $860 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,292 | 1,333 | 1,297 |
Deferred income tax (benefit) provision | -118 | -149 | 67 |
Interest accretion on landfill liabilities | 88 | 87 | 84 |
Interest accretion on and discount rate adjustments to environmental remediation liabilities and recovery assets | 14 | -10 | 6 |
Provision for bad debts | 42 | 39 | 57 |
Equity-based compensation expense | 65 | 58 | 29 |
Excess tax benefits associated with equity-based transactions | -5 | -10 | -11 |
Net gain on disposal of assets | -35 | -21 | -21 |
Effect of goodwill impairments | 10 | 509 | 4 |
Effect of (income) expense from divestitures, asset impairments (other than goodwill) and unusual items and other | -137 | 535 | 95 |
Equity in net losses of unconsolidated entities, net of dividends | 42 | 34 | 46 |
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||
Receivables | -268 | 44 | -131 |
Other current assets | -19 | -7 | -50 |
Other assets | 22 | 4 | 105 |
Accounts payable and accrued liabilities | 117 | -27 | -57 |
Deferred revenues and other liabilities | -117 | -94 | -85 |
Net cash provided by (used in) operating activities | 2,331 | 2,455 | 2,295 |
Cash flows from investing activities: | |||
Acquisitions of businesses, net of cash acquired | -35 | -724 | -250 |
Capital expenditures | -1,151 | -1,271 | -1,510 |
Proceeds from divestitures of businesses and other assets (net of cash divested) | 2,253 | 138 | 44 |
Net receipts from restricted trust and escrow accounts | 19 | 71 | 14 |
Investments in unconsolidated entities | -33 | -33 | -77 |
Other | -58 | -81 | -51 |
Net cash provided by (used in) investing activities | 995 | -1,900 | -1,830 |
Cash flows from financing activities: | |||
New borrowings | 2,817 | 2,232 | 1,620 |
Debt repayments | -3,568 | -2,077 | -1,498 |
Common stock repurchases | -600 | -239 | |
Cash dividends | -693 | -683 | -658 |
Exercise of common stock options | 93 | 132 | 43 |
Excess tax benefits associated with equity-based transactions | 5 | 10 | 11 |
Acquisitions of and distributions paid to noncontrolling interests | -125 | -59 | -46 |
Other | -1 | -3 | -2 |
Net cash provided by (used in) financing activities | -2,072 | -687 | -530 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -4 | 1 |
Increase (decrease) in cash and cash equivalents | 1,249 | -136 | -64 |
Cash and cash equivalents at beginning of year | 58 | 194 | 258 |
Cash and cash equivalents at end of year | $1,307 | $58 | $194 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
In Millions, except Share data in Thousands | |||||||
Beginning balance at Dec. 31, 2011 | $6,390 | $6 | $4,561 | $6,721 | $172 | ($5,390) | $320 |
Beginning balance, shares at Dec. 31, 2011 | 630,282 | -169,750 | |||||
Consolidated net income | 860 | 817 | 43 | ||||
Other comprehensive income (loss), net of taxes | 21 | 21 | |||||
Cash dividends declared | -658 | -658 | |||||
Equity-based compensation transactions, including dividend equivalents, net of taxes | 101 | -15 | -1 | 117 | |||
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares | 3,680 | ||||||
Distributions paid to noncontrolling interests | -46 | -46 | |||||
Other | 7 | 3 | 4 | ||||
Other, shares | 8 | ||||||
Ending balance at Dec. 31, 2012 | 6,675 | 6 | 4,549 | 6,879 | 193 | -5,273 | 321 |
Ending balance, shares at Dec. 31, 2012 | 630,282 | -166,062 | |||||
Consolidated net income | 130 | 98 | 32 | ||||
Other comprehensive income (loss), net of taxes | -39 | -39 | |||||
Cash dividends declared | -683 | -683 | |||||
Equity-based compensation transactions, including dividend equivalents, net of taxes | 216 | 47 | -5 | 174 | |||
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares | 5,461 | ||||||
Common stock repurchases | -239 | -239 | |||||
Common stock repurchases, shares | -5,368 | ||||||
Distributions paid to noncontrolling interests | -59 | -59 | |||||
Other | 1 | 1 | |||||
Other, shares | 7 | ||||||
Ending balance at Dec. 31, 2013 | 6,002 | 6 | 4,596 | 6,289 | 154 | -5,338 | 295 |
Ending balance, shares at Dec. 31, 2013 | 630,282 | -165,962 | |||||
Consolidated net income | 1,338 | 1,298 | 40 | ||||
Other comprehensive income (loss), net of taxes | -131 | -131 | |||||
Cash dividends declared | -693 | -693 | |||||
Equity-based compensation transactions, including dividend equivalents, net of taxes | 195 | 79 | -6 | 122 | |||
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares | 3,779 | ||||||
Common stock repurchases | -600 | -180 | -420 | ||||
Common stock repurchases, shares | -9,569 | ||||||
Distributions paid to noncontrolling interests | -34 | -34 | |||||
Acquisitions of noncontrolling interests and divestiture of Wheelabrator business | -188 | 90 | -278 | ||||
Other, shares | 7 | ||||||
Ending balance at Dec. 31, 2014 | $5,889 | $6 | $4,585 | $6,888 | $23 | ($5,636) | $23 |
Ending balance, shares at Dec. 31, 2014 | 630,282 | -171,745 |
Business
Business | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Business | 1. Business |
The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; Waste Management’s wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management or its subsidiaries are the primary beneficiaries as described in Note 20. 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 “WM,” we are referring only to Waste Management, Inc., the parent holding company. | |
We are North America’s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our “Solid Waste” business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provides collection, transfer, recycling and resource recovery, and disposal services. Through our subsidiaries, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States. In December 2014, we completed the previously announced sale of our Wheelabrator business, which provided waste-to-energy services and managed waste-to-energy facilities and independent power production plants. Refer to Note 19 for additional information related to our divestitures. | |
We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 geographic Areas. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments can be found in Note 21. |
Accounting_Changes_and_Reclass
Accounting Changes and Reclassifications | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Reclassifications | 2. Accounting Changes and Reclassifications |
Accounting Changes | |
Comprehensive Income — In February 2013, the Financial Accounting Standards Board (“FASB”) issued amended authoritative guidance associated with comprehensive income, which requires companies to provide information about the amounts that are reclassified out of accumulated other comprehensive income by component. Additionally, companies are required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendment to authoritative guidance associated with comprehensive income was effective for the Company on January 1, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements. We have presented the information required by this amendment in Note 14. | |
Indefinite-Lived Intangible Assets Impairment Testing — In July 2012, the FASB amended authoritative guidance associated with indefinite-lived intangible assets impairment testing. The amended guidance provides companies the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. The amendments are effective for indefinite-lived intangible impairment tests performed for fiscal years beginning after September 15, 2012; however, early adoption was permitted. The Company’s early adoption of this guidance in 2012 did not have an impact on our consolidated financial statements. Additional information on impairment testing can be found in Note 3. | |
Reclassifications | |
When necessary, reclassifications have been made to our prior period consolidated financial information in order to conform to the current year presentation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies | ||||||||||||
Principles of Consolidation | |||||||||||||
The accompanying Consolidated Financial Statements include the accounts of WM, its wholly-owned and majority-owned subsidiaries and certain variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany balances and transactions have been eliminated. Investments in entities in which we do not have a controlling financial interest are accounted for under either the equity method or cost method of accounting, as appropriate. | |||||||||||||
Estimates and Assumptions | |||||||||||||
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, asset impairments, deferred income taxes and reserves associated with our insured and self-insured claims. Each of these items is discussed in additional detail below. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. | |||||||||||||
Cash and Cash Equivalents | |||||||||||||
Cash in excess of current operating requirements is invested in short-term interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. | |||||||||||||
Concentrations of Credit Risk | |||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within our trust funds and escrow accounts, accounts receivable and derivative instruments. 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 of diverse customers we serve. At December 31, 2014 and 2013, no single customer represented greater than 5% of total accounts receivable. | |||||||||||||
Trade and Other Receivables | |||||||||||||
Our receivables, which are recorded when billed, when services are performed or when cash is advanced, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on historical collection trends; type of customer, such as municipal or commercial; the age of outstanding receivables; and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. Also, we recognize interest income on long-term interest-bearing notes receivable as the interest accrues under the terms of the notes. We no longer accrue interest once the notes are deemed uncollectible. | |||||||||||||
Other receivables at December 31, 2014 and 2013 include receivables related to tax payments in excess of the provision of $255 million and $23 million, respectively. | |||||||||||||
Parts and Supplies | |||||||||||||
Parts and supplies consist primarily of spare parts, fuel, tires, lubricants and processed recycling materials. Our parts and supplies are stated at the lower of cost, using the average cost method, or market. | |||||||||||||
Landfill Accounting | |||||||||||||
Cost Basis of Landfill Assets — We capitalize various costs that we incur to make a landfill ready to accept waste. These costs generally include expenditures for land (including the landfill footprint and required landfill buffer property); permitting; excavation; liner material and installation; landfill leachate collection systems; landfill gas collection systems; environmental monitoring equipment for groundwater and landfill gas; and directly related engineering, capitalized interest, on-site road construction and other capital infrastructure costs. The cost basis of our landfill assets also includes asset retirement costs, which represent estimates of future costs associated with landfill final capping, closure and post-closure activities. These costs are discussed below. | |||||||||||||
Final Capping, Closure and Post-Closure Costs — Following is a description of our asset retirement activities and our related accounting: | |||||||||||||
• | Final Capping — Involves the installation of flexible membrane liners and geosynthetic clay liners, drainage and compacted soil layers and topsoil over areas of a landfill where total airspace capacity has been consumed. Final capping asset retirement obligations are recorded on a units-of-consumption basis as airspace is consumed related to the specific final capping event with a corresponding increase in the landfill asset. Each final capping event is accounted for as a discrete obligation and recorded as an asset and a liability based on estimates of the discounted cash flows and capacity associated with each final capping event. | ||||||||||||
• | Closure — Includes the construction of the final portion of methane gas collection systems (when required), demobilization and routine maintenance costs. These are costs incurred after the site ceases to accept waste, but before the landfill is certified as closed by the applicable state regulatory agency. These costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing closure activities. | ||||||||||||
• | Post-Closure — Involves the maintenance and monitoring of a landfill site that has been certified closed by the applicable regulatory agency. Generally, we are required to maintain and monitor landfill sites for a 30-year period. These maintenance and monitoring costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Post-closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing post-closure activities. | ||||||||||||
We develop our estimates of these obligations using input from our operations personnel, engineers and accountants. Our estimates are based on our interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Absent quoted market prices, the estimate of fair value is based on the best available information, including the results of present value techniques. In many cases, we contract with third parties to fulfill our obligations for final capping, closure and post-closure. We use historical experience, professional engineering judgment and quoted and actual prices paid for similar work to determine the fair value of these obligations. We are required to recognize these obligations at market prices whether we plan to contract with third parties or perform the work ourselves. In those instances where we perform the work with internal resources, the incremental profit margin realized is recognized as a component of operating income when the work is performed. | |||||||||||||
Once we have determined the final capping, closure and post-closure costs, we inflate those costs to the expected time of payment and discount those expected future costs back to present value. During the years ended December 31, 2014, 2013 and 2012, we inflated these costs in current dollars until the expected time of payment using an inflation rate of 2.5%. We discounted these costs to present value using the credit-adjusted, risk-free rate effective at the time an obligation is incurred, consistent with the expected cash flow approach. Any changes in expectations that result in an upward revision to the estimated cash flows are treated as a new liability and discounted at the current rate while downward revisions are discounted at the historical weighted-average rate of the recorded obligation. As a result, the credit-adjusted, risk-free discount rate used to calculate the present value of an obligation is specific to each individual asset retirement obligation. The weighted-average rate applicable to our asset retirement obligations at December 31, 2014 is between 4.00% and 7.75%. We expect to apply a credit-adjusted, risk-free discount rate of 4.00% to liabilities incurred in the first quarter of 2015. | |||||||||||||
We record the estimated fair value of final capping, closure and post-closure liabilities for our landfills based on the capacity consumed through the current period. The fair value of final capping obligations is developed based on our estimates of the airspace consumed to date for each final capping event and the expected timing of each final capping event. The fair value of closure and post-closure obligations is developed based on our estimates of the airspace consumed to date for the entire landfill and the expected timing of each closure and post-closure activity. Because these obligations are measured at estimated fair value using present value techniques, changes in the estimated cost or timing of future final capping, closure and post-closure activities could result in a material change in these liabilities, related assets and results of operations. We assess the appropriateness of the estimates used to develop our recorded balances annually, or more often if significant facts change. | |||||||||||||
Changes in inflation rates or the estimated costs, timing or extent of future final capping, closure and post-closure activities typically result in both (i) a current adjustment to the recorded liability and landfill asset and (ii) a change in liability and asset amounts to be recorded prospectively over either the remaining capacity of the related discrete final capping event or the remaining permitted and expansion airspace (as defined below) of the landfill. Any changes related to the capitalized and future cost of the landfill assets are then recognized in accordance with our amortization policy, which would generally result in amortization expense being recognized prospectively over the remaining capacity of the final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Changes in such estimates associated with airspace that has been fully utilized result in an adjustment to the recorded liability and landfill assets with an immediate corresponding adjustment to landfill airspace amortization expense. | |||||||||||||
Interest accretion on final capping, closure and post-closure liabilities is recorded using the effective interest method and is recorded as final capping, closure and post-closure expense, which is included in “Operating” costs and expenses within our Consolidated Statements of Operations. | |||||||||||||
Amortization of Landfill Assets — The amortizable basis of a landfill includes (i) amounts previously expended and capitalized; (ii) capitalized landfill final capping, closure and post-closure costs; (iii) projections of future purchase and development costs required to develop the landfill site to its remaining permitted and expansion capacity and (iv) projected asset retirement costs related to landfill final capping, closure and post-closure activities. | |||||||||||||
Amortization is recorded on a units-of-consumption basis, applying expense as a rate per ton. The rate per ton is calculated by dividing each component of the amortizable basis of a landfill by the number of tons needed to fill the corresponding asset’s airspace. For landfills that we do not own, but operate through operating or lease arrangements, the rate per ton is calculated based on expected capacity to be utilized over the lesser of the contractual term of the underlying agreement or the life of the landfill. | |||||||||||||
We apply the following guidelines in determining a landfill’s remaining permitted and expansion airspace: | |||||||||||||
• | Remaining Permitted Airspace — Our engineers, in consultation with third-party engineering consultants and surveyors, are responsible for determining remaining permitted airspace at our landfills. The remaining permitted airspace is determined by an annual survey, which is used to compare the existing landfill topography to the expected final landfill topography. | ||||||||||||
• | Expansion Airspace — We also include currently unpermitted expansion airspace in our estimate of remaining permitted and expansion airspace in certain circumstances. First, to include airspace associated with an expansion effort, we must generally expect the initial expansion permit application to be submitted within one year and the final expansion permit to be received within five years. Second, we must believe that obtaining the expansion permit is likely, considering the following criteria: | ||||||||||||
• | Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals; | ||||||||||||
• | It is likely that the approvals will be received within the normal application and processing time periods for approvals in the jurisdiction in which the landfill is located; | ||||||||||||
• | We have a legal right to use or obtain land to be included in the expansion plan; | ||||||||||||
• | There are no significant known technical, legal, community, business, or political restrictions or similar issues that could negatively affect the success of such expansion; and | ||||||||||||
• | Financial analysis has been completed based on conceptual design, and the results demonstrate that the expansion has a positive financial and operational impact. | ||||||||||||
For unpermitted airspace to be initially included in our estimate of remaining permitted and expansion airspace, the expansion effort must meet all of the criteria listed above. These criteria are evaluated by our field-based engineers, accountants, managers and others to identify potential obstacles to obtaining the permits. Once the unpermitted airspace is included, our policy provides that airspace may continue to be included in remaining permitted and expansion airspace even if certain of these criteria are no longer met as long as we continue to believe we will ultimately obtain the permit, based on the facts and circumstances of a specific landfill. In these circumstances, continued inclusion must be approved through a landfill-specific review process that includes approval by our Chief Financial Officer and a review by the Audit Committee of our Board of Directors on a quarterly basis. Of the 23 landfill sites with expansions included at December 31, 2014, five landfills required the Chief Financial Officer to approve the inclusion of the unpermitted airspace. Two of these landfills required approval by our Chief Financial Officer because of community or political opposition that could impede the expansion process. The remaining three landfills required approval due to local zoning restrictions or because the permit application processes do not meet the one- or five-year requirements. | |||||||||||||
When we include the expansion airspace in our calculations of remaining permitted and expansion airspace, we also include the projected costs for development, as well as the projected asset retirement costs related to final capping, closure and post-closure of the expansion in the amortization basis of the landfill. | |||||||||||||
Once the remaining permitted and expansion airspace is determined in cubic yards, an airspace utilization factor (“AUF”) is established to calculate the remaining permitted and expansion capacity in tons. The AUF is established using the measured density obtained from previous annual surveys and is then adjusted to account for future settlement. The amount of settlement that is forecasted will take into account several site-specific factors including current and projected mix of waste type, initial and projected waste density, estimated number of years of life remaining, depth of underlying waste, anticipated access to moisture through precipitation or recirculation of landfill leachate, and operating practices. In addition, the initial selection of the AUF is subject to a subsequent multi-level review by our engineering group, and the AUF used is reviewed on a periodic basis and revised as necessary. Our historical experience generally indicates that the impact of settlement at a landfill is greater later in the life of the landfill when the waste placed at the landfill approaches its highest point under the permit requirements. | |||||||||||||
After determining the costs and remaining permitted and expansion capacity at each of our landfills, we determine the per ton rates that will be expensed as waste is received and deposited at the landfill by dividing the costs by the corresponding number of tons. We calculate per ton amortization rates for each landfill for assets associated with each final capping event, for assets related to closure and post-closure activities and for all other costs capitalized or to be capitalized in the future. These rates per ton are updated annually, or more often, as significant facts change. | |||||||||||||
It is possible that actual results, including the amount of costs incurred, the timing of final capping, closure and post-closure activities, our airspace utilization or the success of our expansion efforts could ultimately turn out to be significantly different from our estimates and assumptions. To the extent that such estimates, or related assumptions, prove to be significantly different than actual results, lower profitability may be experienced due to higher amortization rates or higher expenses; or higher profitability may result if the opposite occurs. Most significantly, if it is determined that expansion capacity should no longer be considered in calculating the recoverability of a landfill asset, we may be required to recognize an asset impairment or incur significantly higher amortization expense. If at any time management makes the decision to abandon the expansion effort, the capitalized costs related to the expansion effort are expensed immediately. | |||||||||||||
Environmental Remediation Liabilities | |||||||||||||
We are subject 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 operations, or for damage caused by conditions that existed before we acquired a site. These liabilities include potentially responsible party (“PRP”) investigations, settlements, and certain legal and consultant fees, as well as costs directly associated with site investigation and clean up, such as materials, external contractor costs and incremental internal costs directly related to the remedy. We provide for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. We routinely review and evaluate sites that require remediation and determine our estimated cost for the likely remedy based on a number of estimates and assumptions. | |||||||||||||
Where it is probable that a liability has been incurred, we estimate costs required to remediate sites based on site-specific facts and circumstances. We routinely review and evaluate sites that require remediation, considering whether we were an owner, operator, transporter, or generator at the site, the amount and type of waste hauled to the site and the number of years we were associated with the site. Next, we review the same type of information with respect to other named and unnamed PRPs. Estimates of the costs for the likely remedy are then either developed using our internal resources or by third-party environmental engineers or other service providers. Internally developed estimates are based on: | |||||||||||||
• | Management’s judgment and experience in remediating our own and unrelated parties’ sites; | ||||||||||||
• | Information available from regulatory agencies as to costs of remediation; | ||||||||||||
• | The number, financial resources and relative degree of responsibility of other PRPs who may be liable for remediation of a specific site; and | ||||||||||||
• | The typical allocation of costs among PRPs, unless the actual allocation has been determined. | ||||||||||||
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 investigation of the extent of environmental impact. In these cases, we use the amount within the range that constitutes 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 $190 million higher than the $235 million recorded in the Consolidated Financial Statements as of December 31, 2014. 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 income from operations. These adjustments could be material in any given period. | |||||||||||||
Where we believe that both the amount of a particular environmental remediation liability and the timing of the payments are fixed or reliably determinable, we inflate the cost in current dollars (by 2.5% at December 31, 2014 and 2013) until the expected time of payment and discount the cost to present value using a risk-free discount rate, which is based on the rate for U.S. Treasury bonds with a term approximating the weighted average period until settlement of the underlying obligation. We determine the risk-free discount rate and the inflation rate on an annual basis unless interim changes would significantly impact our results of operations. For remedial liabilities that have been discounted, we include interest accretion, based on the effective interest method, in “Operating” costs and expenses in our Consolidated Statements of Operations. The following table summarizes the impacts of revisions in the risk-free discount rate applied to our environmental remediation liabilities and recovery assets during the reported periods (in millions) and the risk-free discount rate applied as of each reporting date: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Charge (reduction) to Operating expenses | $ | 10 | $ | (13 | ) | $ | 3 | ||||||
Risk-free discount rate applied to environmental remediation liabilities and recovery assets | 2 | % | 3 | % | 1.75 | % | |||||||
The portion of our recorded environmental remediation liabilities that has never been subject to inflation or discounting, as the amounts and timing of payments are not fixed or reliably determinable, was $41 million at December 31, 2014 and $36 million at December 31, 2013. Had we not inflated and discounted any portion of our environmental remediation liability, the amount recorded would have decreased by $6 million at December 31, 2014 and increased by $7 million at December 31, 2013. | |||||||||||||
Property and Equipment (exclusive of landfills, discussed above) | |||||||||||||
We record property and equipment at cost. Expenditures for major additions and improvements are capitalized and maintenance activities are expensed as incurred. We depreciate property and equipment over the estimated useful life of the asset using the straight-line method. We assume no salvage value for our depreciable property and equipment. When property and equipment are retired, sold or otherwise disposed of, the cost and accumulated depreciation are removed from our accounts and any resulting gain or loss is included in results of operations as an offset or increase to operating expense for the period. | |||||||||||||
The estimated useful lives for significant property and equipment categories are as follows (in years): | |||||||||||||
Useful Lives | |||||||||||||
Vehicles — excluding rail haul cars | 3 to 10 | ||||||||||||
Vehicles — rail haul cars | 10 to 20 | ||||||||||||
Machinery and equipment — including containers | 3 to 30 | ||||||||||||
Buildings and improvements — excluding waste-to-energy facilities | 5 to 40 | ||||||||||||
Waste-to-energy facilities and related equipment | up to 50 | ||||||||||||
Furniture, fixtures and office equipment | 3 to 10 | ||||||||||||
We include capitalized costs associated with developing or obtaining internal-use software within furniture, fixtures and office equipment. These costs include direct external costs of materials and services used in developing or obtaining the software and internal costs for employees directly associated with the software development project. As of December 31, 2014 and 2013, capitalized costs for software placed in service, net of accumulated depreciation, were $114 million and $129 million, respectively. In addition, our furniture, fixtures and office equipment as of December 31, 2014 and 2013 included $5 million and $11 million, respectively, for costs incurred for software under development. | |||||||||||||
Leases | |||||||||||||
We lease property and equipment in the ordinary course of our business. Our most significant lease obligations are for property and equipment specific to our industry, including real property operated as a landfill or transfer station. Our leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that we consider in determining minimum lease payments. The leases are classified as either operating leases or capital leases, as appropriate. | |||||||||||||
Operating Leases (excluding landfills discussed below) — The majority of our leases are operating leases. This classification generally can be attributed to either (i) relatively low fixed minimum lease payments as a result of real property lease obligations that vary based on the volume of waste we receive or process or (ii) minimum lease terms that are much shorter than the assets’ economic useful lives. Management expects that in the normal course of business our operating leases will be renewed, replaced by other leases, or replaced with fixed asset expenditures. Our rent expense during each of the last three years and our future minimum operating lease payments for each of the next five years for which we are contractually obligated as of December 31, 2014 are disclosed in Note 11. | |||||||||||||
Capital Leases (excluding landfills discussed below) — Assets under capital leases are capitalized using interest rates determined at the inception of each lease and are amortized over either the useful life of the asset or the lease term, as appropriate, on a straight-line basis. The present value of the related lease payments is recorded as a debt obligation. Our future minimum annual capital lease payments are included in our total future debt obligations as disclosed in Note 7. | |||||||||||||
Landfill Leases — From an operating perspective, landfills that we lease are similar to landfills we own because generally we own the landfill’s operating permit and will operate the landfill for the entire lease term, which in many cases is the life of the landfill. As a result, our landfill leases are generally capital leases. The most significant portion of our rental obligations for landfill leases is contingent upon operating factors such as disposal volumes and often there are no contractual minimum rental obligations. Contingent rental obligations are expensed as incurred. For landfill capital leases that provide for minimum contractual rental obligations, we record the present value of the minimum obligation as part of the landfill asset, which is amortized on a units-of-consumption basis over the shorter of the lease term or the life of the landfill. | |||||||||||||
Acquisitions | |||||||||||||
We generally recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition. | |||||||||||||
Contingent Consideration — In certain acquisitions, we agree to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted revenue levels, targeted disposal volumes or the issuance of permits for expanded landfill airspace. We have recognized liabilities for these contingent obligations based on their estimated fair value at the date of acquisition with any differences between the acquisition-date fair value and the ultimate settlement of the obligations being recognized as an adjustment to income from operations. | |||||||||||||
Acquired Assets and Assumed Liabilities — Assets and liabilities arising from contingencies such as pre-acquisition environmental matters and litigation are recognized at their acquisition-date fair value when their respective fair values can be determined. If the fair values of such contingencies cannot be determined, they are recognized at the acquisition date if the contingencies are probable and an amount can be reasonably estimated. | |||||||||||||
Acquisition-date fair value estimates are revised as necessary and accounted for as an adjustment to income from operations if, and when, additional information regarding these contingencies becomes available to further define and quantify assets acquired and liabilities assumed. All acquisition-related transaction costs have been expensed as incurred. | |||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||
Goodwill is the excess of our purchase cost over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but as discussed in the Asset Impairments section below, we assess our goodwill for impairment at least annually. | |||||||||||||
Other intangible assets consist primarily of customer and supplier relationships, covenants not-to-compete, licenses, permits (other than landfill permits, as all landfill-related intangible assets are combined with landfill tangible assets and amortized using our landfill amortization policy), and other contracts. Other intangible assets are recorded at acquisition date fair value and are generally amortized using either a 150% declining balance approach or a straight-line basis as we determine appropriate. Customer and supplier relationships are typically amortized over a term ranging between 10 and 15 years. Covenants not-to-compete are amortized over the term of the non-compete covenant, which is generally two to five years. Licenses, permits and other contracts are amortized over the definitive terms of the related agreements. If the underlying agreement does not contain definitive terms and the useful life is determined to be indefinite, the asset is not amortized. | |||||||||||||
Asset Impairments | |||||||||||||
We monitor the carrying value of our long-lived assets for potential impairment on an ongoing basis and test the recoverability of such assets using significant unobservable (“Level 3”) inputs whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group; (ii) actual third-party valuations and/or (iii) information available regarding the current market for similar assets. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in the “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” line item in our Consolidated Statement of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. | |||||||||||||
There are additional considerations for impairments of landfills, goodwill and other indefinite-lived intangible assets, as described below. | |||||||||||||
Landfills — The assessment of impairment indicators and the recoverability of our capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the sensitive estimates involved. During the review of a landfill expansion application, a regulator may initially deny the expansion application although the expansion permit is ultimately granted. In addition, management may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace, or a landfill may be required to cease accepting waste, prior to receipt of the expansion permit. However, such events occur in the ordinary course of business in the waste industry and do not necessarily result in impairment of our landfill assets because, after consideration of all facts, such events may not affect our belief that we will ultimately obtain the expansion permit. As a result, our tests of recoverability, which generally make use of a probability-weighted cash flow estimation approach, may indicate that no impairment loss should be recorded. At December 31, 2014, one of our landfill sites for which we believe receipt of the expansion permit is probable, is not currently accepting waste. The net recorded capitalized landfill asset cost for this site was $247 million at December 31, 2014. We performed a test of recoverability for this landfill and the undiscounted cash flows resulting from our probability-weighted estimation approach significantly exceeded the carrying value of this site. During the year ended December 31, 2013, we recognized $262 million of charges to impair certain of our landfills, primarily as a result of our consideration of management’s decision in the fourth quarter of 2013 not to actively pursue expansion and/or development of such landfills. These charges were primarily associated with two landfills in our Eastern Canada Area, which are no longer accepting waste. We had previously concluded that receipt of permits for these landfills was probable. However, in connection with our asset rationalization and capital allocation analysis, which was influenced, in part, by our acquisition of RCI Environnement, Inc. (“RCI”), we determined that the future costs to construct these landfills could be avoided as we are able to allocate disposal that would have gone to these landfills to other facilities and not materially impact operations. As a result of management’s decision, we determined that the carrying values of landfill assets were no longer able to be recovered by the undiscounted cash flows attributable to these assets. As such, we wrote their carrying values down to their estimated fair values using a market approach considering the highest and best use of the assets. | |||||||||||||
Refer to Note 13 for additional information related to landfill asset impairments recognized during the reported periods. | |||||||||||||
Goodwill — At least annually, and more frequently if warranted, we assess our goodwill for impairment using Level 3 inputs. | |||||||||||||
We assess whether a goodwill impairment exists using both qualitative and quantitative assessments. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we will not perform a quantitative assessment. | |||||||||||||
If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount or if we elect not to perform a qualitative assessment, we perform a quantitative assessment, or two-step impairment test, to determine whether a goodwill impairment exists at the reporting unit. The first step in our quantitative assessment identifies potential impairments by comparing the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. Fair value is typically estimated using a combination of the income approach and market approach or only an income approach when applicable. The income approach is based on the long-term projected future cash flows of the reporting units. We discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as market assumptions, the timing of the cash flows and the risks inherent in those cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting units’ expected long-term performance considering the economic and market conditions that generally affect our business. The market approach estimates fair value by measuring the aggregate market value of publicly-traded companies with similar characteristics to our business as a multiple of their reported cash flows. We then apply that multiple to the reporting units’ cash flows to estimate their fair values. We believe that this approach is appropriate because it provides a fair value estimate using valuation inputs from entities with operations and economic characteristics comparable to our reporting units. | |||||||||||||
Fair value computed by these two methods is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows, comparable marketplace data and the cost of capital. There are inherent uncertainties related to these factors and to our judgment in applying them to this analysis. However, we believe that these two methods provide a reasonable approach to estimating the fair value of our reporting units. | |||||||||||||
Refer to Notes 6 and 13 for additional information related to goodwill impairments recognized during the reported periods. | |||||||||||||
Indefinite-Lived Intangible Assets Other Than Goodwill — At least annually, and more frequently if warranted, we assess indefinite-lived intangible assets other than goodwill for impairment. | |||||||||||||
When performing the impairment test for indefinite-lived intangible assets, we generally first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the estimated fair value of assets to the carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value. | |||||||||||||
Fair value is typically estimated using an income approach. The income approach is based on the long-term projected future cash flows. We discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as market assumptions, the timing of the cash flows and the risks inherent in those cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the expected long-term performance considering the economic and market conditions that generally affect our business. | |||||||||||||
Fair value computed by this method is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows, comparable marketplace data and the cost of capital. There are inherent uncertainties related to these factors and to our judgment in applying them to this analysis. However, we believe that this method provides a reasonable approach to estimating the fair value of the reporting units. | |||||||||||||
Restricted Trust and Escrow Accounts | |||||||||||||
As of both December 31, 2014 and December 31, 2013, our restricted trust and escrow accounts consist principally of funds deposited for purposes of settling landfill final capping, closure, post-closure and environmental remediation obligations. We often also have restricted trust and escrow account balances related to funds received from the issuance of tax-exempt bonds held in trust for the construction of various projects or facilities. As of December 31, 2014 and 2013, we had $171 million and $167 million, respectively, of restricted trust and escrow accounts, which are primarily included in “Other assets” in our Consolidated Balance Sheets. | |||||||||||||
Final Capping, Closure, Post-Closure and Environmental Remediation Funds — At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Balances maintained in these trust funds and escrow accounts will fluctuate based on (i) changes in statutory requirements; (ii) future deposits made to comply with contractual arrangements; (iii) the ongoing use of funds for qualifying final capping, closure, post-closure and environmental remediation activities; (iv) acquisitions or divestitures of landfills and (v) changes in the fair value of the financial instruments held in the trust fund or escrow accounts. | |||||||||||||
Tax-Exempt Bond Funds — We obtain funds from the issuance of industrial revenue bonds for the construction of disposal facilities and for equipment necessary to provide waste management services. Proceeds from these arrangements are directly deposited into trust accounts, and we do not have the ability to use the funds in regular operating activities. Accordingly, these borrowings are treated as non-cash financing activities and are excluded from our Consolidated Statements of Cash Flows. As our construction and equipment expenditures are documented and approved by the applicable bond trustee, the funds are released and we receive a cash reimbursement. These cash reimbursements are reported in the Consolidated Statements of Cash Flows as an investing activity when the cash is released from the trust funds. Generally, the funds are fully expended within one year of the debt issuance. When the debt matures, we generally repay our obligation with cash on hand and the debt repayments are included as a financing activity in the Consolidated Statements of Cash Flows. | |||||||||||||
Investments in Unconsolidated Entities | |||||||||||||
Investments in unconsolidated entities over which the Company has significant influence are accounted for under the equity method of accounting. Investments in entities in which the Company does not have the ability to exert significant influence over the investees’ operating and financing activities are accounted for under the cost method of accounting. In addition to equity investments in unconsolidated subsidiaries, we support these ventures through loans and advances. These loans and advances are included as a component of “Other” within the “Net cash provided by investing activities” in our Consolidated Statement of Cash Flows. The following table summarizes our equity and cost method investments as of December 31 (in millions): | |||||||||||||
2014 | 2013 | ||||||||||||
Equity investments(a) | $ | 228 | $ | 437 | |||||||||
Cost investments | 180 | 154 | |||||||||||
Investments in unconsolidated entities | $ | 408 | $ | 591 | |||||||||
(a) | The amount reported in 2013 included $177 million attributable to our 2010 investment in Shanghai Environment Group (“SEG”), which was part of our Wheelabrator business. This investment was classified as a current asset and reflected in “Investment in unconsolidated entity” in our Consolidated Balance Sheet as of December 31, 2013, based on our intent to sell our investment in SEG within the next 12 months. We sold our investment in SEG in the first quarter of 2014. | ||||||||||||
We monitor and assess the carrying value of our investments throughout the year for potential impairment and write them down to their fair value when other-than-temporary declines exist. Fair value is generally based on (i) other third-party investors’ recent transactions in the securities; (ii) other information available regarding the current market for similar assets and/or (iii) a market or income approach as deemed appropriate. | |||||||||||||
Foreign Currency | |||||||||||||
We have operations in Canada as well as a cost center in India. Local currencies generally are considered the functional currencies of our operations and investments outside the United States. The assets and liabilities of our foreign operations are translated to U.S. dollars using the exchange rate at the balance sheet date. Revenues and expenses are translated to U.S. dollars using the average exchange rate during the period. The resulting translation difference is reflected as a component of comprehensive income. | |||||||||||||
Derivative Financial Instruments | |||||||||||||
We primarily use derivative financial instruments to manage our risk associated with fluctuations in interest rates and foreign currency exchange rates. In prior years, we used interest rate swaps to maintain a strategic portion of our long-term debt obligations at variable, market-driven interest rates or in anticipation of planned senior note issuances to effectively lock in a fixed interest rate for those anticipated issuances. Foreign currency exchange rate derivatives are used to hedge our exposure to changes in exchange rates for anticipated intercompany debt transactions, and related interest payments, between Waste Management Holdings, Inc., a wholly-owned subsidiary (“WM Holdings”), and its Canadian subsidiaries. Prior to the sale of our Wheelabrator business, we used electricity commodity derivatives to mitigate the variability in our revenues and cash flows caused by fluctuations in the market prices for electricity. The financial statement impacts of our derivatives are discussed in Notes 8 and 14. | |||||||||||||
We obtain current valuations of our interest rate and foreign currency hedging instruments from third-party pricing models. The estimated fair values of derivatives used to hedge risks fluctuate over time and should be viewed in relation to the underlying hedged transaction and the overall management of our exposure to fluctuations in the underlying risks. The fair value of derivatives is included in other current assets, other long-term assets, current accrued liabilities or other long-term liabilities, as appropriate. Any ineffectiveness present in either fair value or cash flow hedges is recognized immediately in earnings without offset. There was no significant ineffectiveness in 2014, 2013 or 2012. | |||||||||||||
• | Foreign Currency Derivatives — Our foreign currency derivatives have been designated as cash flow hedges for accounting purposes, which results in the unrealized changes in the fair value of the derivative instruments being recorded in “Accumulated other comprehensive income” within the equity section of our Consolidated Balance Sheets. The associated balance in other comprehensive income is reclassified to earnings as the hedged cash flows affect earnings. In each of the periods presented, these derivatives have effectively mitigated the impacts of the hedged transactions, resulting in immaterial impacts to our results of operations for the periods presented. | ||||||||||||
• | Interest Rate Derivatives — Our previously outstanding “receive fixed, pay variable” interest rate swaps associated with outstanding fixed-rate senior notes had been designated as fair value hedges for accounting purposes. Accordingly, derivative assets were accounted for as an increase in the carrying value of our underlying debt obligations and derivative liabilities were accounted for as a decrease in the carrying value of our underlying debt instruments. These fair value adjustments are deferred and recognized as an adjustment to interest expense over the remaining term of the hedged instruments. Treasury locks and forward-starting swaps executed in prior years were designated as cash flow hedges for accounting purposes. The fair value of these derivative instruments were recorded in “Accumulated other comprehensive income” within the equity section of our Consolidated Balance Sheets. The associated balance in other comprehensive income is reclassified to earnings as the hedged cash flows occur. | ||||||||||||
Insured and Self-Insured Claims | |||||||||||||
We have retained a significant portion of the risks related to our health and welfare, automobile, general liability and workers’ compensation claims programs. The exposure for unpaid claims and associated expenses, including incurred but not reported losses, generally is estimated with the assistance of external actuaries and by factoring in pending claims and historical trends and data. The gross estimated liability associated with settling unpaid claims is included in “Accrued liabilities” in our Consolidated Balance Sheets if expected to be settled within one year, or otherwise is included in long-term “Other liabilities.” Estimated insurance recoveries related to recorded liabilities are reflected as current “Other receivables” or long-term “Other assets” in our Consolidated Balance Sheets when we believe that the receipt of such amounts is probable. | |||||||||||||
Revenue Recognition | |||||||||||||
Our revenues are generated from the fees we charge for waste collection, transfer, disposal and recycling and resource recovery services; from the sale of electricity and landfill gas, which are byproducts of our landfill operations; and from the sale of recyclable commodities, oil and gas and organic lawn and garden products. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms such as frequency of service, weight, volume and the general market factors influencing a region’s rates. The fees we charge for our services generally include fuel surcharges, which are intended to pass through to customers increased direct and indirect costs incurred because of changes in market prices for fuel. 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, recycling commodities are delivered or as kilowatts are delivered to a customer by a waste-to-energy facility or independent power production plant. | |||||||||||||
Tangible product revenues primarily include the sale of recyclable commodities at our material recovery facilities and through our recycling brokerage services and, to a lesser extent, sales of oil and gas, metals and organic lawn and garden products. | |||||||||||||
We bill for certain services prior to performance. Such services include, among others, certain residential contracts that are billed on a quarterly basis and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided. | |||||||||||||
Capitalized Interest | |||||||||||||
We capitalize interest on certain projects under development, including internal-use software and landfill expansion projects, and on certain assets under construction, including operating landfills and landfill gas-to-energy projects. During 2014, 2013 and 2012, total interest costs were $487 million, $500 million and $509 million, respectively, of which $16 million was capitalized in 2014, $19 million was capitalized in 2013 and $21 million was capitalized in 2012. In 2014, 2013 and 2012, interest was capitalized primarily for landfill construction costs. | |||||||||||||
Income Taxes | |||||||||||||
The Company is subject to income tax in the United States and Canada. Current tax obligations associated with our provision for income taxes are reflected in the accompanying Consolidated Balance Sheets as a component of “Accrued liabilities” and the deferred tax obligations are reflected in “Deferred income taxes.” | |||||||||||||
Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. We establish reserves for uncertain tax positions when, despite our belief that our tax return positions are fully supportable, we believe that certain positions may be challenged and potentially disallowed. When facts and circumstances change, we adjust these reserves through our provision for income taxes. | |||||||||||||
To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of income tax expense in our Consolidated Statements of Operations. | |||||||||||||
Contingent Liabilities | |||||||||||||
We estimate the amount of potential exposure we may have with respect to claims, assessments and litigation in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). We are party to pending or threatened legal proceedings covering a wide range of matters in various jurisdictions. It is difficult to predict the outcome of litigation, as it is subject to many uncertainties. Additionally, it is not always possible for management to make a meaningful estimate of the potential loss or range of loss associated with such contingencies. | |||||||||||||
Supplemental Cash Flow Information | |||||||||||||
Years Ended December 31, | |||||||||||||
Cash paid during the year (in millions): | 2014 | 2013 | 2012 | ||||||||||
Interest, net of capitalized interest and periodic settlements from interest rate swap agreements | $ | 461 | $ | 478 | $ | 485 | |||||||
Income taxes | 758 | 511 | 366 | ||||||||||
For the year ended December 31, 2013, non-cash investing and financing activities included proceeds from tax-exempt borrowings, net of principal payments made directly from trust funds, of $99 million. During 2014 and 2012, we did not have any significant non-cash investing and financing activities. Non-cash investing and financing activities are excluded from the Consolidated Statements of Cash Flows. |
Landfill_and_Environmental_Rem
Landfill and Environmental Remediation Liabilities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Landfill and Environmental Remediation Liabilities | 4. Landfill and Environmental Remediation Liabilities | ||||||||||||||||||||||||
Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): | |||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Landfill | Environmental | Total | Landfill | Environmental | Total | ||||||||||||||||||||
Remediation | Remediation | ||||||||||||||||||||||||
Current (in accrued liabilities) | $ | 104 | $ | 43 | $ | 147 | $ | 95 | $ | 35 | $ | 130 | |||||||||||||
Long-term | 1,339 | 192 | 1,531 | 1,326 | 192 | 1,518 | |||||||||||||||||||
$ | 1,443 | $ | 235 | $ | 1,678 | $ | 1,421 | $ | 227 | $ | 1,648 | ||||||||||||||
The changes to landfill and environmental remediation liabilities for the years ended December 31, 2013 and 2014 are reflected in the table below (in millions): | |||||||||||||||||||||||||
Landfill | Environmental | ||||||||||||||||||||||||
Remediation | |||||||||||||||||||||||||
December 31, 2012 | $ | 1,338 | $ | 253 | |||||||||||||||||||||
Obligations incurred and capitalized | 59 | — | |||||||||||||||||||||||
Obligations settled | (71 | ) | (20 | ) | |||||||||||||||||||||
Interest accretion | 87 | 4 | |||||||||||||||||||||||
Revisions in estimates and interest rate assumptions(a)(b) | 6 | (6 | ) | ||||||||||||||||||||||
Acquisitions, divestitures and other adjustments | 2 | (4 | ) | ||||||||||||||||||||||
December 31, 2013 | $ | 1,421 | $ | 227 | |||||||||||||||||||||
Obligations incurred and capitalized | 54 | — | |||||||||||||||||||||||
Obligations settled | (69 | ) | (21 | ) | |||||||||||||||||||||
Interest accretion | 88 | 5 | |||||||||||||||||||||||
Revisions in estimates and interest rate assumptions(a)(b) | (9 | ) | 25 | ||||||||||||||||||||||
Acquisitions, divestitures and other adjustments(c) | (42 | ) | (1 | ) | |||||||||||||||||||||
December 31, 2014 | $ | 1,443 | $ | 235 | |||||||||||||||||||||
(a) | The amounts reported for our landfill liabilities include a reduction of approximately $20 million for 2013 and an increase of approximately $2 million for 2014, related to our year-end annual review of landfill final capping, closure and post-closure obligations. The amount reported in 2013 also includes an increase of approximately $23 million due to the acceleration of the timing of closure and post-closure activities at two of our landfills related to landfill asset impairments, discussed further in Note 13. | ||||||||||||||||||||||||
(b) | The amount reported in 2013 for our environmental remediation liabilities includes the impact of an increase in the risk-free discount rate used to measure our liabilities from 1.75% at December 31, 2012 to 3.0% at December 31, 2013, resulting in a decrease of $18 million to our environmental remediation liabilities and a corresponding decrease to “Operating” expenses. | ||||||||||||||||||||||||
The amount reported in 2014 for environmental remediation liabilities includes the impact of a decrease in the risk-free discount rate used to measure our liabilities from 3.0% at December 31, 2013 to 2.0% at December 31, 2014, resulting in an increase of $13 million to our environmental remediation liabilities and a corresponding increase to “Operating” expenses. | |||||||||||||||||||||||||
(c) | The amounts reported for our 2014 landfill liabilities include reductions of approximately $25 million for divestitures, including the divestiture of our Wheelabrator business. | ||||||||||||||||||||||||
Our recorded liabilities as of December 31, 2014 include the impacts of inflating certain of these costs based on our expectations for the timing of cash settlement and of discounting certain of these costs to present value. Anticipated payments of currently identified environmental remediation liabilities as measured in current dollars are $43 million in 2015, $26 million in 2016, $26 million in 2017, $24 million in 2018, $12 million in 2019 and $98 million thereafter. | |||||||||||||||||||||||||
At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements. See Note 20 for additional information related to these trusts. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property and Equipment | 5. Property and Equipment | ||||||||||||
Property and equipment at December 31 consisted of the following (in millions): | |||||||||||||
2014 | 2013 | ||||||||||||
Land | $ | 611 | $ | 636 | |||||||||
Landfills | 13,463 | 13,416 | |||||||||||
Vehicles | 4,131 | 4,115 | |||||||||||
Machinery and equipment(a) | 2,470 | 3,888 | |||||||||||
Containers | 2,377 | 2,449 | |||||||||||
Buildings and improvements(a) | 2,588 | 3,594 | |||||||||||
Furniture, fixtures and office equipment | 985 | 969 | |||||||||||
26,625 | 29,067 | ||||||||||||
Less accumulated depreciation on tangible property and equipment | (8,278 | ) | (9,205 | ) | |||||||||
Less accumulated landfill airspace amortization | (7,690 | ) | (7,518 | ) | |||||||||
$ | 10,657 | $ | 12,344 | ||||||||||
(a) | The decreases at December 31, 2014 are primarily related to the sale of our Wheelabrator business as discussed further in Note 19. | ||||||||||||
Depreciation and amortization expense, including amortization expense for assets recorded as capital leases, was comprised of the following for the years ended December 31 (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation of tangible property and equipment | $ | 834 | $ | 853 | $ | 833 | |||||||
Amortization of landfill airspace | 380 | 400 | 395 | ||||||||||
Depreciation and amortization expense | $ | 1,214 | $ | 1,253 | $ | 1,228 | |||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets | ||||||||||||||||
Goodwill was $5,740 million as of December 31, 2014 compared with $6,070 million as of December 31, 2013. The $330 million decrease in goodwill during 2014 is primarily related to the sale of our Wheelabrator business and, to a lesser extent, the effect of foreign currency translation adjustments related to the goodwill associated with our Canadian operations and goodwill impairment charges associated with our recycling operations. See Notes 3, 13, 19 and 21 for additional information. | |||||||||||||||||
As discussed more fully in Note 3, we perform our annual impairment test of our goodwill balances using a measurement date of October 1. We will also perform interim tests if an impairment indicator exists such that the fair value of a reporting unit could potentially be less than its carrying amount. We did not encounter any events or changes in circumstances that indicated that an impairment was more likely than not during interim periods in 2014, 2013 or 2012. | |||||||||||||||||
During our annual 2013 impairment test of our goodwill balances we determined the fair value of our Wheelabrator business had declined and the associated goodwill was impaired. As a result, we recognized an impairment charge of $483 million, which had no related tax benefit. We estimated the implied fair value of our Wheelabrator reporting unit goodwill using a combination of income and market approaches. Because the annual impairment test indicated that Wheelabrator’s carrying value exceeded its estimated fair value, we performed the “step two” analysis. In the “step two” analysis, the fair values of all assets and liabilities were estimated, including tangible assets, power contracts, customer relationships and trade name for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of goodwill was then compared to the carrying amount of goodwill to determine the amount of the impairment. The factors contributing to the $483 million goodwill impairment charge principally related to the continued challenging business environment in areas of the country in which Wheelabrator operated, characterized by lower available disposal volumes (which impact disposal rates and overall disposal revenue, as well as the amount of electricity Wheelabrator was able to generate), lower electricity pricing due to the pricing pressure created by availability of natural gas and increased operating costs as Wheelabrator’s facilities aged. These factors caused us to lower prior assumptions for electricity and disposal revenue, and increase assumed operating costs. Additionally, the discount factor previously utilized in the income approach in 2013 increased mainly due to increases in interest rates. In 2013, we incurred an additional $10 million of charges to impair goodwill associated with our Puerto Rico operations and $4 million to impair goodwill associated with our recycling business. | |||||||||||||||||
Our other intangible assets as of December 31, 2014 and 2013 were comprised of the following (in millions): | |||||||||||||||||
Customer | Covenants | Licenses, | Total | ||||||||||||||
and | Not-to- | Permits | |||||||||||||||
Supplier | Compete | and Other | |||||||||||||||
Relationships | |||||||||||||||||
December 31, 2014: | |||||||||||||||||
Intangible assets | $ | 576 | $ | 63 | $ | 116 | $ | 755 | |||||||||
Less accumulated amortization | (231 | ) | (44 | ) | (40 | ) | (315 | ) | |||||||||
$ | 345 | $ | 19 | $ | 76 | $ | 440 | ||||||||||
December 31, 2013: | |||||||||||||||||
Intangible assets | $ | 604 | $ | 87 | $ | 123 | $ | 814 | |||||||||
Less accumulated amortization | (193 | ) | (57 | ) | (35 | ) | (285 | ) | |||||||||
$ | 411 | $ | 30 | $ | 88 | $ | 529 | ||||||||||
Amortization expense for other intangible assets was $78 million for 2014, $80 million for 2013 and $69 million for 2012. At December 31, 2014, we had $19 million of licenses, permits and other intangible assets that are not subject to amortization, because they do not have stated expirations or have routine, administrative renewal processes. Additional information related to other intangible assets acquired through business combinations is included in Note 19. As of December 31, 2014, expected annual amortization expense related to other intangible assets is $69 million in 2015; $62 million in 2016; $55 million in 2017; $50 million in 2018 and $43 million in 2019. |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 7. 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 December 31, 2014: | |||||||||
2014 | 2013 | ||||||||
U.S. revolving credit facility, maturing July 2018 (weighted average interest rate of 1.2% at December 31, 2013) | $ | — | $ | 420 | |||||
Letter of credit facilities, maturing through December 2018 | — | — | |||||||
Canadian credit facility and term loan, maturing November 2017 (weighted average effective interest rate of 2.6% at December 31, 2014 and 2.7% at December 31, 2013) | 232 | 414 | |||||||
Senior notes maturing through 2039, interest rates ranging from 2.60% to 7.75% (weighted average interest rate of 5.7% at December 31, 2014 and 2013) | 6,273 | 6,287 | |||||||
Tax-exempt bonds maturing through 2045, fixed and variable interest rates ranging from 0.04% to 5.7% (weighted average interest rate of 2.2% at December 31, 2014 and 2.3% at December 31, 2013) | 2,541 | 2,664 | |||||||
Capital leases and other, maturing through 2055, interest rates up to 12% | 389 | 441 | |||||||
$ | 9,435 | $ | 10,226 | ||||||
Current portion of long-term debt | 1,090 | 726 | |||||||
$ | 8,345 | $ | 9,500 | ||||||
Debt Classification | |||||||||
As of December 31, 2014, our current debt balances include (i) $947 million of senior notes repaid with available cash in January 2015 that the Company decided to redeem in advance of their scheduled maturities, including $350 million of 6.375% senior notes that were scheduled to mature in March 2015, $147 million of 7.125% senior notes that were scheduled to mature in December 2017 and $450 million of 7.375% senior notes that were scheduled to mature in March 2019 and (ii) $143 million of debt with scheduled maturities within the next 12 months, including $64 million of tax-exempt bonds. | |||||||||
As of December 31, 2014, we also have $638 million of tax-exempt bonds with term interest rate periods that expire within 12 months and an additional $501 million of variable-rate tax-exempt bonds that are supported by letters of credit. The interest rates on these bonds are reset on either a daily or weekly basis through a remarketing process. All recent remarketings have successfully placed Company bonds with investors at reasonable, market-driven rates and we currently expect future remarketings to be a success. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the intent and ability to use availability under our long-term U.S. revolving credit facility (“$2.25 billion revolving credit facility”) to fund the debt obligation until it can be remarketed successfully. Accordingly, we classified these borrowings as long-term in our Consolidated Balance Sheet at December 31, 2014. | |||||||||
Access to and Utilization of Credit Facilities | |||||||||
$2.25 Billion Revolving Credit Facility — In July 2013, we amended and restated our revolving credit facility, increasing our total credit capacity to $2.25 billion and extending the term through July 2018. This facility provides us with credit capacity to be used for either cash borrowings or to support letters of credit. The rates we pay for outstanding loans are generally based on LIBOR plus a spread depending on the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR ranges from 0.90% to 1.475%. At December 31, 2014, we had no outstanding borrowings and $785 million of letters of credit issued and supported by the facility, leaving unused and available credit capacity of $1,465 million. | |||||||||
Letter of Credit Facilities — As of December 31, 2014, we had an aggregate committed capacity of $400 million under letter of credit facilities with terms ending through December 2018. This letter of credit capacity was fully utilized as of December 31, 2014. The financial assurance needs of our business are extensive so we supplement the letter of credit capacity we have through these committed facilities with stand-alone letters of credit with various banking partners. | |||||||||
Canadian Credit Facility and Term Loan — Waste Management of Canada Corporation and WM Quebec Inc., wholly-owned subsidiaries of WM, are borrowers under a Canadian credit agreement that provides C$150 million of revolving credit capacity and initially provided C$500 million of term credit. The credit agreement matures in November 2017. WM and WM Holdings guaranty all subsidiary obligations outstanding under the credit agreement. The rates we pay for outstanding loans under the Canadian credit agreement are generally based on the applicable Canadian Dealer Offered Rate (CDOR) plus a spread depending on the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above CDOR ranges from 1.125% to 2.15%. | |||||||||
In the fourth quarter of 2012, we established the C$150 million revolving credit capacity to refinance borrowings outstanding under a Canadian term credit agreement that would have matured in November 2012 and to provide additional liquidity for our Canadian operations. We have the ability to issue up to C$50 million of letters of credit under the Canadian revolving credit facility, which if utilized, reduces the amount of credit capacity available for borrowings. As of December 31, 2014 and 2013, we had no letters of credit outstanding under the facility. We had no outstanding borrowings as of December 31, 2014 and C$10 million of outstanding borrowings as of December 31, 2013. | |||||||||
The C$500 million of term credit was established specifically to fund the acquisition of substantially all of the assets of RCI and was fully drawn in July 2013. The term credit is non-revolving credit and principal amounts repaid may not be re-borrowed. Through December 31, 2014, we had repaid C$230 million of the term credit with available cash, reducing the outstanding and drawn credit to C$270 million. For additional information related to borrowings and principal repayments under the term credit, see below. | |||||||||
Debt Borrowings and Repayments | |||||||||
Canadian Credit Facility and Term Loan — Our outstanding CDOR-based advances, which are generally indexed to one-month CDOR, mature in November 2017, but are prepayable without penalty. Accordingly, this debt has been classified as long-term in our Consolidated Balance Sheet. We repaid C$170 million, or $155 million, of the advances under our Canadian credit agreement during the year ended December 31, 2014 with available cash. The remaining change in the carrying value of our Canadian credit facility and term loan is due to changes in the Canadian currency translation rate. | |||||||||
Senior Notes — In March 2014, we repaid $350 million of 5.0% senior notes upon maturity with borrowings under our $2.25 billion revolving credit facility. In May 2014, we issued $350 million of 3.5% senior notes due May 15, 2024. The net proceeds from the debt issuance were $347 million, all of which were used to repay borrowings under our $2.25 billion revolving credit facility. The change in the carrying value of our senior notes from December 31, 2013 to December 31, 2014 is principally due to fair value hedge accounting for interest rate swap contracts. Refer to Notes 8 and 14 for additional information regarding our interest rate derivatives. | |||||||||
Tax-Exempt Bonds — During the year ended December 31, 2014, we repaid $123 million of our tax-exempt bonds with available cash. | |||||||||
Scheduled Debt Payments — Principal payments of our debt and capital leases for the next five years, based on scheduled maturities as adjusted for the Company’s optional early redemption of certain of its senior notes, are as follows: $1,075 million in 2015; $717 million in 2016; $402 million in 2017; $801 million in 2018; and $132 million in 2019. Our recorded debt and capital lease obligations include non-cash adjustments associated with discounts, premiums and fair value adjustments for interest rate hedging activities, which have been excluded from these amounts because they will not result in cash payments. | |||||||||
Secured Debt | |||||||||
Our debt balances are generally unsecured, except for capital leases and the note payable associated with our investment in low-income housing properties. | |||||||||
Debt Covenants | |||||||||
Our $2.25 billion revolving credit facility, our Canadian credit agreement and certain other financing agreements contain financial covenants. The following table summarizes the most restrictive requirements of these financial covenants (all terms used to measure these ratios are defined by the facilities): | |||||||||
Interest coverage ratio | > 2.75 to 1 | ||||||||
Total debt to EBITDA(a) | < 3.75 to 1 | ||||||||
(a) | In conjunction with the amendment and restatement of our $2.25 billion revolving credit facility in July 2013, the maximum ratio was increased from 3.50:1 to 3.75:1 for quarters ending before September 30, 2015. After such time, the covenant ratio will revert back to 3.50:1 for each fiscal quarter through maturity of the facility in July 2018. | ||||||||
Our credit facilities and senior notes also contain certain restrictions intended to monitor our level of subsidiary indebtedness, types of investments and net worth. We monitor our compliance with these restrictions, but do not believe that they significantly impact our ability to enter into investing or financing arrangements typical for our business. As of December 31, 2014 and 2013, we were in compliance with the covenants and restrictions under all of our debt agreements that may have a material effect on our Consolidated Financial Statements. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Derivative Instruments and Hedging Activities | 8. Derivative Instruments and Hedging Activities | ||||||||||||
The following table summarizes the fair values of derivative instruments recorded in our Consolidated Balance Sheet (in millions): | |||||||||||||
December 31, | |||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | 2014 | 2013 | ||||||||||
Foreign currency derivatives | Long-term other assets | $ | 28 | $ | 2 | ||||||||
Total derivative assets | $ | 28 | $ | 2 | |||||||||
Electricity commodity derivatives(a) | Current accrued liabilities | $ | — | $ | 3 | ||||||||
Interest rate derivatives | Current accrued liabilities | — | 28 | ||||||||||
Total derivative liabilities | $ | — | $ | 31 | |||||||||
(a) | Our electricity commodity derivatives were associated with our Wheelabrator business and were divested in conjunction with the sale of that business in December 2014. | ||||||||||||
We have not offset fair value amounts recognized for our derivative instruments. For information related to the inputs used to measure our derivative assets and liabilities at fair value, refer to Note 18. | |||||||||||||
Fair Value Hedges | |||||||||||||
Interest Rate Swaps | |||||||||||||
In prior years, we entered into interest rate swaps to maintain a portion of our debt obligations at variable market interest rates. We designated these 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 our debt instruments by $45 million as of December 31, 2014 and $59 million as of December 31, 2013. These fair value adjustments to long-term debt are being amortized as a reduction to interest expense using the effective interest method over the remaining term of the related senior notes, which extend through 2028. | |||||||||||||
Gains or losses on the derivatives as well as the offsetting gains or losses 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 fair value adjustment from active interest rate swaps and the offsetting gain on the related hedged items was immaterial during the year ended December 31, 2012. We did not have any active swaps outstanding in 2014 and 2013. | |||||||||||||
We also recognize the impacts of (i) net periodic settlements of current interest on our active interest rate swaps, if any, and (ii) the amortization of previously terminated interest rate swap agreements as adjustments to interest expense. The following table summarizes these impacts on our results of operations (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
Decrease to Interest Expense Due to Hedge Accounting for Interest Rate Swaps | 2014 | 2013 | 2012 | ||||||||||
Periodic settlements of active swap agreements | $ | — | $ | — | $ | 8 | |||||||
Terminated swap agreements | 14 | 20 | 22 | ||||||||||
$ | 14 | $ | 20 | $ | 30 | ||||||||
Cash Flow Hedges | |||||||||||||
Forward-Starting Interest Rate Swaps | |||||||||||||
In prior years, we entered into forward-starting interest rate swaps with a total notional value of $525 million to hedge the risk of changes in semi-annual interest payments due to fluctuations in the forward ten-year LIBOR swap rate for anticipated fixed-rate debt issuances in 2011, 2012 and 2014. We designated these forward-starting interest rate swaps as cash flow hedges. | |||||||||||||
The active forward-starting interest rate swaps outstanding at December 31, 2013 related to a debt issuance initially forecasted for March 2014, that occurred in May 2014. As of December 31, 2013, the fair value of these active interest rate derivatives of $28 million was included in current liabilities. During the first quarter of 2014, these forward-starting interest rate swaps with a notional value of $175 million matured and we paid cash of $36 million to settle the associated liabilities. | |||||||||||||
At December 31, 2014 and 2013, our “Accumulated other comprehensive income” included $50 million and $34 million, respectively, of after-tax deferred losses related to all terminated forward-starting interest rate swaps. These losses are being amortized as an increase to interest expense using the effective interest method over the ten-year term of the related senior notes, which extend through 2024. As of December 31, 2014, $11 million (on a pre-tax basis) is scheduled to be reclassified as an increase to interest expense over the next 12 months. | |||||||||||||
Foreign Currency Derivatives | |||||||||||||
We use foreign currency exchange rate derivatives to hedge our exposure to fluctuations in exchange rates for anticipated intercompany cash transactions between WM Holdings and its Canadian subsidiaries. As of December 31, 2014 and 2013, we had foreign exchange cross currency swaps outstanding for all of the anticipated cash flows associated with intercompany loans from WM Holdings to the wholly-owned Canadian subsidiaries. The hedged cash flows as of December 31, 2014 and 2013 included C$370 million of total notional value. The scheduled principal payments of the loan and the related swaps are as follows: C$70 million due on October 31, 2016, C$150 million due on October 31, 2017 and C$150 million due on October 31, 2018. We designated these cross currency swaps as cash flow hedges. Gains or losses resulting from the remeasurement of the underlying non-functional currency intercompany loans are recognized in current earnings in the same financial statement line item as offsetting gains or losses on the related cross currency swaps. | |||||||||||||
There was no significant ineffectiveness associated with our cash flow hedges during the years ended December 31, 2014, 2013 or 2012. Refer to Note 14 for information regarding the impacts of our cash flow derivatives on our comprehensive income and results of operations. | |||||||||||||
Credit-Risk-Related Contingent Features | |||||||||||||
Our interest rate derivative instruments have in the past, and may in the future, contain provisions related to the Company’s credit rating. These provisions generally provide that if the Company’s credit rating were to fall to specified levels below investment grade, the counterparties have the ability to terminate the derivative agreements, resulting in settlement of all affected transactions. As of December 31, 2014 and 2013, we did not have any interest rate derivatives outstanding that contained these credit-risk-related features. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 9. Income Taxes | ||||||||||||
Provision for Income Taxes | |||||||||||||
Our “Provision for income taxes” consisted of the following (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 414 | $ | 389 | $ | 268 | |||||||
State | 61 | 79 | 72 | ||||||||||
Foreign | 56 | 45 | 36 | ||||||||||
531 | 513 | 376 | |||||||||||
Deferred: | |||||||||||||
Federal | (89 | ) | (82 | ) | 48 | ||||||||
State | (33 | ) | (14 | ) | 17 | ||||||||
Foreign | 4 | (53 | ) | 2 | |||||||||
(118 | ) | (149 | ) | 67 | |||||||||
Provision for income taxes | $ | 413 | $ | 364 | $ | 443 | |||||||
The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal tax credits | (3.21 | ) | (11.74 | ) | (4.13 | ) | |||||||
Taxing authority audit settlements and other tax adjustments | (1.59 | ) | (3.56 | ) | (0.02 | ) | |||||||
Noncontrolling interests | (0.81 | ) | (2.28 | ) | (1.16 | ) | |||||||
State and local income taxes, net of federal income tax benefit | 1.77 | 9.81 | 3.85 | ||||||||||
Tax rate differential on foreign income | (0.46 | ) | 1.63 | (0.96 | ) | ||||||||
Tax impact of impairments | 0.46 | 41.95 | 0.57 | ||||||||||
Tax impact of divestitures | (7.89 | ) | — | — | |||||||||
Other | 0.34 | 2.94 | 0.8 | ||||||||||
Provision for income taxes | 23.61 | % | 73.75 | % | 33.95 | % | |||||||
The comparability of our provision for income taxes for the reported periods has been primarily affected by (i) variations in our income before income taxes; (ii) the tax implications of divestitures; (iii) federal tax credits; (iv) adjustments to our accruals and related deferred taxes; (v) tax audit settlements; (vi) the realization of federal and state net operating loss and credit carry-forwards and (vii) the tax implications of impairments. | |||||||||||||
For financial reporting purposes, income (loss) before income taxes by source was as follows (in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 1,601 | $ | 548 | $ | 1,175 | |||||||
Foreign | 150 | (54 | ) | 128 | |||||||||
Income before income taxes | $ | 1,751 | $ | 494 | $ | 1,303 | |||||||
Tax Implications of Divestitures — During 2014, the Company recorded a net gain of $515 million primarily related to the divestiture of our Wheelabrator business, our Puerto Rico operations and certain landfill and collection operations in our Eastern Canada Area. Had this net gain been fully taxable, our provision for income taxes would have increased by $138 million. See Note 19 for more information related to divestitures. | |||||||||||||
Investment in Refined Coal Facility — In 2011, we acquired a noncontrolling interest in a limited liability company, which was established to invest in and manage a refined coal facility in North Dakota. The facility’s refinement processes qualify for federal tax credits that are expected to be realized through 2019 in accordance with Section 45 of the Internal Revenue Code. | |||||||||||||
We account for our investment in this entity using the equity method of accounting, recognizing our share of the entity’s results of operations and other reductions in the value of our investment in “Equity in net losses of unconsolidated entities,” within our Consolidated Statement of Operations. We recognized $7 million, $8 million and $7 million of net losses resulting from our share of the entity’s operating losses during the years ended December 31, 2014, 2013 and 2012, respectively. Our tax provision was reduced by $21 million, $20 million and $21 million for the years ended December 31, 2014, 2013 and 2012, respectively, primarily as a result of tax credits realized from this investment. See Note 20 for additional information related to this investment. | |||||||||||||
Investment in Low-Income Housing Properties — In 2010, we acquired a noncontrolling interest in a limited liability company established to invest in and manage low-income housing properties. The entity’s low-income housing investments qualify for federal tax credits that are expected to be realized through 2020 in accordance with Section 42 of the Internal Revenue Code. | |||||||||||||
We account for our investment in this entity using the equity method of accounting recognizing our share of the entity’s results of operations and other reductions in the value of our investment in “Equity in net losses of unconsolidated entities,” within our Consolidated Statement of Operations. The value of our investment decreases as the tax credits are generated and utilized. During the years ended December 31, 2014, 2013 and 2012, we recognized $25 million, $25 million and $24 million, respectively, of losses relating to our equity investment in this entity, $5 million, $6 million and $7 million, respectively, of interest expense, and a reduction in our tax provision of $37 million (including $25 million of tax credits), $38 million (including $26 million of tax credits) and $38 million (including $26 million of tax credits), respectively. See Note 20 for additional information related to this investment. | |||||||||||||
Adjustments to Accruals and Related Deferred Taxes — Adjustments to our accruals and related deferred taxes due to the filing of our income tax returns and changes in state law resulted in a reduction of $24 million and increases of $4 million and $7 million to our provision for income taxes for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Tax Audit Settlements — We file income tax returns in the United States and Canada as well as various state and local jurisdictions. We are currently under audit by the IRS, Canada Revenue Agency and various state and local taxing authorities. Our audits are in various stages of completion. | |||||||||||||
During 2014, 2013 and 2012 we settled various tax audits. The settlement of these tax audits resulted in a reduction to our provision for income taxes of $12 million, $11 million and $10 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
We participate in the IRS’s Compliance Assurance Process, which means we work with the IRS throughout the year in order to resolve any material issues prior to the filing of our annual tax return. We are currently in the examination phase of IRS audits for the tax years 2013, 2014 and 2015 and expect these audits to be completed within the next three, 15 and 27 months, respectively. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2009, with the exception of affirmative claims in a limited number of jurisdictions that date back to 2000. We are also under audit in Canada for the tax years 2012 and 2013. In 2011, we acquired Oakleaf Global Holdings (“Oakleaf”), which is subject to potential IRS examination for the year 2011. Pursuant to the terms of our acquisition of Oakleaf, we are entitled to indemnification for Oakleaf’s pre-acquisition period tax liabilities. | |||||||||||||
State Net Operating Loss and Credit Carry-Forwards — During 2014, 2013 and 2012, we recognized state net operating loss and credit carry-forwards resulting in a reduction to our provision for income taxes of $16 million, $16 million and $5 million, respectively. | |||||||||||||
Federal Net Operating Loss Carry-Forwards — During 2012, we recognized additional federal net operating loss (“NOL”) carry-forwards resulting in a reduction to our provision for income taxes of $8 million. As a result of the acquisition of Oakleaf in 2011, we received income tax attributes (primarily federal and state net operating loss carry-forwards) and allocated a portion of the purchase price to these acquired assets. At the time of the acquisition, we fully recognized all of the income tax attributes identified by the seller and concluded the realization of these attributes did not affect our overall provision for income taxes. In 2012, as a result of new information, we recognized the tax benefit related to additional federal net operating loss carry-forwards received in the Oakleaf acquisition. | |||||||||||||
Tax Implications of Impairments — A portion of the impairment charges recognized are not deductible for tax purposes. Had the charges been fully deductible, our provision for income taxes would have been reduced by $8 million, $235 million and $7 million for the years ended December 31, 2014, 2013, and 2012 respectively. See Notes 6 and 13 for more information related to asset impairments and unusual items. | |||||||||||||
Unremitted Earnings in Foreign Subsidiaries — At December 31, 2014, remaining unremitted earnings in foreign operations were approximately $750 million, which are considered permanently invested and, therefore, no provision for U.S. income taxes were accrued for these unremitted earnings. Determination of the unrecognized deferred U.S. income tax liability is not practicable due to uncertainties related to the timing and source of any potential distribution of such funds, along with other important factors such as the amount of associated foreign tax credits. | |||||||||||||
Deferred Tax Assets (Liabilities) | |||||||||||||
The components of net deferred tax assets (liabilities) are as follows (in millions): | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss, capital loss and tax credit carry-forwards | $ | 297 | $ | 164 | |||||||||
Miscellaneous and other reserves, net | 380 | 356 | |||||||||||
Subtotal | 677 | 520 | |||||||||||
Valuation allowance | (300 | ) | (149 | ) | |||||||||
Deferred tax liabilities: | |||||||||||||
Landfill and environmental remediation liabilities | (22 | ) | (30 | ) | |||||||||
Property and equipment | (598 | ) | (966 | ) | |||||||||
Goodwill and other intangibles | (1,095 | ) | (1,104 | ) | |||||||||
Net deferred tax liabilities | $ | (1,338 | ) | $ | (1,729 | ) | |||||||
The valuation allowance increased by $151 million in 2014 due to changes in our capital loss carry-forwards and in our state NOL and tax credit carry-forwards, as well as the tax impacts of impairments. | |||||||||||||
At December 31, 2014, we had $28 million of federal NOL carry-forwards and $1.6 billion of state NOL carry-forwards. The federal and state NOL carry-forwards have expiration dates through the year 2034. We also have $519 million of federal capital loss carry-forwards which expire in 2019. In addition, we have $33 million of state tax credit carry-forwards at December 31, 2014. | |||||||||||||
We have established valuation allowances for uncertainties in realizing the benefit of certain tax loss and credit carry-forwards and other deferred tax assets. While we expect to realize the deferred tax assets, net of the valuation allowances, changes in estimates of future taxable income or in tax laws may alter this expectation. | |||||||||||||
Liabilities for Uncertain Tax Positions | |||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, including accrued interest for 2014, 2013 and 2012 is as follows (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 49 | $ | 54 | $ | 49 | |||||||
Additions based on tax positions related to the current year | 9 | 6 | 15 | ||||||||||
Additions based on tax positions of prior years | 2 | — | — | ||||||||||
Additions due to acquisitions | — | — | — | ||||||||||
Accrued interest | 1 | 2 | 2 | ||||||||||
Reductions based on tax positions related to the current year | — | — | — | ||||||||||
Reductions for tax positions of prior years | — | (7 | ) | (1 | ) | ||||||||
Settlements | (11 | ) | (1 | ) | (4 | ) | |||||||
Lapse of statute of limitations | (8 | ) | (5 | ) | (7 | ) | |||||||
Balance at December 31 | $ | 42 | $ | 49 | $ | 54 | |||||||
These liabilities are included as a component of long-term “Other liabilities” in our Consolidated Balance Sheets because the Company does not anticipate that settlement of the liabilities will require payment of cash within the next 12 months. As of December 31, 2014, $28 million of net unrecognized tax benefits, if recognized in future periods, would impact our effective tax rate. | |||||||||||||
We recognize interest expense related to unrecognized tax benefits in income tax expense. During the years ended December 31, 2014, 2013 and 2012, we recognized $1 million, $2 million and $2 million, respectively, of such interest expense as a component of our provisions for income taxes. We had $3 million and $7 million of accrued interest expense in our Consolidated Balance Sheets as of December 31, 2014 and 2013, respectively. We do not have any accrued liabilities or expense for penalties related to unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
We are not able to reasonably estimate when we might make any cash payments required to settle these liabilities, but we do not believe that the ultimate settlement of our obligations will materially affect our liquidity. As of December 31, 2014 we anticipate that approximately $12 million of liabilities for unrecognized tax benefits, including accrued interest, and $3 million of related tax assets may be reversed within the next 12 months. The anticipated reversals primarily relate to state tax items, none of which are material, and are expected to result from audit settlements or the expiration of the applicable statute of limitations period. | |||||||||||||
Bonus Depreciation | |||||||||||||
The Tax Increase Prevention Act of 2014 was signed into law on December 19, 2014 and included an extension for one year of the bonus depreciation allowance. As a result, 50% of qualifying capital expenditures on property placed in service before January 1, 2015 were depreciated immediately. The acceleration of deductions on 2014 qualifying capital expenditures resulting from the bonus depreciation provisions had no impact on our effective income tax rate for 2014 although it will reduce our cash taxes. This reduction will be offset by increased cash taxes in subsequent periods when the deductions related to the capital expenditures would have otherwise been taken. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||
Employee Benefit Plans | 10. Employee Benefit Plans | ||||||||||||||||||||||
Defined Contribution Plans — Waste Management sponsors 401(k) retirement savings plans that cover employees, except those working subject to collective bargaining agreements that do not allow for coverage under such plans. United States employees who are not subject to such collective bargaining agreements are generally eligible to participate in one of our plans following a 90-day waiting period after hire and may contribute as much as 25% of their annual compensation, subject to annual contribution limitations established by the IRS. Under our largest retirement savings plan, we match, in cash, 100% of employee contributions on the first 3% of their eligible compensation and 50% of employee contributions on the next 3% of their eligible compensation, resulting in a maximum match of 4.5% of eligible compensation. Both employee and Company contributions vest immediately. Certain United States employees who are subject to collective bargaining agreements may participate in a Company-sponsored 401(k) retirement savings plan under terms specified in their collective bargaining agreement. Certain employees outside the United States, including those in Canada, participate in defined contribution plans maintained by the Company in compliance with laws of the appropriate jurisdiction. Charges to “Operating” and “Selling, general and administrative” expenses for our defined contribution plans were $63 million for each of the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||
Defined Benefit Plans (other than multiemployer defined benefit plans discussed below) — Waste Management Holdings, Inc. sponsors a defined benefit plan for certain employees who are subject to collective bargaining agreements that provide for participation in that plan. Further, qualifying Canadian employees participate in defined benefit plans sponsored by certain of our Canadian subsidiaries. As of December 31, 2014, the combined benefit obligation of these pension plans was $121 million, and the plans had $90 million of plan assets, resulting in an unfunded benefit obligation for these plans of $31 million. | |||||||||||||||||||||||
In addition, WM Holdings and certain of its subsidiaries provided post-retirement health care and other benefits to eligible retirees. In conjunction with our acquisition of WM Holdings in July 1998, we limited participation in these plans to participating retirees as of December 31, 1998. The unfunded benefit obligation for these plans was $33 million at December 31, 2014. | |||||||||||||||||||||||
Our accrued benefit liabilities for our defined benefit pension and other post-retirement plans are $64 million as of December 31, 2014 and are included as components of “Accrued liabilities” and long-term “Other liabilities” in our Consolidated Balance Sheet. | |||||||||||||||||||||||
Multiemployer Defined Benefit Pension Plans — We are a participating employer in a number of trustee-managed multiemployer, defined benefit pension plans for employees who are covered by collective bargaining agreements. The risks of participating in these multiemployer plans are different from single-employer plans in that (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees or former employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be required to be assumed by the remaining participating employers and (iii) if we choose to stop participating in any of our multiemployer plans, we may be required to pay those plans a withdrawal amount based on the underfunded status of the plan. The following table outlines our participation in multiemployer plans considered to be individually significant (dollar amounts in millions): | |||||||||||||||||||||||
EIN/Pension Plan | Pension Protection Act | FIP/RP | Company | Expiration Date | |||||||||||||||||||
Contributions(d) | |||||||||||||||||||||||
Number | Reported Status(a) | Status(b),(c) | of Collective | ||||||||||||||||||||
Bargaining | |||||||||||||||||||||||
Pension Fund | 2014 | 2013 | 2014 | 2013 | 2012 | Agreement(s) | |||||||||||||||||
Automotive Industries Pension Plan | EIN: 94-1133245; | Critical | Critical | Implemented | $ | 1 | $ | 1 | $ | 1 | Various dates | ||||||||||||
through | |||||||||||||||||||||||
Plan Number: 001 | 6/30/18 | ||||||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Plan | EIN: 36-6044243; Plan Number: 001 | Critical | Critical | Implemented | 1 | — | — | (e) | |||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | EIN: 36-6513567; Plan Number: 001 | Endangered as of | Endangered as of | Implemented | 6 | 6 | 5 | 9/30/18 | |||||||||||||||
9/30/12 | |||||||||||||||||||||||
9/30/13 | |||||||||||||||||||||||
Suburban Teamsters of Northern Illinois Pension Plan | EIN: 36-6155778; Plan Number: 001 | Critical | Critical | Implemented | 3 | 2 | 2 | Various dates | |||||||||||||||
through | |||||||||||||||||||||||
9/30/17 | |||||||||||||||||||||||
Teamsters Employers Local 945 Pension Fund | EIN: 22-6196388; Plan Number: 001 | Critical | Critical | Implemented | — | — | — | Various dates | |||||||||||||||
through | |||||||||||||||||||||||
12/31/15 | |||||||||||||||||||||||
Teamsters Local 301 Pension Plan | EIN: 36-6492992; Plan Number: 001 | Not Endangered or Critical | Not Endangered or Critical | Not | 1 | 1 | 1 | 9/30/18 | |||||||||||||||
Applicable | |||||||||||||||||||||||
Western Conference of Teamsters Pension Plan | EIN: 91-6145047; Plan Number: 001 | Not Endangered or Critical | Not | Not | 24 | 22 | 22 | Various dates | |||||||||||||||
Endangered | Applicable | through | |||||||||||||||||||||
or Critical | 12/31/19 | ||||||||||||||||||||||
Western Pennsylvania Teamsters | EIN: 25-6029946; | Critical | Critical | Implemented | 1 | 1 | 1 | 12/31/16 | |||||||||||||||
and Employers Pension Plan | Plan Number: 001 | ||||||||||||||||||||||
$ | 37 | $ | 33 | $ | 32 | ||||||||||||||||||
Contributions to other multiemployer pension plans | 7 | 7 | 7 | ||||||||||||||||||||
Total contributions to multiemployer pension plans | $ | 44 | $ | 40 | $ | 39 | |||||||||||||||||
(a) | Unless otherwise noted in the table, the most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan’s year-end at December 31, 2013 and 2012, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. As defined in the Pension Protection Act of 2006, among other factors, plans reported as critical are generally less than 65% funded and plans reported as endangered are generally less than 80% funded. | ||||||||||||||||||||||
(b) | The “FIP/RP Status” column indicates plans for which a Funding Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either pending or has been implemented. | ||||||||||||||||||||||
(c) | A multiemployer defined benefit pension plan that has been certified as endangered, seriously endangered or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable FIP or RP. | ||||||||||||||||||||||
(d) | The Company was listed in the Form 5500 of the multiemployer plans considered to be individually significant as providing more than 5% of the total contributions for each of the following plans and plan years: | ||||||||||||||||||||||
Year Contributions to Plan | |||||||||||||||||||||||
Exceeded 5% of Total Contributions | |||||||||||||||||||||||
(as of Plan’s Year End) | |||||||||||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | 9/30/2013 and 9/30/2012 | ||||||||||||||||||||||
Suburban Teamsters of Northern Illinois Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
Teamsters Local 301 Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2014. | |||||||||||||||||||||||
(e) | The Company believes there are no collective bargaining agreements remaining that require continuing contributions to this plan; however, this point is the subject of pending litigation with the trustees for the Central States, Southeast and Southwest Areas Pension Plan. | ||||||||||||||||||||||
Our portion of the projected benefit obligation, plan assets and unfunded liability of the multiemployer pension plans is not material to our financial position. However, the failure of participating employers to remain solvent could affect our portion of the plans’ unfunded liability. Specific benefit levels provided by union pension plans are not negotiated with or known by the employer contributors. | |||||||||||||||||||||||
In connection with our ongoing renegotiations of various collective bargaining agreements, we may discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. Further, business events, such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or discontinuance of certain operations, which result in the decline of Company contributions to a multiemployer pension plan could trigger a partial or complete withdrawal. In the event of a withdrawal, we may incur expenses associated with our obligations for unfunded vested benefits at the time of the withdrawal. In 2014, 2013 and 2012, we recognized aggregate charges of $4 million, $5 million and $10 million, respectively, to “Operating” expenses for the withdrawal of certain bargaining units from multiemployer pension plans. Refer to Note 11 for additional information related to our obligations to multiemployer plans for which we have withdrawn or partially withdrawn. | |||||||||||||||||||||||
Multiemployer Plan Benefits Other Than Pensions — During the years ended December 31, 2014, 2013 and 2012 the Company made contributions of $34 million, $34 million and $36 million, respectively, to multiemployer health and welfare plans that also provide other postretirement employee benefits. Funding of benefit payments for plan participants are made at rates as negotiated in the respective collective bargaining agreements as costs are incurred. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Commitments and Contingencies | 11. Commitments and Contingencies | ||||||||||||
Financial Instruments — We have obtained letters of credit, surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill final capping, closure and post-closure requirements, environmental remediation and other obligations. Letters of credit generally are supported by our $2.25 billion revolving credit facility and other credit facilities established for that purpose. These facilities are discussed further in Note 7. 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) wholly-owned insurance companies, 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 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 are 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 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 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 accruals for these liabilities could be revised if future occurrences or loss development significantly differ from our assumptions used. As of December 31, 2014, our commercial General Liability Insurance Policy carried self-insurance exposures of up to $2.5 million per incident and our workers’ compensation insurance program carried self-insurance exposures of up to $5 million per incident. As of December 31, 2014, our auto liability insurance program included a per-incident base deductible of $5 million, subject to additional deductibles of $4.8 million in the $5 million to $10 million layer. Self-insurance claims reserves acquired as part of our acquisition of WM Holdings in July 1998 were discounted at 2.0% at December 31, 2014, 3.0% at December 31, 2013 and 1.75% at December 31, 2012. The changes to our net insurance liabilities for the three years ended December 31, 2014 are summarized below (in millions): | |||||||||||||
Gross Claims | Receivables | Net Claims | |||||||||||
Liability | Associated with | Liability | |||||||||||
Insured Claims(a) | |||||||||||||
Balance, December 31, 2011 | $ | 511 | $ | (161 | ) | $ | 350 | ||||||
Self-insurance expense (benefit) | 222 | (59 | ) | 163 | |||||||||
Cash (paid) received | (164 | ) | 18 | (146 | ) | ||||||||
Balance, December 31, 2012 | 569 | (202 | ) | 367 | |||||||||
Self-insurance expense (benefit) | 177 | (5 | ) | 172 | |||||||||
Cash (paid) received | (156 | ) | 10 | (146 | ) | ||||||||
Balance, December 31, 2013 | 590 | (197 | ) | 393 | |||||||||
Self-insurance expense (benefit) | 168 | (9 | ) | 159 | |||||||||
Cash (paid) received | (161 | ) | 23 | (138 | ) | ||||||||
Balance, December 31, 2014(b) | $ | 597 | $ | (183 | ) | $ | 414 | ||||||
Current portion at December 31, 2014 | $ | 129 | $ | (17 | ) | $ | 112 | ||||||
Long-term portion at December 31, 2014 | $ | 468 | $ | (166 | ) | $ | 302 | ||||||
(a) | Amounts reported as receivables associated with insured claims are related to both paid and unpaid claims liabilities. | ||||||||||||
(b) | We currently expect substantially all of our net claims liability to be settled in cash over the next five years. | ||||||||||||
The Directors’ and Officers’ Liability Insurance policy we choose to maintain covers only individual executive liability, often referred to as “Broad Form Side A,” and does not provide corporate reimbursement coverage, often referred to as “Side B.” The Side A policy covers directors and officers directly for loss, including defense costs, when corporate indemnification is unavailable. Side A-only coverage cannot be exhausted by payments to the Company, as the Company is not insured for any money it advances for defense costs or pays as indemnity to the insured directors and officers. | |||||||||||||
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. | |||||||||||||
Operating Leases — Rental expense for leased properties was $159 million during 2014, $170 million during 2013 and $180 million during 2012. Minimum contractual payments due for our operating lease obligations are $103 million in 2015, $83 million in 2016, $70 million in 2017, $57 million in 2018, $47 million in 2019 and $308 million thereafter. Our minimum contractual payments for lease agreements during future periods is less than current year rent expense due to short-term leases and the sale of our Wheelabrator business. | |||||||||||||
Other Commitments | |||||||||||||
• | Disposal — We have several agreements expiring at various dates through 2052 that require us to dispose of a minimum number of tons at third-party disposal facilities. Under these put-or-pay agreements, we are required to pay for the agreed upon minimum volumes regardless of the actual number of tons placed at the facilities. We generally fulfill our minimum contractual obligations by disposing of volumes collected in the ordinary course of business at these disposal facilities. | ||||||||||||
Additionally, following the sale of our Wheelabrator business, we entered into several agreements to dispose of a minimum number of tons of waste at certain Wheelabrator facilities. These agreements generally provide for fixed volume commitments, with certain market price resets, for up to seven years. | |||||||||||||
• | Waste Paper — We are party to waste paper purchase agreements expiring at various dates through 2018 that require us to purchase a minimum number of tons of waste paper. The cost per ton we pay is based on market prices. | ||||||||||||
• | Royalties — We have various arrangements that require us to make royalty payments to third parties including prior land owners, lessors or host communities where our operations are located. Our obligations generally are based on per ton rates for waste actually received at our transfer stations, landfills or waste-to-energy facilities. Royalty agreements that are non-cancelable and require fixed or minimum payments are included in our “Capital leases and other” debt obligations in our Consolidated Balance Sheet as disclosed in Note 7. | ||||||||||||
Our unconditional purchase obligations are generally established in the ordinary course of our business and are structured in a manner that provides us with access to important resources at competitive, market-driven rates. We may also establish unconditional purchase obligations in conjunction with acquisitions or divestitures. Our actual future minimum obligations under these outstanding purchase agreements are generally quantity driven and, as a result, our associated financial obligations are not fixed as of December 31, 2014. For contracts that require us to purchase minimum quantities of goods or services, we have estimated our future minimum obligations based on the current market values of the underlying products or services. As of December 31, 2014, our estimated minimum obligations for the above-described purchase obligations, which are not recognized in our Consolidated Balance Sheet, were $189 million in 2015, $172 million in 2016, $156 million in 2017, $116 million in 2018, $91 million in 2019 and $430 million thereafter. We currently expect the products and services provided by these agreements to continue to meet the needs of our ongoing operations. Therefore, we do not expect these established arrangements to materially impact our future financial position, results of operations or cash flows. | |||||||||||||
Guarantees — We have entered into the following guarantee agreements associated with our operations: | |||||||||||||
• | As of December 31, 2014, WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness, including its senior notes, $2.25 billion revolving credit agreement and certain letter of credit facilities, which mature through 2039. WM has fully and unconditionally guaranteed the senior indebtedness of WM Holdings, which matures in 2026. Performance under these guarantee agreements would be required if either party defaulted on their respective obligations. No additional liabilities have been recorded for these guarantees because the underlying obligations are reflected in our Consolidated Balance Sheets. See Note 23 for further information. | ||||||||||||
• | WM and WM Holdings have guaranteed subsidiary debt obligations, including the Canadian credit facility, tax-exempt bonds, capital leases and other indebtedness. If a subsidiary fails to meet its obligations associated with its debt agreements as they come due, WM or WM Holdings will be required to perform under the related guarantee agreement. No additional liabilities have been recorded for these guarantees because the underlying obligations are reflected in our Consolidated Balance Sheets. See Note 7 for information related to the balances and maturities of our tax-exempt bonds. | ||||||||||||
• | Before the divestiture of our Wheelabrator business, WM had guaranteed certain performance and financial guarantees of Wheelabrator and its subsidiaries in the ordinary course of business. In conjunction with the divestiture, certain WM guarantees of Wheelabrator obligations were terminated, but others continued and are now guarantees of third-party obligations. Wheelabrator is working with the various third-party beneficiaries to release WM from these guarantees, but until they are successful, WM has agreed to retain the guarantees and, in exchange, receive a credit support fee. The most significant of these guarantees specifically define WM’s maximum financial obligation over the course of the relevant agreements, and as of December 31, 2014, WM’s maximum future payments associated with those guarantees is $176 million. WM’s exposure under certain of the performance guarantees is variable and a maximum exposure is not defined. We have recorded the fair value of the financial and performance guarantees, some of which could extend through 2041 if not sooner terminated, in our December 31, 2014 Consolidated Balance Sheet. The estimated fair value of WM’s potential obligation associated with guarantees of Wheelabrator obligations is $18 million (net of credit support fee). We currently do not expect the financial impact of such performance and financial guarantees to materially exceed the recorded fair value. | ||||||||||||
• | We have guaranteed certain financial obligations of unconsolidated entities. The related obligations, which mature through 2020, are not recorded on our Consolidated Balance Sheets. As of December 31, 2014, our maximum future payments associated with these guarantees are approximately $8 million. Any requirement to act under these guarantees would not materially impact our financial position, results of operations or cash flows. | ||||||||||||
• | Certain of our subsidiaries have guaranteed the market or contractually-determined value of certain homeowners’ properties that are adjacent to certain of our landfills. These guarantee agreements extend over the life of the respective landfill. Under these agreements, we would be responsible for the difference, if any, between the sale value and the guaranteed market or contractually-determined value of the homeowners’ properties. As of December 31, 2014, we have agreements guaranteeing certain market value losses for approximately 800 homeowners’ properties adjacent to or near 20 of our landfills. We do not believe that these contingent obligations will have a material effect on our financial position, results of operations or cash flows. | ||||||||||||
• | We have indemnified the purchasers of businesses or divested assets for the occurrence of specified events under certain of our divestiture agreements. Other than certain identified items that are currently recorded as obligations, we do not believe that it is possible to determine the contingent obligations associated with these indemnities. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets are achieved post-closing. We have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. Contingent obligations related to indemnifications arising from our divestitures and contingent consideration provided for by our acquisitions are not expected to be material to our financial position, results of operations or cash flows. | ||||||||||||
• | WM and WM Holdings guarantee the service, lease, financial and general operating obligations of certain of their subsidiaries. If such a subsidiary fails to meet its contractual obligations as they come due, the guarantor has an unconditional obligation to perform on its behalf. No additional liability has been recorded for service, financial or general operating guarantees because the subsidiaries’ obligations are properly accounted for as costs of operations as services are provided or general operating obligations as incurred. No additional liability has been recorded for the lease guarantees because the subsidiaries’ obligations are properly accounted for as operating or capital leases, as appropriate. | ||||||||||||
Environmental Matters — A significant portion of our operating costs and capital expenditures could be characterized as costs of environmental protection as we are subject 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, or 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. | |||||||||||||
As of December 31, 2014, we had been notified by the government that we are a PRP in connection with 75 locations listed on the EPA’s Superfund National Priorities List, or NPL. Of the 75 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 61 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 these 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 December 22, 2011, the Harris County Attorney in Houston, Texas filed suit against McGinnes Industrial Maintenance Corporation (“MIMC”), WM and Waste Management of Texas, Inc., et al., seeking civil penalties and attorneys’ fees for alleged violations of the Texas Water Code and the Texas Health and Safety Code. The County’s Original Petition filed with the District Court of Harris County, Texas (the “District Court”) alleges the mismanagement of certain waste pits that were operated from 1965 to 1966 by MIMC. In 1998, a predecessor of WM acquired the stock of the parent entity of MIMC. On October 9, 2014, the District Court granted a motion for summary judgment that resulted in the dismissal of WM from the case. On November 12, 2014, the parties agreed to resolve this case with a $29.2 million settlement payment by MIMC and dismissal of the claims against Waste Management of Texas, Inc. The entire settlement amount was funded into escrow in November 2014, pending finalization of the settlement. We remain focused on the remediation of the site and maintain our active participation in the EPA process established to evaluate and determine the appropriate remedy. | |||||||||||||
Additionally, on April 30, 2014, the United States District Court for the District of Hawaii issued an indictment against Waste Management of Hawaii, Inc. (“WMHI”) and two employees of WMHI. The United States Attorney’s Office for the District of Hawaii had been investigating water discharges at the Waimanalo Gulch Sanitary Landfill, which WMHI operates for the city and county of Honolulu, in connection with three major rainstorms in December 2010 and January 2011. The indictment alleges violations of the federal Clean Water Act, conspiracy and making false statements to the Hawaii Department of Health and the EPA. We are vigorously defending against this action. Given the early stage of this case and significant issues in dispute, we cannot currently predict an outcome or estimate a range of loss, but we could potentially be subject to sanctions, including requirements to pay monetary penalties. | |||||||||||||
Litigation — In October 2011 and January 2012, we were named as a defendant in a purported class action in the Circuit Court of Sarasota County, Florida and the Circuit Court of Lawrence County, Alabama, respectively. These cases primarily pertain to our fuel and environmental charges included on our invoices, generally alleging that such charges were not properly disclosed, were unfair and were contrary to the customer service contracts. We have reached a settlement in principal of both the pending Florida and Alabama cases, and we are currently working on documentation for the settlements. We anticipate seeking preliminary court approval of the Florida case settlement during the first quarter of 2015, with the Alabama case settlement to follow. The anticipated settlements will not have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. | |||||||||||||
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. | |||||||||||||
As a large company with operations across the United States and Canada, we are subject to various proceedings, lawsuits, disputes and claims arising in the ordinary course of our business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions filed against us include commercial, customer, and employment-related claims, including purported class action lawsuits related to our sales and marketing practices and our customer service agreements and purported class actions involving 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 could have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows. | |||||||||||||
WM’s charter and bylaws provide that WM shall indemnify against all liabilities and expenses, and upon request shall advance expenses to, any person who is subject to a pending or threatened proceeding because such person is 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 entitled to have such fees advanced under Delaware law. Additionally, WM has entered into separate indemnification agreements with each of the members of its Board of Directors, its Chief Executive Officer and each of its executive vice presidents. Additionally, the employment agreements between WM and its Chief Executive Officer and other executive and senior vice presidents contain a direct contractual obligation of the Company to provide indemnification to the executive. 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 union locals across the United States 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 for the covered employees. Refer to Note 10 for additional information about our participation in multiemployer defined benefit pension plans considered individually significant. 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 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 defined benefit 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. | |||||||||||||
One of the most significant multiemployer pension plans in which we have participated is the Central States, Southeast and Southwest Areas Pension Plan (“Central States Pension Plan”). The Central States Pension Plan is in “critical status,” as defined by the Pension Protection Act of 2006. Since 2008, certain of our affiliates have bargained to remove covered employees from the Central States Pension Plan, resulting in a series of withdrawals, and we have recognized charges to “Operating” expenses associated with the withdrawal of certain bargaining units from the Central States Pension Plan and other underfunded multiemployer pension plans. In October 2011, employees at the last of our affiliates with active participants in the Central States Pension Plan voted to decertify the union that represented them, withdrawing themselves from the Central States Pension Plan. The Company believes there are no collective bargaining agreements remaining that require continuing contributions to this plan; however, this point is the subject of pending litigation with the trustees for the Central States Pension Plan. | |||||||||||||
We are still negotiating and litigating final resolutions of our withdrawal liability for certain previous withdrawals. Except in the case of our withdrawals from the Central States Pension Plan, we do not believe any additional liability above the charges we have already recognized for such previous withdrawals could be material to the Company’s business, financial condition, liquidity, results of operations or cash flows. In addition to charges recognized in prior years, we currently estimate that we could incur up to approximately $40 million in future charges based on demands from representatives of the Central States Pension Plan. As a result, we do not anticipate that the final resolution of the Central States Pension Plan matter could be material to the Company’s business, financial condition or liquidity; however, such loss could have a material adverse effect on our cash flows and, to a lesser extent, our results of operations, for a particular reporting period. Similarly, we also do not believe that any future withdrawals, individually or in the aggregate, from the multiemployer pension plans to which we contribute, could have a material adverse effect on our business, financial condition or liquidity. However, such 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 in any future period 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 in order to resolve any material issues prior to the filing of our annual tax return. We are currently in the examination phase of IRS audits for the tax years 2013, 2014 and 2015 and expect these audits to be completed within the next three, 15 and 27 months, respectively. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2009, with the exception of affirmative claims in a limited number of jurisdictions that date back to 2000. We are also under audit in Canada for the tax years 2012 and 2013. In 2011, we acquired Oakleaf, which is subject to potential IRS examination for the year 2011. Pursuant to the terms of our acquisition of Oakleaf, we are entitled to indemnification for Oakleaf’s pre-acquisition period tax liabilities. 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 impact on our results of operations or cash flows. |
Restructuring
Restructuring | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring | 12. Restructuring | ||||||||||||
The following table summarizes pre-tax restructuring charges, including employee severance and benefit costs and other charges, for the years ended December 31 for the respective periods (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Solid Waste | $ | 10 | $ | 7 | $ | 19 | |||||||
Wheelabrator | 1 | 1 | 3 | ||||||||||
Corporate and Other | 71 | 10 | 45 | ||||||||||
$ | 82 | $ | 18 | $ | 67 | ||||||||
2014 Restructuring — In August 2014, we announced a consolidation and realignment of several Corporate functions to better support achievement of the Company’s strategic goals, including cost reduction. Voluntary separation arrangements were offered to all salaried employees within these organizations. Approximately 650 employees have separated from our Corporate and recycling organizations in connection with this restructuring, but we do not anticipate that all of these positions will be permanently eliminated. | |||||||||||||
During the year ended December 31, 2014 we recognized a total of $82 million of pre-tax restructuring charges, of which $70 million was 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. We do not expect to incur any material charges associated with our 2014 restructuring in future periods. | |||||||||||||
During the year ended December 31, 2013, we recognized a total of $18 million of pre-tax restructuring charges, of which $7 million was related to employee severance and benefit costs, including costs associated with our acquisitions of Greenstar, LLC (“Greenstar”) and RCI and our 2012 restructurings discussed below. The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized. | |||||||||||||
2012 Restructuring — In July 2012, we announced a reorganization of operations, designed to streamline management and staff support and reduce our cost structure, while not disrupting our front-line operations. Principal organizational changes included removing the management layer of our four geographic Groups, each of which previously constituted a reportable segment, and consolidating and reducing the number of our geographic Areas through which we evaluate and oversee our Solid Waste subsidiaries from 22 to 17. This reorganization eliminated approximately 700 employee positions throughout the Company, including positions at both the management and support level. Voluntary separation arrangements were offered to many employees. | |||||||||||||
During the year ended December 31, 2012, we recognized a total of $67 million of pre-tax restructuring charges, of which $56 million were related to employee severance and benefit costs associated with these reorganizations. The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized. | |||||||||||||
Through December 31, 2014, we had recognized charges of $133 million related to employee severance and benefits associated with our restructuring efforts beginning in 2012 and we have paid approximately $94 million of these costs. At December 31, 2014, we had approximately $33 million of accrued employee severance related to our restructuring efforts, which will be substantially paid through the end of 2015. |
Asset_Impairments_and_Unusual_
Asset Impairments and Unusual Items | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Extraordinary and Unusual Items [Abstract] | |||||||||||||
Asset Impairments and Unusual Items | 13. Asset Impairments and Unusual Items | ||||||||||||
Goodwill impairments | |||||||||||||
During the year ended December 31, 2014, we recognized $10 million of goodwill impairment charges associated with our recycling operations. During the year ended December 31, 2013, we recognized $509 million of goodwill impairment charges, primarily related to (i) $483 million associated with our Wheelabrator business; (ii) $10 million associated with our Puerto Rico operations and (iii) $9 million associated with a majority-owned waste diversion technology company. During the year ended December 31, 2012, we recognized goodwill impairment charges of $4 million related to certain of our non-Solid Waste operations. See Notes 3 and 6 for additional information related to these impairment charges as well as the accounting policy and analysis involved in identifying and calculating impairments. | |||||||||||||
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | |||||||||||||
The following table summarizes the major components of “(Income) expense from divestitures, asset impairments and unusual items” for the years ended December 31 for the respective periods (in millions): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Income) expense from divestitures | $ | (515 | ) | $ | (8 | ) | $ | — | |||||
Asset impairments (other than goodwill) | 345 | 472 | 79 | ||||||||||
$ | (170 | ) | $ | 464 | $ | 79 | |||||||
During the year ended December 31, 2014, we recognized net income of $170 million, primarily related to the following: | |||||||||||||
• | (Income) expense from divestitures — We recognized net gains of $515 million, primarily as a result of a $519 million gain on the sale of our Wheelabrator business and an $18 million gain on the sale of certain landfill and collection operations in our Eastern Canada Area. Partially offsetting these gains was a $25 million loss on the divestiture of our Puerto Rico operations and certain other collection and landfill assets. Refer to Note 19 for additional information related to our divestitures. | ||||||||||||
• | Oil and gas properties impairments — We recognized $272 million of charges to impair certain of our oil and gas producing properties, primarily as a result of the pronounced decrease in oil and gas prices in the fourth quarter of 2014. We wrote down the carrying value of these properties to their estimated fair value using an income approach. | ||||||||||||
• | Other impairments — We recognized additional impairment charges of $73 million to write down assets in our waste diversion technology, renewable energy, recycling and medical waste operations. | ||||||||||||
During the year ended December 31, 2013, we recognized net charges of $464 million, primarily related to the following: | |||||||||||||
• | Landfill impairments — We recognized $262 million of charges to impair certain of our landfills, primarily as a result of our consideration of management’s decision in the fourth quarter of 2013 not to actively pursue expansion and/or development of such landfills. These charges were primarily associated with two landfills in our Eastern Canada Area, which are no longer accepting waste. We had previously concluded that receipt of permits for these landfills was probable. However, in connection with our asset rationalization and capital allocation analysis, which was influenced, in part, by our acquisition of RCI, we determined that the future costs to construct these landfills could be avoided as we are able to allocate disposal that would have gone to these landfills to other facilities and not materially impact operations. As a result of management’s decision, we determined that the landfill assets were no longer able to be recovered by the undiscounted cash flows attributable to these assets. As such, we wrote them down to their estimated fair values using a market approach considering the highest and best use of the assets. | ||||||||||||
• | Waste-to-energy impairments — We recognized $144 million of impairment charges relating to three waste-to-energy facilities, primarily as a result of closure or anticipated closure due to continued difficulty securing sufficient volumes to operate the plants at capacity and the prospect of additional capacity entering the market where the largest facility is located. We wrote down the carrying value of our facilities to their estimated fair value using a market approach. | ||||||||||||
• | Other impairments — The remainder of our 2013 charges were attributable to (i) $31 million of charges to impair various recycling assets; (ii) $20 million of charges to write down assets related to a majority-owned waste diversion technology company; and (iii) a $15 million charge to write down the carrying value of an oil and gas property to its estimated fair value. | ||||||||||||
• | Divestitures — Partially offsetting these charges were $8 million of net gains on divestitures. | ||||||||||||
During the year ended December 31, 2012, we recognized impairment charges of $79 million, attributable to (i) $45 million of charges related to three facilities in our medical waste services business as a result of projected operating losses at each of these facilities; (ii) $20 million of charges related to investments in waste diversion technology companies and (iii) other charges to write down the carrying value of assets to their estimated fair values, all of which are individually immaterial. | |||||||||||||
See Notes 3 and 21 for additional information related to the accounting policy and analysis involved in identifying and calculating impairments; and information related to the impact of impairments on the results of operations of our reportable segments, respectively. | |||||||||||||
Equity in net losses of unconsolidated entities | |||||||||||||
During the year ended December 31, 2014, we recognized charges of $11 million primarily to write down equity method investments in waste diversion technology companies to their fair value. During the year ended December 31, 2012, we recognized a charge of $10 million related to a payment we made under a guarantee on behalf of an unconsolidated entity that went into liquidation. This investment was accounted for under the equity method. | |||||||||||||
Other income (expense) | |||||||||||||
During the year ended December 31, 2014, we recognized impairment charges of $22 million relating to other-than-temporary declines in the value of investments in waste diversion technology companies accounted for under the cost method. We wrote down the carrying value of our investments to their fair value. | |||||||||||||
In the first quarter of 2014, we sold our investment in SEG, which was part of our Wheelabrator business. We received cash proceeds from the sale of $155 million, which have been included in “Proceeds from divestitures of businesses and other assets (net of cash divested)” within “Net cash used in investing activities” in the Consolidated Statement of Cash Flows. The losses recognized related to the sale were not material. | |||||||||||||
During the year ended December 31, 2013, we recognized impairment charges of $71 million relating to other-than-temporary declines in the value of investments in waste diversion technology companies accounted for under the cost method. We wrote down the carrying value of our investments to their fair value, which was primarily determined using an income approach based on estimated future cash flow projections obtained in the fourth quarter of 2013 and, to a lesser extent, third-party investors’ recent transactions in these securities. Partially offsetting these charges was a $4 million gain on the sale of a similar investment recognized in the second quarter of 2013. | |||||||||||||
During the year ended December 31, 2012, we recognized an impairment charge of $16 million relating to an other-than-temporary decline in the value of another investment in a waste diversion technology company accounted for under the cost method. We wrote down the carrying value of our investment to its fair value based on other third-party investors’ recent transactions in these securities, which are considered to be the best evidence of fair value currently available. | |||||||||||||
These net charges are recorded in “Other, net” in our Consolidated Statement of Operations. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income | 14. Accumulated Other Comprehensive Income | ||||||||||||||||||||
The changes in the balances of each component of accumulated other comprehensive 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): | |||||||||||||||||||||
Derivative | Available- | Foreign | Post- | Total | |||||||||||||||||
Instruments | for-Sale | Currency | Retirement | ||||||||||||||||||
Securities | Translation | Benefit | |||||||||||||||||||
Adjustments | Plans | ||||||||||||||||||||
Balance, December 31, 2011 | $ | (62 | ) | $ | 2 | $ | 243 | $ | (11 | ) | $ | 172 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(14), $2, $0 and $(2), respectively | (22 | ) | 2 | 33 | (2 | ) | 11 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $5, $0, $0 and $0, respectively | 10 | — | — | — | 10 | ||||||||||||||||
Net current period other comprehensive income (loss) | (12 | ) | 2 | 33 | (2 | ) | 21 | ||||||||||||||
Balance, December 31, 2012 | $ | (74 | ) | $ | 4 | $ | 276 | $ | (13 | ) | $ | 193 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $9, $1, $0 and $10, respectively | 14 | 2 | (68 | ) | 15 | (37 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(1), $0, $0 and $0, respectively | (2 | ) | — | — | — | (2 | ) | ||||||||||||||
Net current period other comprehensive income (loss) | 12 | 2 | (68 | ) | 15 | (39 | ) | ||||||||||||||
Balance, December 31, 2013 | $ | (62 | ) | $ | 6 | $ | 208 | $ | 2 | $ | 154 | ||||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $4, $2, $0 and $(8), respectively | 6 | 4 | (107 | ) | (11 | ) | (108 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(3), $0, $0 and $0, respectively | (5 | ) | — | (17 | ) | (1 | ) | (23 | ) | ||||||||||||
Net current period other comprehensive income (loss) | 1 | 4 | (124 | ) | (12 | ) | (131 | ) | |||||||||||||
Balance, December 31, 2014 | $ | (61 | ) | $ | 10 | $ | 84 | $ | (10 | ) | $ | 23 | |||||||||
The amounts of other comprehensive income (loss) before reclassifications associated with our cash flow derivative instruments are as follows (in millions): | |||||||||||||||||||||
Amount of Derivative Gain (Loss) Recognized in OCI | |||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | 2014 | 2013 | 2012 | ||||||||||||||||||
Forward-starting interest rate swaps | $ | (8 | ) | $ | 14 | $ | (27 | ) | |||||||||||||
Foreign currency derivatives | 23 | 17 | (9 | ) | |||||||||||||||||
Electricity commodity derivatives | (5 | ) | (8 | ) | — | ||||||||||||||||
Total before tax | 10 | 23 | (36 | ) | |||||||||||||||||
Tax (expense) benefit | (4 | ) | (9 | ) | 14 | ||||||||||||||||
Net of tax | $ | 6 | $ | 14 | $ | (22 | ) | ||||||||||||||
The significant amounts reclassified out of each component of accumulated other comprehensive income are as follows (in millions, with amounts in parentheses representing debits to the statement of operations classification): | |||||||||||||||||||||
Amount Reclassified from | |||||||||||||||||||||
Accumulated | |||||||||||||||||||||
Other Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
Years Ended December 31, | Statement of | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2014 | 2013 | 2012 | Operations Classification | |||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||
Forward-starting interest rate swaps | $ | (10 | ) | $ | (7 | ) | $ | (3 | ) | Interest expense | |||||||||||
Treasury rate locks | (1 | ) | (2 | ) | (7 | ) | Interest expense | ||||||||||||||
Foreign currency derivatives | 27 | 21 | (15 | ) | Other, net | ||||||||||||||||
Electricity commodity derivatives | (8 | ) | (9 | ) | 10 | Operating revenues | |||||||||||||||
8 | 3 | (15 | ) | Total before tax | |||||||||||||||||
(3 | ) | (1 | ) | 5 | Tax (expense) benefit | ||||||||||||||||
Total reclassifications for the period | $ | 5 | $ | 2 | $ | (10 | ) | Net of tax | |||||||||||||
Capital_Stock_Dividends_and_Sh
Capital Stock, Dividends and Share Repurchases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Compensation and Retirement Disclosure [Abstract] | |||||
Capital Stock, Dividends and Share Repurchases | 15. Capital Stock, Dividends and Share Repurchases | ||||
Capital Stock | |||||
We have 1.5 billion shares of authorized common stock with a par value of $0.01 per common share. As of December 31, 2014, we had 458.5 million shares of common stock issued and outstanding. The Board of Directors is authorized to issue preferred stock in series, and with respect to each series, to fix its designation, relative rights (including voting, dividend, conversion, sinking fund, and redemption rights), preferences (including dividends and liquidation) and limitations. We have 10 million shares of authorized preferred stock, $0.01 par value, none of which is currently outstanding. | |||||
Dividends | |||||
Our quarterly dividends have been declared and paid in accordance with our financial plans approved by our Board of Directors. Cash dividends declared and paid were $693 million in 2014, or $1.50 per common share, $683 million in 2013, or $1.46 per common share and $658 million in 2012, or $1.42 per common share. | |||||
In February 2015, we announced that our Board of Directors expects to increase the quarterly dividend from $0.375 to $0.385 per share for dividends declared in 2015. However, all future dividend declarations are at the discretion of the Board of Directors and depend on various factors, including our net earnings, financial condition, cash required for future business plans and other factors the Board may deem relevant. | |||||
Share Repurchases | |||||
Our share repurchases have been made in accordance with financial plans approved by our Board of Directors. The following is a summary of our share repurchases for the periods presented. We did not repurchase any shares of common stock in 2012. | |||||
Years Ended December 31, | |||||
2014(a) | 2013 | ||||
Shares repurchased (in thousands) | 9,569 | 5,368 | |||
Weighted average per share purchase price | $43.89 | $43.48 - $45.95 | |||
Total repurchases (in millions) | $600 | $239 | |||
(a) | In February 2014, the Board of Directors authorized up to $600 million in share repurchases. During the third quarter of 2014, we entered into accelerated share repurchase (“ASR”) agreements with two financial institutions to repurchase an aggregate of $600 million of our common stock. At the beginning of the ASR repurchase periods, we delivered the $600 million in cash and received 9.6 million shares, which represented 70% of the shares expected to be repurchased based on then-current market prices. These agreements were completed in February 2015 and we received approximately 2.8 million additional shares. The final weighted average per share purchase price for the completed ASR agreements was $48.58. | ||||
The ASR agreements were accounted for as two separate transactions: (i) as shares of reacquired common stock for the shares delivered to us upon effectiveness of the ASR agreements and (ii) as a forward contract indexed to our own common stock for the undelivered shares. The initial delivery of shares is included in treasury stock at a cost of $420 million and resulted in an immediate reduction of the outstanding shares used to calculate the weighted-average common shares outstanding for basic and diluted earnings per share. The $180 million forward contract indexed to our own stock met the criteria for equity classification and this amount was recorded in additional paid-in capital. | |||||
We announced in February 2015 that the Board of Directors has authorized up to $1 billion in future share repurchases. Any future share repurchases will be made at the discretion of management, and will depend on factors similar to those considered by the Board in making dividend declarations. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Stock-Based Compensation | 16. Stock-Based Compensation | ||||||||
Employee Stock Purchase Plan | |||||||||
We have an Employee Stock Purchase Plan (“ESPP”) under which employees that have been employed for at least 30 days may purchase shares of our common stock at a discount. The plan provides for two offering periods for purchases: January through June and July through December. At the end of each offering period, employees are able to purchase shares of our common stock at a price equal to 85% of the lesser of the market value of the stock on the first and last day of such offering period. The purchases are made at the end of an offering period with funds accumulated through payroll deductions over the course of the offering period, and the number of shares that may be purchased is limited by IRS regulations. The total number of shares issued under the plan for the offering periods in each of 2014, 2013 and 2012 was approximately 774,000, 928,000 and 1 million, respectively. Including the impact of the January 2015 issuance of shares associated with the July to December 2014 offering period, approximately 1.0 million shares remain available for issuance under the plan. | |||||||||
Accounting for our ESPP increased annual compensation expense by approximately by $6 million, or $4 million net of tax, for both 2014 and 2013 and by $7 million, or $4 million net of tax, for 2012. | |||||||||
Employee Stock Incentive Plans | |||||||||
In May 2014, our stockholders approved our 2014 Stock Incentive Plan (the “2014 Plan”) to replace our 2009 Stock Incentive Plan (the “2009 Plan”). The 2014 Plan authorized 23.8 million shares of our common stock for issuance pursuant to the 2014 Plan, plus the approximately 1.1 million shares that then remained available for issuance under the 2009 Plan, and any shares subject to outstanding awards under the 2009 Plan that are subsequently cancelled, forfeited, terminate, expire or lapse. As of December 31, 2014, approximately 25.9 million shares were available for future grants under the 2014 Plan. All of our stock-based compensation awards described herein have been made pursuant to either our 2009 Plan or our 2014 Plan, collectively referred to as the “Incentive Plans.” We currently utilize treasury shares to meet the needs of our equity-based compensation programs. | |||||||||
Pursuant to the Incentive Plans, we have the ability to issue stock options, stock appreciation rights and stock awards, including restricted stock, restricted stock units, or RSUs, and performance share units, or PSUs. The terms and conditions of equity awards granted under the Incentive Plans are determined by the Management Development and Compensation Committee of our Board of Directors. | |||||||||
The 2014 annual Incentive Plan awards granted to the Company’s senior leadership team, which generally includes the Company’s executive officers, included a combination of PSUs and stock options. The annual Incentive Plan awards granted to certain key employees included a combination of PSUs, RSUs and stock options in 2014. The Company has also periodically granted RSUs and stock options to employees working on key initiatives, in connection with new hires and promotions and to field-based managers. | |||||||||
Restricted Stock Units — A summary of our RSUs is presented in the table below (units in thousands): | |||||||||
Units | Weighted Average | ||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 535 | $ | 35.68 | ||||||
Granted | 219 | $ | 41.41 | ||||||
Vested | (57 | ) | $ | 39.58 | |||||
Forfeited | (77 | ) | $ | 38.41 | |||||
Unvested at December 31, 2014 | 620 | $ | 37.44 | ||||||
The total fair market value of RSUs that vested during the years ended December 31, 2014, 2013 and 2012 was $3 million, $1 million and $11 million, respectively. Net of units deferred and units used for payment of associated taxes, we issued approximately 42,000 shares of common stock for RSUs that vested during the year ended December 31, 2014. | |||||||||
RSUs may not be voted or sold by award recipients until time-based vesting restrictions have lapsed. RSUs primarily provide for three-year cliff vesting and include divided equivalents accumulated during the vesting period. Unvested units are subject to forfeiture in the event of voluntary or for-cause termination. RSUs are subject to pro-rata vesting upon an employee’s retirement or involuntary termination other than for cause and become immediately vested in the event of an employee’s death or disability. | |||||||||
Compensation expense associated with RSUs is measured based on the grant-date fair value of our common stock and is recognized on a straight-line basis over the required employment period, which is generally the vesting period. Compensation expense is only recognized for those awards that we expect to vest, which we estimate based upon an assessment of expected forfeitures. | |||||||||
Performance Share Units — Three types of PSUs are currently outstanding: (i) PSUs for which payout is dependent on total shareholder return relative to the S&P 500 (“TSR PSUs”); (ii) PSUs for which payout is dependent on the Company’s performance against pre-established return on invested capital metrics (“ROIC PSUs”) and (iii) PSUs for which payout is dependent on the Company’s performance against pre-established adjusted cash flow metrics (“Cash Flow PSUs”). All types of PSUs are payable in shares of common stock after the end of a three-year performance period, when the Company’s financial performance for the entire performance period is reported, typically in mid- to late-February of the succeeding year. At the end of the performance period, the number of shares awarded can range from 0% to 200% of the targeted amount, depending on the performance against the pre-established targets. A summary of our PSUs is presented in the table below (units in thousands): | |||||||||
Units | Weighted Average | ||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 1,826 | $ | 43.41 | ||||||
Granted | 695 | $ | 45.83 | ||||||
Vested | (317 | ) | $ | 42.42 | |||||
Forfeited | (171 | ) | $ | 46.2 | |||||
Unvested at December 31, 2014 | 2,033 | $ | 46.28 | ||||||
The determination of achievement of performance results and corresponding vesting of PSUs for the three-year performance period ended December 31, 2014 was performed by the Management Development and Compensation Committee in February 2015. Accordingly, vesting information for such awards is not included in the table above as of December 31, 2014. The “vested” PSUs are for the three-year performance period ended December 31, 2013, as achievement of performance results and corresponding vesting was determined in February 2014. The Company’s financial results, as measured for purposes of these awards, were lower than the target levels established but in excess of the threshold performance criteria. Accordingly, recipients of these PSU awards were entitled to receive a payout of approximately 60% of the vested PSUs. In early 2014, we issued approximately 106,000 shares of common stock for these vested PSUs, net of units deferred and units used for payment of associated taxes. | |||||||||
The shares of common stock that were earned during the years ended December 31, 2014, 2013 and 2012 on account of PSU awards had a fair market value of $8 million, $14 million and $32 million, respectively. PSUs have no voting rights. PSUs receive dividend equivalents that are paid out in cash based on actual performance at the end of the awards’ performance period. PSUs are payable to an employee (or his beneficiary) upon death or disability as if that employee had remained employed until the end of the performance period, are subject to pro-rata vesting upon an employee’s retirement or involuntary termination other than for cause and are subject to forfeiture in the event of voluntary or for-cause termination. | |||||||||
Compensation expense associated with our ROIC PSUs and Cash Flow PSUs that continue to vest based on future performance is measured based on the fair value of our common stock at the end of each reporting period until the performance period ends. Compensation expense is recognized ratably over the performance period based on our estimated achievement of the established performance criteria. Compensation expense is only recognized for those awards that we expect to vest, which we estimate based upon an assessment of both the probability that the performance criteria will be achieved and expected forfeitures. | |||||||||
The grant-date fair value of our TSR PSUs is based on a Monte Carlo valuation and compensation expense is recognized on a straight-line basis over the vesting period. Compensation expense is recognized for all TSR PSUs whether or not the market conditions are achieved less expected forfeitures. | |||||||||
Deferred Units — Recipients can elect to defer some or all of the vested RSU or PSU awards until a specified date or dates they choose. Deferred amounts are not invested, nor do they earn interest, but deferred amounts do earn dividend equivalents during deferral. Deferred amounts are paid out in shares of common stock at the end of the deferral period. At December 31, 2014, we had approximately 295,000 vested deferred units outstanding. | |||||||||
Stock Options — Stock options granted primarily vest in 25% increments on the first two anniversaries of the date of grant with the remaining 50% vesting on the third anniversary. The exercise price of the options is the average of the high and low market value of our common stock on the date of grant, and the options have a term of 10 years. A summary of our stock options is presented in the table below (options in thousands): | |||||||||
Options | Weighted Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 9,674 | $ | 35.98 | ||||||
Granted | 2,099 | $ | 41.23 | ||||||
Exercised | (2,798 | ) | $ | 35.85 | |||||
Forfeited or expired | (597 | ) | $ | 37.6 | |||||
Outstanding at December 31, 2014(a) | 8,378 | $ | 37.22 | ||||||
Exercisable at December 31, 2014(b) | 4,451 | $ | 36.05 | ||||||
(a) | Stock options outstanding as of December 31, 2014 have a weighted average remaining contractual term of 7.2 years and an aggregate intrinsic value of $118 million based on the market value of our common stock on December 31, 2014. | ||||||||
(b) | Stock options exercisable as of December 31, 2014 have a weighted average remaining contractual term of 6.2 years and an aggregate intrinsic value of $68 million based on the market value of our common stock on December 31, 2014. Stock options exercisable at December 31, 2014 have an exercise price ranging from $32.18 to $40.62. | ||||||||
We received cash proceeds of $93 million, $132 million and $43 million during the years ended December 31, 2014, 2013 and 2012, respectively, from employee stock option exercises. We also realized tax benefits from these stock option exercises during the years ended December 31, 2014, 2013 and 2012 of $5 million, $10 million and $5 million, respectively. These amounts have been presented as cash inflows in the “Cash flows from financing activities” section of our Consolidated Statements of Cash Flows. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2014, 2013 and 2012 was $27 million, $41 million and $15 million, respectively. | |||||||||
All unvested stock options shall become exercisable upon the award recipient’s death or disability. In the event of a recipient’s retirement, stock options shall continue to vest pursuant to the original schedule set forth in the award agreement. If the recipient is terminated by the Company without cause or voluntarily resigns, the recipient shall be entitled to exercise all stock options outstanding and exercisable within a specified time frame after such termination. All outstanding stock options, whether exercisable or not, are forfeited upon termination for cause. | |||||||||
We account for our employee stock options under the fair value method of accounting using a Black-Scholes methodology to measure stock option expense at the date of grant. The weighted average grant-date fair value of stock options granted during the years ended December 31, 2014, 2013 and 2012 was $4.55, $4.26 and $4.66, respectively. The fair value of the stock options at the date of grant is amortized to expense over the vesting period less expected forfeitures, except for stock options granted to retirement-eligible employees, for which expense is accelerated over the period that the recipient becomes retirement-eligible. The following table presents the weighted average assumptions used to value employee stock options granted during the years ended December 31 under the Black-Scholes valuation model: | |||||||||
2014 | 2013 | 2012 | |||||||
Expected option life | 4.8 years | 5.4 years | 5.5 years | ||||||
Expected volatility | 18.40% | 21.80% | 24.20% | ||||||
Expected dividend yield | 3.60% | 4.00% | 4.10% | ||||||
Risk-free interest rate | 1.60% | 1.00% | 1.10% | ||||||
The Company bases its expected option life on the expected exercise and termination behavior of its optionees and an appropriate model of the Company’s future stock price. The expected volatility assumption is derived from the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options, combined with other relevant factors including implied volatility in market-traded options on the Company’s stock. The dividend yield is the annual rate of dividends per share over the exercise price of the option as of the grant date. | |||||||||
For the years ended December 31, 2014, 2013 and 2012 we recognized $59 million, $54 million and $22 million, respectively, of compensation expense associated with RSU, PSU and stock option awards as a component of “Selling, general and administrative” expenses in our Consolidated Statement of Operations. Our “Provision for income taxes” for the years ended December 31, 2014, 2013 and 2012 includes related deferred income tax benefits of $23 million, $21 million and $9 million, respectively. We have not capitalized any equity-based compensation costs during the years ended December 31, 2014, 2013 and 2012. | |||||||||
Compensation expense recognized in 2014 increased when compared to 2013, in part due to the increase in expected payout of our PSUs. Compensation expense recognized in 2013 increased when compared to 2012, in part due to the payout of PSUs granted in 2010, which was approved in 2013. Expense associated with these awards had been reversed in 2012 when it no longer appeared probable that threshold performance would be achieved. As of December 31, 2014 we estimate that a total of approximately $46 million of currently unrecognized compensation expense will be recognized over a weighted average period of 1.4 years for unvested RSU, PSU and stock option awards issued and outstanding. | |||||||||
Non-Employee Director Plan | |||||||||
Our non-employee directors currently receive annual grants of shares of our common stock, generally payable in two equal installments, under the Incentive Plans described above. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | 17. Earnings Per Share | ||||||||||||
Basic and diluted earnings per share were computed using the following common share data (shares in millions): | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Number of common shares outstanding at year-end | 458.5 | 464.3 | 464.2 | ||||||||||
Effect of using weighted average common shares outstanding | 4.1 | 3.4 | (0.6 | ) | |||||||||
Weighted average basic common shares outstanding | 462.6 | 467.7 | 463.6 | ||||||||||
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 3 | 2.1 | 0.8 | ||||||||||
Weighted average diluted common shares outstanding | 465.6 | 469.8 | 464.4 | ||||||||||
Potentially issuable shares | 11.3 | 12.3 | 15.3 | ||||||||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 0.4 | 0.1 | 8.9 |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 18. Fair Value Measurements | ||||||||||||||||
Assets and Liabilities Accounted for at Fair Value | |||||||||||||||||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: | |||||||||||||||||
Level 1 — Quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |||||||||||||||||
Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. | |||||||||||||||||
We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In measuring the fair value of our assets and liabilities, we use market data or assumptions that we believe market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): | |||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2014 Using | |||||||||||||||||
Total | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 1,335 | $ | 1,335 | $ | — | $ | — | |||||||||
Fixed-income securities | 38 | — | 38 | — | |||||||||||||
Redeemable preferred stock | 44 | — | — | 44 | |||||||||||||
Foreign currency derivatives | 28 | — | 28 | — | |||||||||||||
Total assets | $ | 1,445 | $ | 1,335 | $ | 66 | $ | 44 | |||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using | |||||||||||||||||
Total | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 99 | $ | 99 | $ | — | $ | — | |||||||||
Fixed-income securities | 36 | — | 36 | — | |||||||||||||
Redeemable preferred stock | 25 | — | — | 25 | |||||||||||||
Foreign currency derivatives | 2 | — | 2 | — | |||||||||||||
Total assets | $ | 162 | $ | 99 | $ | 38 | $ | 25 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives | $ | 28 | $ | — | $ | 28 | $ | — | |||||||||
Electricity commodity derivatives(a) | 3 | — | 3 | — | |||||||||||||
Total liabilities | $ | 31 | $ | — | $ | 31 | $ | — | |||||||||
a) | Our electricity commodity derivatives were associated with our Wheelabrator business and were divested in conjunction with the sale of that business in December 2014. | ||||||||||||||||
Money Market Funds | |||||||||||||||||
We invest portions of our “Cash and cash equivalents” and restricted trust and escrow account balances in money market funds. We measure the fair value of these investments using quoted prices in active markets for identical assets. The fair value of our money market funds approximates our cost basis in the investments. The increase in the fair value at December 31, 2014 compared to December 31, 2013 is primarily attributable to cash proceeds received from the sale of our Wheelabrator business. | |||||||||||||||||
Fixed-Income Securities | |||||||||||||||||
We invest a portion of our restricted trust and escrow balances in fixed-income securities, including U.S. Treasury securities, U.S. agency securities, municipal securities and mortgage- and asset-backed securities. We measure the fair value of these securities using quoted prices for identical or similar assets in inactive markets. The fair value of our fixed-income securities approximates our cost basis in these investments. | |||||||||||||||||
Redeemable Preferred Stock | |||||||||||||||||
In 2011, we made a noncontrolling investment in redeemable preferred stock of an unconsolidated entity. The fair value of this investment increased by $4 million during 2014 due to an increase in the price per share established in a recent stock issuance. In addition, we received $15 million of redeemable preferred stock in conjunction with the sale of our Puerto Rico operations and certain other collection and landfill assets in the second quarter of 2014, as discussed in Note 19. | |||||||||||||||||
Such preferred stock is included in “Investments in unconsolidated entities” in our Consolidated Balance Sheet. The fair values of these investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value currently available. 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 comparables. | |||||||||||||||||
Foreign Currency Derivatives | |||||||||||||||||
Our foreign currency derivatives are valued using a third-party pricing model that incorporates information about forward Canadian dollar rates, or observable market data, as of the reporting date. The third-party pricing model used to value our foreign currency derivatives also incorporates Company and counterparty credit valuation adjustments, as appropriate. Counterparties to these contracts are financial institutions who participate in our $2.25 billion revolving credit facility. Valuations may fluctuate significantly from period-to-period due to volatility in the Canadian dollar to U.S. dollar exchange rate. | |||||||||||||||||
Interest Rate Derivatives | |||||||||||||||||
As of December 31, 2013, we were party to forward-starting interest rate swaps that were designated as cash flow hedges of anticipated interest payments for future fixed-rate debt issuances. Our forward-starting interest rate swaps were LIBOR-based instruments. Accordingly, these derivatives were valued using a third-party pricing model that incorporated information about LIBOR yield curves, which is considered observable market data, for each instrument’s respective term. The third-party pricing model used to value our interest rate derivatives also incorporated Company and counterparty credit valuation adjustments, as appropriate. Counterparties to our interest rate contracts are financial institutions who participate in our $2.25 billion revolving credit facility. During the first quarter of 2014, our forward-starting interest rate swaps matured. | |||||||||||||||||
Refer to Notes 8 and 14 for additional information regarding our derivative instruments discussed above. | |||||||||||||||||
Fair Value of Debt | |||||||||||||||||
At December 31, 2014 the carrying value of our debt was approximately $9.4 billion compared with approximately $10.2 billion at December 31, 2013. The carrying value of our debt includes adjustments associated with fair value hedge accounting related to our interest rate swaps as discussed in Note 8. | |||||||||||||||||
The estimated fair value of our debt was approximately $10.6 billion at December 31, 2014 and approximately $11.0 billion at December 31, 2013. The estimated fair value of our senior notes is based on quoted market prices. The carrying value of remarketable debt and borrowings under our revolving credit facilities approximates fair value due to the short-term nature of the interest rates. The fair value of our other debt is estimated using discounted cash flow analysis, based on current market rates for similar types of instruments. The decrease in the fair value of our debt when comparing December 31, 2014 with December 31, 2013 is primarily related to $751 million of net repayments during 2014, partially offset by increases in the fair value attributable to an increase in market prices for fixed-rate corporate debt securities as a result of recent decreases in long-term interest rates. | |||||||||||||||||
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 Level 2 inputs of the fair value hierarchy available as of December 31, 2014 and 2013. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the amounts presented. |
Acquisitions_and_Divestitures
Acquisitions and Divestitures | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Acquisitions and Divestitures | 19. Acquisitions and Divestitures | ||||||||||||||||
Pending Acquisition | |||||||||||||||||
On September 17, 2014, the Company signed a definitive agreement to acquire the outstanding stock of Deffenbaugh Disposal, Inc., one of the largest privately owned collection and disposal firms in the Midwest. Closing of the acquisition is expected to occur in early 2015, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions. | |||||||||||||||||
Current Year Acquisitions | |||||||||||||||||
We continue to pursue the acquisition of businesses that are accretive to our Solid Waste business and enhance and expand our existing service offerings. During the year ended December 31, 2014, we acquired 15 businesses related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $32 million, which included $26 million in cash paid in 2014 and a liability for contingent consideration with a preliminary estimated fair value of $6 million. The contingent consideration is primarily based on achievement by the acquired businesses of certain negotiated goals, which generally include targeted revenues. Our estimated maximum obligations for the contingent cash payments were $6 million at the dates of acquisition. As of December 31, 2014, we had paid $4 million of this contingent consideration. In 2014, we also paid $5 million of contingent consideration associated with acquisitions completed prior to 2014. | |||||||||||||||||
The allocation of purchase price for 2014 acquisitions was primarily to “Property and equipment,” which had an estimated fair value of $6 million; “Other intangible assets,” which had an estimated fair value of $9 million; and “Goodwill” of $17 million. Other intangible assets included $7 million of customer and supplier relationships and $2 million of covenants not-to-compete. Goodwill is primarily a result of expected synergies from combining the acquired businesses with our existing operations and is tax deductible. | |||||||||||||||||
Prior Year Acquisitions | |||||||||||||||||
During the year ended December 31, 2013, we acquired Greenstar and substantially all of the assets of RCI, which are discussed further below. Additionally, we acquired 14 other businesses primarily related to our Solid Waste business and energy services operations. Total consideration, inclusive of $7 million for estimated working capital, for all acquisitions was $772 million, which included $714 million in cash paid in 2013, debt of $22 million and a liability for contingent consideration with an estimated fair value of $29 million. The contingent consideration is primarily based on changes in certain recycling commodity indexes and, to a lesser extent, contingent upon achievement by the acquired businesses of certain negotiated goals, which generally include targeted revenues. Our estimated maximum obligations for the contingent cash payments were $33 million at the dates of acquisition. As of December 31, 2013, we had paid $4 million of this contingent consideration. In 2013, we also paid $6 million of contingent consideration associated with acquisitions completed prior to 2013. | |||||||||||||||||
The allocation of purchase price for 2013 acquisitions was primarily to “Property and equipment,” which had an estimated fair value of $195 million; “Other intangible assets,” which had an estimated fair value of $232 million; and “Goodwill” of $327 million. Other intangible assets included $218 million of customer and supplier relationships, $5 million of covenants not-to-compete and $9 million of other intangible assets. Goodwill is primarily a result of expected synergies from combining the acquired businesses with our existing operations and is generally tax deductible. | |||||||||||||||||
Acquisition of Greenstar, LLC | |||||||||||||||||
On January 31, 2013, we paid $170 million inclusive of certain adjustments, to acquire Greenstar. Pursuant to the sale and purchase agreement, up to an additional $40 million is payable to the sellers during the period from 2014 to 2018, of which $20 million is guaranteed. The remaining $20 million of this consideration is contingent based on changes in certain recyclable commodity indexes and had an estimated fair value at closing of $16 million. Greenstar was an operator of recycling and resource recovery facilities. This acquisition provides the Company’s customers with greater access to recycling solutions, having supplemented our extensive nationwide recycling network with the operations of one of the nation’s largest private recyclers. | |||||||||||||||||
Goodwill of $122 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned predominantly to our Areas and, to a lesser extent, our recycling brokerage services, as they are expected to benefit from the synergies of the combination. Goodwill related to this acquisition is deductible for income tax purposes. There have been no material adjustments to the purchase price allocation since the date of acquisition. | |||||||||||||||||
Acquisition of RCI Environnement, Inc. | |||||||||||||||||
On July 5, 2013, we paid C$509 million, or $481 million, to acquire substantially all of the assets of RCI, the largest waste management company in Quebec, and certain related entities. Total consideration, inclusive of amounts for estimated working capital, was C$515 million, or $487 million. RCI provides collection, transfer, recycling and disposal operations throughout the Greater Montreal area. The acquired RCI operations complement and expand the Company’s existing assets and operations in Quebec. | |||||||||||||||||
Goodwill of $191 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned to our Eastern Canada Area as it is expected to benefit from the synergies of the combination. A portion of goodwill related to this acquisition is deductible for income tax purposes in accordance with Canadian tax law. There have been no material adjustments to the purchase price allocation since the date of acquisition. | |||||||||||||||||
The following table presents the final allocations of the purchase price for the Greenstar and RCI acquisitions (in millions): | |||||||||||||||||
Greenstar | RCI | ||||||||||||||||
Accounts and other receivables | $ | 30 | $ | 32 | |||||||||||||
Parts and supplies | 4 | — | |||||||||||||||
Other current assets | 2 | — | |||||||||||||||
Property and equipment | 58 | 117 | |||||||||||||||
Goodwill | 122 | 191 | |||||||||||||||
Other intangible assets | 32 | 169 | |||||||||||||||
Accounts payable | (17 | ) | — | ||||||||||||||
Accrued liabilities | (12 | ) | — | ||||||||||||||
Deferred revenues | — | (4 | ) | ||||||||||||||
Landfill and environmental remediation liabilities | (2 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (4 | ) | — | ||||||||||||||
Long-term debt, less current portion | (2 | ) | (3 | ) | |||||||||||||
Deferred income taxes, net | — | (14 | ) | ||||||||||||||
Other liabilities | (5 | ) | — | ||||||||||||||
Total purchase price | $ | 206 | $ | 487 | |||||||||||||
The following table presents the final allocations of the purchase price to intangible assets (amounts in millions, except for amortization periods): | |||||||||||||||||
Greenstar | RCI | ||||||||||||||||
Amount | Weighted Average | Amount | Weighted Average | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Periods | Periods | ||||||||||||||||
(in Years) | (in Years) | ||||||||||||||||
Supplier relationships | $ | 31 | 10 | $ | — | — | |||||||||||
Lease agreements | 1 | 8.4 | — | — | |||||||||||||
Customer relationships | — | — | 162 | 15 | |||||||||||||
Trade name | — | — | 7 | 5 | |||||||||||||
Total intangible assets subject to amortization | $ | 32 | 10 | $ | 169 | 14.6 | |||||||||||
Pro Forma Consolidated Results of Operations | |||||||||||||||||
The following pro forma consolidated results of operations have been prepared as if the acquisitions of RCI and Greenstar occurred at January 1, 2012 (in millions, except per share amounts): | |||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Operating revenues | $ | 14,085 | $ | 14,009 | |||||||||||||
Net income attributable to Waste Management, Inc. | 112 | 803 | |||||||||||||||
Basic earnings per common share | 0.24 | 1.73 | |||||||||||||||
Diluted earnings per common share | 0.24 | 1.73 | |||||||||||||||
In 2012, we paid $94 million for interests in oil and gas producing properties through two transactions. The purchase price was allocated primarily to “Property and equipment.” Additionally, we acquired 32 other businesses related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $244 million, which included $207 million in cash paid in 2012, deposits paid during 2011 for acquisitions completed in 2012 of $7 million, a liability for additional cash payments with a preliminary estimated fair value of $22 million, and assumed liabilities of $8 million. The additional cash payments are contingent upon achievement by the acquired businesses of certain negotiated goals, which generally include targeted revenues. At the dates of acquisition, our estimated maximum obligations for the contingent cash payments were $57 million. As of December 31, 2012, we had paid $9 million of this contingent consideration. In 2012, we also paid $34 million of contingent consideration associated with acquisitions completed prior to 2012. | |||||||||||||||||
The allocation of purchase price for 2012 acquisitions was primarily to “Property and equipment,” which had an estimated fair value of $126 million; “Other intangible assets,” which had an estimated fair value of $43 million; and “Goodwill” of $69 million. Other intangible assets included $34 million of customer contracts and customer relationships and $9 million of covenants not-to-compete. Goodwill is primarily a result of expected synergies from combining the acquired businesses with our existing operations and is tax deductible. | |||||||||||||||||
Current Year Divestitures | |||||||||||||||||
The aggregate sales price for divestitures of operations was $2.09 billion in 2014, primarily related to (i) the sale of our Wheelabrator business in December 2014; (ii) the sale of certain landfill and collection operations in our Eastern Canada Area in the third quarter of 2014 and (iii) the sale of our Puerto Rico operations and certain other collection and landfill assets in the second quarter of 2014, as discussed further below. We recognized net gains on these divestitures of $515 million in 2014. These divestitures were made as part of our initiative to improve or divest certain non-strategic or underperforming operations. The remaining amounts reported in the Consolidated Statement of Cash Flows generally relate to the sale of fixed assets. | |||||||||||||||||
Divestiture of Wheelabrator Business | |||||||||||||||||
On December 19, 2014, we sold our Wheelabrator business to an affiliate of Energy Capital Partners and received cash proceeds of $1.95 billion, net of cash divested, subject to certain post-closing adjustments. We recognized a gain of $519 million on this sale which is included within “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” in the Consolidated Statement of Operations. In conjunction with the sale, the Company entered into several agreements to dispose of a minimum number of tons of waste at certain Wheelabrator facilities. These agreements generally provide for fixed volume commitments, with certain market price resets, for up to seven years. | |||||||||||||||||
Our Wheelabrator business met the criteria to be classified as held-for-sale and was classified as “Businesses held-for-sale” within our Condensed Consolidated Balance Sheet at September 30, 2014. | |||||||||||||||||
Wheelabrator provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants. Wheelabrator owns or operates 16 waste-to-energy facilities and four independent power production plants. Prior to the sale, our Wheelabrator business constituted a reportable segment, as discussed in Note 21. We concluded that the sale of our Wheelabrator business did not qualify for discontinued operations accounting under current authoritative guidance based on our significant continuing obligations under the long-term waste supply agreements referred to above and in Note 11. | |||||||||||||||||
The following table presents the carrying amounts of our Wheelabrator business as of December 19, 2014 (in millions): | |||||||||||||||||
Accounts and other receivables | $ | 90 | |||||||||||||||
Parts and supplies | 65 | ||||||||||||||||
Deferred income taxes | 1 | ||||||||||||||||
Other assets | 12 | ||||||||||||||||
Total current assets | 168 | ||||||||||||||||
Property and equipment | 1,155 | ||||||||||||||||
Goodwill | 305 | ||||||||||||||||
Other intangible assets | 3 | ||||||||||||||||
Other assets | 215 | ||||||||||||||||
Total assets | $ | 1,846 | |||||||||||||||
Accounts payable | $ | 23 | |||||||||||||||
Accrued liabilities | 20 | ||||||||||||||||
Deferred revenues | 1 | ||||||||||||||||
Current portion of long-term debt | 1 | ||||||||||||||||
Total current liabilities | 45 | ||||||||||||||||
Long-term debt, less current portion | 14 | ||||||||||||||||
Deferred income taxes | 344 | ||||||||||||||||
Landfill and environmental remediation liabilities | 18 | ||||||||||||||||
Other liabilities | 19 | ||||||||||||||||
Total liabilities | $ | 440 | |||||||||||||||
Noncontrolling interests | $ | 31 | |||||||||||||||
Other Divestitures | |||||||||||||||||
In the second quarter of 2014, we sold our Puerto Rico operations and certain other collection and landfill assets which were included in Tier 3 and Tier 1, respectively, of our Solid Waste business. We received proceeds from the sale of $80 million, consisting of $65 million of cash and $15 million of preferred stock and recognized a loss on the sale of $25 million. | |||||||||||||||||
In the third quarter of 2014, we sold certain landfill and collection operations in our Eastern Canada Area, which were included in Tier 3. We received cash proceeds from the sale of $39 million and recognized a gain of $18 million. | |||||||||||||||||
The gain or loss on these divestitures is included within “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” in the Consolidated Statement of Operations. The remaining proceeds from divestitures in 2014 were comprised substantially of cash. | |||||||||||||||||
Prior Year Divestitures | |||||||||||||||||
The aggregate sales price for divestitures of operations was $70 million in 2013 and $7 million in 2012 and proceeds from these divestitures were comprised substantially of cash. We recognized net gains on these divestitures of $8 million and less than $1 million in 2013, and 2012, respectively. These divestitures were made as part of our initiative to improve or divest certain non-strategic or underperforming operations. The remaining amounts reported in the Consolidated Statement of Cash Flows generally relate to the sale of fixed assets. |
Variable_Interest_Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2014 | |
Text Block [Abstract] | |
Variable Interest Entities | 20. Variable Interest Entities |
Following is a description of our financial interests in variable interest entities that we consider significant, including (i) those for which we have determined that we are the primary beneficiary of the entity and, therefore, have consolidated the entities into our financial statements; (ii) those that represent a significant interest in an unconsolidated entity and (iii) trusts for final capping, closure, post-closure or environmental remediation obligations for both consolidated and unconsolidated variable interest entities. | |
Consolidated Variable Interest Entities | |
Waste-to-Energy LLCs — In June 2000, two limited liability companies were established to purchase interests in existing leveraged lease financings at three waste-to-energy facilities that we leased, operated and maintained. Prior to the acquisitions of the noncontrolling interests, we owned a 0.5% interest in one of the LLCs (“LLC I”) and a 0.25% interest in the second LLC (“LLC II”). John Hancock Life Insurance Company (“Hancock”) owned 99.5% of LLC I and 99.75% of LLC II was owned by LLC I and the CIT Group (“CIT”). | |
In December 2014, we purchased the noncontrolling interests in the LLCs from Hancock and CIT in anticipation of our sale of our Wheelabrator business. The LLCs were then subsequently sold as part of the divestment. See Note 19 for further discussion of the sale of our Wheelabrator business. | |
Prior to the acquisitions of the noncontrolling interests, we had determined that we were the primary beneficiary of the LLCs and consolidated these entities in our Consolidated Financial Statements because (i) all of the equity owners of the LLCs were considered related parties for purposes of applying this accounting guidance; (ii) the equity owners shared power over the significant activities of the LLCs and (iii) we were the entity within the related party group whose activities were most closely associated with the LLCs. | |
As of December 31, 2013, our Consolidated Balance Sheets included $284 million of net property and equipment associated with the LLCs’ waste-to-energy facilities and $239 million in noncontrolling interests associated with Hancock’s and CIT’s interests in the LLCs. During the years ended December 31, 2014, 2013 and 2012, we recognized reductions in earnings of $39 million, $43 million and $45 million, respectively, for Hancock’s and CIT’s noncontrolling interests in the LLCs’ earnings, which are included in our consolidated net income. The LLCs’ earnings related to the rental income generated from leasing the facilities to our subsidiaries, reduced by depreciation expense. The LLCs’ rental income is eliminated in WM’s consolidation. | |
Significant Unconsolidated Variable Interest Entities | |
Investment in U.K. Waste-to-Energy and Recycling Entity — In the first quarter of 2012, we formed a U.K. joint venture (the “JV”), together with a commercial waste management company (“Partner”), to develop, construct, operate and maintain a waste-to-energy and recycling facility in England. We owned a 50% interest in the JV. We determined that we were not the primary beneficiary of the JV, as all major decisions of the JV require either majority vote or unanimous consent of the directors (who were appointed in equal numbers by us and our Partner) or unanimous consent of the two shareholders of the JV. As such, our Partner shared equally in the power to direct the activities of the JV that most significantly impacted its economic performance. Accordingly, we accounted for this investment under the equity method of accounting and did not consolidated this entity. | |
Following delays in obtaining planning approval, the Norfolk County Council (the “Council”), which had awarded the project to the JV, held a special meeting on April 7, 2014 and voted to terminate the project agreement with the JV. The JV then exercised its right to accelerate the effective date of the project agreement’s termination to May 16, 2014. The Council subsequently reimbursed project development costs and losses incurred on certain foreign currency and interest rate derivatives as determined under the project agreement. Our portion of the loss recognized by the JV for unreimbursed costs was not material and was reflected in our “Equity in net losses of unconsolidated entities.” | |
Investment in Refined Coal Facility — In 2011, we acquired a noncontrolling interest in a limited liability company established to invest in and manage a refined coal facility. Along with the other equity investor, we support the operations of the entity in exchange for a pro-rata share of the tax credits it generates. Our initial consideration for this investment consisted of a cash payment of $48 million. At December 31, 2014 and 2013, our investment balance was $32 million and $27 million, respectively, representing our current maximum pre-tax exposure to loss. Under the terms and conditions of the transaction, we do not believe that we have any material exposure to loss. Required capital contributions commenced in the first quarter of 2013 and will continue through the expiration of the tax credits under Section 45 of the Internal Revenue Code, which occurs at the end of 2019. We are only obligated to make future contributions to the extent tax credits are generated. We determined that we are not the primary beneficiary of this entity as we do not have the power to individually direct the entity’s activities. Accordingly, we account for this investment under the equity method of accounting and do not consolidate the entity. Additional information related to this investment is discussed in Note 9. | |
Investment in Low-Income Housing Properties — In 2010, we acquired a noncontrolling interest in a limited liability company established to invest in and manage low-income housing properties. We support the operations of the entity in exchange for a pro-rata share of the tax credits it generates. Our target return on the investment is guaranteed and, therefore, we do not believe that we have any material exposure to loss. Our consideration for this investment totaled $221 million, which was comprised of a $215 million note payable and an initial cash payment of $6 million. At December 31, 2014 and 2013, our investment balance was $104 million and $129 million, respectively, and our debt balance was $104 million and $128 million, respectively. We determined that we are not the primary beneficiary of this entity as we do not have the power to individually direct the entity’s activities. Accordingly, we account for this investment under the equity method of accounting and do not consolidate the entity. Additional information related to this investment is discussed in Note 9. | |
Trusts for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations — We have significant financial interests in trust funds that were created to settle certain of our final capping, closure, post-closure or environmental remediation obligations. Generally, we are the sole beneficiary of these 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. We have determined that these trust funds are variable interest entities; however, we are not the primary beneficiary of certain of these entities because either (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. | |
We account for the trusts for which we are the sole beneficiary as long-term “Other assets” in our Consolidated Balance Sheet. We reflect our interests in the unrealized gains and losses on available-for-sale securities held by these trusts as a component of “Accumulated other comprehensive income.” These trusts had a fair value of $129 million at December 31, 2014 and $125 million at December 31, 2013. Our interests in the trusts that have been established for the benefit of both the Company and the host community in which we operate 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 Consolidated Balance Sheet, as appropriate. Our investments and receivables related to these trusts had an aggregate carrying value of $113 million and $110 million as of December 31, 2014 and December 31, 2013, respectively. | |
As the party with primary responsibility to fund the related final capping, closure, post-closure or environmental remediation activities, we are exposed to risk of loss as a result of potential changes in the fair value of the assets of the trust. The fair value of trust assets can fluctuate due to (i) changes in the market value of the investments held by the trusts and (ii) credit risk associated with trust receivables. Although we are exposed to changes in the fair value of the trust assets, we currently expect the trust funds to continue to meet the statutory requirements for which they were established. |
Segment_and_Related_Informatio
Segment and Related Information | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Segment and Related Information | 21. Segment and Related Information | ||||||||||||||||||||||||||||
We evaluate, oversee and manage the financial performance of our Solid Waste subsidiaries through our 17 Areas. The 17 Areas constitute our operating segments and none of the Areas individually meet the quantitative criteria to be a separate reportable segment. We have evaluated the aggregation criteria and concluded that, based on the similarities between our Areas, including the fact that our Solid Waste business is homogenous across geography with the same services offered across the Areas, aggregation of our Areas is appropriate for purposes of presenting our reportable segments. Accordingly, we have aggregated our 17 Areas into three tiers that we believe have similar economic characteristics and future prospects based in large part on a review of the Areas’ income from operations margins. The economic variations experienced by our Areas is attributable to a variety of factors, including regulatory environment of the Area; economic environment of the Area, including level of commercial and industrial activity; population density; service offering mix and disposal logistics, with no one factor being singularly determinative of an Area’s current or future economic performance. As a result of our consideration of economic and other similarities, we have established the following three reportable segments for our Solid Waste business: Tier 1, which is comprised almost exclusively of Areas in the Southern United States; Tier 2, which is comprised predominately of Areas located in the Midwest and Northeast United States; and Tier 3, which encompasses all remaining Areas, including the Northwest and Mid-Atlantic regions of the United States and Eastern Canada. | |||||||||||||||||||||||||||||
Our Wheelabrator business, which managed waste-to-energy facilities and independent power production plants, continued to be a separate reportable segment until the sale of the business in the fourth quarter of 2014 as it met the quantitative disclosure thresholds. | |||||||||||||||||||||||||||||
The operating segments not evaluated and overseen through the 17 Areas are presented herein as “Other” as these operating segments do not meet the criteria to be aggregated with other operating segments and do not meet the quantitative criteria to be separately reported. | |||||||||||||||||||||||||||||
Summarized financial information concerning our reportable segments for the respective years ended December 31 is shown in the following table (in millions): | |||||||||||||||||||||||||||||
Gross | Intercompany | Net | Income | Depreciation | Capital | Total | |||||||||||||||||||||||
Operating | Operating | Operating | from | and | Expenditures | Assets | |||||||||||||||||||||||
Revenues | Revenues(c) | Revenues | Operations | Amortization | (f) | (g),(h) | |||||||||||||||||||||||
(d),(e) | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,495 | $ | (537 | ) | $ | 2,958 | $ | 893 | $ | 271 | $ | 266 | $ | 3,661 | ||||||||||||||
Tier 2 | 6,416 | (1,173 | ) | 5,243 | 1,318 | 510 | 428 | 8,556 | |||||||||||||||||||||
Tier 3 | 3,538 | (573 | ) | 2,965 | 588 | 275 | 268 | 5,030 | |||||||||||||||||||||
Wheelabrator | 817 | (102 | ) | 715 | 669 | 37 | 11 | — | |||||||||||||||||||||
Other(a) | 2,191 | (76 | ) | 2,115 | (400 | ) | 128 | 134 | 1,791 | ||||||||||||||||||||
16,457 | (2,461 | ) | 13,996 | 3,068 | 1,221 | 1,107 | 19,038 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (769 | ) | 71 | 74 | 2,965 | |||||||||||||||||||||
Total | $ | 16,457 | $ | (2,461 | ) | $ | 13,996 | $ | 2,299 | $ | 1,292 | $ | 1,181 | $ | 22,003 | ||||||||||||||
2013 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,487 | $ | (553 | ) | $ | 2,934 | $ | 852 | $ | 277 | $ | 217 | $ | 3,682 | ||||||||||||||
Tier 2 | 6,438 | (1,202 | ) | 5,236 | 1,291 | 522 | 526 | 8,572 | |||||||||||||||||||||
Tier 3 | 3,552 | (569 | ) | 2,983 | 291 | 279 | 258 | 5,288 | |||||||||||||||||||||
Wheelabrator | 845 | (112 | ) | 733 | (517 | ) | 61 | 17 | 2,037 | ||||||||||||||||||||
Other(a) | 2,185 | (88 | ) | 2,097 | (171 | ) | 122 | 126 | 2,177 | ||||||||||||||||||||
16,507 | (2,524 | ) | 13,983 | 1,746 | 1,261 | 1,144 | 21,756 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (667 | ) | 72 | 123 | 1,459 | |||||||||||||||||||||
Total | $ | 16,507 | $ | (2,524 | ) | $ | 13,983 | $ | 1,079 | $ | 1,333 | $ | 1,267 | $ | 23,215 | ||||||||||||||
2012 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,370 | $ | (521 | ) | $ | 2,849 | $ | 851 | $ | 273 | $ | 242 | $ | 3,664 | ||||||||||||||
Tier 2 | 6,273 | (1,096 | ) | 5,177 | 1,270 | 512 | 511 | 8,394 | |||||||||||||||||||||
Tier 3 | 3,413 | (523 | ) | 2,890 | 504 | 259 | 271 | 5,088 | |||||||||||||||||||||
Wheelabrator | 846 | (123 | ) | 723 | 113 | 69 | 36 | 2,605 | |||||||||||||||||||||
Other(a) | 2,106 | (96 | ) | 2,010 | (242 | ) | 111 | 239 | 2,495 | ||||||||||||||||||||
16,008 | (2,359 | ) | 13,649 | 2,496 | 1,224 | 1,299 | 22,246 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (645 | ) | 73 | 139 | 1,551 | |||||||||||||||||||||
Total | $ | 16,008 | $ | (2,359 | ) | $ | 13,649 | $ | 1,851 | $ | 1,297 | $ | 1,438 | $ | 23,797 | ||||||||||||||
(a) | Our “Other” net operating revenues and “Other” income from operations include (i) the effects of those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services and Renewable Energy organizations, that are not included with the operations of our reportable segments; (ii) our recycling brokerage and electronic recycling services; and (iii) the impacts of investments in expanded service offerings, such as portable self-storage, fluorescent lamp recycling and oil and gas producing properties. In addition, our “Other” income from operations reflects the impacts of non-operating entities that provide financial assurance and self-insurance support for the segments or financing for our Canadian operations. | ||||||||||||||||||||||||||||
(b) | Corporate operating results reflect the costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, 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 and any administrative expenses or revisions to our estimated obligations associated with divested operations. | ||||||||||||||||||||||||||||
(c) | 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. | ||||||||||||||||||||||||||||
(d) | For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 3. | ||||||||||||||||||||||||||||
(e) | The income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling businesses. 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. In 2014, we recognized a $519 million gain on the sale of our Wheelabrator business during the fourth quarter. In 2013, we recognized $981 million of impairment charges, the most significant of which impacted our Tier 3 and Wheelabrator segments by $253 million and $627 million, respectively. Refer to Note 12 and Note 13 for an explanation of certain other transactions and events affecting our operating results. | ||||||||||||||||||||||||||||
(f) | Includes non-cash items. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property, plant and equipment balances and, therefore, may include amounts that have been accrued but not yet paid. | ||||||||||||||||||||||||||||
(g) | The reconciliation of total assets reported above to “Total assets” in the Consolidated Balance Sheet is as follows (in millions): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Total assets, as reported above | $ | 22,003 | $ | 23,215 | $ | 23,797 | |||||||||||||||||||||||
Elimination of intercompany investments and advances | (591 | ) | (612 | ) | (700 | ) | |||||||||||||||||||||||
Total assets, per Consolidated Balance Sheet | $ | 21,412 | $ | 22,603 | $ | 23,097 | |||||||||||||||||||||||
(h) | Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities and secondary processing facilities are included as a component of their respective Areas and our recycling brokerage business and electronics recycling services are included as part of our “Other” operations. As discussed in Note 19, the goodwill associated with our acquisition of Greenstar, has been assigned to our Areas and to a lesser extent “Other”. Our acquisition of RCI has been assigned to our Eastern Canada Area, which is included in Tier 3. The following table presents changes in goodwill during 2013 and 2014 by reportable segment (in millions): | ||||||||||||||||||||||||||||
Solid Waste | |||||||||||||||||||||||||||||
Tier 1 | Tier 2 | Tier 3 | Wheelabrator | Other | Total | ||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,186 | $ | 2,828 | $ | 1,374 | $ | 788 | $ | 115 | $ | 6,291 | |||||||||||||||||
Acquired goodwill | 41 | 56 | 210 | — | 20 | 327 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | (1 | ) | (2 | ) | (9 | ) | — | — | (12 | ) | |||||||||||||||||||
Impairments | — | — | (10 | ) | (483 | ) | (16 | ) | (509 | ) | |||||||||||||||||||
Translation and other adjustments | (5 | ) | — | (18 | ) | — | (4 | ) | (27 | ) | |||||||||||||||||||
Balance, December 31, 2013 | $ | 1,221 | $ | 2,882 | $ | 1,547 | $ | 305 | $ | 115 | $ | 6,070 | |||||||||||||||||
Acquired goodwill | 4 | 13 | 14 | — | — | 31 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | — | — | (3 | ) | (305 | ) | — | (308 | ) | ||||||||||||||||||||
Impairments | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||||
Translation and other adjustments | (9 | ) | — | (34 | ) | — | — | (43 | ) | ||||||||||||||||||||
Balance, December 31, 2014 | $ | 1,216 | $ | 2,895 | $ | 1,524 | $ | — | $ | 105 | $ | 5,740 | |||||||||||||||||
The mix of operating revenues from our major lines of business is reflected in the table below (in millions): | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 3,393 | $ | 3,423 | $ | 3,417 | |||||||||||||||||||||||
Residential | 2,543 | 2,608 | 2,584 | ||||||||||||||||||||||||||
Industrial | 2,231 | 2,209 | 2,129 | ||||||||||||||||||||||||||
Other | 340 | 273 | 275 | ||||||||||||||||||||||||||
Total collection | 8,507 | 8,513 | 8,405 | ||||||||||||||||||||||||||
Landfill | 2,849 | 2,790 | 2,685 | ||||||||||||||||||||||||||
Transfer | 1,353 | 1,329 | 1,296 | ||||||||||||||||||||||||||
Wheelabrator | 817 | 845 | 846 | ||||||||||||||||||||||||||
Recycling | 1,370 | 1,447 | 1,360 | ||||||||||||||||||||||||||
Other(a) | 1,561 | 1,583 | 1,416 | ||||||||||||||||||||||||||
Intercompany(b) | (2,461 | ) | (2,524 | ) | (2,359 | ) | |||||||||||||||||||||||
Operating revenues | $ | 13,996 | $ | 13,983 | $ | 13,649 | |||||||||||||||||||||||
(a) | The “Other” line of business includes Strategic Business Solutions, landfill gas-to-energy operations, Port-O-Let® services, portable self-storage, fluorescent lamp recycling, and oil and gas producing properties. | ||||||||||||||||||||||||||||
(b) | Intercompany revenues between lines of business are eliminated within the Consolidated Financial Statements included herein. | ||||||||||||||||||||||||||||
Net operating revenues relating to operations in the United States and Puerto Rico, as well as Canada are as follows (in millions): | |||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
United States and Puerto Rico(a) | $ | 13,064 | $ | 13,054 | $ | 12,812 | |||||||||||||||||||||||
Canada | 932 | 929 | 837 | ||||||||||||||||||||||||||
Total | $ | 13,996 | $ | 13,983 | $ | 13,649 | |||||||||||||||||||||||
(a) | We sold our Puerto Rico operations in the second quarter of 2014. Refer to Note 19 for additional information. | ||||||||||||||||||||||||||||
Property and equipment (net) relating to operations in the United States and Puerto Rico, as well as Canada are as follows (in millions): | |||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
United States and Puerto Rico(a) | $ | 9,586 | $ | 11,198 | $ | 11,293 | |||||||||||||||||||||||
Canada | 1,071 | 1,146 | 1,358 | ||||||||||||||||||||||||||
Total | $ | 10,657 | $ | 12,344 | $ | 12,651 | |||||||||||||||||||||||
(a) | We sold our Puerto Rico operations in the second quarter of 2014. Refer to Note 19 for additional information. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | 22. Quarterly Financial Data (Unaudited) | ||||||||||||||||
The following table summarizes the unaudited quarterly results of operations for 2014 and 2013 (in millions, except per share amounts): | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 3,396 | $ | 3,561 | $ | 3,602 | $ | 3,437 | |||||||||
Income from operations | 469 | 532 | 546 | 752 | |||||||||||||
Consolidated net income | 237 | 222 | 281 | 598 | |||||||||||||
Net income attributable to Waste Management, Inc. | 228 | 210 | 270 | 590 | |||||||||||||
Basic earnings per common share | 0.49 | 0.45 | 0.59 | 1.29 | |||||||||||||
Diluted earnings per common share | 0.49 | 0.45 | 0.58 | 1.28 | |||||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 3,336 | $ | 3,526 | $ | 3,621 | $ | 3,500 | |||||||||
Income (loss) from operations | 402 | 510 | 577 | (410 | ) | ||||||||||||
Consolidated net income (loss) | 176 | 256 | 297 | (599 | ) | ||||||||||||
Net income (loss) attributable to Waste Management, Inc. | 168 | 244 | 291 | (605 | ) | ||||||||||||
Basic earnings (loss) common share | 0.36 | 0.52 | 0.62 | (1.29 | ) | ||||||||||||
Diluted earnings (loss) common share | 0.36 | 0.52 | 0.62 | (1.29 | ) | ||||||||||||
Basic and diluted earnings per common share for each of the quarters presented above is based on the respective weighted average number of common and dilutive potential common shares outstanding for each quarter and the sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per common share amounts. | |||||||||||||||||
Our operating revenues normally tend to be somewhat higher in the summer months, primarily due to the higher volume of construction and demolition waste. 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. Through 2014, the operating results of our first quarter also often reflected higher repair and maintenance expenses because, prior to the sale of our Wheelabrator business, we relied on the slower winter months, when waste flows are generally lower, to perform scheduled maintenance at our waste-to-energy facilities. Additionally, from time to time, our operating results are significantly affected by certain transactions or events that management believes are not indicative or representative of our results. The following significant items have affected the comparison of our operating results during the periods indicated: | |||||||||||||||||
First Quarter 2014 | |||||||||||||||||
• | During the first quarter of 2014, we experienced significantly higher revenues in our Wheelabrator business and the renewable energy operations in Solid Waste from temporarily higher electricity prices driven by weather-related demand. This increase in revenues offset reduced revenues in our collection and disposal operations due to inclement weather. | ||||||||||||||||
Second Quarter 2014 | |||||||||||||||||
• | The recognition of a pre-tax loss of $25 million on the divestiture of our Puerto Rico operations and certain other collection and landfill assets. No tax benefit was recorded in connection with the loss. In addition, we incurred $32 million of tax charges to repatriate accumulated cash prior to the divestment. These charges had a negative impact of $0.12 on our diluted earnings per share. | ||||||||||||||||
• | The recognition of other net pre-tax charges of $16 million, primarily as a result of a $12 million impairment charge due to the decision to close a waste processing facility. These charges had a negative impact of $0.03 on our diluted earnings per share. | ||||||||||||||||
Third Quarter 2014 | |||||||||||||||||
• | The recognition of $67 million of pre-tax restructuring charges primarily related to our August 2014 restructuring. These items had a negative impact of $0.09 on our diluted earnings per share. | ||||||||||||||||
• | The recognition of pre-tax charges aggregating $20 million comprised of (i) litigation reserves and (ii) the write down of an investment in a waste diversion technology company, partially offset by a gain on the sale of certain landfill and collection operations in our Eastern Canada Area. These items had a negative impact of $0.05 on our diluted earnings per share. | ||||||||||||||||
Fourth Quarter 2014 | |||||||||||||||||
• | The recognition of a pre-tax gain of $519 million on the sale of our Wheelabrator business, which positively affected our diluted earnings per share by $1.12. | ||||||||||||||||
• | Net income was negatively impacted by the recognition of net pre-tax charges aggregating $364 million comprised of (i) $270 million of charges to impair our oil and gas producing properties; (ii) $25 million of charges to write down assets related to waste diversion technology companies; (iii) $20 million of other-than-temporary declines in the value of investments in waste diversion technology companies accounted for under the cost method; (iv) $10 million of goodwill impairment charges associated with our recycling operations and (v) other charges to write down the carrying value of assets to their estimated fair values related to certain of our operations. These items had a negative impact of $0.49 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was negatively impacted by pre-tax restructuring charges of $13 million, which negatively affected our diluted earnings per share by $0.02. | ||||||||||||||||
First Quarter 2013 | |||||||||||||||||
• | Net income was negatively impacted by pre-tax impairment charges aggregating $15 million attributable to investments in waste diversion technology companies and goodwill related to certain of our operations. These items had a negative impact of $0.03 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was negatively impacted by $8 million of pre-tax restructuring charges related to our acquisition of Greenstar and our July 2012 restructuring. These items had a negative impact of $0.01 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was negatively impacted by bad debt expense associated with collection issues in our Puerto Rico operations, which negatively affected our diluted earnings per share by $0.01. | ||||||||||||||||
Second Quarter 2013 | |||||||||||||||||
• | Income from operations was negatively impacted by the recognition of pre-tax impairment and restructuring charges primarily related to an impairment of a waste-to-energy facility as result of projected operating losses partially offset by gains on divestitures. These items had a negative impact of $0.02 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was impacted by a favorable adjustment to “Operating” expenses due to an increase in the risk-free discount rate used to measure our environmental remediation liabilities and recovery assets, which positively affected our diluted earnings per share by $0.01. | ||||||||||||||||
Third Quarter 2013 | |||||||||||||||||
• | Net income was negatively impacted by the recognition of pre-tax charges aggregating $23 million comprised of (i) $18 million related to impairments, primarily attributable to an investment in a majority-owned waste diversion technology company and (ii) $5 million of losses on divestitures, primarily related to oil and gas producing properties. These items had a negative impact of $0.02 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was negatively impacted by the recognition of pre-tax charges aggregating $8 million primarily associated with the partial withdrawal from an underfunded multiemployer pension plan and, to a lesser extent, other restructuring charges. These items had a negative impact of $0.01 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was positively impacted as a result of the collection of certain fully reserved receivables related to our Puerto Rico operations, which positively affected our diluted earnings per share by $0.01. | ||||||||||||||||
Fourth Quarter 2013 | |||||||||||||||||
• | Net income was negatively impacted by the recognition of net pre-tax charges aggregating $1 billion comprised of (i) a $483 million charge to impair goodwill associated with our Wheelabrator business; (ii) $262 million of charges to impair certain landfills, primarily in our Eastern Canada Area; (iii) $130 million of charges to write down the carrying value of three waste-to-energy facilities; (iv) $61 million of charges attributable to investments in waste diversion technology companies; (v) $31 million of charges to impair various recycling assets; (vi) a $15 million charge to write down the carrying value of an oil and gas property to its estimated fair value and (vii) other charges to impair goodwill and write down the carrying value of assets to their estimated fair values related to certain of our operations, partially offset by gains on divestitures. These items had a negative impact of $1.84 on our diluted earnings per share. | ||||||||||||||||
• | Income from operations was negatively impacted by pre-tax restructuring charges of $5 million which negatively affected our diluted earnings per share by $0.01. | ||||||||||||||||
• | Income from operations was positively impacted by net adjustments associated with changes in our expectations for the timing and cost of future final capping, closure and post-closure of fully utilized airspace, and by an increase in the risk-free discount rate used to measure environmental remediation liabilities and recovery assets. These items positively affected our diluted earnings per share by $0.02. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||
Condensed Consolidating Financial Statements | 23. Condensed Consolidating Financial Statements | ||||||||||||||||||||
WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness. WM has fully and unconditionally guaranteed all of WM Holdings’ senior indebtedness. None of WM’s other subsidiaries have guaranteed any of WM’s or WM Holdings’ 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 | |||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,235 | $ | — | $ | 72 | $ | — | $ | 1,307 | |||||||||||
Other current assets | 5 | 6 | 2,323 | — | 2,334 | ||||||||||||||||
1,240 | 6 | 2,395 | — | 3,641 | |||||||||||||||||
Property and equipment, net | — | — | 10,657 | — | 10,657 | ||||||||||||||||
Investments in and advances to affiliates | 17,312 | 17,782 | 6,745 | (41,839 | ) | — | |||||||||||||||
Other assets | 50 | 28 | 7,036 | — | 7,114 | ||||||||||||||||
Total assets | $ | 18,602 | $ | 17,816 | $ | 26,833 | $ | (41,839 | ) | $ | 21,412 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current portion of long-term debt | $ | 957 | $ | — | $ | 133 | $ | — | $ | 1,090 | |||||||||||
Accounts payable and other current liabilities | 86 | 13 | 2,296 | — | 2,395 | ||||||||||||||||
1,043 | 13 | 2,429 | — | 3,485 | |||||||||||||||||
Long-term debt, less current portion | 4,958 | 449 | 2,938 | — | 8,345 | ||||||||||||||||
Due to affiliates | 6,703 | 42 | — | (6,745 | ) | — | |||||||||||||||
Other liabilities | 32 | — | 3,661 | — | 3,693 | ||||||||||||||||
Total liabilities | 12,736 | 504 | 9,028 | (6,745 | ) | 15,523 | |||||||||||||||
Equity: | |||||||||||||||||||||
Stockholders’ equity | 5,866 | 17,312 | 17,782 | (35,094 | ) | 5,866 | |||||||||||||||
Noncontrolling interests | — | — | 23 | — | 23 | ||||||||||||||||
5,866 | 17,312 | 17,805 | (35,094 | ) | 5,889 | ||||||||||||||||
Total liabilities and equity | $ | 18,602 | $ | 17,816 | $ | 26,833 | $ | (41,839 | ) | $ | 21,412 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 58 | $ | — | $ | 58 | |||||||||||
Other current assets | — | 6 | 2,435 | — | 2,441 | ||||||||||||||||
— | 6 | 2,493 | — | 2,499 | |||||||||||||||||
Property and equipment, net | — | — | 12,344 | — | 12,344 | ||||||||||||||||
Investments in and advances to affiliates(a) | 15,802 | 16,845 | 4,268 | (36,915 | ) | — | |||||||||||||||
Other assets | 42 | 12 | 7,706 | — | 7,760 | ||||||||||||||||
Total assets | $ | 15,844 | $ | 16,863 | $ | 26,811 | $ | (36,915 | ) | $ | 22,603 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current portion of long-term debt | $ | 587 | $ | — | $ | 139 | $ | — | $ | 726 | |||||||||||
Accounts payable and other current liabilities | 109 | 13 | 2,166 | — | 2,288 | ||||||||||||||||
696 | 13 | 2,305 | — | 3,014 | |||||||||||||||||
Long-term debt, less current portion | 5,772 | 449 | 3,279 | — | 9,500 | ||||||||||||||||
Due to affiliates(a) | 3,669 | 599 | — | (4,268 | ) | — | |||||||||||||||
Other liabilities | — | — | 4,087 | — | 4,087 | ||||||||||||||||
Total liabilities | 10,137 | 1,061 | 9,671 | (4,268 | ) | 16,601 | |||||||||||||||
Equity: | |||||||||||||||||||||
Stockholders’ equity | 5,707 | 15,802 | 16,845 | (32,647 | ) | 5,707 | |||||||||||||||
Noncontrolling interests | — | — | 295 | — | 295 | ||||||||||||||||
5,707 | 15,802 | 17,140 | (32,647 | ) | 6,002 | ||||||||||||||||
Total liabilities and equity | $ | 15,844 | $ | 16,863 | $ | 26,811 | $ | (36,915 | ) | $ | 22,603 | ||||||||||
(a) | In conjunction with the preparation of our September 30, 2014 Condensed Consolidating Financial Statements, we identified corrections associated with the presentation of affiliate obligations previously reported in WM and WM Holdings’ “Investments in and advances to affiliates.” Accordingly, the 2013 Condensed Consolidating Balance Sheet included herein has been revised. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,996 | $ | — | $ | 13,996 | |||||||||||
Costs and expenses(b) | — | (459 | ) | 12,156 | — | 11,697 | |||||||||||||||
Income from operations | — | 459 | 1,840 | — | 2,299 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (351 | ) | (31 | ) | (84 | ) | — | (466 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,510 | 1,070 | — | (2,580 | ) | — | |||||||||||||||
Other, net | — | — | (82 | ) | — | (82 | ) | ||||||||||||||
1,159 | 1,039 | (166 | ) | (2,580 | ) | (548 | ) | ||||||||||||||
Income before income taxes | 1,159 | 1,498 | 1,674 | (2,580 | ) | 1,751 | |||||||||||||||
Provision for (benefit from) income taxes | (139 | ) | (12 | ) | 564 | — | 413 | ||||||||||||||
Consolidated net income | 1,298 | 1,510 | 1,110 | (2,580 | ) | 1,338 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 40 | — | 40 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 1,298 | $ | 1,510 | $ | 1,070 | $ | (2,580 | ) | $ | 1,298 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,983 | $ | — | $ | 13,983 | |||||||||||
Costs and expenses(b) | — | — | 12,904 | — | 12,904 | ||||||||||||||||
Income from operations | — | — | 1,079 | — | 1,079 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (355 | ) | (32 | ) | (90 | ) | — | (477 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 313 | 332 | — | (645 | ) | — | |||||||||||||||
Other, net | — | — | (108 | ) | — | (108 | ) | ||||||||||||||
(42 | ) | 300 | (198 | ) | (645 | ) | (585 | ) | |||||||||||||
Income before income taxes | (42 | ) | 300 | 881 | (645 | ) | 494 | ||||||||||||||
Provision for (benefit from) income taxes | (140 | ) | (13 | ) | 517 | — | 364 | ||||||||||||||
Consolidated net income | 98 | 313 | 364 | (645 | ) | 130 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 32 | — | 32 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 98 | $ | 313 | $ | 332 | $ | (645 | ) | $ | 98 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,649 | $ | — | $ | 13,649 | |||||||||||
Costs and expenses(b) | — | (7 | ) | 11,805 | — | 11,798 | |||||||||||||||
Income from operations | — | 7 | 1,844 | — | 1,851 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (358 | ) | (32 | ) | (94 | ) | — | (484 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,034 | 1,046 | — | (2,080 | ) | — | |||||||||||||||
Other, net | — | — | (64 | ) | — | (64 | ) | ||||||||||||||
676 | 1,014 | (158 | ) | (2,080 | ) | (548 | ) | ||||||||||||||
Income before income taxes | 676 | 1,021 | 1,686 | (2,080 | ) | 1,303 | |||||||||||||||
Provision for (benefit from) income taxes | (141 | ) | (13 | ) | 597 | — | 443 | ||||||||||||||
Consolidated net income | 817 | 1,034 | 1,089 | (2,080 | ) | 860 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 817 | $ | 1,034 | $ | 1,046 | $ | (2,080 | ) | $ | 817 | ||||||||||
(b) | Includes “Goodwill impairments” and “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” as reported in our Consolidated Statements of Operations. | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Comprehensive income | $ | 1,300 | $ | 1,510 | $ | 977 | $ | (2,580 | ) | $ | 1,207 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 40 | — | 40 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 1,300 | $ | 1,510 | $ | 937 | $ | (2,580 | ) | $ | 1,167 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Comprehensive income | $ | 112 | $ | 313 | $ | 311 | $ | (645 | ) | $ | 91 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 32 | — | 32 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 112 | $ | 313 | $ | 279 | $ | (645 | ) | $ | 59 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Comprehensive income | $ | 807 | $ | 1,034 | $ | 1,120 | $ | (2,080 | ) | $ | 881 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 807 | $ | 1,034 | $ | 1,077 | $ | (2,080 | ) | $ | 838 | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 1,298 | $ | 1,510 | $ | 1,110 | $ | (2,580 | ) | $ | 1,338 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (1,510 | ) | (1,070 | ) | — | 2,580 | — | ||||||||||||||
Other adjustments | (36 | ) | (1 | ) | 1,030 | — | 993 | ||||||||||||||
Net cash provided by (used in) operating activities | (248 | ) | 439 | 2,140 | — | 2,331 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (35 | ) | — | (35 | ) | ||||||||||||||
Capital expenditures | — | — | (1,151 | ) | — | (1,151 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | 1,618 | 635 | — | 2,253 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (72 | ) | — | (72 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | 1,618 | (623 | ) | — | 995 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 2,572 | — | 245 | — | 2,817 | ||||||||||||||||
Debt repayments | (3,005 | ) | (563 | ) | — | (3,568 | ) | ||||||||||||||
Common stock repurchases | (600 | ) | — | — | — | (600 | ) | ||||||||||||||
Cash dividends | (693 | ) | — | — | — | (693 | ) | ||||||||||||||
Exercise of common stock options | 93 | — | — | — | 93 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 5 | — | (126 | ) | — | (121 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 3,111 | (2,057 | ) | (1,054 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 1,483 | (2,057 | ) | (1,498 | ) | — | (2,072 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,235 | — | 14 | — | 1,249 | ||||||||||||||||
Cash and cash equivalents at beginning of year | — | — | 58 | — | 58 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 1,235 | $ | — | $ | 72 | $ | — | $ | 1,307 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 98 | $ | 313 | $ | 364 | $ | (645 | ) | $ | 130 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (313 | ) | (332 | ) | — | 645 | — | ||||||||||||||
Other adjustments | (2 | ) | — | 2,327 | — | 2,325 | |||||||||||||||
Net cash provided by (used in) operating activities | (217 | ) | (19 | ) | 2,691 | — | 2,455 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (724 | ) | — | (724 | ) | ||||||||||||||
Capital expenditures | — | — | (1,271 | ) | — | (1,271 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | — | 138 | — | 138 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (43 | ) | — | (43 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | — | (1,900 | ) | — | (1,900 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 1,140 | — | 1,092 | — | 2,232 | ||||||||||||||||
Debt repayments | (1,120 | ) | — | (957 | ) | — | (2,077 | ) | |||||||||||||
Common stock repurchases | (239 | ) | — | — | — | (239 | ) | ||||||||||||||
Cash dividends | (683 | ) | — | — | — | (683 | ) | ||||||||||||||
Exercise of common stock options | 132 | — | — | — | 132 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 14 | — | (66 | ) | — | (52 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 913 | 19 | (932 | ) | — | — | |||||||||||||||
Net cash provided by (used in) financing activities | 157 | 19 | (863 | ) | — | (687 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | (60 | ) | — | (76 | ) | — | (136 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 60 | — | 134 | — | 194 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | — | $ | 58 | $ | — | $ | 58 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 817 | $ | 1,034 | $ | 1,089 | $ | (2,080 | ) | $ | 860 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (1,034 | ) | (1,046 | ) | — | 2,080 | — | ||||||||||||||
Other adjustments | 81 | — | 1,354 | — | 1,435 | ||||||||||||||||
Net cash provided by (used in) operating activities | (136 | ) | (12 | ) | 2,443 | — | 2,295 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (250 | ) | — | (250 | ) | ||||||||||||||
Capital expenditures | — | — | (1,510 | ) | — | (1,510 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | — | 44 | — | 44 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (114 | ) | — | (114 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | — | (1,830 | ) | — | (1,830 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 1,145 | — | 475 | — | 1,620 | ||||||||||||||||
Debt repayments | (835 | ) | — | (663 | ) | — | (1,498 | ) | |||||||||||||
Common stock repurchases | — | — | — | — | — | ||||||||||||||||
Cash dividends | (658 | ) | — | — | — | (658 | ) | ||||||||||||||
Exercise of common stock options | 43 | — | — | — | 43 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 15 | — | (52 | ) | — | (37 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 367 | 12 | (379 | ) | — | — | |||||||||||||||
Net cash provided by (used in) financing activities | 77 | 12 | (619 | ) | — | (530 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 1 | — | 1 | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | (59 | ) | — | (5 | ) | — | (64 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 119 | — | 139 | — | 258 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 60 | $ | — | $ | 134 | $ | — | $ | 194 | |||||||||||
New_Accounting_Standard_Pendin
New Accounting Standard Pending Adoption (Unaudited) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Standard Pending Adoption (Unaudited) | 24. New Accounting Standard Pending Adoption (Unaudited) |
In May 2014, the FASB amended authoritative guidance associated with revenue recognition. The amended guidance requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additionally, the amendments will require enhanced qualitative and quantitative disclosures regarding customer contracts. The amended authoritative guidance associated with revenue recognition is effective for the Company on January 1, 2017. The amended guidance may be applied retrospectively for all periods presented or retrospectively with the cumulative effect of initially applying the amended guidance recognized at the date of initial application. We are in the process of assessing the provisions of the amended guidance and have not determined whether the adoption will have a material impact on our consolidated financial statements. |
Valuation_And_Qualifying_Accou
Valuation And Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation And Qualifying Accounts | WASTE MANAGEMENT, INC. | ||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(In Millions) | |||||||||||||||||
Balance | Charged | Accounts | Balance | ||||||||||||||
Beginning of | (Credited) to | Written | End of | ||||||||||||||
Year | Income | Off/Use of | Year | ||||||||||||||
Reserve | |||||||||||||||||
2012 — Reserves for doubtful accounts(a) | $ | 29 | $ | 57 | $ | (41 | ) | $ | 45 | ||||||||
2013 — Reserves for doubtful accounts(a) | $ | 45 | $ | 39 | $ | (50 | ) | $ | 34 | ||||||||
2014 — Reserves for doubtful accounts(a) | $ | 34 | $ | 42 | $ | (45 | ) | $ | 31 | ||||||||
2012 — Merger and restructuring accruals(b) | $ | 9 | $ | 67 | $ | (44 | ) | $ | 32 | ||||||||
2013 — Merger and restructuring accruals(b) | $ | 32 | $ | 18 | $ | (36 | ) | $ | 14 | ||||||||
2014 — Merger and restructuring accruals(b) | $ | 14 | $ | 82 | $ | (51 | ) | $ | 45 | ||||||||
(a) | Includes reserves for doubtful accounts receivable and notes receivable. | ||||||||||||||||
(b) | Included in accrued liabilities in our Consolidated Balance Sheets. These accruals represent employee severance and benefit costs and transitional costs. |
Accounting_Changes_and_Reclass1
Accounting Changes and Reclassifications (Policies) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Accounting Changes | Accounting Changes | ||||||||||||
Comprehensive Income — In February 2013, the Financial Accounting Standards Board (“FASB”) issued amended authoritative guidance associated with comprehensive income, which requires companies to provide information about the amounts that are reclassified out of accumulated other comprehensive income by component. Additionally, companies are required to present significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income. The amendment to authoritative guidance associated with comprehensive income was effective for the Company on January 1, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements. We have presented the information required by this amendment in Note 14. | |||||||||||||
Indefinite-Lived Intangible Assets Impairment Testing — In July 2012, the FASB amended authoritative guidance associated with indefinite-lived intangible assets impairment testing. The amended guidance provides companies the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the indefinite-lived intangible asset is impaired. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the indefinite-lived intangible asset is impaired, then the entity is not required to take further action. The amendments are effective for indefinite-lived intangible impairment tests performed for fiscal years beginning after September 15, 2012; however, early adoption was permitted. The Company’s early adoption of this guidance in 2012 did not have an impact on our consolidated financial statements. Additional information on impairment testing can be found in Note 3. | |||||||||||||
Reclassifications | Reclassifications | ||||||||||||
When necessary, reclassifications have been made to our prior period consolidated financial information in order to conform to the current year presentation. | |||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||
The accompanying Consolidated Financial Statements include the accounts of WM, its wholly-owned and majority-owned subsidiaries and certain variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany balances and transactions have been eliminated. Investments in entities in which we do not have a controlling financial interest are accounted for under either the equity method or cost method of accounting, as appropriate. | |||||||||||||
Estimates and Assumptions | Estimates and Assumptions | ||||||||||||
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, asset impairments, deferred income taxes and reserves associated with our insured and self-insured claims. Each of these items is discussed in additional detail below. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. | |||||||||||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||||||||||
Cash in excess of current operating requirements is invested in short-term interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value. | |||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk | ||||||||||||
Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within our trust funds and escrow accounts, accounts receivable and derivative instruments. 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 of diverse customers we service. At December 31, 2014 and 2013, no single customer represented greater than 5% of total accounts receivable. | |||||||||||||
Trade and Other Receivables | Trade and Other Receivables | ||||||||||||
Our receivables, which are recorded when billed, when services are performed or when cash is advanced, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on historical collection trends; type of customer, such as municipal or commercial; the age of outstanding receivables; and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. Also, we recognize interest income on long-term interest-bearing notes receivable as the interest accrues under the terms of the notes. We no longer accrue interest once the notes are deemed uncollectible. | |||||||||||||
Other receivables at December 31, 2014 and 2013 include receivables related to tax payments in excess of the provision of $255 million and $23 million, respectively. | |||||||||||||
Parts and Supplies | Parts and Supplies | ||||||||||||
Parts and supplies consist primarily of spare parts, fuel, tires, lubricants and processed recycling materials. Our parts and supplies are stated at the lower of cost, using the average cost method, or market. | |||||||||||||
Landfill Accounting | Landfill Accounting | ||||||||||||
Cost Basis of Landfill Assets — We capitalize various costs that we incur to make a landfill ready to accept waste. These costs generally include expenditures for land (including the landfill footprint and required landfill buffer property); permitting; excavation; liner material and installation; landfill leachate collection systems; landfill gas collection systems; environmental monitoring equipment for groundwater and landfill gas; and directly related engineering, capitalized interest, on-site road construction and other capital infrastructure costs. The cost basis of our landfill assets also includes asset retirement costs, which represent estimates of future costs associated with landfill final capping, closure and post-closure activities. These costs are discussed below. | |||||||||||||
Final Capping, Closure and Post-Closure Costs — Following is a description of our asset retirement activities and our related accounting: | |||||||||||||
• | Final Capping — Involves the installation of flexible membrane liners and geosynthetic clay liners, drainage and compacted soil layers and topsoil over areas of a landfill where total airspace capacity has been consumed. Final capping asset retirement obligations are recorded on a units-of-consumption basis as airspace is consumed related to the specific final capping event with a corresponding increase in the landfill asset. Each final capping event is accounted for as a discrete obligation and recorded as an asset and a liability based on estimates of the discounted cash flows and capacity associated with each final capping event. | ||||||||||||
• | Closure — Includes the construction of the final portion of methane gas collection systems (when required), demobilization and routine maintenance costs. These are costs incurred after the site ceases to accept waste, but before the landfill is certified as closed by the applicable state regulatory agency. These costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing closure activities. | ||||||||||||
• | Post-Closure — Involves the maintenance and monitoring of a landfill site that has been certified closed by the applicable regulatory agency. Generally, we are required to maintain and monitor landfill sites for a 30-year period. These maintenance and monitoring costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Post-closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing post-closure activities. | ||||||||||||
We develop our estimates of these obligations using input from our operations personnel, engineers and accountants. Our estimates are based on our interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Absent quoted market prices, the estimate of fair value is based on the best available information, including the results of present value techniques. In many cases, we contract with third parties to fulfill our obligations for final capping, closure and post-closure. We use historical experience, professional engineering judgment and quoted and actual prices paid for similar work to determine the fair value of these obligations. We are required to recognize these obligations at market prices whether we plan to contract with third parties or perform the work ourselves. In those instances where we perform the work with internal resources, the incremental profit margin realized is recognized as a component of operating income when the work is performed. | |||||||||||||
Once we have determined the final capping, closure and post-closure costs, we inflate those costs to the expected time of payment and discount those expected future costs back to present value. During the years ended December 31, 2014, 2013 and 2012, we inflated these costs in current dollars until the expected time of payment using an inflation rate of 2.5%. We discounted these costs to present value using the credit-adjusted, risk-free rate effective at the time an obligation is incurred, consistent with the expected cash flow approach. Any changes in expectations that result in an upward revision to the estimated cash flows are treated as a new liability and discounted at the current rate while downward revisions are discounted at the historical weighted-average rate of the recorded obligation. As a result, the credit-adjusted, risk-free discount rate used to calculate the present value of an obligation is specific to each individual asset retirement obligation. The weighted-average rate applicable to our asset retirement obligations at December 31, 2014 is between 4.00% and 7.75%. We expect to apply a credit-adjusted, risk-free discount rate of 4.00% to liabilities incurred in the first quarter of 2015. | |||||||||||||
We record the estimated fair value of final capping, closure and post-closure liabilities for our landfills based on the capacity consumed through the current period. The fair value of final capping obligations is developed based on our estimates of the airspace consumed to date for each final capping event and the expected timing of each final capping event. The fair value of closure and post-closure obligations is developed based on our estimates of the airspace consumed to date for the entire landfill and the expected timing of each closure and post-closure activity. Because these obligations are measured at estimated fair value using present value techniques, changes in the estimated cost or timing of future final capping, closure and post-closure activities could result in a material change in these liabilities, related assets and results of operations. We assess the appropriateness of the estimates used to develop our recorded balances annually, or more often if significant facts change. | |||||||||||||
Changes in inflation rates or the estimated costs, timing or extent of future final capping, closure and post-closure activities typically result in both (i) a current adjustment to the recorded liability and landfill asset and (ii) a change in liability and asset amounts to be recorded prospectively over either the remaining capacity of the related discrete final capping event or the remaining permitted and expansion airspace (as defined below) of the landfill. Any changes related to the capitalized and future cost of the landfill assets are then recognized in accordance with our amortization policy, which would generally result in amortization expense being recognized prospectively over the remaining capacity of the final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Changes in such estimates associated with airspace that has been fully utilized result in an adjustment to the recorded liability and landfill assets with an immediate corresponding adjustment to landfill airspace amortization expense. | |||||||||||||
Interest accretion on final capping, closure and post-closure liabilities is recorded using the effective interest method and is recorded as final capping, closure and post-closure expense, which is included in “Operating” costs and expenses within our Consolidated Statements of Operations. | |||||||||||||
Amortization of Landfill Assets — The amortizable basis of a landfill includes (i) amounts previously expended and capitalized; (ii) capitalized landfill final capping, closure and post-closure costs; (iii) projections of future purchase and development costs required to develop the landfill site to its remaining permitted and expansion capacity and (iv) projected asset retirement costs related to landfill final capping, closure and post-closure activities. | |||||||||||||
Amortization is recorded on a units-of-consumption basis, applying expense as a rate per ton. The rate per ton is calculated by dividing each component of the amortizable basis of a landfill by the number of tons needed to fill the corresponding asset’s airspace. For landfills that we do not own, but operate through operating or lease arrangements, the rate per ton is calculated based on expected capacity to be utilized over the lesser of the contractual term of the underlying agreement or the life of the landfill. | |||||||||||||
We apply the following guidelines in determining a landfill’s remaining permitted and expansion airspace: | |||||||||||||
• | Remaining Permitted Airspace — Our engineers, in consultation with third-party engineering consultants and surveyors, are responsible for determining remaining permitted airspace at our landfills. The remaining permitted airspace is determined by an annual survey, which is used to compare the existing landfill topography to the expected final landfill topography. | ||||||||||||
• | Expansion Airspace — We also include currently unpermitted expansion airspace in our estimate of remaining permitted and expansion airspace in certain circumstances. First, to include airspace associated with an expansion effort, we must generally expect the initial expansion permit application to be submitted within one year and the final expansion permit to be received within five years. Second, we must believe that obtaining the expansion permit is likely, considering the following criteria: | ||||||||||||
• | Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals; | ||||||||||||
• | It is likely that the approvals will be received within the normal application and processing time periods for approvals in the jurisdiction in which the landfill is located; | ||||||||||||
• | We have a legal right to use or obtain land to be included in the expansion plan; | ||||||||||||
• | There are no significant known technical, legal, community, business, or political restrictions or similar issues that could negatively affect the success of such expansion; and | ||||||||||||
• | Financial analysis has been completed based on conceptual design, and the results demonstrate that the expansion has a positive financial and operational impact. | ||||||||||||
For unpermitted airspace to be initially included in our estimate of remaining permitted and expansion airspace, the expansion effort must meet all of the criteria listed above. These criteria are evaluated by our field-based engineers, accountants, managers and others to identify potential obstacles to obtaining the permits. Once the unpermitted airspace is included, our policy provides that airspace may continue to be included in remaining permitted and expansion airspace even if certain of these criteria are no longer met as long as we continue to believe we will ultimately obtain the permit, based on the facts and circumstances of a specific landfill. In these circumstances, continued inclusion must be approved through a landfill-specific review process that includes approval by our Chief Financial Officer and a review by the Audit Committee of our Board of Directors on a quarterly basis. Of the 23 landfill sites with expansions included at December 31, 2014, five landfills required the Chief Financial Officer to approve the inclusion of the unpermitted airspace. Two of these landfills required approval by our Chief Financial Officer because of community or political opposition that could impede the expansion process. The remaining three landfills required approval due to local zoning restrictions or because the permit application processes do not meet the one- or five-year requirements. | |||||||||||||
When we include the expansion airspace in our calculations of remaining permitted and expansion airspace, we also include the projected costs for development, as well as the projected asset retirement costs related to final capping, closure and post-closure of the expansion in the amortization basis of the landfill. | |||||||||||||
Once the remaining permitted and expansion airspace is determined in cubic yards, an airspace utilization factor (“AUF”) is established to calculate the remaining permitted and expansion capacity in tons. The AUF is established using the measured density obtained from previous annual surveys and is then adjusted to account for future settlement. The amount of settlement that is forecasted will take into account several site-specific factors including current and projected mix of waste type, initial and projected waste density, estimated number of years of life remaining, depth of underlying waste, anticipated access to moisture through precipitation or recirculation of landfill leachate, and operating practices. In addition, the initial selection of the AUF is subject to a subsequent multi-level review by our engineering group, and the AUF used is reviewed on a periodic basis and revised as necessary. Our historical experience generally indicates that the impact of settlement at a landfill is greater later in the life of the landfill when the waste placed at the landfill approaches its highest point under the permit requirements. | |||||||||||||
After determining the costs and remaining permitted and expansion capacity at each of our landfills, we determine the per ton rates that will be expensed as waste is received and deposited at the landfill by dividing the costs by the corresponding number of tons. We calculate per ton amortization rates for each landfill for assets associated with each final capping event, for assets related to closure and post-closure activities and for all other costs capitalized or to be capitalized in the future. These rates per ton are updated annually, or more often, as significant facts change. | |||||||||||||
It is possible that actual results, including the amount of costs incurred, the timing of final capping, closure and post-closure activities, our airspace utilization or the success of our expansion efforts could ultimately turn out to be significantly different from our estimates and assumptions. To the extent that such estimates, or related assumptions, prove to be significantly different than actual results, lower profitability may be experienced due to higher amortization rates or higher expenses; or higher profitability may result if the opposite occurs. Most significantly, if it is determined that expansion capacity should no longer be considered in calculating the recoverability of a landfill asset, we may be required to recognize an asset impairment or incur significantly higher amortization expense. If at any time management makes the decision to abandon the expansion effort, the capitalized costs related to the expansion effort are expensed immediately. | |||||||||||||
Environmental Remediation Liabilities | Environmental Remediation Liabilities | ||||||||||||
We are subject 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 operations, or for damage caused by conditions that existed before we acquired a site. These liabilities include potentially responsible party (“PRP”) investigations, settlements, and certain legal and consultant fees, as well as costs directly associated with site investigation and clean up, such as materials, external contractor costs and incremental internal costs directly related to the remedy. We provide for expenses associated with environmental remediation obligations when such amounts are probable and can be reasonably estimated. We routinely review and evaluate sites that require remediation and determine our estimated cost for the likely remedy based on a number of estimates and assumptions. | |||||||||||||
Where it is probable that a liability has been incurred, we estimate costs required to remediate sites based on site-specific facts and circumstances. We routinely review and evaluate sites that require remediation, considering whether we were an owner, operator, transporter, or generator at the site, the amount and type of waste hauled to the site and the number of years we were associated with the site. Next, we review the same type of information with respect to other named and unnamed PRPs. Estimates of the costs for the likely remedy are then either developed using our internal resources or by third-party environmental engineers or other service providers. Internally developed estimates are based on: | |||||||||||||
• | Management’s judgment and experience in remediating our own and unrelated parties’ sites; | ||||||||||||
• | Information available from regulatory agencies as to costs of remediation; | ||||||||||||
• | The number, financial resources and relative degree of responsibility of other PRPs who may be liable for remediation of a specific site; and | ||||||||||||
• | The typical allocation of costs among PRPs, unless the actual allocation has been determined. | ||||||||||||
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 investigation of the extent of environmental impact. In these cases, we use the amount within the range that constitutes 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 $190 million higher than the $235 million recorded in the Consolidated Financial Statements as of December 31, 2014. 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 income from operations. These adjustments could be material in any given period. | |||||||||||||
Where we believe that both the amount of a particular environmental remediation liability and the timing of the payments are fixed or reliably determinable, we inflate the cost in current dollars (by 2.5% at December 31, 2014 and 2013) until the expected time of payment and discount the cost to present value using a risk-free discount rate, which is based on the rate for U.S. Treasury bonds with a term approximating the weighted average period until settlement of the underlying obligation. We determine the risk-free discount rate and the inflation rate on an annual basis unless interim changes would significantly impact our results of operations. For remedial liabilities that have been discounted, we include interest accretion, based on the effective interest method, in “Operating” costs and expenses in our Consolidated Statements of Operations. The following table summarizes the impacts of revisions in the risk-free discount rate applied to our environmental remediation liabilities and recovery assets during the reported periods (in millions) and the risk-free discount rate applied as of each reporting date: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Charge (reduction) to Operating expenses | $ | 10 | $ | (13 | ) | $ | 3 | ||||||
Risk-free discount rate applied to environmental remediation liabilities and recovery assets | 2 | % | 3 | % | 1.75 | % | |||||||
The portion of our recorded environmental remediation liabilities that has never been subject to inflation or discounting, as the amounts and timing of payments are not fixed or reliably determinable, was $41 million at December 31, 2014 and $36 million at December 31, 2013. Had we not inflated and discounted any portion of our environmental remediation liability, the amount recorded would have decreased by $6 million at December 31, 2014 and increased by $7 million at December 31, 2013. | |||||||||||||
Property and Equipment (exclusive of landfills, discussed above) | Property and Equipment (exclusive of landfills, discussed above) | ||||||||||||
We record property and equipment at cost. Expenditures for major additions and improvements are capitalized and maintenance activities are expensed as incurred. We depreciate property and equipment over the estimated useful life of the asset using the straight-line method. We assume no salvage value for our depreciable property and equipment. When property and equipment are retired, sold or otherwise disposed of, the cost and accumulated depreciation are removed from our accounts and any resulting gain or loss is included in results of operations as an offset or increase to operating expense for the period. | |||||||||||||
The estimated useful lives for significant property and equipment categories are as follows (in years): | |||||||||||||
Useful Lives | |||||||||||||
Vehicles — excluding rail haul cars | 3 to 10 | ||||||||||||
Vehicles — rail haul cars | 10 to 20 | ||||||||||||
Machinery and equipment — including containers | 3 to 30 | ||||||||||||
Buildings and improvements — excluding waste-to-energy facilities | 5 to 40 | ||||||||||||
Waste-to-energy facilities and related equipment | up to 50 | ||||||||||||
Furniture, fixtures and office equipment | 3 to 10 | ||||||||||||
We include capitalized costs associated with developing or obtaining internal-use software within furniture, fixtures and office equipment. These costs include direct external costs of materials and services used in developing or obtaining the software and internal costs for employees directly associated with the software development project. As of December 31, 2014 and 2013, capitalized costs for software placed in service, net of accumulated depreciation, were $114 million and $129 million, respectively. In addition, our furniture, fixtures and office equipment as of December 31, 2014 and 2013 included $5 million and $11 million, respectively, for costs incurred for software under development. | |||||||||||||
Leases | Leases | ||||||||||||
We lease property and equipment in the ordinary course of our business. Our most significant lease obligations are for property and equipment specific to our industry, including real property operated as a landfill or transfer station. Our leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that we consider in determining minimum lease payments. The leases are classified as either operating leases or capital leases, as appropriate. | |||||||||||||
Operating Leases (excluding landfills discussed below) — The majority of our leases are operating leases. This classification generally can be attributed to either (i) relatively low fixed minimum lease payments as a result of real property lease obligations that vary based on the volume of waste we receive or process or (ii) minimum lease terms that are much shorter than the assets’ economic useful lives. Management expects that in the normal course of business our operating leases will be renewed, replaced by other leases, or replaced with fixed asset expenditures. Our rent expense during each of the last three years and our future minimum operating lease payments for each of the next five years for which we are contractually obligated as of December 31, 2014 are disclosed in Note 11. | |||||||||||||
Capital Leases (excluding landfills discussed below) — Assets under capital leases are capitalized using interest rates determined at the inception of each lease and are amortized over either the useful life of the asset or the lease term, as appropriate, on a straight-line basis. The present value of the related lease payments is recorded as a debt obligation. Our future minimum annual capital lease payments are included in our total future debt obligations as disclosed in Note 7. | |||||||||||||
Landfill Leases — From an operating perspective, landfills that we lease are similar to landfills we own because generally we own the landfill’s operating permit and will operate the landfill for the entire lease term, which in many cases is the life of the landfill. As a result, our landfill leases are generally capital leases. The most significant portion of our rental obligations for landfill leases is contingent upon operating factors such as disposal volumes and often there are no contractual minimum rental obligations. Contingent rental obligations are expensed as incurred. For landfill capital leases that provide for minimum contractual rental obligations, we record the present value of the minimum obligation as part of the landfill asset, which is amortized on a units-of-consumption basis over the shorter of the lease term or the life of the landfill. | |||||||||||||
Acquisitions | Acquisitions | ||||||||||||
We generally recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition. | |||||||||||||
Contingent Consideration — In certain acquisitions, we agree to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted revenue levels, targeted disposal volumes or the issuance of permits for expanded landfill airspace. We have recognized liabilities for these contingent obligations based on their estimated fair value at the date of acquisition with any differences between the acquisition-date fair value and the ultimate settlement of the obligations being recognized as an adjustment to income from operations. | |||||||||||||
Acquired Assets and Assumed Liabilities — Assets and liabilities arising from contingencies such as pre-acquisition environmental matters and litigation are recognized at their acquisition-date fair value when their respective fair values can be determined. If the fair values of such contingencies cannot be determined, they are recognized at the acquisition date if the contingencies are probable and an amount can be reasonably estimated. | |||||||||||||
Acquisition-date fair value estimates are revised as necessary and accounted for as an adjustment to income from operations if, and when, additional information regarding these contingencies becomes available to further define and quantify assets acquired and liabilities assumed. All acquisition-related transaction costs have been expensed as incurred. | |||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||
Goodwill is the excess of our purchase cost over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but as discussed in the Asset Impairments section below, we assess our goodwill for impairment at least annually. | |||||||||||||
Other intangible assets consist primarily of customer and supplier relationships, covenants not-to-compete, licenses, permits (other than landfill permits, as all landfill-related intangible assets are combined with landfill tangible assets and amortized using our landfill amortization policy), and other contracts. Other intangible assets are recorded at acquisition date fair value and are generally amortized using either a 150% declining balance approach or a straight-line basis as we determine appropriate. Customer and supplier relationships are typically amortized over a term ranging between 10 and 15 years. Covenants not-to-compete are amortized over the term of the non-compete covenant, which is generally two to five years. Licenses, permits and other contracts are amortized over the definitive terms of the related agreements. If the underlying agreement does not contain definitive terms and the useful life is determined to be indefinite, the asset is not amortized. | |||||||||||||
Asset Impairments | Asset Impairments | ||||||||||||
We monitor the carrying value of our long-lived assets for potential impairment on an ongoing basis and test the recoverability of such assets using significant unobservable (“Level 3”) inputs whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset or asset group to its carrying value. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group; (ii) actual third-party valuations and/or (iii) information available regarding the current market for similar assets. If the fair value of an asset or asset group is determined to be less than the carrying amount of the asset or asset group, an impairment in the amount of the difference is recorded in the period that the impairment indicator occurs and is included in the “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” line item in our Consolidated Statement of Operations. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired. | |||||||||||||
There are additional considerations for impairments of landfills, goodwill and other indefinite-lived intangible assets, as described below. | |||||||||||||
Landfills — The assessment of impairment indicators and the recoverability of our capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the sensitive estimates involved. During the review of a landfill expansion application, a regulator may initially deny the expansion application although the expansion permit is ultimately granted. In addition, management may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace, or a landfill may be required to cease accepting waste, prior to receipt of the expansion permit. However, such events occur in the ordinary course of business in the waste industry and do not necessarily result in impairment of our landfill assets because, after consideration of all facts, such events may not affect our belief that we will ultimately obtain the expansion permit. As a result, our tests of recoverability, which generally make use of a probability-weighted cash flow estimation approach, may indicate that no impairment loss should be recorded. At December 31, 2014, one of our landfill sites for which we believe receipt of the expansion permit is probable, is not currently accepting waste. The net recorded capitalized landfill asset cost for this site was $247 million at December 31, 2014. We performed a test of recoverability for this landfill and the undiscounted cash flows resulting from our probability-weighted estimation approach significantly exceeded the carrying value of this site. During the year ended December 31, 2013, we recognized $262 million of charges to impair certain of our landfills, primarily as a result of our consideration of management’s decision in the fourth quarter of 2013 not to actively pursue expansion and/or development of such landfills. These charges were primarily associated with two landfills in our Eastern Canada Area, which are no longer accepting waste. We had previously concluded that receipt of permits for these landfills was probable. However, in connection with our asset rationalization and capital allocation analysis, which was influenced, in part, by our acquisition of RCI Environnement, Inc. (“RCI”), we determined that the future costs to construct these landfills could be avoided as we are able to allocate disposal that would have gone to these landfills to other facilities and not materially impact operations. As a result of management’s decision, we determined that the carrying values of landfill assets were no longer able to be recovered by the undiscounted cash flows attributable to these assets. As such, we wrote their carrying values down to their estimated fair values using a market approach considering the highest and best use of the assets. | |||||||||||||
Refer to Note 13 for additional information related to landfill asset impairments recognized during the reported periods. | |||||||||||||
Goodwill — At least annually, and more frequently if warranted, we assess our goodwill for impairment using Level 3 inputs. | |||||||||||||
We assess whether a goodwill impairment exists using both qualitative and quantitative assessments. Our qualitative assessment involves determining whether events or circumstances exist that indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If based on this qualitative assessment we determine it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, we will not perform a quantitative assessment. | |||||||||||||
If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount or if we elect not to perform a qualitative assessment, we perform a quantitative assessment, or two-step impairment test, to determine whether a goodwill impairment exists at the reporting unit. The first step in our quantitative assessment identifies potential impairments by comparing the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying value exceeds estimated fair value, there is an indication of potential impairment and the second step is performed to measure the amount of impairment. Fair value is typically estimated using a combination of the income approach and market approach or only an income approach when applicable. The income approach is based on the long-term projected future cash flows of the reporting units. We discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as market assumptions, the timing of the cash flows and the risks inherent in those cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting units’ expected long-term performance considering the economic and market conditions that generally affect our business. The market approach estimates fair value by measuring the aggregate market value of publicly-traded companies with similar characteristics to our business as a multiple of their reported cash flows. We then apply that multiple to the reporting units’ cash flows to estimate their fair values. We believe that this approach is appropriate because it provides a fair value estimate using valuation inputs from entities with operations and economic characteristics comparable to our reporting units. | |||||||||||||
Fair value computed by these two methods is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows, comparable marketplace data and the cost of capital. There are inherent uncertainties related to these factors and to our judgment in applying them to this analysis. However, we believe that these two methods provide a reasonable approach to estimating the fair value of our reporting units. | |||||||||||||
Refer to Notes 6 and 13 for additional information related to goodwill impairments recognized during the reported periods. | |||||||||||||
Indefinite-Lived Intangible Assets Other Than Goodwill — At least annually, and more frequently if warranted, we assess indefinite-lived intangible assets other than goodwill for impairment. | |||||||||||||
When performing the impairment test for indefinite-lived intangible assets, we generally first conduct a qualitative analysis to determine whether we believe it is more likely than not that an asset has been impaired. If we believe an impairment has occurred, we then evaluate for impairment by comparing the estimated fair value of assets to the carrying value. An impairment charge is recognized if the asset’s estimated fair value is less than its carrying value. | |||||||||||||
Fair value is typically estimated using an income approach. The income approach is based on the long-term projected future cash flows. We discount the estimated cash flows to present value using a weighted-average cost of capital that considers factors such as market assumptions, the timing of the cash flows and the risks inherent in those cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the expected long-term performance considering the economic and market conditions that generally affect our business. | |||||||||||||
Fair value computed by this method is arrived at using a number of factors, including projected future operating results, economic projections, anticipated future cash flows, comparable marketplace data and the cost of capital. There are inherent uncertainties related to these factors and to our judgment in applying them to this analysis. However, we believe that this method provides a reasonable approach to estimating the fair value of the reporting units. | |||||||||||||
Restricted Trust and Escrow Accounts | Restricted Trust and Escrow Accounts | ||||||||||||
As of both December 31, 2014 and December 31, 2013, our restricted trust and escrow accounts consist principally of funds deposited for purposes of settling landfill final capping, closure, post-closure and environmental remediation obligations. We often also have restricted trust and escrow account balances related to funds received from the issuance of tax-exempt bonds held in trust for the construction of various projects or facilities. As of December 31, 2014 and 2013, we had $171 million and $167 million, respectively, of restricted trust and escrow accounts, which are primarily included in “Other assets” in our Consolidated Balance Sheets. | |||||||||||||
Final Capping, Closure, Post-Closure and Environmental Remediation Funds — At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Balances maintained in these trust funds and escrow accounts will fluctuate based on (i) changes in statutory requirements; (ii) future deposits made to comply with contractual arrangements; (iii) the ongoing use of funds for qualifying final capping, closure, post-closure and environmental remediation activities; (iv) acquisitions or divestitures of landfills and (v) changes in the fair value of the financial instruments held in the trust fund or escrow accounts. | |||||||||||||
Tax-Exempt Bond Funds — We obtain funds from the issuance of industrial revenue bonds for the construction of disposal facilities and for equipment necessary to provide waste management services. Proceeds from these arrangements are directly deposited into trust accounts, and we do not have the ability to use the funds in regular operating activities. Accordingly, these borrowings are treated as non-cash financing activities and are excluded from our Consolidated Statements of Cash Flows. As our construction and equipment expenditures are documented and approved by the applicable bond trustee, the funds are released and we receive a cash reimbursement. These cash reimbursements are reported in the Consolidated Statements of Cash Flows as an investing activity when the cash is released from the trust funds. Generally, the funds are fully expended within one year of the debt issuance. When the debt matures, we generally repay our obligation with cash on hand and the debt repayments are included as a financing activity in the Consolidated Statements of Cash Flows. | |||||||||||||
Investments in Unconsolidated Entities | Investments in Unconsolidated Entities | ||||||||||||
Investments in unconsolidated entities over which the Company has significant influence are accounted for under the equity method of accounting. Investments in entities in which the Company does not have the ability to exert significant influence over the investees’ operating and financing activities are accounted for under the cost method of accounting. In addition to equity investments in unconsolidated subsidiaries, we support these ventures through loans and advances. These loans and advances are included as a component of “Other” within the “Net cash provided by investing activities” in our Consolidated Statement of Cash Flows. The following table summarizes our equity and cost method investments as of December 31 (in millions): | |||||||||||||
2014 | 2013 | ||||||||||||
Equity investments(a) | $ | 228 | $ | 437 | |||||||||
Cost investments | 180 | 154 | |||||||||||
Investments in unconsolidated entities | $ | 408 | $ | 591 | |||||||||
(a) | The amount reported in 2013 included $177 million attributable to our 2010 investment in Shanghai Environment Group (“SEG”), which was part of our Wheelabrator business. This investment was classified as a current asset and reflected in “Investment in unconsolidated entity” in our Consolidated Balance Sheet as of December 31, 2013, based on our intent to sell our investment in SEG within the next 12 months. We sold our investment in SEG in the first quarter of 2014. | ||||||||||||
We monitor and assess the carrying value of our investments throughout the year for potential impairment and write them down to their fair value when other-than-temporary declines exist. Fair value is generally based on (i) other third-party investors’ recent transactions in the securities; (ii) other information available regarding the current market for similar assets and/or (iii) a market or income approach as deemed appropriate. | |||||||||||||
Foreign Currency | Foreign Currency | ||||||||||||
We have operations in Canada as well as a cost center in India. Local currencies generally are considered the functional currencies of our operations and investments outside the United States. The assets and liabilities of our foreign operations are translated to U.S. dollars using the exchange rate at the balance sheet date. Revenues and expenses are translated to U.S. dollars using the average exchange rate during the period. The resulting translation difference is reflected as a component of comprehensive income. | |||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||
We primarily use derivative financial instruments to manage our risk associated with fluctuations in interest rates and foreign currency exchange rates. In prior years, we used interest rate swaps to maintain a strategic portion of our long-term debt obligations at variable, market-driven interest rates or in anticipation of planned senior note issuances to effectively lock in a fixed interest rate for those anticipated issuances. Foreign currency exchange rate derivatives are used to hedge our exposure to changes in exchange rates for anticipated intercompany debt transactions, and related interest payments, between Waste Management Holdings, Inc., a wholly-owned subsidiary (“WM Holdings”), and its Canadian subsidiaries. Prior to the sale of our Wheelabrator business, we used electricity commodity derivatives to mitigate the variability in our revenues and cash flows caused by fluctuations in the market prices for electricity. The financial statement impacts of our derivatives are discussed in Notes 8 and 14. | |||||||||||||
We obtain current valuations of our interest rate and foreign currency hedging instruments from third-party pricing models. The estimated fair values of derivatives used to hedge risks fluctuate over time and should be viewed in relation to the underlying hedged transaction and the overall management of our exposure to fluctuations in the underlying risks. The fair value of derivatives is included in other current assets, other long-term assets, current accrued liabilities or other long-term liabilities, as appropriate. Any ineffectiveness present in either fair value or cash flow hedges is recognized immediately in earnings without offset. There was no significant ineffectiveness in 2014, 2013 or 2012. | |||||||||||||
• | Foreign Currency Derivatives — Our foreign currency derivatives have been designated as cash flow hedges for accounting purposes, which results in the unrealized changes in the fair value of the derivative instruments being recorded in “Accumulated other comprehensive income” within the equity section of our Consolidated Balance Sheets. The associated balance in other comprehensive income is reclassified to earnings as the hedged cash flows affect earnings. In each of the periods presented, these derivatives have effectively mitigated the impacts of the hedged transactions, resulting in immaterial impacts to our results of operations for the periods presented. | ||||||||||||
• | Interest Rate Derivatives — Our previously outstanding “receive fixed, pay variable” interest rate swaps associated with outstanding fixed-rate senior notes had been designated as fair value hedges for accounting purposes. Accordingly, derivative assets were accounted for as an increase in the carrying value of our underlying debt obligations and derivative liabilities were accounted for as a decrease in the carrying value of our underlying debt instruments. These fair value adjustments are deferred and recognized as an adjustment to interest expense over the remaining term of the hedged instruments. Treasury locks and forward-starting swaps executed in prior years were designated as cash flow hedges for accounting purposes. The fair value of these derivative instruments were recorded in “Accumulated other comprehensive income” within the equity section of our Consolidated Balance Sheets. The associated balance in other comprehensive income is reclassified to earnings as the hedged cash flows occur. | ||||||||||||
Insured and Self-Insured Claims | Insured and Self-Insured Claims | ||||||||||||
We have retained a significant portion of the risks related to our health and welfare, automobile, general liability and workers’ compensation claims programs. The exposure for unpaid claims and associated expenses, including incurred but not reported losses, generally is estimated with the assistance of external actuaries and by factoring in pending claims and historical trends and data. The gross estimated liability associated with settling unpaid claims is included in “Accrued liabilities” in our Consolidated Balance Sheets if expected to be settled within one year, or otherwise is included in long-term “Other liabilities.” Estimated insurance recoveries related to recorded liabilities are reflected as current “Other receivables” or long-term “Other assets” in our Consolidated Balance Sheets when we believe that the receipt of such amounts is probable. | |||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||
Our revenues are generated from the fees we charge for waste collection, transfer, disposal and recycling and resource recovery services; from the sale of electricity and landfill gas, which are byproducts of our landfill operations; and from the sale of recyclable commodities, oil and gas and organic lawn and garden products. The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms such as frequency of service, weight, volume and the general market factors influencing a region’s rates. The fees we charge for our services generally include fuel surcharges, which are intended to pass through to customers increased direct and indirect costs incurred because of changes in market prices for fuel. 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, recycling commodities are delivered or as kilowatts are delivered to a customer by a waste-to-energy facility or independent power production plant. | |||||||||||||
Tangible product revenues primarily include the sale of recyclable commodities at our material recovery facilities and through our recycling brokerage services and, to a lesser extent, sales of oil and gas, metals and organic lawn and garden products. | |||||||||||||
We bill for certain services prior to performance. Such services include, among others, certain residential contracts that are billed on a quarterly basis and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided. | |||||||||||||
Capitalized Interest | Capitalized Interest | ||||||||||||
We capitalize interest on certain projects under development, including internal-use software and landfill expansion projects, and on certain assets under construction, including operating landfills and landfill gas-to-energy projects. During 2014, 2013 and 2012, total interest costs were $487 million, $500 million and $509 million, respectively, of which $16 million was capitalized in 2014, $19 million was capitalized in 2013 and $21 million was capitalized in 2012. In 2014, 2013 and 2012, interest was capitalized primarily for landfill construction costs. | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The Company is subject to income tax in the United States and Canada. Current tax obligations associated with our provision for income taxes are reflected in the accompanying Consolidated Balance Sheets as a component of “Accrued liabilities” and the deferred tax obligations are reflected in “Deferred income taxes.” | |||||||||||||
Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. The deferred income tax provision represents the change during the reporting period in the deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is required in assessing the timing and amounts of deductible and taxable items. We establish reserves for uncertain tax positions when, despite our belief that our tax return positions are fully supportable, we believe that certain positions may be challenged and potentially disallowed. When facts and circumstances change, we adjust these reserves through our provision for income taxes. | |||||||||||||
To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax, such amounts have been accrued and are classified as a component of income tax expense in our Consolidated Statements of Operations. | |||||||||||||
Contingent Liabilities | Contingent Liabilities | ||||||||||||
We estimate the amount of potential exposure we may have with respect to claims, assessments and litigation in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”). We are party to pending or threatened legal proceedings covering a wide range of matters in various jurisdictions. It is difficult to predict the outcome of litigation, as it is subject to many uncertainties. Additionally, it is not always possible for management to make a meaningful estimate of the potential loss or range of loss associated with such contingencies. | |||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information | ||||||||||||
Years Ended December 31, | |||||||||||||
Cash paid during the year (in millions): | 2014 | 2013 | 2012 | ||||||||||
Interest, net of capitalized interest and periodic settlements from interest rate swap agreements | $ | 461 | $ | 478 | $ | 485 | |||||||
Income taxes | 758 | 511 | 366 | ||||||||||
For the year ended December 31, 2013, non-cash investing and financing activities included proceeds from tax-exempt borrowings, net of principal payments made directly from trust funds, of $99 million. During 2014 and 2012, we did not have any significant non-cash investing and financing activities. Non-cash investing and financing activities are excluded from the Consolidated Statements of Cash Flows. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Policies [Abstract] | |||||||||||||
Summary of Revisions in Risk-Free Discount Rate Applied to Environmental Remediation Liabilities and Recovery Assets | The following table summarizes the impacts of revisions in the risk-free discount rate applied to our environmental remediation liabilities and recovery assets during the reported periods (in millions) and the risk-free discount rate applied as of each reporting date: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Charge (reduction) to Operating expenses | $ | 10 | $ | (13 | ) | $ | 3 | ||||||
Risk-free discount rate applied to environmental remediation liabilities and recovery assets | 2 | % | 3 | % | 1.75 | % | |||||||
Schedule of Estimated Useful Lives for Significant Property and Equipment Categories | The estimated useful lives for significant property and equipment categories are as follows (in years): | ||||||||||||
Useful Lives | |||||||||||||
Vehicles — excluding rail haul cars | 3 to 10 | ||||||||||||
Vehicles — rail haul cars | 10 to 20 | ||||||||||||
Machinery and equipment — including containers | 3 to 30 | ||||||||||||
Buildings and improvements — excluding waste-to-energy facilities | 5 to 40 | ||||||||||||
Waste-to-energy facilities and related equipment | up to 50 | ||||||||||||
Furniture, fixtures and office equipment | 3 to 10 | ||||||||||||
Summary of Equity and Cost Method Investments | The following table summarizes our equity and cost method investments as of December 31 (in millions): | ||||||||||||
2014 | 2013 | ||||||||||||
Equity investments(a) | $ | 228 | $ | 437 | |||||||||
Cost investments | 180 | 154 | |||||||||||
Investments in unconsolidated entities | $ | 408 | $ | 591 | |||||||||
(a) | The amount reported in 2013 included $177 million attributable to our 2010 investment in Shanghai Environment Group (“SEG”), which was part of our Wheelabrator business. This investment was classified as a current asset and reflected in “Investment in unconsolidated entity” in our Consolidated Balance Sheet as of December 31, 2013, based on our intent to sell our investment in SEG within the next 12 months. We sold our investment in SEG in the first quarter of 2014. | ||||||||||||
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information | ||||||||||||
Years Ended December 31, | |||||||||||||
Cash paid during the year (in millions): | 2014 | 2013 | 2012 | ||||||||||
Interest, net of capitalized interest and periodic settlements from interest rate swap agreements | $ | 461 | $ | 478 | $ | 485 | |||||||
Income taxes | 758 | 511 | 366 |
Landfill_and_Environmental_Rem1
Landfill and Environmental Remediation Liabilities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||
Liabilities for Landfill and Environmental Remediation Costs | Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): | ||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Landfill | Environmental | Total | Landfill | Environmental | Total | ||||||||||||||||||||
Remediation | Remediation | ||||||||||||||||||||||||
Current (in accrued liabilities) | $ | 104 | $ | 43 | $ | 147 | $ | 95 | $ | 35 | $ | 130 | |||||||||||||
Long-term | 1,339 | 192 | 1,531 | 1,326 | 192 | 1,518 | |||||||||||||||||||
$ | 1,443 | $ | 235 | $ | 1,678 | $ | 1,421 | $ | 227 | $ | 1,648 | ||||||||||||||
Changes to Landfill and Environmental Remediation Liabilities | The changes to landfill and environmental remediation liabilities for the years ended December 31, 2013 and 2014 are reflected in the table below (in millions): | ||||||||||||||||||||||||
Landfill | Environmental | ||||||||||||||||||||||||
Remediation | |||||||||||||||||||||||||
December 31, 2012 | $ | 1,338 | $ | 253 | |||||||||||||||||||||
Obligations incurred and capitalized | 59 | — | |||||||||||||||||||||||
Obligations settled | (71 | ) | (20 | ) | |||||||||||||||||||||
Interest accretion | 87 | 4 | |||||||||||||||||||||||
Revisions in estimates and interest rate assumptions(a)(b) | 6 | (6 | ) | ||||||||||||||||||||||
Acquisitions, divestitures and other adjustments | 2 | (4 | ) | ||||||||||||||||||||||
December 31, 2013 | $ | 1,421 | $ | 227 | |||||||||||||||||||||
Obligations incurred and capitalized | 54 | — | |||||||||||||||||||||||
Obligations settled | (69 | ) | (21 | ) | |||||||||||||||||||||
Interest accretion | 88 | 5 | |||||||||||||||||||||||
Revisions in estimates and interest rate assumptions(a)(b) | (9 | ) | 25 | ||||||||||||||||||||||
Acquisitions, divestitures and other adjustments(c) | (42 | ) | (1 | ) | |||||||||||||||||||||
December 31, 2014 | $ | 1,443 | $ | 235 | |||||||||||||||||||||
(a) | The amounts reported for our landfill liabilities include a reduction of approximately $20 million for 2013 and an increase of approximately $2 million for 2014, related to our year-end annual review of landfill final capping, closure and post-closure obligations. The amount reported in 2013 also includes an increase of approximately $23 million due to the acceleration of the timing of closure and post-closure activities at two of our landfills related to landfill asset impairments, discussed further in Note 13. | ||||||||||||||||||||||||
(b) | The amount reported in 2013 for our environmental remediation liabilities includes the impact of an increase in the risk-free discount rate used to measure our liabilities from 1.75% at December 31, 2012 to 3.0% at December 31, 2013, resulting in a decrease of $18 million to our environmental remediation liabilities and a corresponding decrease to “Operating” expenses. | ||||||||||||||||||||||||
The amount reported in 2014 for environmental remediation liabilities includes the impact of a decrease in the risk-free discount rate used to measure our liabilities from 3.0% at December 31, 2013 to 2.0% at December 31, 2014, resulting in an increase of $13 million to our environmental remediation liabilities and a corresponding increase to “Operating” expenses. | |||||||||||||||||||||||||
(c) | The amounts reported for our 2014 landfill liabilities include reductions of approximately $25 million for divestitures, including the divestiture of our Wheelabrator business. |
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||
Property and Equipment | Property and equipment at December 31 consisted of the following (in millions): | ||||||||||||
2014 | 2013 | ||||||||||||
Land | $ | 611 | $ | 636 | |||||||||
Landfills | 13,463 | 13,416 | |||||||||||
Vehicles | 4,131 | 4,115 | |||||||||||
Machinery and equipment(a) | 2,470 | 3,888 | |||||||||||
Containers | 2,377 | 2,449 | |||||||||||
Buildings and improvements(a) | 2,588 | 3,594 | |||||||||||
Furniture, fixtures and office equipment | 985 | 969 | |||||||||||
26,625 | 29,067 | ||||||||||||
Less accumulated depreciation on tangible property and equipment | (8,278 | ) | (9,205 | ) | |||||||||
Less accumulated landfill airspace amortization | (7,690 | ) | (7,518 | ) | |||||||||
$ | 10,657 | $ | 12,344 | ||||||||||
(a) | The decreases at December 31, 2014 are primarily related to the sale of our Wheelabrator business as discussed further in Note 19. | ||||||||||||
Depreciation and Amortization Expense Including Amortization Expense for Assets Recorded as Capital Leases | Depreciation and amortization expense, including amortization expense for assets recorded as capital leases, was comprised of the following for the years ended December 31 (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Depreciation of tangible property and equipment | $ | 834 | $ | 853 | $ | 833 | |||||||
Amortization of landfill airspace | 380 | 400 | 395 | ||||||||||
Depreciation and amortization expense | $ | 1,214 | $ | 1,253 | $ | 1,228 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Other Intangible Assets | Our other intangible assets as of December 31, 2014 and 2013 were comprised of the following (in millions): | ||||||||||||||||
Customer | Covenants | Licenses, | Total | ||||||||||||||
and | Not-to- | Permits | |||||||||||||||
Supplier | Compete | and Other | |||||||||||||||
Relationships | |||||||||||||||||
December 31, 2014: | |||||||||||||||||
Intangible assets | $ | 576 | $ | 63 | $ | 116 | $ | 755 | |||||||||
Less accumulated amortization | (231 | ) | (44 | ) | (40 | ) | (315 | ) | |||||||||
$ | 345 | $ | 19 | $ | 76 | $ | 440 | ||||||||||
December 31, 2013: | |||||||||||||||||
Intangible assets | $ | 604 | $ | 87 | $ | 123 | $ | 814 | |||||||||
Less accumulated amortization | (193 | ) | (57 | ) | (35 | ) | (285 | ) | |||||||||
$ | 411 | $ | 30 | $ | 88 | $ | 529 | ||||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Components of 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 December 31, 2014: | ||||||||
2014 | 2013 | ||||||||
U.S. revolving credit facility, maturing July 2018 (weighted average interest rate of 1.2% at December 31, 2013) | $ | — | $ | 420 | |||||
Letter of credit facilities, maturing through December 2018 | — | — | |||||||
Canadian credit facility and term loan, maturing November 2017 (weighted average effective interest rate of 2.6% at December 31, 2014 and 2.7% at December 31, 2013) | 232 | 414 | |||||||
Senior notes maturing through 2039, interest rates ranging from 2.60% to 7.75% (weighted average interest rate of 5.7% at December 31, 2014 and 2013) | 6,273 | 6,287 | |||||||
Tax-exempt bonds maturing through 2045, fixed and variable interest rates ranging from 0.04% to 5.7% (weighted average interest rate of 2.2% at December 31, 2014 and 2.3% at December 31, 2013) | 2,541 | 2,664 | |||||||
Capital leases and other, maturing through 2055, interest rates up to 12% | 389 | 441 | |||||||
$ | 9,435 | $ | 10,226 | ||||||
Current portion of long-term debt | 1,090 | 726 | |||||||
$ | 8,345 | $ | 9,500 | ||||||
Summary of Requirements of Financial Covenants Contained in Revolving Credit Facilities | The following table summarizes the most restrictive requirements of these financial covenants (all terms used to measure these ratios are defined by the facilities): | ||||||||
Interest coverage ratio | > 2.75 to 1 | ||||||||
Total debt to EBITDA(a) | < 3.75 to 1 |
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Fair Values of Derivative Instruments Recorded in Balance Sheet | The following table summarizes the fair values of derivative instruments recorded in our Consolidated Balance Sheet (in millions): | ||||||||||||
December 31, | |||||||||||||
Derivatives Designated as Hedging Instruments | Balance Sheet Location | 2014 | 2013 | ||||||||||
Foreign currency derivatives | Long-term other assets | $ | 28 | $ | 2 | ||||||||
Total derivative assets | $ | 28 | $ | 2 | |||||||||
Electricity commodity derivatives(a) | Current accrued liabilities | $ | — | $ | 3 | ||||||||
Interest rate derivatives | Current accrued liabilities | — | 28 | ||||||||||
Total derivative liabilities | $ | — | $ | 31 | |||||||||
(a) | Our electricity commodity derivatives were associated with our Wheelabrator business and were divested in conjunction with the sale of that business in December 2014. | ||||||||||||
Impact of Periodic Settlements of Active Swap Agreements and Impact of Terminated Swap Agreements on Results of Operations | The following table summarizes these impacts on our results of operations (in millions): | ||||||||||||
Years Ended December 31, | |||||||||||||
Decrease to Interest Expense Due to Hedge Accounting for Interest Rate Swaps | 2014 | 2013 | 2012 | ||||||||||
Periodic settlements of active swap agreements | $ | — | $ | — | $ | 8 | |||||||
Terminated swap agreements | 14 | 20 | 22 | ||||||||||
$ | 14 | $ | 20 | $ | 30 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Provision for Income Taxes | Our “Provision for income taxes” consisted of the following (in millions): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current: | |||||||||||||
Federal | $ | 414 | $ | 389 | $ | 268 | |||||||
State | 61 | 79 | 72 | ||||||||||
Foreign | 56 | 45 | 36 | ||||||||||
531 | 513 | 376 | |||||||||||
Deferred: | |||||||||||||
Federal | (89 | ) | (82 | ) | 48 | ||||||||
State | (33 | ) | (14 | ) | 17 | ||||||||
Foreign | 4 | (53 | ) | 2 | |||||||||
(118 | ) | (149 | ) | 67 | |||||||||
Provision for income taxes | $ | 413 | $ | 364 | $ | 443 | |||||||
U.S. Federal Statutory Income Tax Rate Reconciled to Effective Rate | The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income tax expense at U.S. federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
Federal tax credits | (3.21 | ) | (11.74 | ) | (4.13 | ) | |||||||
Taxing authority audit settlements and other tax adjustments | (1.59 | ) | (3.56 | ) | (0.02 | ) | |||||||
Noncontrolling interests | (0.81 | ) | (2.28 | ) | (1.16 | ) | |||||||
State and local income taxes, net of federal income tax benefit | 1.77 | 9.81 | 3.85 | ||||||||||
Tax rate differential on foreign income | (0.46 | ) | 1.63 | (0.96 | ) | ||||||||
Tax impact of impairments | 0.46 | 41.95 | 0.57 | ||||||||||
Tax impact of divestitures | (7.89 | ) | — | — | |||||||||
Other | 0.34 | 2.94 | 0.8 | ||||||||||
Provision for income taxes | 23.61 | % | 73.75 | % | 33.95 | % | |||||||
Income Before Income Taxes Showing by Source | For financial reporting purposes, income (loss) before income taxes by source was as follows (in millions): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic | $ | 1,601 | $ | 548 | $ | 1,175 | |||||||
Foreign | 150 | (54 | ) | 128 | |||||||||
Income before income taxes | $ | 1,751 | $ | 494 | $ | 1,303 | |||||||
Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) are as follows (in millions): | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss, capital loss and tax credit carry-forwards | $ | 297 | $ | 164 | |||||||||
Miscellaneous and other reserves, net | 380 | 356 | |||||||||||
Subtotal | 677 | 520 | |||||||||||
Valuation allowance | (300 | ) | (149 | ) | |||||||||
Deferred tax liabilities: | |||||||||||||
Landfill and environmental remediation liabilities | (22 | ) | (30 | ) | |||||||||
Property and equipment | (598 | ) | (966 | ) | |||||||||
Goodwill and other intangibles | (1,095 | ) | (1,104 | ) | |||||||||
Net deferred tax liabilities | $ | (1,338 | ) | $ | (1,729 | ) | |||||||
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Including Accrued interest | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, including accrued interest for 2014, 2013 and 2012 is as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Balance at January 1 | $ | 49 | $ | 54 | $ | 49 | |||||||
Additions based on tax positions related to the current year | 9 | 6 | 15 | ||||||||||
Additions based on tax positions of prior years | 2 | — | — | ||||||||||
Additions due to acquisitions | — | — | — | ||||||||||
Accrued interest | 1 | 2 | 2 | ||||||||||
Reductions based on tax positions related to the current year | — | — | — | ||||||||||
Reductions for tax positions of prior years | — | (7 | ) | (1 | ) | ||||||||
Settlements | (11 | ) | (1 | ) | (4 | ) | |||||||
Lapse of statute of limitations | (8 | ) | (5 | ) | (7 | ) | |||||||
Balance at December 31 | $ | 42 | $ | 49 | $ | 54 | |||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||
Individually Significant Multiemployer Pension Plans | The following table outlines our participation in multiemployer plans considered to be individually significant (dollar amounts in millions): | ||||||||||||||||||||||
EIN/Pension Plan | Pension Protection Act | FIP/RP | Company | Expiration Date | |||||||||||||||||||
Contributions(d) | |||||||||||||||||||||||
Number | Reported Status(a) | Status(b),(c) | of Collective | ||||||||||||||||||||
Bargaining | |||||||||||||||||||||||
Pension Fund | 2014 | 2013 | 2014 | 2013 | 2012 | Agreement(s) | |||||||||||||||||
Automotive Industries Pension Plan | EIN: 94-1133245; | Critical | Critical | Implemented | $ | 1 | $ | 1 | $ | 1 | Various dates | ||||||||||||
through | |||||||||||||||||||||||
Plan Number: 001 | 6/30/18 | ||||||||||||||||||||||
Central States, Southeast and Southwest Areas Pension Plan | EIN: 36-6044243; Plan Number: 001 | Critical | Critical | Implemented | 1 | — | — | (e) | |||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | EIN: 36-6513567; Plan Number: 001 | Endangered as of | Endangered as of | Implemented | 6 | 6 | 5 | 9/30/18 | |||||||||||||||
9/30/12 | |||||||||||||||||||||||
9/30/13 | |||||||||||||||||||||||
Suburban Teamsters of Northern Illinois Pension Plan | EIN: 36-6155778; Plan Number: 001 | Critical | Critical | Implemented | 3 | 2 | 2 | Various dates | |||||||||||||||
through | |||||||||||||||||||||||
9/30/17 | |||||||||||||||||||||||
Teamsters Employers Local 945 Pension Fund | EIN: 22-6196388; Plan Number: 001 | Critical | Critical | Implemented | — | — | — | Various dates | |||||||||||||||
through | |||||||||||||||||||||||
12/31/15 | |||||||||||||||||||||||
Teamsters Local 301 Pension Plan | EIN: 36-6492992; Plan Number: 001 | Not Endangered or Critical | Not Endangered or Critical | Not | 1 | 1 | 1 | 9/30/18 | |||||||||||||||
Applicable | |||||||||||||||||||||||
Western Conference of Teamsters Pension Plan | EIN: 91-6145047; Plan Number: 001 | Not Endangered or Critical | Not | Not | 24 | 22 | 22 | Various dates | |||||||||||||||
Endangered | Applicable | through | |||||||||||||||||||||
or Critical | 12/31/19 | ||||||||||||||||||||||
Western Pennsylvania Teamsters | EIN: 25-6029946; | Critical | Critical | Implemented | 1 | 1 | 1 | 12/31/16 | |||||||||||||||
and Employers Pension Plan | Plan Number: 001 | ||||||||||||||||||||||
$ | 37 | $ | 33 | $ | 32 | ||||||||||||||||||
Contributions to other multiemployer pension plans | 7 | 7 | 7 | ||||||||||||||||||||
Total contributions to multiemployer pension plans | $ | 44 | $ | 40 | $ | 39 | |||||||||||||||||
(a) | Unless otherwise noted in the table, the most recent Pension Protection Act zone status available in 2014 and 2013 is for the plan’s year-end at December 31, 2013 and 2012, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. As defined in the Pension Protection Act of 2006, among other factors, plans reported as critical are generally less than 65% funded and plans reported as endangered are generally less than 80% funded. | ||||||||||||||||||||||
(b) | The “FIP/RP Status” column indicates plans for which a Funding Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) is either pending or has been implemented. | ||||||||||||||||||||||
(c) | A multiemployer defined benefit pension plan that has been certified as endangered, seriously endangered or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable FIP or RP. | ||||||||||||||||||||||
(d) | The Company was listed in the Form 5500 of the multiemployer plans considered to be individually significant as providing more than 5% of the total contributions for each of the following plans and plan years: | ||||||||||||||||||||||
Year Contributions to Plan | |||||||||||||||||||||||
Exceeded 5% of Total Contributions | |||||||||||||||||||||||
(as of Plan’s Year End) | |||||||||||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | 9/30/2013 and 9/30/2012 | ||||||||||||||||||||||
Suburban Teamsters of Northern Illinois Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
Teamsters Local 301 Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2014. | |||||||||||||||||||||||
(e) | The Company believes there are no collective bargaining agreements remaining that require continuing contributions to this plan; however, this point is the subject of pending litigation with the trustees for the Central States, Southeast and Southwest Areas Pension Plan. | ||||||||||||||||||||||
Multiemployer Plan and Year with Employer's Total Contribution Greater Than 5% | (d) | The Company was listed in the Form 5500 of the multiemployer plans considered to be individually significant as providing more than 5% of the total contributions for each of the following plans and plan years: | |||||||||||||||||||||
Year Contributions to Plan | |||||||||||||||||||||||
Exceeded 5% of Total Contributions | |||||||||||||||||||||||
(as of Plan’s Year End) | |||||||||||||||||||||||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund | 9/30/2013 and 9/30/2012 | ||||||||||||||||||||||
Suburban Teamsters of Northern Illinois Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
Teamsters Local 301 Pension Plan | 12/31/2013 and 12/31/2012 | ||||||||||||||||||||||
At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2014. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||
Changes to Net Insurance Liabilities | The changes to our net insurance liabilities for the three years ended December 31, 2014 are summarized below (in millions): | ||||||||||||
Gross Claims | Receivables | Net Claims | |||||||||||
Liability | Associated with | Liability | |||||||||||
Insured Claims(a) | |||||||||||||
Balance, December 31, 2011 | $ | 511 | $ | (161 | ) | $ | 350 | ||||||
Self-insurance expense (benefit) | 222 | (59 | ) | 163 | |||||||||
Cash (paid) received | (164 | ) | 18 | (146 | ) | ||||||||
Balance, December 31, 2012 | 569 | (202 | ) | 367 | |||||||||
Self-insurance expense (benefit) | 177 | (5 | ) | 172 | |||||||||
Cash (paid) received | (156 | ) | 10 | (146 | ) | ||||||||
Balance, December 31, 2013 | 590 | (197 | ) | 393 | |||||||||
Self-insurance expense (benefit) | 168 | (9 | ) | 159 | |||||||||
Cash (paid) received | (161 | ) | 23 | (138 | ) | ||||||||
Balance, December 31, 2014(b) | $ | 597 | $ | (183 | ) | $ | 414 | ||||||
Current portion at December 31, 2014 | $ | 129 | $ | (17 | ) | $ | 112 | ||||||
Long-term portion at December 31, 2014 | $ | 468 | $ | (166 | ) | $ | 302 | ||||||
(a) | Amounts reported as receivables associated with insured claims are related to both paid and unpaid claims liabilities. | ||||||||||||
(b) | We currently expect substantially all of our net claims liability to be settled in cash over the next five years. |
Restructuring_Tables
Restructuring (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||
Restructuring Charges Pre Tax by Segment | The following table summarizes pre-tax restructuring charges, including employee severance and benefit costs and other charges, for the years ended December 31 for the respective periods (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Solid Waste | $ | 10 | $ | 7 | $ | 19 | |||||||
Wheelabrator | 1 | 1 | 3 | ||||||||||
Corporate and Other | 71 | 10 | 45 | ||||||||||
$ | 82 | $ | 18 | $ | 67 | ||||||||
Asset_Impairments_and_Unusual_1
Asset Impairments and Unusual Items (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Extraordinary and Unusual Items [Abstract] | |||||||||||||
Components of (Income) Expense from Divestitures, Asset Impairments (Other Than Goodwill) and Unusual Items | The following table summarizes the major components of “(Income) expense from divestitures, asset impairments and unusual items” for the years ended December 31 for the respective periods (in millions): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(Income) expense from divestitures | $ | (515 | ) | $ | (8 | ) | $ | — | |||||
Asset impairments (other than goodwill) | 345 | 472 | 79 | ||||||||||
$ | (170 | ) | $ | 464 | $ | 79 | |||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||
Component of Accumulated Other Comprehensive Income | The changes in the balances of each component of accumulated other comprehensive 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): | ||||||||||||||||||||
Derivative | Available- | Foreign | Post- | Total | |||||||||||||||||
Instruments | for-Sale | Currency | Retirement | ||||||||||||||||||
Securities | Translation | Benefit | |||||||||||||||||||
Adjustments | Plans | ||||||||||||||||||||
Balance, December 31, 2011 | $ | (62 | ) | $ | 2 | $ | 243 | $ | (11 | ) | $ | 172 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $(14), $2, $0 and $(2), respectively | (22 | ) | 2 | 33 | (2 | ) | 11 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $5, $0, $0 and $0, respectively | 10 | — | — | — | 10 | ||||||||||||||||
Net current period other comprehensive income (loss) | (12 | ) | 2 | 33 | (2 | ) | 21 | ||||||||||||||
Balance, December 31, 2012 | $ | (74 | ) | $ | 4 | $ | 276 | $ | (13 | ) | $ | 193 | |||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $9, $1, $0 and $10, respectively | 14 | 2 | (68 | ) | 15 | (37 | ) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(1), $0, $0 and $0, respectively | (2 | ) | — | — | — | (2 | ) | ||||||||||||||
Net current period other comprehensive income (loss) | 12 | 2 | (68 | ) | 15 | (39 | ) | ||||||||||||||
Balance, December 31, 2013 | $ | (62 | ) | $ | 6 | $ | 208 | $ | 2 | $ | 154 | ||||||||||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $4, $2, $0 and $(8), respectively | 6 | 4 | (107 | ) | (11 | ) | (108 | ) | |||||||||||||
Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(3), $0, $0 and $0, respectively | (5 | ) | — | (17 | ) | (1 | ) | (23 | ) | ||||||||||||
Net current period other comprehensive income (loss) | 1 | 4 | (124 | ) | (12 | ) | (131 | ) | |||||||||||||
Balance, December 31, 2014 | $ | (61 | ) | $ | 10 | $ | 84 | $ | (10 | ) | $ | 23 | |||||||||
Other Comprehensive Income (Loss) Before Reclassifications Associated With Cash Flow Derivative Instruments | The amounts of other comprehensive income (loss) before reclassifications associated with our cash flow derivative instruments are as follows (in millions): | ||||||||||||||||||||
Amount of Derivative Gain (Loss) Recognized in OCI | |||||||||||||||||||||
(Effective Portion) | |||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||
Derivatives Designated as Cash Flow Hedges | 2014 | 2013 | 2012 | ||||||||||||||||||
Forward-starting interest rate swaps | $ | (8 | ) | $ | 14 | $ | (27 | ) | |||||||||||||
Foreign currency derivatives | 23 | 17 | (9 | ) | |||||||||||||||||
Electricity commodity derivatives | (5 | ) | (8 | ) | — | ||||||||||||||||
Total before tax | 10 | 23 | (36 | ) | |||||||||||||||||
Tax (expense) benefit | (4 | ) | (9 | ) | 14 | ||||||||||||||||
Net of tax | $ | 6 | $ | 14 | $ | (22 | ) | ||||||||||||||
Reclassification of Component of Accumulated Other Comprehensive Income | The significant amounts reclassified out of each component of accumulated other comprehensive income are as follows (in millions, with amounts in parentheses representing debits to the statement of operations classification): | ||||||||||||||||||||
Amount Reclassified from | |||||||||||||||||||||
Accumulated | |||||||||||||||||||||
Other Comprehensive | |||||||||||||||||||||
Income | |||||||||||||||||||||
Years Ended December 31, | Statement of | ||||||||||||||||||||
Details about Accumulated Other Comprehensive Income Components | 2014 | 2013 | 2012 | Operations Classification | |||||||||||||||||
Gains and losses on cash flow hedges: | |||||||||||||||||||||
Forward-starting interest rate swaps | $ | (10 | ) | $ | (7 | ) | $ | (3 | ) | Interest expense | |||||||||||
Treasury rate locks | (1 | ) | (2 | ) | (7 | ) | Interest expense | ||||||||||||||
Foreign currency derivatives | 27 | 21 | (15 | ) | Other, net | ||||||||||||||||
Electricity commodity derivatives | (8 | ) | (9 | ) | 10 | Operating revenues | |||||||||||||||
8 | 3 | (15 | ) | Total before tax | |||||||||||||||||
(3 | ) | (1 | ) | 5 | Tax (expense) benefit | ||||||||||||||||
Total reclassifications for the period | $ | 5 | $ | 2 | $ | (10 | ) | Net of tax |
Capital_Stock_Dividends_and_Sh1
Capital Stock, Dividends and Share Repurchases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Compensation and Retirement Disclosure [Abstract] | |||||
Stock Repurchase Programs | The following is a summary of our share repurchases for the periods presented. We did not repurchase any shares of common stock in 2012. | ||||
Years Ended December 31, | |||||
2014(a) | 2013 | ||||
Shares repurchased (in thousands) | 9,569 | 5,368 | |||
Weighted average per share purchase price | $43.89 | $43.48 - $45.95 | |||
Total repurchases (in millions) | $600 | $239 | |||
(a) | In February 2014, the Board of Directors authorized up to $600 million in share repurchases. During the third quarter of 2014, we entered into accelerated share repurchase (“ASR”) agreements with two financial institutions to repurchase an aggregate of $600 million of our common stock. At the beginning of the ASR repurchase periods, we delivered the $600 million in cash and received 9.6 million shares, which represented 70% of the shares expected to be repurchased based on then-current market prices. These agreements were completed in February 2015 and we received approximately 2.8 million additional shares. The final weighted average per share purchase price for the completed ASR agreements was $48.58. |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||
Summary of RSUs | Restricted Stock Units — A summary of our RSUs is presented in the table below (units in thousands): | ||||||||
Units | Weighted Average | ||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 535 | $ | 35.68 | ||||||
Granted | 219 | $ | 41.41 | ||||||
Vested | (57 | ) | $ | 39.58 | |||||
Forfeited | (77 | ) | $ | 38.41 | |||||
Unvested at December 31, 2014 | 620 | $ | 37.44 | ||||||
Summary of PSUs | A summary of our PSUs is presented in the table below (units in thousands): | ||||||||
Units | Weighted Average | ||||||||
Fair Value | |||||||||
Unvested at January 1, 2014 | 1,826 | $ | 43.41 | ||||||
Granted | 695 | $ | 45.83 | ||||||
Vested | (317 | ) | $ | 42.42 | |||||
Forfeited | (171 | ) | $ | 46.2 | |||||
Unvested at December 31, 2014 | 2,033 | $ | 46.28 | ||||||
Summary of Stock Options | A summary of our stock options is presented in the table below (options in thousands): | ||||||||
Options | Weighted Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 9,674 | $ | 35.98 | ||||||
Granted | 2,099 | $ | 41.23 | ||||||
Exercised | (2,798 | ) | $ | 35.85 | |||||
Forfeited or expired | (597 | ) | $ | 37.6 | |||||
Outstanding at December 31, 2014(a) | 8,378 | $ | 37.22 | ||||||
Exercisable at December 31, 2014(b) | 4,451 | $ | 36.05 | ||||||
(a) | Stock options outstanding as of December 31, 2014 have a weighted average remaining contractual term of 7.2 years and an aggregate intrinsic value of $118 million based on the market value of our common stock on December 31, 2014. | ||||||||
(b) | Stock options exercisable as of December 31, 2014 have a weighted average remaining contractual term of 6.2 years and an aggregate intrinsic value of $68 million based on the market value of our common stock on December 31, 2014. Stock options exercisable at December 31, 2014 have an exercise price ranging from $32.18 to $40.62. | ||||||||
Weighted Average Assumptions Used to Value Employee Stock Options Granted | The following table presents the weighted average assumptions used to value employee stock options granted during the years ended December 31 under the Black-Scholes valuation model: | ||||||||
2014 | 2013 | 2012 | |||||||
Expected option life | 4.8 years | 5.4 years | 5.5 years | ||||||
Expected volatility | 18.40% | 21.80% | 24.20% | ||||||
Expected dividend yield | 3.60% | 4.00% | 4.10% | ||||||
Risk-free interest rate | 1.60% | 1.00% | 1.10% |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Common Share Data Used for Computing Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were computed using the following common share data (shares in millions): | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Number of common shares outstanding at year-end | 458.5 | 464.3 | 464.2 | ||||||||||
Effect of using weighted average common shares outstanding | 4.1 | 3.4 | (0.6 | ) | |||||||||
Weighted average basic common shares outstanding | 462.6 | 467.7 | 463.6 | ||||||||||
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 3 | 2.1 | 0.8 | ||||||||||
Weighted average diluted common shares outstanding | 465.6 | 469.8 | 464.4 | ||||||||||
Potentially issuable shares | 11.3 | 12.3 | 15.3 | ||||||||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 0.4 | 0.1 | 8.9 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
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): | ||||||||||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2014 Using | |||||||||||||||||
Total | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 1,335 | $ | 1,335 | $ | — | $ | — | |||||||||
Fixed-income securities | 38 | — | 38 | — | |||||||||||||
Redeemable preferred stock | 44 | — | — | 44 | |||||||||||||
Foreign currency derivatives | 28 | — | 28 | — | |||||||||||||
Total assets | $ | 1,445 | $ | 1,335 | $ | 66 | $ | 44 | |||||||||
Fair Value Measurements at | |||||||||||||||||
December 31, 2013 Using | |||||||||||||||||
Total | Quoted | Significant | Significant | ||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||
Active | Observable | Inputs | |||||||||||||||
Markets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Assets: | |||||||||||||||||
Money market funds | $ | 99 | $ | 99 | $ | — | $ | — | |||||||||
Fixed-income securities | 36 | — | 36 | — | |||||||||||||
Redeemable preferred stock | 25 | — | — | 25 | |||||||||||||
Foreign currency derivatives | 2 | — | 2 | — | |||||||||||||
Total assets | $ | 162 | $ | 99 | $ | 38 | $ | 25 | |||||||||
Liabilities: | |||||||||||||||||
Interest rate derivatives | $ | 28 | $ | — | $ | 28 | $ | — | |||||||||
Electricity commodity derivatives(a) | 3 | — | 3 | — | |||||||||||||
Total liabilities | $ | 31 | $ | — | $ | 31 | $ | — | |||||||||
a) | Our electricity commodity derivatives were associated with our Wheelabrator business and were divested in conjunction with the sale of that business in December 2014. |
Acquisitions_and_Divestitures_
Acquisitions and Divestitures (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||
Purchase Price Allocation | The following table presents the final allocations of the purchase price for the Greenstar and RCI acquisitions (in millions): | ||||||||||||||||
Greenstar | RCI | ||||||||||||||||
Accounts and other receivables | $ | 30 | $ | 32 | |||||||||||||
Parts and supplies | 4 | — | |||||||||||||||
Other current assets | 2 | — | |||||||||||||||
Property and equipment | 58 | 117 | |||||||||||||||
Goodwill | 122 | 191 | |||||||||||||||
Other intangible assets | 32 | 169 | |||||||||||||||
Accounts payable | (17 | ) | — | ||||||||||||||
Accrued liabilities | (12 | ) | — | ||||||||||||||
Deferred revenues | — | (4 | ) | ||||||||||||||
Landfill and environmental remediation liabilities | (2 | ) | (1 | ) | |||||||||||||
Current portion of long-term debt | (4 | ) | — | ||||||||||||||
Long-term debt, less current portion | (2 | ) | (3 | ) | |||||||||||||
Deferred income taxes, net | — | (14 | ) | ||||||||||||||
Other liabilities | (5 | ) | — | ||||||||||||||
Total purchase price | $ | 206 | $ | 487 | |||||||||||||
Allocation Purchase Price Intangible Assets | The following table presents the final allocations of the purchase price to intangible assets (amounts in millions, except for amortization periods): | ||||||||||||||||
Greenstar | RCI | ||||||||||||||||
Amount | Weighted Average | Amount | Weighted Average | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Periods | Periods | ||||||||||||||||
(in Years) | (in Years) | ||||||||||||||||
Supplier relationships | $ | 31 | 10 | $ | — | — | |||||||||||
Lease agreements | 1 | 8.4 | — | — | |||||||||||||
Customer relationships | — | — | 162 | 15 | |||||||||||||
Trade name | — | — | 7 | 5 | |||||||||||||
Total intangible assets subject to amortization | $ | 32 | 10 | $ | 169 | 14.6 | |||||||||||
Pro Forma Consolidated Results of Operations | The following pro forma consolidated results of operations have been prepared as if the acquisitions of RCI and Greenstar occurred at January 1, 2012 (in millions, except per share amounts): | ||||||||||||||||
Years Ended | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Operating revenues | $ | 14,085 | $ | 14,009 | |||||||||||||
Net income attributable to Waste Management, Inc. | 112 | 803 | |||||||||||||||
Basic earnings per common share | 0.24 | 1.73 | |||||||||||||||
Diluted earnings per common share | 0.24 | 1.73 | |||||||||||||||
Carrying Amount of Asset and Liabilities | The following table presents the carrying amounts of our Wheelabrator business as of December 19, 2014 (in millions): | ||||||||||||||||
Accounts and other receivables | $ | 90 | |||||||||||||||
Parts and supplies | 65 | ||||||||||||||||
Deferred income taxes | 1 | ||||||||||||||||
Other assets | 12 | ||||||||||||||||
Total current assets | 168 | ||||||||||||||||
Property and equipment | 1,155 | ||||||||||||||||
Goodwill | 305 | ||||||||||||||||
Other intangible assets | 3 | ||||||||||||||||
Other assets | 215 | ||||||||||||||||
Total assets | $ | 1,846 | |||||||||||||||
Accounts payable | $ | 23 | |||||||||||||||
Accrued liabilities | 20 | ||||||||||||||||
Deferred revenues | 1 | ||||||||||||||||
Current portion of long-term debt | 1 | ||||||||||||||||
Total current liabilities | 45 | ||||||||||||||||
Long-term debt, less current portion | 14 | ||||||||||||||||
Deferred income taxes | 344 | ||||||||||||||||
Landfill and environmental remediation liabilities | 18 | ||||||||||||||||
Other liabilities | 19 | ||||||||||||||||
Total liabilities | $ | 440 | |||||||||||||||
Noncontrolling interests | $ | 31 | |||||||||||||||
Segment_and_Related_Informatio1
Segment and Related Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||
Reportable Segments | Summarized financial information concerning our reportable segments for the respective years ended December 31 is shown in the following table (in millions): | ||||||||||||||||||||||||||||
Gross | Intercompany | Net | Income | Depreciation | Capital | Total | |||||||||||||||||||||||
Operating | Operating | Operating | from | and | Expenditures | Assets | |||||||||||||||||||||||
Revenues | Revenues(c) | Revenues | Operations | Amortization | (f) | (g),(h) | |||||||||||||||||||||||
(d),(e) | |||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,495 | $ | (537 | ) | $ | 2,958 | $ | 893 | $ | 271 | $ | 266 | $ | 3,661 | ||||||||||||||
Tier 2 | 6,416 | (1,173 | ) | 5,243 | 1,318 | 510 | 428 | 8,556 | |||||||||||||||||||||
Tier 3 | 3,538 | (573 | ) | 2,965 | 588 | 275 | 268 | 5,030 | |||||||||||||||||||||
Wheelabrator | 817 | (102 | ) | 715 | 669 | 37 | 11 | — | |||||||||||||||||||||
Other(a) | 2,191 | (76 | ) | 2,115 | (400 | ) | 128 | 134 | 1,791 | ||||||||||||||||||||
16,457 | (2,461 | ) | 13,996 | 3,068 | 1,221 | 1,107 | 19,038 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (769 | ) | 71 | 74 | 2,965 | |||||||||||||||||||||
Total | $ | 16,457 | $ | (2,461 | ) | $ | 13,996 | $ | 2,299 | $ | 1,292 | $ | 1,181 | $ | 22,003 | ||||||||||||||
2013 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,487 | $ | (553 | ) | $ | 2,934 | $ | 852 | $ | 277 | $ | 217 | $ | 3,682 | ||||||||||||||
Tier 2 | 6,438 | (1,202 | ) | 5,236 | 1,291 | 522 | 526 | 8,572 | |||||||||||||||||||||
Tier 3 | 3,552 | (569 | ) | 2,983 | 291 | 279 | 258 | 5,288 | |||||||||||||||||||||
Wheelabrator | 845 | (112 | ) | 733 | (517 | ) | 61 | 17 | 2,037 | ||||||||||||||||||||
Other(a) | 2,185 | (88 | ) | 2,097 | (171 | ) | 122 | 126 | 2,177 | ||||||||||||||||||||
16,507 | (2,524 | ) | 13,983 | 1,746 | 1,261 | 1,144 | 21,756 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (667 | ) | 72 | 123 | 1,459 | |||||||||||||||||||||
Total | $ | 16,507 | $ | (2,524 | ) | $ | 13,983 | $ | 1,079 | $ | 1,333 | $ | 1,267 | $ | 23,215 | ||||||||||||||
2012 | |||||||||||||||||||||||||||||
Solid Waste: | |||||||||||||||||||||||||||||
Tier 1 | $ | 3,370 | $ | (521 | ) | $ | 2,849 | $ | 851 | $ | 273 | $ | 242 | $ | 3,664 | ||||||||||||||
Tier 2 | 6,273 | (1,096 | ) | 5,177 | 1,270 | 512 | 511 | 8,394 | |||||||||||||||||||||
Tier 3 | 3,413 | (523 | ) | 2,890 | 504 | 259 | 271 | 5,088 | |||||||||||||||||||||
Wheelabrator | 846 | (123 | ) | 723 | 113 | 69 | 36 | 2,605 | |||||||||||||||||||||
Other(a) | 2,106 | (96 | ) | 2,010 | (242 | ) | 111 | 239 | 2,495 | ||||||||||||||||||||
16,008 | (2,359 | ) | 13,649 | 2,496 | 1,224 | 1,299 | 22,246 | ||||||||||||||||||||||
Corporate and Other(b) | — | — | — | (645 | ) | 73 | 139 | 1,551 | |||||||||||||||||||||
Total | $ | 16,008 | $ | (2,359 | ) | $ | 13,649 | $ | 1,851 | $ | 1,297 | $ | 1,438 | $ | 23,797 | ||||||||||||||
(a) | Our “Other” net operating revenues and “Other” income from operations include (i) the effects of those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services and Renewable Energy organizations, that are not included with the operations of our reportable segments; (ii) our recycling brokerage and electronic recycling services; and (iii) the impacts of investments in expanded service offerings, such as portable self-storage, fluorescent lamp recycling and oil and gas producing properties. In addition, our “Other” income from operations reflects the impacts of non-operating entities that provide financial assurance and self-insurance support for the segments or financing for our Canadian operations. | ||||||||||||||||||||||||||||
(b) | Corporate operating results reflect the costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, 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 and any administrative expenses or revisions to our estimated obligations associated with divested operations. | ||||||||||||||||||||||||||||
(c) | 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. | ||||||||||||||||||||||||||||
(d) | For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 3. | ||||||||||||||||||||||||||||
(e) | The income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling businesses. 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. In 2014, we recognized a $519 million gain on the sale of our Wheelabrator business during the fourth quarter. In 2013, we recognized $981 million of impairment charges, the most significant of which impacted our Tier 3 and Wheelabrator segments by $253 million and $627 million, respectively. Refer to Note 12 and Note 13 for an explanation of certain other transactions and events affecting our operating results. | ||||||||||||||||||||||||||||
(f) | Includes non-cash items. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property, plant and equipment balances and, therefore, may include amounts that have been accrued but not yet paid. | ||||||||||||||||||||||||||||
(g) | The reconciliation of total assets reported above to “Total assets” in the Consolidated Balance Sheet is as follows (in millions): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Total assets, as reported above | $ | 22,003 | $ | 23,215 | $ | 23,797 | |||||||||||||||||||||||
Elimination of intercompany investments and advances | (591 | ) | (612 | ) | (700 | ) | |||||||||||||||||||||||
Total assets, per Consolidated Balance Sheet | $ | 21,412 | $ | 22,603 | $ | 23,097 | |||||||||||||||||||||||
(h) | Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities and secondary processing facilities are included as a component of their respective Areas and our recycling brokerage business and electronics recycling services are included as part of our “Other” operations. As discussed in Note 19, the goodwill associated with our acquisition of Greenstar, has been assigned to our Areas and to a lesser extent “Other”. Our acquisition of RCI has been assigned to our Eastern Canada Area, which is included in Tier 3. The following table presents changes in goodwill during 2013 and 2014 by reportable segment (in millions): | ||||||||||||||||||||||||||||
Solid Waste | |||||||||||||||||||||||||||||
Tier 1 | Tier 2 | Tier 3 | Wheelabrator | Other | Total | ||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,186 | $ | 2,828 | $ | 1,374 | $ | 788 | $ | 115 | $ | 6,291 | |||||||||||||||||
Acquired goodwill | 41 | 56 | 210 | — | 20 | 327 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | (1 | ) | (2 | ) | (9 | ) | — | — | (12 | ) | |||||||||||||||||||
Impairments | — | — | (10 | ) | (483 | ) | (16 | ) | (509 | ) | |||||||||||||||||||
Translation and other adjustments | (5 | ) | — | (18 | ) | — | (4 | ) | (27 | ) | |||||||||||||||||||
Balance, December 31, 2013 | $ | 1,221 | $ | 2,882 | $ | 1,547 | $ | 305 | $ | 115 | $ | 6,070 | |||||||||||||||||
Acquired goodwill | 4 | 13 | 14 | — | — | 31 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | — | — | (3 | ) | (305 | ) | — | (308 | ) | ||||||||||||||||||||
Impairments | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||||
Translation and other adjustments | (9 | ) | — | (34 | ) | — | — | (43 | ) | ||||||||||||||||||||
Balance, December 31, 2014 | $ | 1,216 | $ | 2,895 | $ | 1,524 | $ | — | $ | 105 | $ | 5,740 | |||||||||||||||||
Reconciliation of Segment Assets to Consolidated Total | The reconciliation of total assets reported above to “Total assets” in the Consolidated Balance Sheet is as follows (in millions): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Total assets, as reported above | $ | 22,003 | $ | 23,215 | $ | 23,797 | |||||||||||||||||||||||
Elimination of intercompany investments and advances | (591 | ) | (612 | ) | (700 | ) | |||||||||||||||||||||||
Total assets, per Consolidated Balance Sheet | $ | 21,412 | $ | 22,603 | $ | 23,097 | |||||||||||||||||||||||
Changes in Goodwill by Reportable Segment | The following table presents changes in goodwill during 2013 and 2014 by reportable segment (in millions): | ||||||||||||||||||||||||||||
Solid Waste | |||||||||||||||||||||||||||||
Tier 1 | Tier 2 | Tier 3 | Wheelabrator | Other | Total | ||||||||||||||||||||||||
Balance, December 31, 2012 | $ | 1,186 | $ | 2,828 | $ | 1,374 | $ | 788 | $ | 115 | $ | 6,291 | |||||||||||||||||
Acquired goodwill | 41 | 56 | 210 | — | 20 | 327 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | (1 | ) | (2 | ) | (9 | ) | — | — | (12 | ) | |||||||||||||||||||
Impairments | — | — | (10 | ) | (483 | ) | (16 | ) | (509 | ) | |||||||||||||||||||
Translation and other adjustments | (5 | ) | — | (18 | ) | — | (4 | ) | (27 | ) | |||||||||||||||||||
Balance, December 31, 2013 | $ | 1,221 | $ | 2,882 | $ | 1,547 | $ | 305 | $ | 115 | $ | 6,070 | |||||||||||||||||
Acquired goodwill | 4 | 13 | 14 | — | — | 31 | |||||||||||||||||||||||
Divested goodwill, net of assets held-for-sale | — | — | (3 | ) | (305 | ) | — | (308 | ) | ||||||||||||||||||||
Impairments | — | — | — | — | (10 | ) | (10 | ) | |||||||||||||||||||||
Translation and other adjustments | (9 | ) | — | (34 | ) | — | — | (43 | ) | ||||||||||||||||||||
Balance, December 31, 2014 | $ | 1,216 | $ | 2,895 | $ | 1,524 | $ | — | $ | 105 | $ | 5,740 | |||||||||||||||||
Total Revenues by Principal Line of Business | The mix of operating revenues from our major lines of business is reflected in the table below (in millions): | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 3,393 | $ | 3,423 | $ | 3,417 | |||||||||||||||||||||||
Residential | 2,543 | 2,608 | 2,584 | ||||||||||||||||||||||||||
Industrial | 2,231 | 2,209 | 2,129 | ||||||||||||||||||||||||||
Other | 340 | 273 | 275 | ||||||||||||||||||||||||||
Total collection | 8,507 | 8,513 | 8,405 | ||||||||||||||||||||||||||
Landfill | 2,849 | 2,790 | 2,685 | ||||||||||||||||||||||||||
Transfer | 1,353 | 1,329 | 1,296 | ||||||||||||||||||||||||||
Wheelabrator | 817 | 845 | 846 | ||||||||||||||||||||||||||
Recycling | 1,370 | 1,447 | 1,360 | ||||||||||||||||||||||||||
Other(a) | 1,561 | 1,583 | 1,416 | ||||||||||||||||||||||||||
Intercompany(b) | (2,461 | ) | (2,524 | ) | (2,359 | ) | |||||||||||||||||||||||
Operating revenues | $ | 13,996 | $ | 13,983 | $ | 13,649 | |||||||||||||||||||||||
(a) | The “Other” line of business includes Strategic Business Solutions, landfill gas-to-energy operations, Port-O-Let® services, portable self-storage, fluorescent lamp recycling, and oil and gas producing properties. | ||||||||||||||||||||||||||||
(b) | Intercompany revenues between lines of business are eliminated within the Consolidated Financial Statements included herein. | ||||||||||||||||||||||||||||
Summary of Net Operating Revenues by Segment | Net operating revenues relating to operations in the United States and Puerto Rico, as well as Canada are as follows (in millions): | ||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
United States and Puerto Rico(a) | $ | 13,064 | $ | 13,054 | $ | 12,812 | |||||||||||||||||||||||
Canada | 932 | 929 | 837 | ||||||||||||||||||||||||||
Total | $ | 13,996 | $ | 13,983 | $ | 13,649 | |||||||||||||||||||||||
(a) | We sold our Puerto Rico operations in the second quarter of 2014. Refer to Note 19 for additional information. | ||||||||||||||||||||||||||||
Summary of Property and Equipment (Net) Relating to Operations by Segment | Property and equipment (net) relating to operations in the United States and Puerto Rico, as well as Canada are as follows (in millions): | ||||||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
United States and Puerto Rico(a) | $ | 9,586 | $ | 11,198 | $ | 11,293 | |||||||||||||||||||||||
Canada | 1,071 | 1,146 | 1,358 | ||||||||||||||||||||||||||
Total | $ | 10,657 | $ | 12,344 | $ | 12,651 | |||||||||||||||||||||||
(a) | We sold our Puerto Rico operations in the second quarter of 2014. Refer to Note 19 for additional information. |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Unaudited Quarterly Financial Data | The following table summarizes the unaudited quarterly results of operations for 2014 and 2013 (in millions, except per share amounts): | ||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
2014 | |||||||||||||||||
Operating revenues | $ | 3,396 | $ | 3,561 | $ | 3,602 | $ | 3,437 | |||||||||
Income from operations | 469 | 532 | 546 | 752 | |||||||||||||
Consolidated net income | 237 | 222 | 281 | 598 | |||||||||||||
Net income attributable to Waste Management, Inc. | 228 | 210 | 270 | 590 | |||||||||||||
Basic earnings per common share | 0.49 | 0.45 | 0.59 | 1.29 | |||||||||||||
Diluted earnings per common share | 0.49 | 0.45 | 0.58 | 1.28 | |||||||||||||
2013 | |||||||||||||||||
Operating revenues | $ | 3,336 | $ | 3,526 | $ | 3,621 | $ | 3,500 | |||||||||
Income (loss) from operations | 402 | 510 | 577 | (410 | ) | ||||||||||||
Consolidated net income (loss) | 176 | 256 | 297 | (599 | ) | ||||||||||||
Net income (loss) attributable to Waste Management, Inc. | 168 | 244 | 291 | (605 | ) | ||||||||||||
Basic earnings (loss) common share | 0.36 | 0.52 | 0.62 | (1.29 | ) | ||||||||||||
Diluted earnings (loss) common share | 0.36 | 0.52 | 0.62 | (1.29 | ) |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,235 | $ | — | $ | 72 | $ | — | $ | 1,307 | |||||||||||
Other current assets | 5 | 6 | 2,323 | — | 2,334 | ||||||||||||||||
1,240 | 6 | 2,395 | — | 3,641 | |||||||||||||||||
Property and equipment, net | — | — | 10,657 | — | 10,657 | ||||||||||||||||
Investments in and advances to affiliates | 17,312 | 17,782 | 6,745 | (41,839 | ) | — | |||||||||||||||
Other assets | 50 | 28 | 7,036 | — | 7,114 | ||||||||||||||||
Total assets | $ | 18,602 | $ | 17,816 | $ | 26,833 | $ | (41,839 | ) | $ | 21,412 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current portion of long-term debt | $ | 957 | $ | — | $ | 133 | $ | — | $ | 1,090 | |||||||||||
Accounts payable and other current liabilities | 86 | 13 | 2,296 | — | 2,395 | ||||||||||||||||
1,043 | 13 | 2,429 | — | 3,485 | |||||||||||||||||
Long-term debt, less current portion | 4,958 | 449 | 2,938 | — | 8,345 | ||||||||||||||||
Due to affiliates | 6,703 | 42 | — | (6,745 | ) | — | |||||||||||||||
Other liabilities | 32 | — | 3,661 | — | 3,693 | ||||||||||||||||
Total liabilities | 12,736 | 504 | 9,028 | (6,745 | ) | 15,523 | |||||||||||||||
Equity: | |||||||||||||||||||||
Stockholders’ equity | 5,866 | 17,312 | 17,782 | (35,094 | ) | 5,866 | |||||||||||||||
Noncontrolling interests | — | — | 23 | — | 23 | ||||||||||||||||
5,866 | 17,312 | 17,805 | (35,094 | ) | 5,889 | ||||||||||||||||
Total liabilities and equity | $ | 18,602 | $ | 17,816 | $ | 26,833 | $ | (41,839 | ) | $ | 21,412 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | — | $ | 58 | $ | — | $ | 58 | |||||||||||
Other current assets | — | 6 | 2,435 | — | 2,441 | ||||||||||||||||
— | 6 | 2,493 | — | 2,499 | |||||||||||||||||
Property and equipment, net | — | — | 12,344 | — | 12,344 | ||||||||||||||||
Investments in and advances to affiliates(a) | 15,802 | 16,845 | 4,268 | (36,915 | ) | — | |||||||||||||||
Other assets | 42 | 12 | 7,706 | — | 7,760 | ||||||||||||||||
Total assets | $ | 15,844 | $ | 16,863 | $ | 26,811 | $ | (36,915 | ) | $ | 22,603 | ||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Current portion of long-term debt | $ | 587 | $ | — | $ | 139 | $ | — | $ | 726 | |||||||||||
Accounts payable and other current liabilities | 109 | 13 | 2,166 | — | 2,288 | ||||||||||||||||
696 | 13 | 2,305 | — | 3,014 | |||||||||||||||||
Long-term debt, less current portion | 5,772 | 449 | 3,279 | — | 9,500 | ||||||||||||||||
Due to affiliates(a) | 3,669 | 599 | — | (4,268 | ) | — | |||||||||||||||
Other liabilities | — | — | 4,087 | — | 4,087 | ||||||||||||||||
Total liabilities | 10,137 | 1,061 | 9,671 | (4,268 | ) | 16,601 | |||||||||||||||
Equity: | |||||||||||||||||||||
Stockholders’ equity | 5,707 | 15,802 | 16,845 | (32,647 | ) | 5,707 | |||||||||||||||
Noncontrolling interests | — | — | 295 | — | 295 | ||||||||||||||||
5,707 | 15,802 | 17,140 | (32,647 | ) | 6,002 | ||||||||||||||||
Total liabilities and equity | $ | 15,844 | $ | 16,863 | $ | 26,811 | $ | (36,915 | ) | $ | 22,603 | ||||||||||
(a) | In conjunction with the preparation of our September 30, 2014 Condensed Consolidating Financial Statements, we identified corrections associated with the presentation of affiliate obligations previously reported in WM and WM Holdings’ “Investments in and advances to affiliates.” Accordingly, the 2013 Condensed Consolidating Balance Sheet included herein has been revised. | ||||||||||||||||||||
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | ||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,996 | $ | — | $ | 13,996 | |||||||||||
Costs and expenses(b) | — | (459 | ) | 12,156 | — | 11,697 | |||||||||||||||
Income from operations | — | 459 | 1,840 | — | 2,299 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (351 | ) | (31 | ) | (84 | ) | — | (466 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,510 | 1,070 | — | (2,580 | ) | — | |||||||||||||||
Other, net | — | — | (82 | ) | — | (82 | ) | ||||||||||||||
1,159 | 1,039 | (166 | ) | (2,580 | ) | (548 | ) | ||||||||||||||
Income before income taxes | 1,159 | 1,498 | 1,674 | (2,580 | ) | 1,751 | |||||||||||||||
Provision for (benefit from) income taxes | (139 | ) | (12 | ) | 564 | — | 413 | ||||||||||||||
Consolidated net income | 1,298 | 1,510 | 1,110 | (2,580 | ) | 1,338 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 40 | — | 40 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 1,298 | $ | 1,510 | $ | 1,070 | $ | (2,580 | ) | $ | 1,298 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,983 | $ | — | $ | 13,983 | |||||||||||
Costs and expenses(b) | — | — | 12,904 | — | 12,904 | ||||||||||||||||
Income from operations | — | — | 1,079 | — | 1,079 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (355 | ) | (32 | ) | (90 | ) | — | (477 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 313 | 332 | — | (645 | ) | — | |||||||||||||||
Other, net | — | — | (108 | ) | — | (108 | ) | ||||||||||||||
(42 | ) | 300 | (198 | ) | (645 | ) | (585 | ) | |||||||||||||
Income before income taxes | (42 | ) | 300 | 881 | (645 | ) | 494 | ||||||||||||||
Provision for (benefit from) income taxes | (140 | ) | (13 | ) | 517 | — | 364 | ||||||||||||||
Consolidated net income | 98 | 313 | 364 | (645 | ) | 130 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 32 | — | 32 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 98 | $ | 313 | $ | 332 | $ | (645 | ) | $ | 98 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Operating revenues | $ | — | $ | — | $ | 13,649 | $ | — | $ | 13,649 | |||||||||||
Costs and expenses(b) | — | (7 | ) | 11,805 | — | 11,798 | |||||||||||||||
Income from operations | — | 7 | 1,844 | — | 1,851 | ||||||||||||||||
Other income (expense): | |||||||||||||||||||||
Interest expense, net | (358 | ) | (32 | ) | (94 | ) | — | (484 | ) | ||||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,034 | 1,046 | — | (2,080 | ) | — | |||||||||||||||
Other, net | — | — | (64 | ) | — | (64 | ) | ||||||||||||||
676 | 1,014 | (158 | ) | (2,080 | ) | (548 | ) | ||||||||||||||
Income before income taxes | 676 | 1,021 | 1,686 | (2,080 | ) | 1,303 | |||||||||||||||
Provision for (benefit from) income taxes | (141 | ) | (13 | ) | 597 | — | 443 | ||||||||||||||
Consolidated net income | 817 | 1,034 | 1,089 | (2,080 | ) | 860 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
Net income attributable to Waste Management, Inc. | $ | 817 | $ | 1,034 | $ | 1,046 | $ | (2,080 | ) | $ | 817 | ||||||||||
(b) | Includes “Goodwill impairments” and “(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items” as reported in our Consolidated Statements of Operations. | ||||||||||||||||||||
Condensed Consolidating Statements of Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Comprehensive income | $ | 1,300 | $ | 1,510 | $ | 977 | $ | (2,580 | ) | $ | 1,207 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 40 | — | 40 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 1,300 | $ | 1,510 | $ | 937 | $ | (2,580 | ) | $ | 1,167 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Comprehensive income | $ | 112 | $ | 313 | $ | 311 | $ | (645 | ) | $ | 91 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 32 | — | 32 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 112 | $ | 313 | $ | 279 | $ | (645 | ) | $ | 59 | ||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Comprehensive income | $ | 807 | $ | 1,034 | $ | 1,120 | $ | (2,080 | ) | $ | 881 | ||||||||||
Less: Comprehensive income attributable to noncontrolling interests | — | — | 43 | — | 43 | ||||||||||||||||
Comprehensive income attributable to Waste Management, Inc. | $ | 807 | $ | 1,034 | $ | 1,077 | $ | (2,080 | ) | $ | 838 | ||||||||||
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 1,298 | $ | 1,510 | $ | 1,110 | $ | (2,580 | ) | $ | 1,338 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (1,510 | ) | (1,070 | ) | — | 2,580 | — | ||||||||||||||
Other adjustments | (36 | ) | (1 | ) | 1,030 | — | 993 | ||||||||||||||
Net cash provided by (used in) operating activities | (248 | ) | 439 | 2,140 | — | 2,331 | |||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (35 | ) | — | (35 | ) | ||||||||||||||
Capital expenditures | — | — | (1,151 | ) | — | (1,151 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | 1,618 | 635 | — | 2,253 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (72 | ) | — | (72 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | 1,618 | (623 | ) | — | 995 | |||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 2,572 | — | 245 | — | 2,817 | ||||||||||||||||
Debt repayments | (3,005 | ) | (563 | ) | — | (3,568 | ) | ||||||||||||||
Common stock repurchases | (600 | ) | — | — | — | (600 | ) | ||||||||||||||
Cash dividends | (693 | ) | — | — | — | (693 | ) | ||||||||||||||
Exercise of common stock options | 93 | — | — | — | 93 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 5 | — | (126 | ) | — | (121 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 3,111 | (2,057 | ) | (1,054 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 1,483 | (2,057 | ) | (1,498 | ) | — | (2,072 | ) | |||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (5 | ) | — | (5 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | 1,235 | — | 14 | — | 1,249 | ||||||||||||||||
Cash and cash equivalents at beginning of year | — | — | 58 | — | 58 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 1,235 | $ | — | $ | 72 | $ | — | $ | 1,307 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 98 | $ | 313 | $ | 364 | $ | (645 | ) | $ | 130 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (313 | ) | (332 | ) | — | 645 | — | ||||||||||||||
Other adjustments | (2 | ) | — | 2,327 | — | 2,325 | |||||||||||||||
Net cash provided by (used in) operating activities | (217 | ) | (19 | ) | 2,691 | — | 2,455 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (724 | ) | — | (724 | ) | ||||||||||||||
Capital expenditures | — | — | (1,271 | ) | — | (1,271 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | — | 138 | — | 138 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (43 | ) | — | (43 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | — | (1,900 | ) | — | (1,900 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 1,140 | — | 1,092 | — | 2,232 | ||||||||||||||||
Debt repayments | (1,120 | ) | — | (957 | ) | — | (2,077 | ) | |||||||||||||
Common stock repurchases | (239 | ) | — | — | — | (239 | ) | ||||||||||||||
Cash dividends | (683 | ) | — | — | — | (683 | ) | ||||||||||||||
Exercise of common stock options | 132 | — | — | — | 132 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 14 | — | (66 | ) | — | (52 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 913 | 19 | (932 | ) | — | — | |||||||||||||||
Net cash provided by (used in) financing activities | 157 | 19 | (863 | ) | — | (687 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (4 | ) | — | (4 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | (60 | ) | — | (76 | ) | — | (136 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 60 | — | 134 | — | 194 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | — | $ | — | $ | 58 | $ | — | $ | 58 | |||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) | |||||||||||||||||||||
WM | WM | Non-Guarantor | Eliminations | Consolidated | |||||||||||||||||
Holdings | Subsidiaries | ||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Consolidated net income | $ | 817 | $ | 1,034 | $ | 1,089 | $ | (2,080 | ) | $ | 860 | ||||||||||
Equity in earnings of subsidiaries, net of taxes | (1,034 | ) | (1,046 | ) | — | 2,080 | — | ||||||||||||||
Other adjustments | 81 | — | 1,354 | — | 1,435 | ||||||||||||||||
Net cash provided by (used in) operating activities | (136 | ) | (12 | ) | 2,443 | — | 2,295 | ||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Acquisitions of businesses, net of cash acquired | — | — | (250 | ) | — | (250 | ) | ||||||||||||||
Capital expenditures | — | — | (1,510 | ) | — | (1,510 | ) | ||||||||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | — | — | 44 | — | 44 | ||||||||||||||||
Net receipts from restricted trust and escrow accounts and other, net | — | — | (114 | ) | — | (114 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | — | — | (1,830 | ) | — | (1,830 | ) | ||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
New borrowings | 1,145 | — | 475 | — | 1,620 | ||||||||||||||||
Debt repayments | (835 | ) | — | (663 | ) | — | (1,498 | ) | |||||||||||||
Common stock repurchases | — | — | — | — | — | ||||||||||||||||
Cash dividends | (658 | ) | — | — | — | (658 | ) | ||||||||||||||
Exercise of common stock options | 43 | — | — | — | 43 | ||||||||||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 15 | — | (52 | ) | — | (37 | ) | ||||||||||||||
(Increase) decrease in intercompany and investments, net | 367 | 12 | (379 | ) | — | — | |||||||||||||||
Net cash provided by (used in) financing activities | 77 | 12 | (619 | ) | — | (530 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | 1 | — | 1 | ||||||||||||||||
Increase (decrease) in cash and cash equivalents | (59 | ) | — | (5 | ) | — | (64 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 119 | — | 139 | — | 258 | ||||||||||||||||
Cash and cash equivalents at end of year | $ | 60 | $ | — | $ | 134 | $ | — | $ | 194 | |||||||||||
Business_Additional_Informatio
Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Areas | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographical areas | 17 |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | |||
Inflation rate | 2.50% | 2.50% | 2.50% |
Environmental remediation reasonably possible additional losses high estimate | $190 | ||
Aggregate potential remediation liability | 235 | ||
Environmental remediation liabilities that have never been subject to inflation or discounting | 41 | 36 | |
Increase (decrease) in environmental remediation liabilities due to the impacts of inflation and discounting | 6 | 7 | |
Other intangible assets, amortization method | 150% declining balance approach or a straight-line basis | ||
Restricted trust and escrow accounts | 171 | 167 | |
Total interest costs | 487 | 500 | 509 |
Total capitalized interest costs | 16 | 19 | 21 |
Non-cash proceeds from tax-exempt borrowings, net of principal payments | 99 | ||
Customer Contracts and Customer Lists [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortizable period of the intangible assets | 10 years | ||
Customer Contracts and Customer Lists [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortizable period of the intangible assets | 15 years | ||
Non-compete Covenant [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortizable period of the intangible assets | 2 years | ||
Non-compete Covenant [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortizable period of the intangible assets | 5 years | ||
Other Receivables [Member] | |||
Significant Accounting Policies [Line Items] | |||
Tax payments in excess of the provision | 255 | 23 | |
Landfill [Member] | |||
Significant Accounting Policies [Line Items] | |||
Required period to maintain and monitor landfill sites | 30 years | ||
Credit adjusted, risk free discount rate applicable to asset retirement obligations, lower range | 4.00% | ||
Credit adjusted, risk free discount rate applicable to asset retirement obligations, upper range | 7.75% | ||
Expected credit adjusted, risk free discount rate applied to liabilities incurred | 4.00% | ||
Number of landfills sites with expansion | 23 | ||
Number of landfill sites with expansions that require the principal financial officer to approve the inclusion of the unpermitted airspace | 5 | ||
Number of landfill sites with expansions that require the principal financial officer to approve the inclusion of the unpermitted airspace because of community or political opposition | 2 | ||
Number of landfill sites with expansions that require the principal financial officer to approve the inclusion of the unpermitted airspace due to permit application processes | 3 | ||
Net recorded capitalized asset cost of certain landfills which have ceased accepting waste | 247 | ||
Impairment charges recognized | 262 | ||
Number of properties associated with impairment charges | 2 | ||
Landfill [Member] | Eastern Canada Area [Member] | |||
Significant Accounting Policies [Line Items] | |||
Number of properties associated with impairment charges | 2 | ||
Software and Software Development Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Capitalized software costs, net of accumulated depreciation | 114 | 129 | |
Costs incurred for software under development | $5 | $11 | |
Sales [Member] | Concentration of Credit Risk [Member] | |||
Significant Accounting Policies [Line Items] | |||
Maximum accounts receivable from single customer in percentage to total accounts receivable | 5.00% | 5.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Summary of Revisions in Risk-Free Discount Rate Applied to Environmental Remediation Liabilities and Recovery Assets (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Charge (reduction) to Operating expenses | $10 | ($13) | $3 |
Risk-free discount rate applied to environmental remediation liabilities and recovery assets | 2.00% | 3.00% | 1.75% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives for Significant Property and Equipment Categories (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Vehicles - Excluding Rail Haul Cars [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Minimum [Member] | Vehicles - Rail Haul Cars [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Minimum [Member] | Machinery and Equipment - Including Containers [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Minimum [Member] | Buildings and Improvements - Excluding Waste - to - Energy Facilities [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 5 years |
Minimum [Member] | Furniture, Fixtures and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 3 years |
Maximum [Member] | Vehicles - Excluding Rail Haul Cars [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Maximum [Member] | Vehicles - Rail Haul Cars [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 20 years |
Maximum [Member] | Machinery and Equipment - Including Containers [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 30 years |
Maximum [Member] | Buildings and Improvements - Excluding Waste - to - Energy Facilities [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 40 years |
Maximum [Member] | Waste-to-Energy Facilities and Related Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 50 years |
Maximum [Member] | Furniture, Fixtures and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Summary of Equity and Cost Method Investments (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Equity investments | $228 | $437 |
Cost investments | 180 | 154 |
Investments in unconsolidated entities | $408 | $591 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Equity and Cost Method Investments (Parenthetical) (Detail) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Accounting Policies [Abstract] | |
Short-term equity investment | $177 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Interest, net of capitalized interest and periodic settlements from interest rate swap agreements | $461 | $478 | $485 |
Income taxes | $758 | $511 | $366 |
Landfill_and_Environmental_Rem2
Landfill and Environmental Remediation Liabilities - Liabilities for Landfill and Environmental Remediation Costs (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Site Contingency [Line Items] | |||
Total, Environmental Remediation | $235 | ||
Current (in accrued liabilities) | 147 | 130 | |
Long-term | 1,531 | 1,518 | |
Total | 1,678 | 1,648 | |
Landfill [Member] | |||
Site Contingency [Line Items] | |||
Current (in accrued liabilities), Landfill | 104 | 95 | |
Long-term, Landfill | 1,339 | 1,326 | |
Total, Landfill | 1,443 | 1,421 | 1,338 |
Environmental Remediation Liabilities [Member] | |||
Site Contingency [Line Items] | |||
Current (in accrued liabilities), Environmental Remediation | 43 | 35 | |
Long-term, Environmental Remediation | 192 | 192 | |
Total, Environmental Remediation | $235 | $227 | $253 |
Landfill_and_Environmental_Rem3
Landfill and Environmental Remediation Liabilities - Changes to Landfill and Environmental Remediation Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Environmental Exit Cost [Line Items] | |||
Interest accretion | ($88) | ($87) | ($84) |
Ending balance, environmental remediation | 235 | ||
Landfill [Member] | |||
Environmental Exit Cost [Line Items] | |||
Beginning balance, landfill | 1,421 | 1,338 | |
Obligations incurred and capitalized | 54 | 59 | |
Obligations settled | -69 | -71 | |
Interest accretion | 88 | 87 | |
Revisions in estimates and interest rate assumptions | -9 | 6 | |
Acquisitions, divestitures and other adjustments | -42 | 2 | |
Ending balance, landfill | 1,443 | 1,421 | |
Environmental Remediation Liabilities [Member] | |||
Environmental Exit Cost [Line Items] | |||
Beginning balance, environmental remediation | 227 | 253 | |
Obligations settled | -21 | -20 | |
Interest accretion | 5 | 4 | |
Revisions in estimates and interest rate assumptions | 25 | -6 | |
Acquisitions, divestitures and other adjustments | -1 | -4 | |
Ending balance, environmental remediation | $235 | $227 |
Landfill_and_Environmental_Rem4
Landfill and Environmental Remediation Liabilities - Changes to Landfill and Environmental Remediation Liabilities (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Environmental Exit Cost [Line Items] | |||
Increase (decrease) related to year-end review of landfill capping closure and post closure obligations included in landfill liabilities | $2 | ($20) | |
Risk-free discount rate of the obligations | 2.00% | 3.00% | 1.75% |
Increase (Decrease) to operating expenses due to change in discount rate used to estimate the present value of environmental remediation obligations | 13 | -18 | |
Landfill [Member] | |||
Environmental Exit Cost [Line Items] | |||
Increase (decrease) related to year-end review of landfill capping closure and post closure obligations included in landfill liabilities | 23 | ||
Number of assets closed | 2 | ||
Wheelabrator [Member] | |||
Environmental Exit Cost [Line Items] | |||
Landfill liabilities as a result of divestitures | $25 |
Landfill_and_Environmental_Rem5
Landfill and Environmental Remediation Liabilities - Additional Information (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Environmental Remediation Obligations [Abstract] | |
Anticipated payments for currently identified environmental remediation liabilities, in 2015 | $43 |
Anticipated payments for currently identified environmental remediation liabilities, in 2016 | 26 |
Anticipated payments for currently identified environmental remediation liabilities, in 2017 | 26 |
Anticipated payments for currently identified environmental remediation liabilities, in 2018 | 24 |
Anticipated payments for currently identified environmental remediation liabilities, in 2019 | 12 |
Anticipated payments for currently identified environmental remediation liabilities, after 2019 | $98 |
Property_and_Equipment_Propert
Property and Equipment - Property and Equipment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | $26,625 | $29,067 | |
Less accumulated depreciation on tangible property and equipment | -15,968 | -16,723 | |
Property and equipment, net | 10,657 | 12,344 | 12,651 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 611 | 636 | |
Landfill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 13,463 | 13,416 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 4,131 | 4,115 | |
Machinery and Equipment - Including Containers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,470 | 3,888 | |
Containers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,377 | 2,449 | |
Building and improvements - excluding waste-to-energy facilities [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,588 | 3,594 | |
Furniture, Fixtures and Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 985 | 969 | |
Tangible Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Less accumulated depreciation on tangible property and equipment | -8,278 | -9,205 | |
Landfill airspace [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Less accumulated depreciation on tangible property and equipment | ($7,690) | ($7,518) |
Property_and_Equipment_Depreci
Property and Equipment - Depreciation and Amortization Expense Including Amortization Expense for Assets Recorded as Capital Leases (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $1,292 | $1,333 | $1,297 |
Tangible Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 834 | 853 | 833 |
Landfill airspace [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 380 | 400 | 395 |
Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $1,214 | $1,253 | $1,228 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 19, 2014 |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $5,740 | $6,070 | $6,291 | $6,070 | |
Decrease in goodwill during the period | 330 | ||||
Goodwill impairments | 10 | 509 | 4 | ||
Amortization expenses for other intangible assets | 78 | 80 | 69 | ||
Indefinite-lived intangible assets | 19 | ||||
Expected amortization expenses related to other intangible assets in 2015 | 69 | ||||
Expected amortization expenses related to other intangible assets in 2016 | 62 | ||||
Expected amortization expenses related to other intangible assets in 2017 | 55 | ||||
Expected amortization expenses related to other intangible assets in 2018 | 50 | ||||
Expected amortization expenses related to other intangible assets in 2019 | 43 | ||||
Puerto Rico [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairments | 10 | ||||
Recycling [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill impairments | 4 | ||||
Wheelabrator [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | 305 | 788 | 305 | 305 | |
Goodwill impairments | $483 | $483 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $755 | $814 |
Less accumulated amortization | -315 | -285 |
Total | 440 | 529 |
Customer and Supplier Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 576 | 604 |
Less accumulated amortization | -231 | -193 |
Total | 345 | 411 |
Covenants Not-to-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 63 | 87 |
Less accumulated amortization | -44 | -57 |
Total | 19 | 30 |
Licenses Permits and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 116 | 123 |
Less accumulated amortization | -40 | -35 |
Total | $76 | $88 |
Debt_Components_of_Debt_Detail
Debt - Components of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Credit facility | $9,435 | $10,226 |
Current portion of long-term debt | 1,090 | 726 |
Long-term debt, less current portion | 8,345 | 9,500 |
U.S. Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 420 | |
Letter of Credit Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | ||
Canadian Credit Facility and Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 232 | 414 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 6,273 | 6,287 |
Tax-exempt Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 2,541 | 2,664 |
Capital Leases and Other [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | $389 | $441 |
Debt_Components_of_Debt_Parent
Debt - Components of Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 5.70% | 5.70% |
Interest rate lower range | 2.60% | |
Interest rate upper range | 7.75% | |
End period of maturity for debt instrument | 30-Nov-39 | |
Tax-exempt Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.20% | 2.30% |
Interest rate lower range | 0.04% | |
Interest rate upper range | 5.70% | |
End period of maturity for debt instrument | 1-Aug-45 | |
Capital Leases and Other [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate upper range | 12.00% | |
End period of maturity for debt instrument | 31-Dec-55 | |
U.S. Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.20% | |
Canadian Credit Facility and Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.60% | 2.70% |
Debt_Additional_Information_De
Debt - Additional Information (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | Minimum [Member] | Maximum [Member] | Nontaxable Municipal Bonds [Member] | Nontaxable Municipal Bonds [Member] | 5.0% Senior Notes Due March 2014 [Member] | 3.5% Senior Notes Due May 15 2024 [Member] | Tax-exempt Bonds [Member] | 6.375% Senior Notes Due March 2015 [Member] | 7.125%t Senior Notes Due December 2017 [Member] | 7.375% Senior Notes Due December 2019 [Member] | Domestic Line of Credit [Member] | Domestic Line of Credit [Member] | Canadian Credit Facility and Term Loan [Member] | Canadian Credit Facility and Term Loan [Member] | Canadian Credit Facility and Term Loan [Member] | Canadian Credit Facility and Term Loan [Member] | U.S. Revolving Credit Facility [Member] | Letter Of Credit Facilities [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility [Member] | Canadian Credit Facility Term Loan [Member] | |
USD ($) | Variable Rate [Member] | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | Minimum [Member] | Maximum [Member] | Term Loan [Member] | USD ($) | USD ($) | USD ($) | CAD | CAD | CAD | Term Loan [Member] | Term Loan [Member] | RCI Environnement Inc [Member] | |||||
USD ($) | CAD | USD ($) | CAD | CAD | |||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||||||
Current portion of senior notes | $947,000,000 | $350,000,000 | $147,000,000 | $450,000,000 | |||||||||||||||||||||||
Interest rate of senior notes | 5.00% | 3.50% | 6.38% | 7.13% | 7.38% | ||||||||||||||||||||||
Debt maturing within twelve months | 143,000,000 | ||||||||||||||||||||||||||
Tax-exempt bonds, current | 64,000,000 | ||||||||||||||||||||||||||
Tax-exempt bonds subject to re-pricing within next 12 months | 638,000,000 | ||||||||||||||||||||||||||
Credit Facility, aggregate capacity | 2,250,000,000 | 2,250,000,000 | 150,000,000 | 500,000,000 | 400,000,000 | 50,000,000 | 150,000,000 | 500,000,000 | |||||||||||||||||||
Current debt obligations | 1,090,000,000 | 726,000,000 | |||||||||||||||||||||||||
Debt maturing within twelve months classified as long-term | 638,000,000 | ||||||||||||||||||||||||||
Variable-rate tax-exempt bonds | 501,000,000 | ||||||||||||||||||||||||||
Letters of credit outstanding revolving credit facility | 785,000,000 | 0 | 0 | ||||||||||||||||||||||||
Credit facility borrowings | 0 | 0 | 10,000,000 | ||||||||||||||||||||||||
Spread rate | 0.90% | 1.48% | 1.13% | 2.15% | |||||||||||||||||||||||
Unused and available credit capacity | 1,465,000,000 | ||||||||||||||||||||||||||
Maturity date of credit facility | 26-Jul-18 | 31-Dec-18 | |||||||||||||||||||||||||
Repayment of credit facility | 230,000,000 | ||||||||||||||||||||||||||
Increase (Decrease) in borrowings under credit facility | 270,000,000 | ||||||||||||||||||||||||||
Net borrowings (repayments) under credit facility | 420,000,000 | 9,000,000 | 10,000,000 | 155,000,000 | 170,000,000 | ||||||||||||||||||||||
Net borrowings (repayments) of senior notes | 350,000,000 | ||||||||||||||||||||||||||
Debt instrument face amount | 350,000,000 | ||||||||||||||||||||||||||
Proceeds from debt net of Issuance costs | 347,000,000 | ||||||||||||||||||||||||||
Repayment of tax exempt bonds | 123,000,000 | ||||||||||||||||||||||||||
Debt and capital lease principal payments in 2015 | 1,075,000,000 | ||||||||||||||||||||||||||
Debt and capital lease principal payments in 2016 | 717,000,000 | ||||||||||||||||||||||||||
Debt and capital lease principal payments in 2017 | 402,000,000 | ||||||||||||||||||||||||||
Debt and capital lease principal payments in 2018 | 801,000,000 | ||||||||||||||||||||||||||
Debt and capital lease principal payments in 2019 | $132,000,000 |
Debt_Summary_of_Requirements_o
Debt - Summary of Requirements of Financial Covenants Contained in Revolving Credit Facility (Detail) | 12 Months Ended | 1 Months Ended |
Dec. 31, 2014 | Jul. 31, 2013 | |
Minimum [Member] | ||
Debt Instrument Covenant Compliance [Line Items] | ||
The interest rate coverage ratio required to be maintained under the terms of the debt agreement | 2.75 | |
Maximum [Member] | ||
Debt Instrument Covenant Compliance [Line Items] | ||
Debt to EBITDA ratio | 3.75 | |
Maximum [Member] | Domestic Line of Credit [Member] | ||
Debt Instrument Covenant Compliance [Line Items] | ||
Debt to EBITDA ratio | 3.5 | |
Maximum [Member] | Domestic Line of Credit [Member] | Quarters Ending Before September 30, 2015 [Member] | ||
Debt Instrument Covenant Compliance [Line Items] | ||
Debt to EBITDA ratio | 3.75 | |
Effective date of covenant ratio requirements | 1-Jul-13 | |
Maximum [Member] | Domestic Line of Credit [Member] | Quarter Ending September 30, 2015 Through Maturity in July 2018 [Member] | ||
Debt Instrument Covenant Compliance [Line Items] | ||
Debt to EBITDA ratio | 3.5 | |
Effective date of covenant ratio requirements | 1-Jul-15 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Fair Values of Derivative Instruments Recorded in Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets designated as hedging instruments | $28 | $2 |
Derivative liabilities designated as hedging instruments | 31 | |
Long-term other assets [Member] | Foreign currency derivatives[Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency derivatives | 28 | 2 |
Current accrued liabilities [Member] | Electricity Commodity Derivatives [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Electricity commodity derivatives | 3 | |
Current accrued liabilities [Member] | Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest rate derivatives | $28 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Forward Starting Interest Rate Swap [Member] | Forward Starting Interest Rate Swap [Member] | Forward Starting Interest Rate Swap [Member] | Forward Starting Interest Rate Swap [Member] | Interest Rate Swaps [Member] | Interest Rate Swaps [Member] | Foreign Currency Derivatives [Member] | Foreign Currency Derivatives [Member] | Foreign Currency Derivatives [Member] | Foreign Currency Derivatives [Member] | Foreign Currency Derivatives [Member] | Treasury rate locks [Member] | Treasury rate locks [Member] | |
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Fair Value Hedge [Member] | Fair Value Hedge [Member] | October 31, 2016 [Member] | October 31, 2016 [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |
USD ($) | USD ($) | Current accrued liabilities [Member] | USD ($) | USD ($) | Principal [Member] | Principal [Member] | October 31, 2016 [Member] | October 31, 2017 [Member] | October 31, 2018 [Member] | USD ($) | USD ($) | ||
USD ($) | CAD | CAD | CAD | CAD | CAD | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||
Increase in carrying value of debt instruments from fair value hedge accounting for interest rate swaps | $45 | $59 | |||||||||||
Notional amount of derivatives | 175 | 525 | |||||||||||
Maximum term of cash flow hedges | 10 years | ||||||||||||
Fair value of forward-starting swaps (interest rate derivatives) | 28 | ||||||||||||
Cash received (paid) to settle hedges | 36 | ||||||||||||
Deferred losses, net of taxes, related to cash flow hedges included in accumulated other comprehensive income | 50 | 34 | |||||||||||
Deferred losses scheduled to be reclassified out of accumulated other comprehensive into interest expense over next 12 months, pre-tax | 11 | ||||||||||||
Notional amount of derivatives | 370 | 370 | 70 | 150 | 150 |
Derivative_Instruments_and_Hed4
Derivative Instruments and Hedging Activities - Impact of Periodic Settlements of Active Swap Agreements and Impact of Terminated Swap Agreements on Results of Operations (Detail) (Interest Expense [Member], Fair Value Hedge [Member], Interest Rate Swaps [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest Expense [Member] | Fair Value Hedge [Member] | Interest Rate Swaps [Member] | |||
Derivative [Line Items] | |||
Periodic settlements of active swap agreements | $8 | ||
Terminated swap agreements | 14 | 20 | 22 |
Total | $14 | $20 | $30 |
Income_Taxes_Provision_for_Inc
Income Taxes - Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current: | |||
Federal | $414 | $389 | $268 |
State | 61 | 79 | 72 |
Foreign | 56 | 45 | 36 |
Current total | 531 | 513 | 376 |
Deferred: | |||
Federal | -89 | -82 | 48 |
State | -33 | -14 | 17 |
Foreign | 4 | -53 | 2 |
Deferred total | -118 | -149 | 67 |
Provision for income taxes | $413 | $364 | $443 |
Income_Taxes_US_Federal_Statut
Income Taxes - U.S. Federal Statutory Income Tax Rate Reconciled to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Federal tax credits | -3.21% | -11.74% | -4.13% |
Taxing authority audit settlements and other tax adjustments | -1.59% | -3.56% | -0.02% |
Noncontrolling interests | -0.81% | -2.28% | -1.16% |
State and local income taxes, net of federal income tax benefit | 1.77% | 9.81% | 3.85% |
Tax rate differential on foreign income | -0.46% | 1.63% | -0.96% |
Tax impact of impairments | 0.46% | 41.95% | 0.57% |
Tax impact of divestitures | -7.89% | ||
Other | 0.34% | 2.94% | 0.80% |
Provision for income taxes | 23.61% | 73.75% | 33.95% |
Income_Taxes_Income_Before_Inc
Income Taxes - Income Before Income Taxes Showing Domestic and Foreign Source (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Domestic | $1,601 | $548 | $1,175 |
Foreign | 150 | -54 | 128 |
Income before income taxes | $1,751 | $494 | $1,303 |
Income_Taxes_Additional_inform
Income Taxes - Additional information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Line Items] | |||
Provision for income tax | $138 | ||
Net gain related to divestiture of Wheelabrator business | 515 | ||
Equity in net losses of unconsolidated entities | -53 | -34 | -46 |
Increase (decrease) deferred taxes and Accruals | 24 | 4 | 7 |
Reduction in provision for income taxes due to tax audit settlements | 12 | 11 | 10 |
Reduction in provision for income taxes due to state net operating loss and credit carry-forwards | 16 | 16 | 5 |
Reduction in provision for income taxes due to Federal net operating loss carry-forwards | 8 | ||
Increase (decrease) in provision for income taxes due to book impairments | 8 | 235 | 7 |
Unremitted earnings in foreign subsidiaries | 750 | ||
Increase in valuation allowance due to acquisition | 151 | ||
Net unrecognized tax benefits that would impact effective tax rate in future period | 28 | ||
Accrued interest | 1 | 2 | 2 |
Accrued interest in balance sheet | 3 | 7 | |
Liabilities for unrecognized tax benefits including accrued interest that may be reversed within the next 12 months | 12 | ||
Deferred tax assets related to unrecognized tax benefits that may be reversed within the next 12 months | 3 | ||
Percentage of Bonus Depreciation allowance | 50.00% | ||
Federal [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 28 | ||
Operating loss carry-forwards, expiration date | 31-Dec-34 | ||
Capital loss carry-forward | 519 | ||
Capital loss carry-forward, expiration date | Expire in 2019 | ||
State [Member] | |||
Income Taxes [Line Items] | |||
Net operating loss carry-forwards | 1,600 | ||
Operating loss carry-forwards, expiration date | 31-Dec-34 | ||
State tax credit carry-forward | 33 | ||
2013 Audit [Member] | |||
Income Taxes [Line Items] | |||
Expected time of completion of IRS audits | 3 months | ||
2014 Audit [Member] | |||
Income Taxes [Line Items] | |||
Expected time of completion of IRS audits | 15 months | ||
2015 Audit [Member] | |||
Income Taxes [Line Items] | |||
Expected time of completion of IRS audits | 27 months | ||
Investment in Refined Coal Facility [Member] | |||
Income Taxes [Line Items] | |||
Equity in net losses of unconsolidated entities | 7 | 8 | 7 |
Income tax benefit, including tax credits, from equity method investment | 21 | 20 | 21 |
Low-Income Housing Properties [Member] | |||
Income Taxes [Line Items] | |||
Equity in net losses of unconsolidated entities | 25 | 25 | 24 |
Income tax benefit, including tax credits, from equity method investment | 37 | 38 | 38 |
Interest expense | 5 | 6 | 7 |
Tax credits from equity method investment | $25 | $26 | $26 |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss, capital loss and tax credit carry-forwards | $297 | $164 |
Miscellaneous and other reserves, net | 380 | 356 |
Subtotal | 677 | 520 |
Valuation allowance | -300 | -149 |
Deferred tax liabilities: | ||
Landfill and environmental remediation liabilities | -22 | -30 |
Property and equipment | -598 | -966 |
Goodwill and other intangibles | -1,095 | -1,104 |
Net deferred tax liabilities | ($1,338) | ($1,729) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Including Accrued interest (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance beginning | $49 | $54 | $49 |
Additions based on tax positions related to the current year | 9 | 6 | 15 |
Additions based on tax positions of prior years | 2 | ||
Additions due to acquisitions | 0 | 0 | 0 |
Accrued interest | 1 | 2 | 2 |
Reductions based on tax positions related to the current year | 0 | 0 | 0 |
Reductions for tax positions of prior years | -7 | -1 | |
Settlements | -11 | -1 | -4 |
Lapse of statute of limitations | -8 | -5 | -7 |
Balance ending | $42 | $49 | $54 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plan Disclosure [Line Items] | |||
Employee waiting period after hire to participate in the defined contribution plans | 90 days | ||
Employee maximum contribution towards defined contribution plans as percentage of annual compensation | 25.00% | ||
Employer's match in cash of employee contributions on first specified percentage of eligible compensation | 100.00% | ||
First percentage of eligible compensation on which specified percentage of contribution is matched by the employer in cash | 3.00% | ||
Employer's match in cash of employee contributions on next specified percentage of eligible compensation | 50.00% | ||
Next percentage of eligible compensation on which specified percentage of contribution is matched by the employer in cash | 3.00% | ||
Employer maximum match of employee contribution on eligible compensation | 4.50% | ||
Operating, selling, general and administrative expenses for our defined contribution plans | $63 | $63 | $63 |
Accrued benefit liabilities for defined benefit pension and other post retirement plans | 64 | ||
Charge to "Operating" expenses for the agreed-upon withdrawal of bargaining units from multi-employer pension plans | 4 | 5 | 10 |
Contributions to Multi employer Plan | 44 | 40 | 39 |
Multiemployer Health And Welfare Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to Multi employer Plan | 34 | 34 | 36 |
Other Postretirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unfunded benefit obligation of pension and other post-retirement plans | 33 | ||
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Combined accumulated benefit obligation of pension plans | 121 | ||
Plan assets of pension plans | 90 | ||
Unfunded benefit obligation of pension and other post-retirement plans | $31 |
Employee_Benefit_Plans_Individ
Employee Benefit Plans - Individually Significant Multiemployer Pension Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Multiemployer Plans [Line Items] | |||
Company Contributions | $44 | $40 | $39 |
Total Company Contributions | 37 | 33 | 32 |
Contributions to other multi employer pension plans | 7 | 7 | 7 |
Automotive Industries Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 941133245 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | Various dates through 6/30/2018 | ||
Company Contributions | 1 | 1 | 1 |
Central States, Southeast and Southwest Areas Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366044243 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | The Company believes there are no collective bargaining agreements remaining that require continuing contributions to this plan; however, this point is the subject of pending litigation with the trustees for the Central States, Southeast and Southwest Areas Pension Plan. | ||
Company Contributions | 1 | ||
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366513567 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Yellow | Yellow | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | 9/30/18 | ||
Company Contributions | 6 | 6 | 5 |
Suburban Teamsters of Northern Illinois Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366155778 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | Various dates through 9/30/2017 | ||
Company Contributions | 3 | 2 | 2 |
Teamsters Employers Local 945 Pension Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 226196388 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | Various dates through 12/31/2015 | ||
Teamsters Local 301 Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366492992 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status | NA | ||
Expiration date of Collective-Bargaining Agreement | 9/30/18 | ||
Company Contributions | 1 | 1 | 1 |
Western Conference of Teamsters Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 916145047 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status | NA | ||
Expiration date of Collective-Bargaining Agreement | Various dates through 12/31/2019 | ||
Company Contributions | 24 | 22 | 22 |
Western Pennsylvania Teamsters and Employers Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 256029946 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | 12/31/16 | ||
Company Contributions | $1 | $1 | $1 |
Employee_Benefit_Plans_Individ1
Employee Benefit Plans - Individually Significant Multiemployer Pension Plans (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Multiemployer Plans [Abstract] | |
High end of funded percentage of multiemployer plans in critical status | 65.00% |
High end of funded percentage of multiemployer plans in endangered status | 80.00% |
Surcharge percentage during first twelve months on contribution rates for plans certified as endangered, seriously endangered or critical | 5.00% |
Period for which surcharge is 5% on contribution rates for plans certified as endangered, seriously endangered or critical | 12 months |
Surcharge percentage after first twelve months on contribution rates for plans certified as endangered, seriously endangered or critical | 10.00% |
Description of multiemployer defined benefit pension plan | A multiemployer defined benefit pension plan that has been certified as endangered, seriously endangered or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable FIP or RP. |
Minimum percentage of total contributions provided by the Company relating to multiemployer plans | 5.00% |
Employee_Benefit_Plans_Multiem
Employee Benefit Plans - Multiemployer Plan and Year with Employer's Total Contribution Greater Than 5% (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund [Member] | |
Multiemployer Plans [Line Items] | |
Year Contributions to Plan Exceeded 5% of Total Contributions (as of Plan's Year End) | 9/30/2013 and 9/30/2012 |
Suburban Teamsters of Northern Illinois Pension Plan [Member] | |
Multiemployer Plans [Line Items] | |
Year Contributions to Plan Exceeded 5% of Total Contributions (as of Plan's Year End) | 12/31/2013 and 12/31/2012 |
Teamsters Local 301 Pension Plan [Member] | |
Multiemployer Plans [Line Items] | |
Year Contributions to Plan Exceeded 5% of Total Contributions (as of Plan's Year End) | 12/31/2013 and 12/31/2012 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Nov. 12, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Homeowners | ||||
site | ||||
Landfill | ||||
Commitments And Contingencies [Line Items] | ||||
Maximum self insurance exposures per incident under general liability insurance program | $2,500,000 | |||
Maximum self insurance exposures per incident under workers' compensation insurance program | 5,000,000 | |||
Per incident base deductible under auto liability insurance program | 5,000,000 | |||
Per incident additional deductible under auto liability insurance | 4,800,000 | |||
Low end of layer subject to additional deductibles of auto liability insurance | 5,000,000 | |||
High end of layer subject to additional deductibles of auto liability insurance | 10,000,000 | |||
Rental expense | 159,000,000 | 170,000,000 | 180,000,000 | |
Minimum contractual payments for operating leases in 2015 | 103,000,000 | |||
Minimum contractual payments for operating leases in 2016 | 83,000,000 | |||
Minimum contractual payments for operating leases in 2017 | 70,000,000 | |||
Minimum contractual payments for operating leases in 2018 | 57,000,000 | |||
Minimum contractual payments for operating leases in 2019 | 47,000,000 | |||
Minimum contractual payments for operating leases thereafter | 308,000,000 | |||
Estimated minimum purchase obligation in 2015 | 189,000,000 | |||
Estimated minimum purchase obligation in 2016 | 172,000,000 | |||
Estimated minimum purchase obligation in 2017 | 156,000,000 | |||
Estimated minimum purchase obligation in 2018 | 116,000,000 | |||
Estimated minimum purchase obligation in 2019 | 91,000,000 | |||
Estimated minimum purchase obligation in thereafter | 430,000,000 | |||
Financial and performance obligations, net liability | 18,000,000 | |||
Maximum future payments guaranteed | 8,000,000 | |||
Approximate number of homeowners' properties adjacent to or near certain of our landfills with agreements guaranteeing market value | 800 | |||
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value | 20 | |||
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP | 75 | |||
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP | 14 | |||
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP | 61 | |||
Payment against settlement of claims | 29,200,000 | |||
Approximate percentage of workforce covered by collective bargaining agreements | 20.00% | |||
WM's Senior Indebtedness [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Maturity date of senior indebtedness | 2039 | |||
WM Holdings Senior Indebtedness [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Maturity date of senior indebtedness | 2026 | |||
Disposal [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Purchase agreements expiring through the period | 2052 | |||
Waste Paper [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Purchase agreements expiring through the period | 2018 | |||
WM Holdings [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Discount rate of Self-insurance claim reserve acquired as part of acquisition of WM Holdings | 2.00% | 3.00% | 1.75% | |
2013 Audit [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Number of months expected for IRS audit(s) to be completed | 3 months | |||
2014 Audit [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Number of months expected for IRS audit(s) to be completed | 15 months | |||
2015 Audit [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Number of months expected for IRS audit(s) to be completed | 27 months | |||
Wheelabrator [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Period of agreement | 7 years | |||
Maximum future payments guaranteed | 176,000,000 | |||
Domestic Line of Credit [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Credit Facility, aggregate capacity | 2,250,000,000 | 2,250,000,000 | ||
Central States, Southeast and Southwest Areas Pension Plan [Member] | ||||
Commitments And Contingencies [Line Items] | ||||
Estimate of possible loss | $40,000,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Changes to Net Insurance Liabilities (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Contingencies And Commitments [Line Items] | |||
Beginning Balance | $393 | $367 | $350 |
Self-insurance expense (benefit) | 159 | 172 | 163 |
Cash (paid) received | -138 | -146 | -146 |
Ending Balance | 414 | 393 | 367 |
Current portion at December 31, 2013 | 112 | ||
Long-term portion at December 31, 2013 | 302 | ||
Gross Claims Liability [Member] | |||
Contingencies And Commitments [Line Items] | |||
Beginning Balance | 590 | 569 | 511 |
Self-insurance expense (benefit) | 168 | 177 | 222 |
Cash (paid) received | -161 | -156 | -164 |
Ending Balance | 597 | 590 | 569 |
Current portion at December 31, 2013 | 129 | ||
Long-term portion at December 31, 2013 | 468 | ||
Receivables Associated with Insured Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Beginning Balance | -197 | -202 | -161 |
Self-insurance expense (benefit) | -9 | -5 | -59 |
Cash (paid) received | 23 | 10 | 18 |
Ending Balance | -183 | -197 | -202 |
Current portion at December 31, 2013 | -17 | ||
Long-term portion at December 31, 2013 | ($166) |
Commitments_and_Contingencies_3
Commitments and Contingencies - Changes to Net Insurance Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Expected time period in years for cash settlement of substantially all recorded obligations associated with insurance liabilities | 5 years |
Restructuring_Restructuring_Ch
Restructuring - Restructuring Charges Pre Tax by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | $67 | $82 | $18 | $67 |
Two Thousand Fourteen Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 82 | |||
Two Thousand Fourteen Restructuring [Member] | Solid Waste [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 10 | |||
Two Thousand Fourteen Restructuring [Member] | Wheelabrator [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 1 | |||
Two Thousand Fourteen Restructuring [Member] | Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 71 | |||
2013 Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 18 | |||
2013 Restructuring [Member] | Solid Waste [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 7 | |||
2013 Restructuring [Member] | Wheelabrator [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 1 | |||
2013 Restructuring [Member] | Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 10 | |||
2012 Restructuring [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 67 | |||
2012 Restructuring [Member] | Solid Waste [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 19 | |||
2012 Restructuring [Member] | Wheelabrator [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | 3 | |||
2012 Restructuring [Member] | Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges, Total | $45 |
Restructuring_Additional_Infor
Restructuring - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 36 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Jul. 31, 2012 | Aug. 31, 2014 |
Areas | Employees | ||||||
Employees | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Pre-tax restructuring charges related to employee severance and benefit costs | $7 | ||||||
Pre-tax restructuring charges | 67 | 82 | 18 | 67 | |||
Employee severance and benefit costs from restructurings beginning in 2012 | 133 | ||||||
Employee severance and benefit cost payments through the balance sheet date | 94 | ||||||
Remaining employee severance payable through our restructuring efforts | 33 | ||||||
Completion date of restructuring activities | 31-Dec-15 | ||||||
2012 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employee positions eliminated | 700 | ||||||
Pre-tax restructuring charges related to employee severance and benefit costs | 56 | ||||||
Pre-tax restructuring charges | 67 | ||||||
Number of areas pre restructuring | 22 | ||||||
Number of areas post restructuring | 17 | ||||||
Two Thousand Fourteen Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Number of employee positions eliminated | 650 | ||||||
Pre-tax restructuring charges related to employee severance and benefit costs | 70 | ||||||
Pre-tax restructuring charges | 82 | ||||||
2013 Restructuring [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Pre-tax restructuring charges | $18 |
Asset_Impairments_and_Unusual_2
Asset Impairments and Unusual Items - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Jun. 30, 2013 |
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | $10 | $509 | $4 | ||||
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | -170 | 464 | 79 | ||||
Gain (loss) on sale of business | 515 | ||||||
Asset impairments (other than goodwill) | 345 | 472 | 79 | ||||
(Income) expense from divestitures | 515 | 8 | |||||
Impairment charge from equity method investment | 10 | ||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | 155 | ||||||
Landfill [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Number of facilities impaired | 2 | ||||||
Waste-to-Energy Facility [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 144 | 130 | |||||
Number of facilities impaired | 3 | ||||||
Recycling Operations [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 10 | ||||||
Oil and Gas Well [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Impairment of oil and gas property to its estimated fair value | 15 | 272 | |||||
Recycling Assets [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 31 | ||||||
Investment in waste diversion technology company [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 20 | ||||||
Majority-owned waste diversion technology company [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 9 | ||||||
Asset impairments (other than goodwill) | 20 | ||||||
Eastern Canada Area [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Gain (loss) on sale of business | 18 | ||||||
Eastern Canada Area [Member] | Landfill [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 262 | 262 | |||||
Number of facilities impaired | 2 | ||||||
Other [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 10 | 16 | |||||
Cost-method Investments, Realized Gain (Loss) | 4 | ||||||
Other [Member] | Medical Waste Facilities [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 45 | ||||||
Number of facilities impaired | 3 | ||||||
Waste Diversion Technology, Renewable Energy, Recycling, and Medical Waste Operations [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Asset impairments (other than goodwill) | 73 | ||||||
Impairment charge relating to decline in value of investment accounted under cost method | 22 | 71 | 16 | ||||
Wheelabrator [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 483 | 483 | |||||
Gain (loss) on sale of business | 519 | 519 | |||||
Puerto Rico [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 10 | ||||||
Non Solid Waste Operations [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Goodwill impairment charges | 4 | ||||||
Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Gain (loss) on sale of business | 25 | ||||||
Waste Diversion Technology Companies [Member] | |||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | |||||||
Impairment charge from equity method investment | $11 |
Asset_Impairments_and_Unusual_3
Asset Impairments and Unusual Items - Components of (Income) Expense from Divestitures, Asset Impairments (Other Than Goodwill) and Unusual Items (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Extraordinary and Unusual Items [Abstract] | |||
(Income) expense from divestitures | ($515) | ($8) | |
Asset impairments (other than goodwill) | 345 | 472 | 79 |
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | ($170) | $464 | $79 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income - Component of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | $154 | $193 | $172 |
Other comprehensive income (loss) before reclassifications, net of tax | -108 | -37 | 11 |
Amounts reclassified from accumulated other comprehensive income, net of tax | -23 | -2 | 10 |
Other comprehensive income (loss), net of taxes | -131 | -39 | 21 |
Accumulated Other Comprehensive Income (Loss), Ending balance | 23 | 154 | 193 |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | -62 | -74 | -62 |
Other comprehensive income (loss) before reclassifications, net of tax | 6 | 14 | -22 |
Amounts reclassified from accumulated other comprehensive income, net of tax | -5 | -2 | 10 |
Other comprehensive income (loss), net of taxes | 1 | 12 | -12 |
Accumulated Other Comprehensive Income (Loss), Ending balance | -61 | -62 | -74 |
Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 6 | 4 | 2 |
Other comprehensive income (loss) before reclassifications, net of tax | 4 | 2 | 2 |
Other comprehensive income (loss), net of taxes | 4 | 2 | 2 |
Accumulated Other Comprehensive Income (Loss), Ending balance | 10 | 6 | 4 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 208 | 276 | 243 |
Other comprehensive income (loss) before reclassifications, net of tax | -107 | -68 | 33 |
Amounts reclassified from accumulated other comprehensive income, net of tax | -17 | ||
Other comprehensive income (loss), net of taxes | -124 | -68 | 33 |
Accumulated Other Comprehensive Income (Loss), Ending balance | 84 | 208 | 276 |
Post - Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 2 | -13 | -11 |
Other comprehensive income (loss) before reclassifications, net of tax | -11 | 15 | -2 |
Amounts reclassified from accumulated other comprehensive income, net of tax | -1 | ||
Other comprehensive income (loss), net of taxes | -12 | 15 | -2 |
Accumulated Other Comprehensive Income (Loss), Ending balance | ($10) | $2 | ($13) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income - Component of Accumulated Other Comprehensive Income (Parenthetical) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | $4 | $9 | ($14) |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | 4 | 9 | -14 |
Amounts reclassified from accumulated other comprehensive income, tax | -3 | -1 | 5 |
Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | 2 | 1 | 2 |
Amounts reclassified from accumulated other comprehensive income, tax | 0 | 0 | 0 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income, tax | 0 | 0 | 0 |
Post - Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | -8 | 10 | -2 |
Amounts reclassified from accumulated other comprehensive income, tax | $0 | $0 | $0 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income - Other Comprehensive Income (Loss) Before Reclassifications Associated With Cash Flow Derivative Instruments (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | $10 | $23 | ($36) |
Tax (expense) benefit | -4 | -9 | 14 |
Net of tax | 6 | 14 | -22 |
Interest Rate Swaps [Member] | Cash Flow Hedging [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | -8 | 14 | -27 |
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | 23 | 17 | -9 |
Electricity Commodity Derivatives [Member] | Cash Flow Hedging [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | ($5) | ($8) |
Accumulated_Other_Comprehensiv5
Accumulated Other Comprehensive Income - Reclassification of Component of Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other, net | ($29) | ($74) | ($18) | ||||||||
Operating revenues | 3,437 | 3,602 | 3,561 | 3,396 | 3,500 | 3,621 | 3,526 | 3,336 | 13,996 | 13,983 | 13,649 |
Gains and losses on cash flow hedges, Tax (expense) benefit | -413 | -364 | -443 | ||||||||
Consolidated net income | 598 | 281 | 222 | 237 | -599 | 297 | 256 | 176 | 1,338 | 130 | 860 |
Amount Reclassified from Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gains and losses on cash flow hedges, Total before tax | 8 | 3 | -15 | ||||||||
Gains and losses on cash flow hedges, Tax (expense) benefit | -3 | -1 | 5 | ||||||||
Consolidated net income | 5 | 2 | -10 | ||||||||
Interest Rate Swaps [Member] | Amount Reclassified from Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | -10 | -7 | -3 | ||||||||
Treasury Rate Locks [Member] | Amount Reclassified from Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense | -1 | -2 | -7 | ||||||||
Foreign Currency Derivatives [Member] | Amount Reclassified from Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other, net | 27 | 21 | -15 | ||||||||
Electricity Commodity Derivatives [Member] | Amount Reclassified from Accumulated Other Comprehensive Income [Member] | Cash Flow Hedging [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Operating revenues | ($8) | ($9) | $10 |
Capital_Stock_Dividends_and_Sh2
Capital Stock, Dividends and Share Repurchases - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Feb. 28, 2015 |
Stock Repurchase Program [Line Items] | ||||||
Common stock shares authorized | 1,500,000,000 | 1,500,000,000 | 1,500,000,000 | |||
Common stock par value per share | $0.01 | $0.01 | $0.01 | |||
Common stock shares issued | 630,282,461 | 630,282,461 | 630,282,461 | |||
Common stock shares outstanding | 458,500,000 | 458,500,000 | 464,300,000 | 464,200,000 | ||
Preferred stock shares authorized | 10,000,000 | 10,000,000 | ||||
Preferred stock par value per share | $0.01 | $0.01 | ||||
Preferred stock shares outstanding | 0 | 0 | ||||
Cash dividends | $693 | $683 | $658 | |||
Cash dividends declared and paid per common share | $0.38 | $1.50 | $1.46 | $1.42 | ||
Treasury stock at cost | 600 | 239 | ||||
Accelerated Share Repurchase Agreement (ASR) [Member] | ||||||
Stock Repurchase Program [Line Items] | ||||||
Treasury stock at cost | 420 | |||||
Forward contract indexed to own stock | 180 | |||||
Share Repurchase Program [Member] | Subsequent Event [Member] | ||||||
Stock Repurchase Program [Line Items] | ||||||
Maximum capital allocated for repurchases of shares | $1,000 |
Capital_Stock_Dividends_and_Sh3
Capital Stock, Dividends and Share Repurchases - Stock Repurchase Programs (Detail) (USD $) | 12 Months Ended | |
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Stock Repurchase Program [Line Items] | ||
Shares repurchased | 9,569 | 5,368 |
ASR weighted average per share purchase price | $43.89 | |
Total repurchases | $600 | $239 |
Minimum [Member] | ||
Stock Repurchase Program [Line Items] | ||
Weighted average per share purchase price | $43.48 | |
Maximum [Member] | ||
Stock Repurchase Program [Line Items] | ||
Weighted average per share purchase price | $45.95 |
Capital_Stock_Dividends_and_Sh4
Capital Stock, Dividends and Share Repurchases - Stock Repurchase Programs (Parenthetical) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2014 | Sep. 30, 2014 | Feb. 28, 2015 |
Financial_Institutions | |||||
Stock Repurchase Program [Line Items] | |||||
Shares repurchased | 9,569,000 | 5,368,000 | |||
Accelerated Share Repurchase Agreements (ASRs) [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Maximum capital allocated for repurchases of common stock | $600 | ||||
Shares repurchased | 9,600,000 | ||||
Common stock repurchases | $600 | ||||
Number of banks in which ASR agreement signed | 2 | ||||
Percentage of common stock shares repurchased | 70.00% | ||||
Accelerated Share Repurchase Agreements (ASRs) [Member] | Subsequent Event [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Final weighted average per share purchase price for the completed ASR agreements | $48.58 | ||||
Shares received from the banks to settle the ASRs | 2,800,000 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-14 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash proceeds received | $93 | $132 | $43 | |
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 30 days | |||
Price at which employees are able to purchase shares of common stock of company at end of each offering period | 85.00% | |||
The number of shares newly issued during the reporting period under the plan | 774,000 | 928,000 | 1,000,000 | |
Shares available under employee stock plans | 1,000,000 | |||
Number of offering periods | 2 | |||
Increase in annual compensation expense due to employee stock plan | 6 | 6 | 7 | |
Increase in annual compensation expense due to employee stock plan, net of tax | 4 | 4 | 4 | |
2014 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available under employee stock plans | 25,900,000 | |||
Maximum number of shares authorized for issuance under stock incentive plan | 23,800,000 | |||
2009 Stock Incentive Plan Member | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available under employee stock plans | 1,100,000 | |||
Employee Stock Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Increase in annual compensation expense due to employee stock plan | 59 | 54 | 22 | |
Deferred income tax benefits included in provision for income taxes | 23 | 21 | 9 | |
Currently unrecognized compensation expense that will be recognized in future periods for unvested RSU, PSU and stock option awards issued and outstanding | 46 | |||
Weighted average period of under which unrecognized compensation expenses associated with all unvested awards currently outstanding is expected to be recognized | 1 year 4 months 24 days | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee stock option description of vesting methods | Vest in 25% increments on the first two anniversaries of the date of grant with the remaining 50% vesting on the third anniversary | |||
Term of options | 10 years | |||
Cash proceeds received | 93 | 132 | 43 | |
Tax benefits realized from stock option exercises | 5 | 10 | 5 | |
Aggregate intrinsic value of stock options exercised | 27 | 41 | 15 | |
Fair value of stock options granted | $4.55 | $4.26 | $4.66 | |
Share-based compensation arrangement by share-based payment award, fair value assumptions, method used | Black-Scholes option pricing model | |||
Stock Options [Member] | First Anniversary [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 12 months | |||
Vested shares issued, percentage of the established target | 25.00% | |||
Stock Options [Member] | Second Anniversary [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 12 months | |||
Vested shares issued, percentage of the established target | 25.00% | |||
Stock Options [Member] | Third Anniversary [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 12 months | |||
Vested shares issued, percentage of the established target | 50.00% | |||
Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
The number of shares newly issued during the reporting period under the plan | 42,000 | |||
Total fair market value of vested awards | 3 | 1 | 11 | |
Performance Share Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
The number of shares newly issued during the reporting period under the plan | 106,000 | |||
Total fair market value of vested awards | $8 | $14 | $32 | |
Range of performance share units awarded at end of three year period range | 0% to 200% of the targeted amount | |||
Vested shares issued, percentage of the established target | 60.00% | |||
Performance Share Units [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of potential payout percentage of performance share units awarded at end of three year period range | 0.00% | |||
Performance Share Units [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Range of potential payout percentage of performance share units awarded at end of three year period range | 200.00% | |||
Deferred Units [Member] | Employee Stock Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vested deferred units outstanding | 295,000 |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of RSUs (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Units, beginning of year | 535 |
Granted, Units | 219 |
Vested, Units | -57 |
Forfeited, Units | -77 |
Unvested, Units, end of year | 620 |
Unvested, Weighted Average Fair Value, beginning of year | $35.68 |
Granted, Weighted Average Fair Value | $41.41 |
Vested, Weighted Average Fair Value | $39.58 |
Forfeited, Weighted Average Fair Value | $38.41 |
Unvested, Weighted Average Fair Value, end of year | $37.44 |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of PSUs (Detail) (Performance Share Units [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Performance Share Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Units, beginning of year | 1,826 |
Granted, Units | 695 |
Vested, Units | -317 |
Forfeited, Units | -171 |
Unvested, Units, end of year | 2,033 |
Unvested, Weighted Average Fair Value, beginning of year | $43.41 |
Granted, Weighted Average Fair Value | $45.83 |
Vested, Weighted Average Fair Value | $42.42 |
Forfeited, Weighted Average Fair Value | $46.20 |
Unvested, Weighted Average Fair Value, end of year | $46.28 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Stock Options (Detail) (Stock Options [Member], USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding shares, beginning of year | 9,674 |
Granted, shares | 2,099 |
Exercised, shares | -2,798 |
Forfeited or expired, shares | -597 |
Outstanding shares, end of year | 8,378 |
Exercisable shares, end of year | 4,451 |
Outstanding, Weighted Average Exercise Price, beginning of year | $35.98 |
Granted, Weighted Average Exercise Price | $41.23 |
Exercised, Weighted Average Exercise Price | $35.85 |
Forfeited or expired, Weighted Average Exercise Price | $37.60 |
Outstanding, Weighted Average Exercise Price, end of year | $37.22 |
Exercisable, Weighted Average Exercise Price, end of year | $36.05 |
StockBased_Compensation_Summar3
Stock-Based Compensation - Summary of Stock Options (Parenthetical) (Detail) (Stock Options [Member], USD $) | 12 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average remaining contractual term of stock options outstanding | 7 years 2 months 12 days |
Aggregate intrinsic value of stock options outstanding based on the market value of company's common stock | $118 |
Weighted average remaining contractual term of stock options exercisable | 6 years 2 months 12 days |
Aggregate intrinsic value of stock options exercisable based on the market value of company's common stock | $68 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options exercise price | $32.18 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options exercise price | $40.62 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Assumptions Used to Value Employee Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected option life | 4 years 9 months 18 days | 5 years 4 months 24 days | 5 years 6 months |
Expected volatility | 18.40% | 21.80% | 24.20% |
Expected dividend yield | 3.60% | 4.00% | 4.10% |
Risk-free interest rate | 1.60% | 1.00% | 1.10% |
Earnings_Per_Share_Common_Shar
Earnings Per Share - Common Share Data Used for Computing Basic and Diluted Earnings Per Share (Detail) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Earnings Per Share [Abstract] | |||
Number of common shares outstanding at year-end | 458.5 | 464.3 | 464.2 |
Effect of using weighted average common shares outstanding | 4.1 | 3.4 | -0.6 |
Weighted average basic common shares outstanding | 462.6 | 467.7 | 463.6 |
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 3 | 2.1 | 0.8 |
Weighted average diluted common shares outstanding | 465.6 | 469.8 | 464.4 |
Potentially issuable shares | 11.3 | 12.3 | 15.3 |
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 0.4 | 0.1 | 8.9 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) (Fair Value, Measurements, Recurring [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $1,445 | $162 |
Total liabilities | 31 | |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,335 | 99 |
Fixed- Income Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 38 | 36 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 44 | 25 |
Electricity commodity derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 3 | |
Foreign Currency Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 28 | 2 |
Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 28 | |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 1,335 | 99 |
Quoted Prices in Active Markets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,335 | 99 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 66 | 38 |
Total liabilities | 31 | |
Significant Other Observable Inputs (Level 2) [Member] | Fixed- Income Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 38 | 36 |
Significant Other Observable Inputs (Level 2) [Member] | Electricity commodity derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 3 | |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Currency Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 28 | 2 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 28 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 44 | 25 |
Significant Unobservable Inputs (Level 3) [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $44 | $25 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Proceeds from divestiture of business | $2,090,000,000 | $70,000,000 | $7,000,000 | |
Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from divestiture of business | 80,000,000 | |||
Reported Value Measurement [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying value of debt | 9,400,000,000 | 10,200,000,000 | ||
Estimate of Fair Value Measurement [Member] | ||||
Debt Instrument [Line Items] | ||||
Carrying value of debt | 10,600,000,000 | 11,000,000,000 | ||
Repayment of debt | 751,000,000 | |||
Redeemable Preferred Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Fair value of redeemable preferred stock | 4,000,000 | |||
Redeemable Preferred Stock [Member] | Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from divestiture of business | 15,000,000 | |||
Domestic Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility | $2,250,000,000 | $2,250,000,000 |
Acquisitions_and_Divestitures_1
Acquisitions and Divestitures - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||||||||||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 21, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 21, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 21, 2012 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2013 | Jul. 05, 2013 | Jul. 05, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2012 | Dec. 19, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Oil and gas producing properties [Member] | Customer Contracts and Customer Relationships [Member] | Customer Contracts and Customer Relationships [Member] | Customer Contracts and Customer Relationships [Member] | Covenants Not-to-Compete [Member] | Covenants Not-to-Compete [Member] | Covenants Not-to-Compete [Member] | Other Intangible Assets [Member] | Maximum [Member] | Maximum [Member] | Greenstar LLC [Member] | RCI Environnement Inc [Member] | RCI Environnement Inc [Member] | RCI Environnement Inc [Member] | Series of Individually Immaterial Business Acquisitions 2013 [Member] | Solid Waste [Member] | Solid Waste [Member] | Wheelabrator [Member] | Wheelabrator [Member] | Eastern Canada Area [Member] | Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | Puerto Rico Operation and Certain Other Collection and Landfill Assets [Member] | |
Plant | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CAD | USD ($) | Business | Business | Series of Individually Immaterial Business Acquisitions 2012 [Member] | USD ($) | USD ($) | USD ($) | USD ($) | Redeemable Preferred Stock [Member] | Cash [Member] | |||||||
Facility | Business | USD ($) | USD ($) | |||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||||||
Total consideration, net of cash acquired, for business acquisitions closed during the year | $32 | $772 | $244 | $487 | 515 | |||||||||||||||||||||||||
Business acquisitions closed during the year, cash payments | 26 | 714 | 207 | 170 | 481 | 509 | ||||||||||||||||||||||||
Estimated fair value of liability for additional cash payments related to acquisitions | 6 | 29 | 22 | 6 | 33 | 16 | ||||||||||||||||||||||||
Number of business acquired | 14 | 15 | 32 | |||||||||||||||||||||||||||
Contingent consideration paid for acquisitions closed in current year | 4 | 4 | 9 | |||||||||||||||||||||||||||
Contingent consideration paid for acquisitions closed in previous year | 5 | 6 | 34 | |||||||||||||||||||||||||||
Allocation of purchase price to property and equipment | 6 | 195 | 126 | |||||||||||||||||||||||||||
Allocation of purchase price to other intangible assets | 9 | 232 | 43 | 7 | 218 | 34 | 2 | 5 | 9 | 9 | ||||||||||||||||||||
Purchase price allocation to goodwill | 17 | 327 | 69 | 122 | 191 | |||||||||||||||||||||||||
Business acquisitions, payments for working capital | 7 | |||||||||||||||||||||||||||||
Additional consideration payable | 40 | |||||||||||||||||||||||||||||
Additional consideration guaranteed amount | 20 | |||||||||||||||||||||||||||||
Contingent consideration maximum obligation | 57 | 20 | ||||||||||||||||||||||||||||
Acquisitions of interests in oil and gas properties | 94 | |||||||||||||||||||||||||||||
Deposits paid during prior year for acquisitions completed in current year | 7 | |||||||||||||||||||||||||||||
Business acquisition, assumed liabilities | 8 | |||||||||||||||||||||||||||||
Aggregate sales prices for divestitures of operations | 2,090 | 70 | 7 | 1,950 | 39 | 80 | 15 | 65 | ||||||||||||||||||||||
Recognized net gain (loss) on divestitures | 18 | -25 | 515 | 8 | 1 | |||||||||||||||||||||||||
Income expense from divestitures asset impairment | $519 | |||||||||||||||||||||||||||||
Period of agreement | 7 years | |||||||||||||||||||||||||||||
Number of operating facility | 16 | |||||||||||||||||||||||||||||
Number of production plants | 4 |
Acquisitions_and_Divestitures_2
Acquisitions and Divestitures - Purchase Price Allocation (Detail) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Greenstar LLC [Member] | |
Business Acquisition [Line Items] | |
Accounts and other receivables | $30 |
Parts and supplies | 4 |
Other current assets | 2 |
Property and equipment | 58 |
Goodwill | 122 |
Other intangible assets | 32 |
Accounts payable | -17 |
Accrued liabilities | -12 |
Landfill and environmental remediation liabilities | -2 |
Current portion of long-term debt | -4 |
Long-term debt, less current portion | -2 |
Other liabilities | -5 |
Total purchase price | 206 |
RCI Environnement Inc [Member] | |
Business Acquisition [Line Items] | |
Accounts and other receivables | 32 |
Property and equipment | 117 |
Goodwill | 191 |
Other intangible assets | 169 |
Deferred revenues | -4 |
Landfill and environmental remediation liabilities | -1 |
Long-term debt, less current portion | -3 |
Deferred income taxes, net | -14 |
Total purchase price | $487 |
Acquisitions_and_Divestitures_3
Acquisitions and Divestitures - Preliminary Purchase Price Allocation of Other Intangible Assets (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Greenstar LLC [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | $32 |
Total other intangible assets subject to amortization, Weighted average amortization period | 10 years |
Greenstar LLC [Member] | Supplier Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | 31 |
Total other intangible assets subject to amortization, Weighted average amortization period | 10 years |
Greenstar LLC [Member] | Lease Agreements [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | 1 |
Total other intangible assets subject to amortization, Weighted average amortization period | 8 years 4 months 24 days |
RCI Environnement Inc [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | 169 |
Total other intangible assets subject to amortization, Weighted average amortization period | 14 years 7 months 6 days |
RCI Environnement Inc [Member] | Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | 162 |
Total other intangible assets subject to amortization, Weighted average amortization period | 15 years |
RCI Environnement Inc [Member] | Trade Name [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets subject to amortization | $7 |
Total other intangible assets subject to amortization, Weighted average amortization period | 5 years |
Acquisitions_and_Divestitures_4
Acquisitions and Divestitures - ProForma Consolidated Results of Operations (Detail) (RCI Environnement Inc and Greenstar LLC [Member], USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
RCI Environnement Inc and Greenstar LLC [Member] | ||
Business Acquisition [Line Items] | ||
Operating revenues | $14,085 | $14,009 |
Net income attributable to Waste Management, Inc. | $112 | $803 |
Basic earnings per common share | $0.24 | $1.73 |
Diluted earnings per common share | $0.24 | $1.73 |
Acquisitions_and_Divestitures_5
Acquisitions and Divestitures - Carrying Amount of Asset and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 19, 2014 |
In Millions, unless otherwise specified | ||||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ||||
Parts and supplies | $106 | $178 | ||
Deferred income taxes | 115 | 113 | ||
Other assets | 176 | 163 | ||
Total current assets | 3,641 | 2,499 | ||
Property and equipment | 10,657 | 12,344 | 12,651 | |
Goodwill | 5,740 | 6,070 | 6,291 | |
Other assets | 526 | 747 | ||
Total assets | 21,412 | 22,603 | 23,097 | |
Accounts payable | 740 | 744 | ||
Accrued liabilities | 1,180 | 1,069 | ||
Deferred revenues | 475 | 475 | ||
Total current liabilities | 3,485 | 3,014 | ||
Deferred income taxes | 1,453 | 1,842 | ||
Landfill and environmental remediation liabilities | 1,531 | 1,518 | ||
Other liabilities | 709 | 727 | ||
Total liabilities | 15,523 | 16,601 | ||
Noncontrolling interests | 23 | 295 | ||
Wheelabrator [Member] | ||||
Assets And Liabilities Carrying Value And Fair Value [Line Items] | ||||
Accounts and other receivables | 90 | |||
Parts and supplies | 65 | |||
Deferred income taxes | 1 | |||
Other assets | 12 | |||
Total current assets | 168 | |||
Property and equipment | 1,155 | |||
Goodwill | 305 | 788 | 305 | |
Other intangible assets | 3 | |||
Other assets | 215 | |||
Total assets | 2,037 | 2,605 | 1,846 | |
Accounts payable | 23 | |||
Accrued liabilities | 20 | |||
Deferred revenues | 1 | |||
Current portion of long-term debt | 1 | |||
Total current liabilities | 45 | |||
Long-term debt, less current portion | 14 | |||
Deferred income taxes | 344 | |||
Landfill and environmental remediation liabilities | 18 | |||
Other liabilities | 19 | |||
Total liabilities | 440 | |||
Noncontrolling interests | $31 |
Variable_Interest_Entities_Add
Variable Interest Entities - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2012 | Dec. 31, 2014 | Jan. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2000 |
Variable Interest Entity [Line Items] | |||||||
Investment balance | 228 | $437 | |||||
Carrying value of restricted trust funds and escrow accounts for which company is not the sole beneficiary specifically for future settlement of landfill and environmental remediation liabilities | 113 | 110 | |||||
Trust For Final Capping Closure Post Closure or Environmental Remediation Obligations Primary Beneficiary [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Net property and equipment | 129 | 125 | |||||
Investment in Recycling and Waste-to-Energy [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of ownership in LLC's | 50.00% | ||||||
Investment in Recycling and Waste-to-Energy [Member] | Maximum [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Project agreement termination date | 16-May-14 | ||||||
Investment in Refined Coal Facility [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash payments to acquire equity method investment | 48 | ||||||
Investment balance | 32 | 27 | |||||
Low-Income Housing Properties [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Cash payments to acquire equity method investment | 6 | ||||||
Investment balance | 104 | 129 | |||||
Consideration for investment | 221 | ||||||
Value of notes payable included in consideration for investment | 215 | ||||||
Equity method investments debt balance | 104 | 128 | |||||
Waste To Energy LLC [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Net property and equipment | 284 | ||||||
Noncontrolling interests | 239 | ||||||
Expense recognized for other companies' noncontrolling interests in LLCs earnings | 39 | $43 | $45 | ||||
Waste To Energy LLC [Member] | Waste To Energy LLC 1 [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of ownership in LLC's | 0.50% | ||||||
Percentage of variable interest entities owned by other companies | 99.50% | ||||||
Waste To Energy LLC [Member] | Waste To Energy LLC II [Member] | |||||||
Variable Interest Entity [Line Items] | |||||||
Percentage of ownership in LLC's | 0.25% | ||||||
Percentage of variable interest entities owned by other companies | 99.75% |
Segment_and_Related_Informatio2
Segment and Related Information - Additional Information (Detail) (Solid Waste [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Areas | |
Solid Waste [Member] | |
Segment Reporting Information [Line Items] | |
Number of geographical areas | 17 |
Number of reportable segments | 3 |
Segment_and_Related_Informatio3
Segment and Related Information - Reportable Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 19, 2014 |
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | $3,437 | $3,602 | $3,561 | $3,396 | $3,500 | $3,621 | $3,526 | $3,336 | $13,996 | $13,983 | $13,649 | |
Income from operations | 752 | 546 | 532 | 469 | -410 | 577 | 510 | 402 | 2,299 | 1,079 | 1,851 | |
Depreciation and amortization | 1,292 | 1,333 | 1,297 | |||||||||
Capital Expenditures | 1,181 | 1,267 | 1,438 | |||||||||
Total Assets | 21,412 | 22,603 | 21,412 | 22,603 | 23,097 | |||||||
Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 16,457 | 16,507 | 16,008 | |||||||||
Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -2,461 | -2,524 | -2,359 | |||||||||
Total Assets, as Reported above [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Total Assets | 22,003 | 23,215 | 22,003 | 23,215 | 23,797 | |||||||
Solid Waste: Tier 1 [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 2,958 | 2,934 | 2,849 | |||||||||
Income from operations | 893 | 852 | 851 | |||||||||
Depreciation and amortization | 271 | 277 | 273 | |||||||||
Capital Expenditures | 266 | 217 | 242 | |||||||||
Total Assets | 3,661 | 3,682 | 3,661 | 3,682 | 3,664 | |||||||
Solid Waste: Tier 1 [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 3,495 | 3,487 | 3,370 | |||||||||
Solid Waste: Tier 1 [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -537 | -553 | -521 | |||||||||
Solid Waste: Tier 2 [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 5,243 | 5,236 | 5,177 | |||||||||
Income from operations | 1,318 | 1,291 | 1,270 | |||||||||
Depreciation and amortization | 510 | 522 | 512 | |||||||||
Capital Expenditures | 428 | 526 | 511 | |||||||||
Total Assets | 8,556 | 8,572 | 8,556 | 8,572 | 8,394 | |||||||
Solid Waste: Tier 2 [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 6,416 | 6,438 | 6,273 | |||||||||
Solid Waste: Tier 2 [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -1,173 | -1,202 | -1,096 | |||||||||
Solid Waste: Tier 3 [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 2,965 | 2,983 | 2,890 | |||||||||
Income from operations | 588 | 291 | 504 | |||||||||
Depreciation and amortization | 275 | 279 | 259 | |||||||||
Capital Expenditures | 268 | 258 | 271 | |||||||||
Total Assets | 5,030 | 5,288 | 5,030 | 5,288 | 5,088 | |||||||
Solid Waste: Tier 3 [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 3,538 | 3,552 | 3,413 | |||||||||
Solid Waste: Tier 3 [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -573 | -569 | -523 | |||||||||
Wheelabrator [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 715 | 733 | 723 | |||||||||
Income from operations | 669 | -517 | 113 | |||||||||
Depreciation and amortization | 37 | 61 | 69 | |||||||||
Capital Expenditures | 11 | 17 | 36 | |||||||||
Total Assets | 2,037 | 2,037 | 2,605 | 1,846 | ||||||||
Wheelabrator [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 817 | 845 | 846 | |||||||||
Wheelabrator [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -102 | -112 | -123 | |||||||||
Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 2,115 | 2,097 | 2,010 | |||||||||
Income from operations | -400 | -171 | -242 | |||||||||
Depreciation and amortization | 128 | 122 | 111 | |||||||||
Capital Expenditures | 134 | 126 | 239 | |||||||||
Total Assets | 1,791 | 2,177 | 1,791 | 2,177 | 2,495 | |||||||
Other [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 2,191 | 2,185 | 2,106 | |||||||||
Other [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -76 | -88 | -96 | |||||||||
Operating Group Total [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 13,996 | 13,983 | 13,649 | |||||||||
Income from operations | 3,068 | 1,746 | 2,496 | |||||||||
Depreciation and amortization | 1,221 | 1,261 | 1,224 | |||||||||
Capital Expenditures | 1,107 | 1,144 | 1,299 | |||||||||
Total Assets | 19,038 | 21,756 | 19,038 | 21,756 | 22,246 | |||||||
Operating Group Total [Member] | Operating Segments [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | 16,457 | 16,507 | 16,008 | |||||||||
Operating Group Total [Member] | Intercompany Operating Revenues [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Operating revenues | -2,461 | -2,524 | -2,359 | |||||||||
Corporate and Other [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Income from operations | -769 | -667 | -645 | |||||||||
Depreciation and amortization | 71 | 72 | 73 | |||||||||
Capital Expenditures | 74 | 123 | 139 | |||||||||
Total Assets | $2,965 | $1,459 | $2,965 | $1,459 | $1,551 |
Segment_and_Related_Informatio4
Segment and Related Information - Reportable Segments (Parenthetical) (Detail) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 19, 2014 |
Segment Reporting Information [Line Items] | ||||||
Impairment charges | $345 | $472 | $79 | |||
Gain (loss) on sale of business | 515 | |||||
Goodwill, Beginning balance | 6,070 | 6,291 | ||||
Assets | 21,412 | 22,603 | 23,097 | 21,412 | 22,603 | |
Acquired goodwill | 31 | 327 | ||||
Divested goodwill, net of assets held-for-sale | -308 | -12 | ||||
Impairments | -10 | -509 | -4 | |||
Translation and other adjustments | -43 | -27 | ||||
Goodwill, Ending balance | 5,740 | 6,070 | 6,291 | 5,740 | 6,070 | |
Solid Waste: Tier 1 [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill, Beginning balance | 1,221 | 1,186 | ||||
Assets | 3,661 | 3,682 | 3,664 | 3,661 | 3,682 | |
Acquired goodwill | 4 | 41 | ||||
Divested goodwill, net of assets held-for-sale | -1 | |||||
Translation and other adjustments | -9 | -5 | ||||
Goodwill, Ending balance | 1,216 | 1,221 | 1,216 | 1,221 | ||
Solid Waste: Tier 2 [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill, Beginning balance | 2,882 | 2,828 | ||||
Assets | 8,556 | 8,572 | 8,394 | 8,556 | 8,572 | |
Acquired goodwill | 13 | 56 | ||||
Divested goodwill, net of assets held-for-sale | -2 | |||||
Goodwill, Ending balance | 2,895 | 2,882 | 2,895 | 2,882 | ||
Solid Waste: Tier 3 [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill, Beginning balance | 1,547 | 1,374 | ||||
Assets | 5,030 | 5,288 | 5,088 | 5,030 | 5,288 | |
Acquired goodwill | 14 | 210 | ||||
Divested goodwill, net of assets held-for-sale | -3 | -9 | ||||
Impairments | -10 | |||||
Translation and other adjustments | -34 | -18 | ||||
Goodwill, Ending balance | 1,524 | 1,547 | 1,524 | 1,547 | ||
Wheelabrator [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Gain (loss) on sale of business | 519 | 519 | ||||
Goodwill, Beginning balance | 305 | 788 | 305 | |||
Assets | 2,037 | 2,605 | 2,037 | 1,846 | ||
Divested goodwill, net of assets held-for-sale | -305 | |||||
Impairments | -483 | -483 | ||||
Goodwill, Ending balance | 305 | 305 | 305 | |||
Other [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Goodwill, Beginning balance | 115 | 115 | ||||
Assets | 1,791 | 2,177 | 2,495 | 1,791 | 2,177 | |
Acquired goodwill | 20 | |||||
Impairments | -10 | -16 | ||||
Translation and other adjustments | -4 | |||||
Goodwill, Ending balance | 105 | 115 | 105 | 115 | ||
Elimination of Intercompany Investments and Advances [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Assets | -591 | -612 | -700 | -591 | -612 | |
Operating Segments Corporate and Reconciling Items [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment charges | 981 | |||||
Assets | 22,003 | 23,215 | 23,797 | 22,003 | 23,215 | |
Operating Segments Corporate and Reconciling Items [Member] | Solid Waste: Tier 3 [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment charges | 253 | |||||
Operating Segments Corporate and Reconciling Items [Member] | Wheelabrator [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Impairment charges | $627 |
Segment_and_Related_Informatio5
Segment and Related Information - Total Revenues by Principal Line of Business (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $3,437 | $3,602 | $3,561 | $3,396 | $3,500 | $3,621 | $3,526 | $3,336 | $13,996 | $13,983 | $13,649 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 16,457 | 16,507 | 16,008 | ||||||||
Operating Segments [Member] | Commercial [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 3,393 | 3,423 | 3,417 | ||||||||
Operating Segments [Member] | Residential [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,543 | 2,608 | 2,584 | ||||||||
Operating Segments [Member] | Industrial [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,231 | 2,209 | 2,129 | ||||||||
Operating Segments [Member] | Other Collection [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 340 | 273 | 275 | ||||||||
Operating Segments [Member] | Collection [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 8,507 | 8,513 | 8,405 | ||||||||
Operating Segments [Member] | Landfill [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,849 | 2,790 | 2,685 | ||||||||
Operating Segments [Member] | Transfer [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,353 | 1,329 | 1,296 | ||||||||
Operating Segments [Member] | Wheelabrator [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 817 | 845 | 846 | ||||||||
Operating Segments [Member] | Recycling [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,370 | 1,447 | 1,360 | ||||||||
Operating Segments [Member] | Other Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,561 | 1,583 | 1,416 | ||||||||
Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | ($2,461) | ($2,524) | ($2,359) |
Segment_and_Related_Informatio6
Segment and Related Information - Summary of Net Operating Revenues by Segment (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $3,437 | $3,602 | $3,561 | $3,396 | $3,500 | $3,621 | $3,526 | $3,336 | $13,996 | $13,983 | $13,649 |
United States and Puerto Rico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 13,064 | 13,054 | 12,812 | ||||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $932 | $929 | $837 |
Segment_and_Related_Informatio7
Segment and Related Information - Summary of Property and Equipment (Net) Relating to Operations by Segment (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $10,657 | $12,344 | $12,651 |
United States and Puerto Rico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 9,586 | 11,198 | 11,293 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $1,071 | $1,146 | $1,358 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) - Schedule of Unaudited Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $3,437 | $3,602 | $3,561 | $3,396 | $3,500 | $3,621 | $3,526 | $3,336 | $13,996 | $13,983 | $13,649 |
Income (loss) from operations | 752 | 546 | 532 | 469 | -410 | 577 | 510 | 402 | 2,299 | 1,079 | 1,851 |
Consolidated net income | 598 | 281 | 222 | 237 | -599 | 297 | 256 | 176 | 1,338 | 130 | 860 |
Net income (loss) attributable to Waste Management, Inc. | $590 | $270 | $210 | $228 | ($605) | $291 | $244 | $168 | $1,298 | $98 | $817 |
Basic earnings (loss) common share | $1.29 | $0.59 | $0.45 | $0.49 | ($1.29) | $0.62 | $0.52 | $0.36 | $2.80 | $0.21 | $1.76 |
Diluted earnings (loss) common share | $1.28 | $0.58 | $0.45 | $0.49 | ($1.29) | $0.62 | $0.52 | $0.36 | $2.79 | $0.21 | $1.76 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Quarterly Financial Information [Line Items] | ||||||||||
Income tax expense (benefit) | $413 | $364 | $443 | |||||||
Positive (Negative) impact on diluted earnings per common share | ($0.49) | ($0.09) | ||||||||
Impairment charges | 345 | 472 | 79 | |||||||
Pre-tax restructuring charges | 67 | 82 | 18 | 67 | ||||||
Net pre-tax | 364 | |||||||||
Positive (Negative) impact on diluted earnings per common share | 515 | |||||||||
(Income) expense from divestitures | 515 | 8 | ||||||||
Goodwill impairments | 10 | 509 | 4 | |||||||
Waste-to-Energy Facility [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.02) | |||||||||
Impairment charges | 144 | 130 | ||||||||
Puerto Rico [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Gain (loss) on sale of business | -25 | |||||||||
Income tax expense (benefit) | 0 | |||||||||
Tax charges incurred prior to divestment | 32 | |||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.12) | |||||||||
Restructuring Charges [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.02) | ($0.01) | ||||||||
Pre-tax restructuring charges | 13 | 5 | ||||||||
Restructuring and Acquisition Integration Charges [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.01) | |||||||||
Pre-tax restructuring charges | 8 | |||||||||
Impairment of Cost Method Investments in Waste Diversion Technology Companies [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charge relating to decline in value of investment accounted under cost method | 20 | |||||||||
Recycling Operations [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Goodwill impairment charge | 10 | |||||||||
Litigation Reserves and Impairments Partially Offset by Gain on Sale [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.05) | |||||||||
Net pre-tax | 20 | |||||||||
Impairment of Waste Processing Facility and Other Pretax Charges [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.03) | |||||||||
Other pre-tax charges | 16 | |||||||||
Waste Processing Facility [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charges | 12 | |||||||||
Wheelabrator [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | $1.12 | |||||||||
Positive (Negative) impact on diluted earnings per common share | 519 | 519 | ||||||||
Goodwill impairments | 483 | 483 | ||||||||
Eastern Canada Area [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | 18 | |||||||||
Eastern Canada Area [Member] | Landfill [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charges | 262 | 262 | ||||||||
Partial Withdrawal from Underfunded Multi Employer Pension Plan and Restructuring [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.01) | |||||||||
Other pre-tax charges | 8 | |||||||||
Changes in Bad Debt Expense [Member] | Puerto Rico [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.01) | $0.01 | ||||||||
Year-end Landfill Adjustments and Risk Free Discount Rate Used to Measure Environmental Remediation Liabilities [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | $0.02 | |||||||||
Impairment of Investment in Waste Diversion Technology Company and Goodwill [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.03) | |||||||||
Impairment charges | 15 | |||||||||
Risk Free Discount Rate Used to Measure Environmental Remediation Liabilities [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | $0.01 | |||||||||
Impairment and Loss on Divestiture [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($0.02) | |||||||||
Net pre-tax | 23 | |||||||||
Investment in Waste Diversion Technology Company [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charges | 61 | 18 | ||||||||
Oil and Gas Well [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment of oil and gas property to its estimated fair value | 270 | 15 | ||||||||
(Income) expense from divestitures | 5 | |||||||||
Waste Diversion Technology Company [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charges | 25 | |||||||||
Impairment of Goodwill Landfills Waste to Energy Facilities Recycling Assets and Other [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Positive (Negative) impact on diluted earnings per common share | ($1.84) | |||||||||
Net pre-tax | 1,000 | |||||||||
Recycling Assets [Member] | ||||||||||
Quarterly Financial Information [Line Items] | ||||||||||
Impairment charges | $31 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $1,307 | $58 | $194 | $258 |
Other current assets | 2,334 | 2,441 | ||
Total current assets | 3,641 | 2,499 | ||
Property and equipment, net | 10,657 | 12,344 | 12,651 | |
Other assets | 7,114 | 7,760 | ||
Total assets | 21,412 | 22,603 | 23,097 | |
Current liabilities: | ||||
Current portion of long-term debt | 1,090 | 726 | ||
Accounts payable and other current liabilities | 2,395 | 2,288 | ||
Total current liabilities | 3,485 | 3,014 | ||
Long-term debt, less current portion | 8,345 | 9,500 | ||
Due to affiliates | ||||
Other liabilities | 3,693 | 4,087 | ||
Total liabilities | 15,523 | 16,601 | ||
Equity: | ||||
Stockholders' equity | 5,866 | 5,707 | ||
Noncontrolling interests | 23 | 295 | ||
Total equity | 5,889 | 6,002 | 6,675 | 6,390 |
Total liabilities and equity | 21,412 | 22,603 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Investments in and advances to affiliates | -41,839 | -36,915 | ||
Total assets | -41,839 | -36,915 | ||
Current liabilities: | ||||
Due to affiliates | -6,745 | -4,268 | ||
Total liabilities | -6,745 | -4,268 | ||
Equity: | ||||
Stockholders' equity | -35,094 | -32,647 | ||
Total equity | -35,094 | -32,647 | ||
Total liabilities and equity | -41,839 | -36,915 | ||
WM [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,235 | 60 | 119 | |
Other current assets | 5 | |||
Total current assets | 1,240 | |||
Investments in and advances to affiliates | 17,312 | 15,802 | ||
Other assets | 50 | 42 | ||
Total assets | 18,602 | 15,844 | ||
Current liabilities: | ||||
Current portion of long-term debt | 957 | 587 | ||
Accounts payable and other current liabilities | 86 | 109 | ||
Total current liabilities | 1,043 | 696 | ||
Long-term debt, less current portion | 4,958 | 5,772 | ||
Due to affiliates | 6,703 | 3,669 | ||
Other liabilities | 32 | |||
Total liabilities | 12,736 | 10,137 | ||
Equity: | ||||
Stockholders' equity | 5,866 | 5,707 | ||
Total equity | 5,866 | 5,707 | ||
Total liabilities and equity | 18,602 | 15,844 | ||
WM Holdings [Member] | ||||
Current assets: | ||||
Other current assets | 6 | 6 | ||
Total current assets | 6 | 6 | ||
Investments in and advances to affiliates | 17,782 | 16,845 | ||
Other assets | 28 | 12 | ||
Total assets | 17,816 | 16,863 | ||
Current liabilities: | ||||
Accounts payable and other current liabilities | 13 | 13 | ||
Total current liabilities | 13 | 13 | ||
Long-term debt, less current portion | 449 | 449 | ||
Due to affiliates | 42 | 599 | ||
Total liabilities | 504 | 1,061 | ||
Equity: | ||||
Stockholders' equity | 17,312 | 15,802 | ||
Total equity | 17,312 | 15,802 | ||
Total liabilities and equity | 17,816 | 16,863 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 72 | 58 | 134 | 139 |
Other current assets | 2,323 | 2,435 | ||
Total current assets | 2,395 | 2,493 | ||
Property and equipment, net | 10,657 | 12,344 | ||
Investments in and advances to affiliates | 6,745 | 4,268 | ||
Other assets | 7,036 | 7,706 | ||
Total assets | 26,833 | 26,811 | ||
Current liabilities: | ||||
Current portion of long-term debt | 133 | 139 | ||
Accounts payable and other current liabilities | 2,296 | 2,166 | ||
Total current liabilities | 2,429 | 2,305 | ||
Long-term debt, less current portion | 2,938 | 3,279 | ||
Other liabilities | 3,661 | 4,087 | ||
Total liabilities | 9,028 | 9,671 | ||
Equity: | ||||
Stockholders' equity | 17,782 | 16,845 | ||
Noncontrolling interests | 23 | 295 | ||
Total equity | 17,805 | 17,140 | ||
Total liabilities and equity | $26,833 | $26,811 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | $3,437 | $3,602 | $3,561 | $3,396 | $3,500 | $3,621 | $3,526 | $3,336 | $13,996 | $13,983 | $13,649 |
Costs and expenses | 11,697 | 12,904 | 11,798 | ||||||||
Income from operations | 752 | 546 | 532 | 469 | -410 | 577 | 510 | 402 | 2,299 | 1,079 | 1,851 |
Other income (expense): | |||||||||||
Interest expense, net | -466 | -477 | -484 | ||||||||
Other, net | -82 | -108 | -64 | ||||||||
Total other income (expense) | -548 | -585 | -548 | ||||||||
Income before income taxes | 1,751 | 494 | 1,303 | ||||||||
Provision for (benefit from) income taxes | 413 | 364 | 443 | ||||||||
Consolidated net income | 598 | 281 | 222 | 237 | -599 | 297 | 256 | 176 | 1,338 | 130 | 860 |
Less: Net income attributable to noncontrolling interests | 40 | 32 | 43 | ||||||||
Net income attributable to Waste Management, Inc. | 590 | 270 | 210 | 228 | -605 | 291 | 244 | 168 | 1,298 | 98 | 817 |
Eliminations [Member] | |||||||||||
Other income (expense): | |||||||||||
Equity in earnings of subsidiaries, net of taxes | -2,580 | -645 | -2,080 | ||||||||
Total other income (expense) | -2,580 | -645 | -2,080 | ||||||||
Income before income taxes | -2,580 | -645 | -2,080 | ||||||||
Consolidated net income | -2,580 | -645 | -2,080 | ||||||||
Net income attributable to Waste Management, Inc. | -2,580 | -645 | -2,080 | ||||||||
WM [Member] | |||||||||||
Other income (expense): | |||||||||||
Interest expense, net | -351 | -355 | -358 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 1,510 | 313 | 1,034 | ||||||||
Total other income (expense) | 1,159 | -42 | 676 | ||||||||
Income before income taxes | 1,159 | -42 | 676 | ||||||||
Provision for (benefit from) income taxes | -139 | -140 | -141 | ||||||||
Consolidated net income | 1,298 | 98 | 817 | ||||||||
Net income attributable to Waste Management, Inc. | 1,298 | 98 | 817 | ||||||||
WM Holdings [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Costs and expenses | -459 | -7 | |||||||||
Income from operations | 459 | 7 | |||||||||
Other income (expense): | |||||||||||
Interest expense, net | -31 | -32 | -32 | ||||||||
Equity in earnings of subsidiaries, net of taxes | 1,070 | 332 | 1,046 | ||||||||
Total other income (expense) | 1,039 | 300 | 1,014 | ||||||||
Income before income taxes | 1,498 | 300 | 1,021 | ||||||||
Provision for (benefit from) income taxes | -12 | -13 | -13 | ||||||||
Consolidated net income | 1,510 | 313 | 1,034 | ||||||||
Net income attributable to Waste Management, Inc. | 1,510 | 313 | 1,034 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | 13,996 | 13,983 | 13,649 | ||||||||
Costs and expenses | 12,156 | 12,904 | 11,805 | ||||||||
Income from operations | 1,840 | 1,079 | 1,844 | ||||||||
Other income (expense): | |||||||||||
Interest expense, net | -84 | -90 | -94 | ||||||||
Other, net | -82 | -108 | -64 | ||||||||
Total other income (expense) | -166 | -198 | -158 | ||||||||
Income before income taxes | 1,674 | 881 | 1,686 | ||||||||
Provision for (benefit from) income taxes | 564 | 517 | 597 | ||||||||
Consolidated net income | 1,110 | 364 | 1,089 | ||||||||
Less: Net income attributable to noncontrolling interests | 40 | 32 | 43 | ||||||||
Net income attributable to Waste Management, Inc. | $1,070 | $332 | $1,046 |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income | $1,207 | $91 | $881 |
Less: Comprehensive income attributable to noncontrolling interests | 40 | 32 | 43 |
Comprehensive income attributable to Waste Management, Inc. | 1,167 | 59 | 838 |
Eliminations [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income | -2,580 | -645 | -2,080 |
Comprehensive income attributable to Waste Management, Inc. | -2,580 | -645 | -2,080 |
WM [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income | 1,300 | 112 | 807 |
Comprehensive income attributable to Waste Management, Inc. | 1,300 | 112 | 807 |
WM Holdings [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income | 1,510 | 313 | 1,034 |
Comprehensive income attributable to Waste Management, Inc. | 1,510 | 313 | 1,034 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income | 977 | 311 | 1,120 |
Less: Comprehensive income attributable to noncontrolling interests | 40 | 32 | 43 |
Comprehensive income attributable to Waste Management, Inc. | $937 | $279 | $1,077 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Consolidated net income | $1,338 | $130 | $860 |
Other adjustments | 993 | 2,325 | 1,435 |
Net cash provided by (used in) operating activities | 2,331 | 2,455 | 2,295 |
Cash flows from investing activities: | |||
Acquisitions of businesses, net of cash acquired | -35 | -724 | -250 |
Capital expenditures | -1,151 | -1,271 | -1,510 |
Proceeds from divestitures of businesses and other assets (net of cash divested) | 2,253 | 138 | 44 |
Net receipts from restricted trust and escrow accounts and other, net | -72 | -43 | -114 |
Net cash provided by (used in) investing activities | 995 | -1,900 | -1,830 |
Cash flows from financing activities: | |||
New borrowings | 2,817 | 2,232 | 1,620 |
Debt repayments | -3,568 | -2,077 | -1,498 |
Common stock repurchases | -600 | -239 | |
Cash dividends | -693 | -683 | -658 |
Exercise of common stock options | 93 | 132 | 43 |
Acquisitions of and distributions paid to noncontrolling interests and other | -121 | -52 | -37 |
Net cash provided by (used in) financing activities | -2,072 | -687 | -530 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -4 | 1 |
Increase (decrease) in cash and cash equivalents | 1,249 | -136 | -64 |
Cash and cash equivalents at beginning of year | 58 | 194 | 258 |
Cash and cash equivalents at end of year | 1,307 | 58 | 194 |
Eliminations [Member] | |||
Cash flows from operating activities: | |||
Consolidated net income | -2,580 | -645 | -2,080 |
Equity in earnings of subsidiaries, net of taxes | 2,580 | 645 | 2,080 |
WM [Member] | |||
Cash flows from operating activities: | |||
Consolidated net income | 1,298 | 98 | 817 |
Equity in earnings of subsidiaries, net of taxes | -1,510 | -313 | -1,034 |
Other adjustments | -36 | -2 | 81 |
Net cash provided by (used in) operating activities | -248 | -217 | -136 |
Cash flows from financing activities: | |||
New borrowings | 2,572 | 1,140 | 1,145 |
Debt repayments | -3,005 | -1,120 | -835 |
Common stock repurchases | -600 | -239 | |
Cash dividends | -693 | -683 | -658 |
Exercise of common stock options | 93 | 132 | 43 |
Acquisitions of and distributions paid to noncontrolling interests and other | 5 | 14 | 15 |
(Increase) decrease in intercompany and investments, net | 3,111 | 913 | 367 |
Net cash provided by (used in) financing activities | 1,483 | 157 | 77 |
Increase (decrease) in cash and cash equivalents | 1,235 | -60 | -59 |
Cash and cash equivalents at beginning of year | 60 | 119 | |
Cash and cash equivalents at end of year | 1,235 | 60 | |
WM Holdings [Member] | |||
Cash flows from operating activities: | |||
Consolidated net income | 1,510 | 313 | 1,034 |
Equity in earnings of subsidiaries, net of taxes | -1,070 | -332 | -1,046 |
Other adjustments | -1 | ||
Net cash provided by (used in) operating activities | 439 | -19 | -12 |
Cash flows from investing activities: | |||
Proceeds from divestitures of businesses and other assets (net of cash divested) | 1,618 | ||
Net cash provided by (used in) investing activities | 1,618 | ||
Cash flows from financing activities: | |||
(Increase) decrease in intercompany and investments, net | -2,057 | 19 | 12 |
Net cash provided by (used in) financing activities | -2,057 | 19 | 12 |
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Consolidated net income | 1,110 | 364 | 1,089 |
Other adjustments | 1,030 | 2,327 | 1,354 |
Net cash provided by (used in) operating activities | 2,140 | 2,691 | 2,443 |
Cash flows from investing activities: | |||
Acquisitions of businesses, net of cash acquired | -35 | -724 | -250 |
Capital expenditures | -1,151 | -1,271 | -1,510 |
Proceeds from divestitures of businesses and other assets (net of cash divested) | 635 | 138 | 44 |
Net receipts from restricted trust and escrow accounts and other, net | -72 | -43 | -114 |
Net cash provided by (used in) investing activities | -623 | -1,900 | -1,830 |
Cash flows from financing activities: | |||
New borrowings | 245 | 1,092 | 475 |
Debt repayments | -563 | -957 | -663 |
Acquisitions of and distributions paid to noncontrolling interests and other | -126 | -66 | -52 |
(Increase) decrease in intercompany and investments, net | -1,054 | -932 | -379 |
Net cash provided by (used in) financing activities | -1,498 | -863 | -619 |
Effect of exchange rate changes on cash and cash equivalents | -5 | -4 | 1 |
Increase (decrease) in cash and cash equivalents | 14 | -76 | -5 |
Cash and cash equivalents at beginning of year | 58 | 134 | 139 |
Cash and cash equivalents at end of year | $72 | $58 | $134 |
Recovered_Sheet1
Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reserves for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $34 | $45 | $29 |
Charged (Credited) to Income | 42 | 39 | 57 |
Accounts Written Off/Use of Reserve | -45 | -50 | -41 |
Balance End of Year | 31 | 34 | 45 |
Merger and Restructuring Accruals [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | 14 | 32 | 9 |
Charged (Credited) to Income | 82 | 18 | 67 |
Accounts Written Off/Use of Reserve | -51 | -36 | -44 |
Balance End of Year | $45 | $14 | $32 |