Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 04, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WM | ||
Entity Registrant Name | WASTE MANAGEMENT INC | ||
Entity Central Index Key | 823,768 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | 445,652,359 | ||
Entity Public Float | $ 20.9 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 39 | $ 1,307 |
Accounts receivable, net of allowance for doubtful accounts of $25 and $30, respectively | 1,549 | 1,587 |
Other receivables | 545 | 350 |
Parts and supplies | 92 | 106 |
Other assets | 120 | 176 |
Total current assets | 2,345 | 3,526 |
Property and equipment, net of accumulated depreciation and amortization of $16,420 and $15,968, respectively | 10,665 | 10,657 |
Goodwill | 5,984 | 5,740 |
Other intangible assets, net | 477 | 440 |
Investments in unconsolidated entities | 360 | 408 |
Other assets | 588 | 526 |
Total assets | 20,419 | 21,297 |
Current liabilities: | ||
Accounts payable | 721 | 740 |
Accrued liabilities | 1,064 | 1,180 |
Deferred revenues | 472 | 475 |
Current portion of long-term debt | 253 | 1,090 |
Total current liabilities | 2,510 | 3,485 |
Long-term debt, less current portion | 8,728 | 8,345 |
Deferred income taxes | 1,391 | 1,338 |
Landfill and environmental remediation liabilities | 1,584 | 1,531 |
Other liabilities | 839 | 709 |
Total liabilities | $ 15,052 | $ 15,408 |
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 | 4,827 | 4,585 |
Retained earnings | 6,939 | 6,888 |
Accumulated other comprehensive income (loss) | (127) | 23 |
Treasury stock at cost, 183,105,326 and 171,745,077 shares, respectively | (6,300) | (5,636) |
Total Waste Management, Inc. stockholders' equity | 5,345 | 5,866 |
Noncontrolling interests | 22 | 23 |
Total equity | 5,367 | 5,889 |
Total liabilities and equity | $ 20,419 | $ 21,297 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 25 | $ 30 |
Accumulated depreciation and amortization | $ 16,420 | $ 15,968 |
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 | 183,105,326 | 171,745,077 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating revenues: | |||
Service revenues | $ 11,887 | $ 12,646 | $ 12,566 |
Tangible product revenues | 1,074 | 1,350 | 1,417 |
Total operating revenues | 12,961 | 13,996 | 13,983 |
Operating costs: | |||
Cost of services | 7,281 | 7,856 | 7,880 |
Cost of tangible products | 950 | 1,146 | 1,232 |
Total operating costs | 8,231 | 9,002 | 9,112 |
Selling, general and administrative | 1,343 | 1,481 | 1,468 |
Depreciation and amortization | 1,245 | 1,292 | 1,333 |
Restructuring | 15 | 82 | 18 |
Goodwill impairments | 10 | 509 | |
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | 82 | (170) | 464 |
Total costs and expenses | 10,916 | 11,697 | 12,904 |
Income from operations | 2,045 | 2,299 | 1,079 |
Other income (expense): | |||
Interest expense, net | (385) | (466) | (477) |
Loss on early extinguishment of debt | (555) | ||
Equity in net losses of unconsolidated entities | (38) | (53) | (34) |
Other, net | (7) | (29) | (74) |
Total other income (expense) | (985) | (548) | (585) |
Income before income taxes | 1,060 | 1,751 | 494 |
Provision for income taxes | 308 | 413 | 364 |
Consolidated net income | 752 | 1,338 | 130 |
Less: Net income (loss) attributable to noncontrolling interests | (1) | 40 | 32 |
Net income attributable to Waste Management, Inc. | $ 753 | $ 1,298 | $ 98 |
Basic earnings per common share | $ 1.66 | $ 2.80 | $ 0.21 |
Diluted earnings per common share | 1.65 | 2.79 | 0.21 |
Cash dividends declared per common share | $ 1.54 | $ 1.50 | $ 1.46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $ 752 | $ 1,338 | $ 130 |
Derivative instruments, net | 9 | 1 | 12 |
Available-for-sale securities, net | (2) | 4 | 2 |
Foreign currency translation adjustments | (159) | (124) | (68) |
Post-retirement benefit obligation, net | 2 | (12) | 15 |
Other comprehensive income (loss), net of taxes | (150) | (131) | (39) |
Comprehensive income | 602 | 1,207 | 91 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (1) | 40 | 32 |
Comprehensive income attributable to Waste Management, Inc. | $ 603 | $ 1,167 | $ 59 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Cash flows from operating activities: | |||
Consolidated net income | $ 752 | $ 1,338 | $ 130 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,245 | 1,292 | 1,333 |
Deferred income tax (benefit) provision | 30 | (118) | (149) |
Interest accretion on landfill liabilities | 89 | 88 | 87 |
Interest accretion on and discount rate adjustments to environmental remediation liabilities and recovery assets | 1 | 14 | (10) |
Provision for bad debts | 36 | 42 | 39 |
Equity-based compensation expense | 72 | 65 | 58 |
Excess tax benefits associated with equity-based transactions | (15) | (5) | (10) |
Net gain on disposal of assets | (18) | (35) | (21) |
Effect of goodwill impairments | 10 | 509 | |
Effect of (income) expense from divestitures, asset impairments (other than goodwill) and unusual items and other | 87 | (137) | 535 |
Equity in net losses of unconsolidated entities, net of dividends | 42 | 42 | 34 |
Loss on early extinguishment of debt | 555 | ||
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | |||
Receivables | (178) | (268) | 44 |
Other current assets | 16 | (19) | (7) |
Other assets | (7) | 22 | 4 |
Accounts payable and accrued liabilities | (112) | 117 | (27) |
Deferred revenues and other liabilities | (97) | (117) | (94) |
Net cash provided by operating activities | 2,498 | 2,331 | 2,455 |
Cash flows from investing activities: | |||
Acquisitions of businesses, net of cash acquired | (554) | (35) | (724) |
Capital expenditures | (1,233) | (1,151) | (1,271) |
Proceeds from divestitures of businesses and other assets (net of cash divested) | 145 | 2,253 | 138 |
Net receipts from restricted trust and escrow accounts | 51 | 19 | 71 |
Investments in unconsolidated entities | (20) | (33) | (33) |
Other | 3 | (58) | (81) |
Net cash provided by (used in) investing activities | (1,608) | 995 | (1,900) |
Cash flows from financing activities: | |||
New borrowings | 2,337 | 2,817 | 2,232 |
Debt repayments | (2,764) | (3,568) | (2,077) |
Premiums paid on early extinguishment of debt | (555) | ||
Common stock repurchases | (600) | (600) | (239) |
Cash dividends | (695) | (693) | (683) |
Exercise of common stock options | 77 | 93 | 132 |
Excess tax benefits associated with equity-based transactions | 15 | 5 | 10 |
Acquisitions of and distributions paid to noncontrolling interests | (1) | (125) | (59) |
Other | 31 | (1) | (3) |
Net cash used in financing activities | (2,155) | (2,072) | (687) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (5) | (4) |
Increase (decrease) in cash and cash equivalents | (1,268) | 1,249 | (136) |
Cash and cash equivalents at beginning of year | 1,307 | 58 | 194 |
Cash and cash equivalents at end of year | $ 39 | $ 1,307 | $ 58 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Equity - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] |
Beginning balance at Dec. 31, 2012 | $ 6,675 | $ 6 | $ 4,549 | $ 6,879 | $ 193 | $ (5,273) | $ 321 |
Beginning 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) | (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) | (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) | |||||
Consolidated net income | 752 | 753 | (1) | ||||
Other comprehensive income (loss), net of taxes | (150) | (150) | |||||
Cash dividends declared | (695) | (695) | |||||
Equity-based compensation transactions, including dividend equivalents, net of taxes | 171 | 62 | (7) | $ 116 | |||
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares | 3,457 | ||||||
Common stock repurchases | $ (600) | 180 | $ (780) | ||||
Common stock repurchases, shares | (14,823) | (14,823) | |||||
Distributions paid to noncontrolling interests | $ (1) | (1) | |||||
Other | 1 | 1 | |||||
Other, shares | 6 | ||||||
Ending balance at Dec. 31, 2015 | $ 5,367 | $ 6 | $ 4,827 | $ 6,939 | $ (127) | $ (6,300) | $ 22 |
Ending balance, shares at Dec. 31, 2015 | 630,282 | (183,105) |
Business
Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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. 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. In December 2014, we sold our Wheelabrator business, which provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants. Refer to Note 19 for additional information related to our divestitures. |
Accounting Changes and Reclassi
Accounting Changes and Reclassifications | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Changes and Reclassifications | 2. Accounting Changes and Reclassifications Accounting Changes Deferred Income Taxes 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014, 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, 2015 and 2014 include receivables related to tax payments in excess of the provision of $439 million and $255 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 Final Capping, Closure and Post-Closure Costs • Final Capping • Closure • Post-Closure 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, 2015, 2014 and 2013, 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 long-term asset retirement obligations at December 31, 2015 is approximately 6.25%. We expect to apply a credit-adjusted, risk-free discount rate of 4.50% to liabilities incurred in the first quarter of 2016. 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” expenses within our Consolidated Statements of Operations. Amortization of Landfill Assets 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 • Expansion Airspace • Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals; • 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 meets Company criteria for investment. 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 21 landfill sites with expansions included at December 31, 2015, three landfills required the Chief Financial Officer to approve the inclusion of the unpermitted airspace. One landfill required approval by our Chief Financial Officer because of community or political opposition that could impede the expansion process. The remaining two landfills required approval because the permit application process did 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 $209 million recorded in the Consolidated Financial Statements as of December 31, 2015. 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, 2015 and 2014) 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” 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, 2015 2014 2013 Charge (reduction) to Operating expenses $ (2 ) $ 10 $ (13 ) Risk-free discount rate applied to environmental remediation liabilities and recovery assets 2.25 % 2.00 % 3.00 % The portion of our recorded environmental remediation liabilities that were not subject to inflation or discounting, as the amounts and timing of payments are not fixed or reliably determinable, was $52 million at December 31, 2015 and $41 million at December 31, 2014. Had we not inflated and discounted any portion of our environmental remediation liability, the amount recorded would have decreased by $3 million and $6 million at December 31, 2015 and 2014, respectively. 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 5 to 40 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. 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) Capital Leases excluding landfills discussed below) Landfill Leases 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 — Acquired Assets and Assumed Liabilities — 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 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 Goodwill 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. 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 also incurred $10 million of charges to impair goodwill associated with our Puerto Rico operations. In 2014, we recognized $10 million of goodwill impairment charges associated with our recycling operations. Refer to Note 13 for information related to impairments recognized during the reported periods. Indefinite-Lived Intangible Assets Other Than Goodwill 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 |
Landfill and Environmental Reme
Landfill and Environmental Remediation Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 Landfill Environmental Remediation Total Landfill Environmental Remediation Total Current (in accrued liabilities) $ 112 $ 31 $ 143 $ 104 $ 43 $ 147 Long-term 1,406 178 1,584 1,339 192 1,531 $ 1,518 $ 209 $ 1,727 $ 1,443 $ 235 $ 1,678 The changes to landfill and environmental remediation liabilities for the years ended December 31, 2014 and 2015 are reflected in the table below (in millions): Landfill Environmental Remediation 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 Obligations incurred and capitalized 61 — Obligations settled (71 ) (30 ) Interest accretion 89 3 Revisions in estimates and interest rate assumptions(a)(b) (11 ) 5 Acquisitions, divestitures and other adjustments(c) 7 (4 ) December 31, 2015 $ 1,518 $ 209 (a) The amounts reported for our landfill liabilities include an increase of approximately $2 million for 2014 and a decrease of approximately $18 million for 2015, related to our year-end annual review of landfill final capping, closure and post-closure obligations. (b) 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. The amount reported in 2015 for our environmental remediation liabilities includes the impact of an increase in the risk-free discount rate used to measure our liabilities from 2.0% at December 31, 2014 to 2.25% at December 31, 2015, resulting in a decrease of $3 million to our environmental remediation liabilities and a corresponding decrease 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. The amounts reported for our 2015 landfill liabilities include an increase of approximately $18 million associated with the acquisition of Deffenbaugh Disposal, Inc. (“Deffenbaugh”). Our recorded liabilities as of December 31, 2015 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 $32 million in 2016, $26 million in 2017, $30 million in 2018, $19 million in 2019, $11 million in 2020 and $89 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 Notes 18 and 20 for additional information related to these trusts. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment Property and equipment at December 31 consisted of the following (in millions): 2015 2014 Land $ 592 $ 611 Landfills 13,772 13,463 Vehicles 4,257 4,131 Machinery and equipment 2,499 2,470 Containers 2,426 2,377 Buildings and improvements 2,546 2,588 Furniture, fixtures and office equipment 993 985 27,085 26,625 Less accumulated depreciation on tangible property and equipment (8,495 ) (8,278 ) Less accumulated landfill airspace amortization (7,925 ) (7,690 ) $ 10,665 $ 10,657 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): 2015 2014 2013 Depreciation of tangible property and equipment $ 760 $ 834 $ 853 Amortization of landfill airspace 409 380 400 Depreciation and amortization expense $ 1,169 $ 1,214 $ 1,253 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. Goodwill and Other Intangible Assets Goodwill was $5,984 million as of December 31, 2015 compared with $5,740 million as of December 31, 2014. The $244 million increase in goodwill during 2015 is primarily related to acquisitions, offset in part by the effect of foreign currency translation adjustments related to the goodwill associated with our Canadian operations. See Notes 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 2015, 2014 or 2013. Our other intangible assets as of December 31, 2015 and 2014 were comprised of the following (in millions): Customer and Supplier Relationships Covenants Not-to- Compete Licenses, Total December 31, 2015: Intangible assets $ 658 $ 51 $ 119 $ 828 Less accumulated amortization (270 ) (35 ) (46 ) (351 ) $ 388 $ 16 $ 73 $ 477 December 31, 2014: Intangible assets $ 576 $ 63 $ 116 $ 755 Less accumulated amortization (231 ) (44 ) (40 ) (315 ) $ 345 $ 19 $ 76 $ 440 Amortization expense for other intangible assets was $76 million for 2015, $78 million for 2014 and $80 million for 2013. At December 31, 2015, we had $18 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, 2015, expected annual amortization expense related to other intangible assets is $76 million in 2016; $67 million in 2017; $61 million in 2018; $54 million in 2019 and $47 million in 2020. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015: 2015 2014 U.S. revolving credit facility, maturing July 2020 $ 20 $ — Letter of credit facilities, maturing through December 2018 — — Canadian credit facility and term loan, maturing November 2017 (weighted average effective interest rate of 2.2% at December 31, 2015 and 2.6% at December 31, 2014) 84 232 Senior notes maturing through 2045, interest rates ranging from 2.60% to 7.75% (weighted average interest rate of 4.7% at December 31, 2015 and 5.7% at December 31, 2014) 6,082 6,273 Tax-exempt bonds maturing through 2045, fixed and variable interest rates ranging from 0.02% to 5.7% (weighted average interest rate of 1.9% at December 31, 2015 and 2.2% at December 31, 2014) 2,467 2,541 Capital leases and other, maturing through 2055, interest rates up to 12% 328 389 $ 8,981 $ 9,435 Current portion of long-term debt 253 1,090 $ 8,728 $ 8,345 Debt Classification As of December 31, 2015, we had $732 million of debt maturing within the next 12 months, including (i) $500 million of 2.6% senior notes that mature in September 2016; (ii) $146 million of tax-exempt bonds and (iii) $20 million of borrowings outstanding under our long-term U.S. revolving credit facility (“$2.25 billion revolving credit facility”). In addition, $316 million of tax-exempt bonds have term interest rate periods subject to repricing within the next 12 months, which is prior to their scheduled maturities. We have classified the $20 million of borrowings outstanding under our $2.25 billion revolving credit facility as long-term because we intend and have the ability to refinance or maintain these borrowings on a long-term basis. Based on our intent and ability to refinance other portions of our current obligations on a long-term basis as of December 31, 2015, including through use of forecasted available capacity under our $2.25 billion revolving credit facility, we have classified an additional $775 million of debt as long-term. The remaining $253 million is classified as current obligations. As of December 31, 2015, we also had $491 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 successful. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the intent and ability to use availability under our $2.25 billion revolving credit facility to fund the debt obligations until they can be remarketed successfully. Accordingly, we classified these borrowings as long-term in our Consolidated Balance Sheet at December 31, 2015. Access to and Utilization of Credit Facilities $2.25 Billion Revolving Credit Facility Letter of Credit Facilities Canadian Credit Facility and Term Loan 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, 2015 and 2014, we had no borrowings and no letters of credit outstanding under the facility. 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 loan is a non-revolving loan and principal amounts repaid may not be re-borrowed. Through December 31, 2015, we had repaid C$383 million of the term loan with available cash, reducing the outstanding balance to C$117 million, or $84 million. For additional information related to borrowings and principal repayments under the term loan, see below. Debt Borrowings and Repayments Canadian Credit Facility — Canadian Term Loan Senior Notes Make-Whole Redemption Tender Offer • $449 million of WM Holdings 7.10% senior notes due 2026, of which $145 million were tendered; • $577 million of WM 7.00% senior notes due 2028, of which $182 million were tendered; • $223 million of WM 7.375% senior notes due 2029, of which $84 million were tendered; • $496 million of WM 7.75% senior notes due 2032, of which $286 million were tendered; and • $600 million of WM 6.125% senior notes due 2039, of which $326 million were tendered. The “Loss on early extinguishment of debt” reflected in our Consolidated Statement of Operations for the year ended December 31, 2015 includes $430 million of charges related to these tender offers. New Issuance • $600 million of 3.125% senior notes due March 1, 2025; • $450 million of 3.90% senior notes due March 1, 2035; and • $750 million of 4.10% senior notes due March 1, 2045. The net proceeds from these debt issuances were $1.78 billion. The Company used the proceeds from the 2025 notes for general corporate purposes. The proceeds from the 2035 notes and the 2045 notes were used to pay the purchase price and accrued interest for the notes redeemed through the tender offers discussed above and for general corporate purposes. Also affecting the change in the carrying value of our senior notes from December 31, 2014 to December 31, 2015 were decreases due to the amortization and write-off associated with fair value hedge accounting for previously terminated interest rate swap contracts, as discussed in Note 8, offset primarily by underwriting discounts related to the issuance of new senior notes in February 2015. Tax-Exempt Bonds — Capital Leases and Other Scheduled Debt 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 < 3.50 to 1 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, 2015 and 2014, 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 Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | 8. Derivative Instruments and Hedging Activities Cash Flow Hedges 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, 2015 and 2014, we had foreign exchange cross currency swaps outstanding for all of the anticipated cash flows associated with intercompany loans from WM Holdings to its wholly-owned Canadian subsidiaries. Our Consolidated Balance Sheets include $15 million of current other assets at December 31, 2015 and $63 million and $28 million of long-term other assets at December 31, 2015 and 2014, respectively, related to foreign currency derivatives. We designated these cross currency swaps as cash flow hedges. The hedged cash flows as of December 31, 2015 and 2014 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 in October 2016, C$150 million due in October 2017 and C$150 million due in October 2018. 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. 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. Forward-Starting Interest Rate Swaps During the first quarter of 2014, 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. These swaps were designated as cash flow hedges and had been executed in prior years to hedge the risk of changes in semi-annual interest payments due to fluctuations in the forward ten-year LIBOR swap rate for a debt issuance initially forecasted for March 2014, but which occurred in May 2014. Accordingly, the loss associated with the matured forward-starting swaps was deferred as a component of “Accumulated other comprehensive income” and is being amortized to interest expense over the term of the May 2014 debt issuance. Ineffectiveness associated with the change in timing of the debt issuance was not material. At December 31, 2015 and 2014, our “Accumulated other comprehensive income” included $43 million and $50 million, respectively, of after-tax deferred losses related to all previously terminated swaps, which are being amortized as an increase to interest expense over the ten-year term of the related senior note issuances using the effective interest method. As of December 31, 2015, $11 million of the deferred losses for these previously terminated swaps (on a pre-tax basis) is scheduled to be reclassified as an increase to interest expense over the next 12 months. As discussed in Note 7, during 2015, the Company elected to redeem or tender certain senior notes. As a result, $3 million of deferred losses for previously terminated swaps were recorded as interest expense in the Consolidated Statement of Operations. There was no significant ineffectiveness associated with our cash flow hedges during the years ended December 31, 2015, 2014 or 2013. Refer to Note 14 for information regarding the impacts of our cash flow derivatives on our comprehensive income and results of operations. Fair Value Hedges Interest Rate Swaps We did not have any interest rate swaps outstanding during the reported periods. However, in prior years, we entered into interest rate swaps to maintain a portion of our debt obligations at variable market interest rates and 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 $23 million as of December 31, 2015 and $45 million as of December 31, 2014. The significant decrease in the fair value adjustment during the year ended December 31, 2015 is primarily due to accounting for the impact of our senior note redemption discussed in Note 7. During the year ended December 31, 2015, the redemption and tender of certain senior notes prior to their scheduled maturity dates resulted in the write-off of related fair value adjustments for terminated interest rate swaps as a $14 million credit to the “Loss on early extinguishment of debt” within our Consolidated Statement of Operations. The remaining 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. We recognized benefits to interest expense associated with the amortization of our terminated interest rate swaps of $8 million, $14 million and $20 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Current: Federal $ 192 $ 414 $ 389 State 50 61 79 Foreign 36 56 45 278 531 513 Deferred: Federal 43 (89 ) (82 ) State (17 ) (33 ) (14 ) Foreign 4 4 (53 ) 30 (118 ) (149 ) Provision for income taxes $ 308 $ 413 $ 364 The U.S. federal statutory income tax rate is reconciled to the effective income tax rate as follows: Years Ended December 31, 2015 2014 2013 Income tax expense at U.S. federal statutory rate 35.00 % 35.00 % 35.00 % Federal tax credits (5.49 ) (3.21 ) (11.74 ) Taxing authority audit settlements and other tax adjustments (2.67 ) (1.59 ) (3.56 ) Noncontrolling interests 0.04 (0.81 ) (2.28 ) State and local income taxes, net of federal income tax benefit 3.20 1.77 9.81 Tax rate differential on foreign income (0.99 ) (0.46 ) 1.63 Tax impact of impairments 0.23 0.46 41.95 Tax impact of divestitures (0.34 ) (7.89 ) — Other 0.13 0.34 2.94 Provision for income taxes 29.11 % 23.61 % 73.75 % 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) federal tax credits; (iii) adjustments to our accruals and related deferred taxes; (iv) the realization of state net operating losses and credits; (v) tax audit settlements and (vi) the tax implications of divestitures and impairments. For financial reporting purposes, income (loss) before income taxes by source was as follows (in millions): Years Ended December 31, 2015 2014 2013 Domestic $ 922 $ 1,601 $ 548 Foreign 138 150 (54 ) Income before income taxes $ 1,060 $ 1,751 $ 494 Investment in Refined Coal Facility 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, $7 million and $8 million of net losses resulting from our share of the entity’s operating losses during the years ended December 31, 2015, 2014 and 2013, respectively. Our tax provision was reduced by $23 million, $21 million and $20 million for the years ended December 31, 2015, 2014 and 2013, respectively, primarily as a result of federal tax credits realized from this investment. See Note 20 for additional information related to this investment. Investment in Low-Income Housing Properties 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, 2015, 2014 and 2013, we recognized $23 million, $25 million and $25 million, respectively, of net losses relating to our equity investment in this entity, $4 million, $5 million and $6 million, respectively, of interest expense, and a reduction in our tax provision of $34 million (including $23 million of federal tax credits), $37 million (including $25 million of federal tax credits) and $38 million (including $26 million of federal tax credits), respectively. See Note 20 for additional information related to this investment. Other Federal Tax Credits Adjustments to Accruals and Related Deferred Taxes State Net Operating Losses and Credits Tax Audit Settlements During 2015, 2014 and 2013 we settled various tax audits. The settlement of these tax audits resulted in a reduction to our provision for income taxes of $10 million, $12 million and $11 million for the years ended December 31, 2015, 2014 and 2013, 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 2014, 2015 and 2016 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. We acquired Deffenbaugh, which is subject to potential IRS examination for the years 2012 through the date of acquisition in 2015. Tax Implications of Divestitures Tax Implications of Impairments Unremitted Earnings in Foreign Subsidiaries Deferred Tax Assets (Liabilities) The components of net deferred tax assets (liabilities) are as follows (in millions): December 31, 2015 2014 Deferred tax assets: Net operating loss, capital loss and tax credit carry-forwards $ 280 $ 297 Landfill and environmental remediation liabilities 120 53 Miscellaneous and other reserves, net 373 380 Subtotal 773 730 Valuation allowance (273 ) (300 ) Deferred tax liabilities: Property and equipment (709 ) (673 ) Goodwill and other intangibles (1,182 ) (1,095 ) Net deferred tax liabilities $ (1,391 ) $ (1,338 ) The valuation allowance decreased by $27 million in 2015 primarily due to changes in our capital loss and state NOL carry-forwards, as well as the tax impacts of impairments. At December 31, 2015, we had $47 million of federal NOL carry-forwards and $1.8 billion of state NOL carry-forwards. The federal and state NOL carry-forwards have expiration dates through the year 2035. We also have $423 million of federal capital loss carry-forwards which expire in 2019. In addition, we have $32 million of state tax credit carry-forwards at December 31, 2015. 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 is as follows (in millions): 2015 2014 2013 Balance at January 1 $ 42 $ 49 $ 54 Additions based on tax positions related to the current year 18 9 6 Additions based on tax positions of prior years 21 2 — Accrued interest 2 1 2 Reductions for tax positions of prior years (1 ) — (7 ) Settlements (3 ) (11 ) (1 ) Lapse of statute of limitations (8 ) (8 ) (5 ) Balance at December 31 $ 71 $ 42 $ 49 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, 2015, $57 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, 2015, 2014 and 2013, we recognized $2 million, $1 million and $2 million, respectively, of such interest expense as a component of our provisions for income taxes. We had $3 million of accrued interest expense in our Consolidated Balance Sheets as of both December 31, 2015 and 2014. We did not have any accrued liabilities or expense for penalties related to unrecognized tax benefits for the years ended December 31, 2015, 2014 and 2013. 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, 2015 we anticipate that approximately $36 million of liabilities for unrecognized tax benefits, including accrued interest, and $5 million of related tax assets may be reversed within the next 12 months. The anticipated reversals primarily relate to the deductibility and exclusion from gross income of certain federal tax items and other miscellaneous state tax items, each of which is individually insignificant. The recognition of the unrecognized tax benefits is expected to result from the filing of our tax returns, audit settlements or the expiration of the applicable statute of limitations period. Bonus Depreciation The Protecting Americans from Tax Hikes Act of 2015 was signed into law on December 18, 2015 and included an extension for five years of the bonus depreciation allowance. As a result, 50% of qualifying capital expenditures on property placed in service before January 1, 2016 were depreciated immediately. The acceleration of deductions on 2015 qualifying capital expenditures resulting from the bonus depreciation provisions had no impact on our effective income tax rate for 2015 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, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 10. Employee Benefit Plans Defined Contribution Plans — 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, 2015, the combined benefit obligation of these pension plans was $116 million, and the plans had $88 million of plan assets, resulting in an unfunded benefit obligation for these plans of $28 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 $28 million at December 31, 2015. Multiemployer Defined Benefit Pension Plans — EIN/Pension Plan Number Pension Protection Act Reported Status(a) FIP/RP Status(b),(c) Company Contributions(d) Expiration Date of Collective Bargaining Agreement(s) Pension Fund 2015 2014 2015 2014 2013 Automotive Industries Pension Plan EIN: 94-1133245; Critical Critical Implemented $ 1 $ 1 $ 1 Various dates Local 731 Private Scavengers and Garage Attendants Pension Trust Fund EIN: 36-6513567; Endangered as of 9/30/2014 Endangered as of 9/30/2013 Implemented 7 6 6 9/30/2018 Suburban Teamsters of Northern Illinois Pension Plan EIN: 36-6155778; Critical Critical Implemented 2 3 2 Various dates Teamsters Local 301 Pension Plan EIN: 36-6492992; Not Not Not Applicable 1 1 1 9/30/2018 Western Conference of Teamsters Pension Plan EIN: 91-6145047; Not Not Not 24 24 22 Various dates Western Pennsylvania Teamsters EIN: 25-6029946; Critical Critical Implemented 1 1 1 12/31/2016 and Employers Pension Plan Plan Number: 001 $ 36 $ 36 $ 33 Contributions to other multiemployer pension plans 7 8 7 Total contributions to multiemployer pension plans(e) $ 43 $ 44 $ 40 (a) Unless otherwise noted in the table, the most recent Pension Protection Act zone status available in 2015 and 2014 is for the plan’s year-end at December 31, 2014 and 2013, 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 9/30/2014 and 9/30/2013 Suburban Teamsters of Northern Illinois Pension Plan 12/31/2014 and 12/31/2013 Teamsters Local 301 Pension Plan 12/31/2014 and 12/31/2013 (e) Total contributions to multiemployer pension plans excludes contributions related to withdrawal liabilities discussed below. At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2015. 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 2015, 2014 and 2013, we recognized aggregate charges of $51 million, $4 million and $5 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 — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Financial Instruments 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 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, 2015, 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, 2015, 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. The changes to our net insurance liabilities for the three years ended December 31, 2015 are summarized below (in millions): Gross Claims Liability Receivables Associated with Insured Claims(a) Net Claims Liability 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 597 (183 ) 414 Self-insurance expense (benefit) 202 (39 ) 163 Cash (paid) received (156 ) 4 (152 ) Balance, December 31, 2015(b) $ 643 $ (218 ) $ 425 Current portion at December 31, 2015 $ 141 $ (20 ) $ 121 Long-term portion at December 31, 2015 $ 502 $ (198 ) $ 304 (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 Other Commitments • Disposal • Waste Paper • Royalties 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, 2015. 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, 2015, our estimated minimum obligations for the above-described purchase obligations, which are not recognized in our Consolidated Balance Sheet, were $184 million in 2016, $164 million in 2017, $126 million in 2018, $100 million in 2019, $86 million in 2020 and $424 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 • As of December 31, 2015, 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 2045. 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 and term loan, 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 these debt obligations. • Before the divestiture of our Wheelabrator business, WM had guaranteed certain operational and financial performance obligations 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, 2015, WM’s maximum future payments associated with those guarantees are $106 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 2038 if not sooner terminated, in our December 31, 2015 Consolidated Balance Sheet. The estimated fair value of WM’s potential obligation associated with guarantees of Wheelabrator obligations (net of the credit support fee) at December 31, 2015 and 2014 was $13 million and $18 million, respectively. 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, 2015, our maximum future payments associated with these guarantees are approximately $7 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, 2015, we have agreements guaranteeing certain market value losses for approximately 850 homeowners’ properties adjacent to or near 21 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 or other market conditions are achieved post-closing and we have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. We do not currently believe that contingent obligations to provide indemnification or pay additional post-closing consideration in connection with our divestitures or acquisitions will have a material adverse effect on the Company’s business, financial condition, 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 As of December 31, 2015, we had been notified by the government that we are a PRP in connection with 76 locations listed on the EPA’s Superfund National Priorities List, or NPL. Of the 76 sites at which claims have been made against us, 15 are sites we own. Each of the NPL sites we own was initially developed by others as a landfill disposal facility. At each of these facilities, we are working in conjunction with the government to evaluate or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement. We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures. The other 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 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. Item 103 of the SEC’s Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings, or such proceedings are known to be contemplated, unless we reasonably believe that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $100,000. The following matters are disclosed in accordance with that requirement. On December 18, 2015, the Pennsylvania Department of Environmental Protection (“DEP”) and Waste Management of Pennsylvania, Inc. agreed in principal to a consent assessment of civil penalty of $190,000 relating to alleged odors from the Tullytown Resource Recovery Facility occurring between June 1, 2015 and December 31, 2015. We expect the consent assessment of civil penalty to be finalized and the payment to be made in the first quarter of 2016. On July 10, 2015, Waste Management of Hawaii, Inc. (“WMHI”) entered a plea resolving the April 30, 2014 indictment against WMHI in connection with water discharges at the Waimanalo Gulch Sanitary Landfill, which WMHI operates for the city and county of Honolulu, following three major rainstorms in December 2010 and January 2011. WMHI may face civil claims from the Hawaii Department of Health or the EPA based on the same underlying events, but we do not anticipate such claims could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Litigation 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 or was a director or officer of the Company. Such indemnification is required to the maximum extent permitted under Delaware law. Accordingly, the director or officer must execute an undertaking to reimburse the Company for any fees advanced if it is later determined that the director or officer was not entitled to have such fees advanced under Delaware law. Additionally, the Company has direct contractual obligations to provide indemnification to each of the members of WM’s Board of Directors and each of our executive officers and senior vice presidents. 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 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”). In 2008, we reached agreement with all of the unions involved to cease participation in the Central States Pension Plan. Since that time, litigation with the Central States Pension Plan had been pending over several matters, including the effective date that our contribution obligations ceased. In the third quarter of 2015, we settled and paid all amounts due for all pending litigation with the trustees for the Central States Pension Plan regarding liability for contributions to the plan and withdrawal liability resulting from the cessation of contributions. Similarly, in the fourth quarter of 2015, we settled and paid all amounts due for outstanding issues regarding plan contributions and withdrawal liability with the Teamsters Employers Local 945 Pension Fund. In 2015, we recognized a $51 million charge to “Operating” expenses associated with withdrawal from certain underfunded multiemployer pension plans, nearly all of which was associated with the Central States Pension Plan and the Teamsters Employers Local 945 Pension Fund withdrawals discussed above. We do not believe any additional liability above the charges we have already recognized for previous withdrawals could be material to the Company’s business, financial condition, liquidity, results of operations or cash flows. 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 |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2015 | |
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): 2015 2014 2013 Solid Waste $ 14 $ 10 $ 7 Wheelabrator — 1 1 Corporate and Other 1 71 10 $ 15 $ 82 $ 18 During the year ended December 31, 2015, we recognized $15 million of pre-tax restructuring charges, of which $10 million was related to employee severance and benefit costs, including costs associated with the loss of a municipal contract in our Eastern Canada Area and our acquisition of Deffenbaugh. The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized. 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 separated from our Corporate and recycling organizations in connection with this restructuring. 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. 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 and RCI and our prior restructurings. The remaining charges were primarily related to operating lease obligations for property that will no longer be utilized. As of December 31, 2015, substantially all of the accrued employee severance and benefits related to our restructuring efforts was paid. |
Asset Impairments and Unusual I
Asset Impairments and Unusual Items | 12 Months Ended |
Dec. 31, 2015 | |
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. See Note 3 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 (other than goodwill) and unusual items” for the years ended December 31 for the respective periods (in millions): 2015 2014 2013 (Income) expense from divestitures $ (7 ) $ (515 ) $ (8 ) Asset impairments (other than goodwill) 89 345 472 $ 82 $ (170 ) $ 464 During the year ended December 31, 2015, we recognized net charges of $82 million, primarily related to $66 million of charges to impair certain of our oil and gas producing properties as a result of the continued decline in oil and gas prices. We wrote down the carrying value of these properties to their estimated fair value using an income approach. At December 31, 2015, our remaining book value in these investments was $30 million. We also recognized $18 million of charges to write down or divest of certain assets in our recycling operations and a $5 million impairment of a landfill in our Western Canada Area due to revised post-closure cost estimates. Partially offsetting these charges was $7 million in net gains from divestitures, including a $6 million gain on the sale of an oil and gas producing property in the second quarter of 2015. During the year ended December 31, 2014, we recognized net gains of $170 million, primarily related to the following: • Divestitures • Oil and gas properties impairments • Other impairments During the year ended December 31, 2013, we recognized net charges of $464 million, primarily related to the following: • Landfill impairments • Waste-to-energy impairments • Other impairments • Divestitures — 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. Other income (expense) During the years ended December 31, 2015, 2014 and 2013, we recognized impairment charges of $5 million, $22 million and $71 million, respectively, related to other-than-temporary declines in the value of investments in waste diversion technology companies accounted for under the cost method. We wrote down our investments to their fair value which was primarily determined using an income approach based on estimated future cash flow projections and, to a lesser extent, third-party investors’ recent transactions in these securities. Partially offsetting the 2013 charges was a $4 million gain on the sale of a similar investment. Also, during the year ended December 31, 2014, we sold our investment in Shanghai Environment Group, 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 provided by (used in) investing activities” in the Consolidated Statement of Cash Flows. The losses recognized related to the sale were not material. These net charges are recorded in “Other, net” in our Consolidated Statement of Operations. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
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 Instruments Available- for-Sale Securities Foreign Post- Retirement Benefit Plans Total 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, net of tax expense (benefit) of $20, $(1), $0 and $1, respectively 30 (2 ) (164 ) 2 (134 ) Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(14), $0, $0 and $0, respectively (21 ) — 5 — (16 ) Net current period other comprehensive income (loss) 9 (2 ) (159 ) 2 (150 ) Balance, December 31, 2015 $ (52 ) $ 8 $ (75 ) $ (8 ) $ (127 ) The amounts of other comprehensive income (loss) before reclassifications associated with the effective portion of derivatives designated as cash flow hedges are as follows (in millions): Years Ended December 31, 2015 2014 2013 Forward-starting interest rate swaps $ — $ (8 ) $ 14 Foreign currency derivatives 50 23 17 Electricity commodity derivatives — (5 ) (8 ) Total before tax 50 10 23 Tax (expense) benefit (20 ) (4 ) (9 ) Net of tax $ 30 $ 6 $ 14 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): Years Ended December 31, Statement of Operations Classification 2015 2014 2013 Gains and losses on cash flow hedges: Forward-starting interest rate swaps $ (12 ) $ (10 ) $ (7 ) Interest expense, net Treasury rate locks (4 ) (1 ) (2 ) Interest expense, net Foreign currency derivatives 51 27 21 Other, net Electricity commodity derivatives — (8 ) (9 ) Operating revenues 35 8 3 Total before tax (14 ) (3 ) (1 ) Tax (expense) benefit Total reclassifications for the period $ 21 $ 5 $ 2 Net of tax |
Capital Stock, Dividends and Sh
Capital Stock, Dividends and Share Repurchases | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, we had 447.2 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 financial plans approved by our Board of Directors. Cash dividends declared and paid were $695 million in 2015, or $1.54 per common share, $693 million in 2014, or $1.50 per common share, and $683 million in 2013, or $1.46 per common share. In December 2015, we announced that our Board of Directors expects to increase the quarterly dividend from $0.385 to $0.41 per share for dividends declared in 2016. 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: Years Ended December 31, 2015(a) 2014(a) 2013(c) Shares repurchased (in thousands) 14,823(b) 9,569(b) 5,368 Weighted average per share purchase price $49.83 $43.89(b) $43.48 - $45.95 Total repurchases (in millions) $600 $600 $239 (a) Share repurchases in 2015 and 2014 were completed through accelerated share repurchase (“ASR”) agreements. The terms of these agreements required that we deliver cash at the beginning of each ASR repurchase period. In exchange, we received 70% of the shares expected to be repurchased based on the then-current market price of our common stock. The remaining shares repurchased over the course of each repurchase period were delivered to us once the repurchase period was complete. Additional information related to our ASRs is included below. (b) In July 2014, we executed ASR agreements to repurchase $600 million of our common stock. At the beginning of the ASR repurchase periods, we delivered $600 million in cash and received 9.6 million shares based on a stock price of $43.89. The share repurchase periods of the agreements concluded in February 2015, at which time we received 2.8 million additional shares based on a final weighted average per share purchase price during the repurchase period of $48.58. The amounts reported here as “Shares repurchased” are based on when shares were delivered to WM. (c) Share repurchases in 2013 were completed through open market purchases. Each ASR agreement was 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 was included in treasury stock at cost 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 forward contracts indexed to our own stock met the criteria for equity classification, and these amounts were initially recorded in additional paid-in capital and reclassified to treasury stock upon completion of the ASR agreements. The Company entered into an additional ASR agreement in December 2015 to repurchase $150 million of our common stock in early 2016. Subsequent to this ASR agreement, we announced that the Board of Directors refreshed its prior authorization of 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. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
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, enrolled employees 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 2015, 2014 and 2013 was approximately 786,000, 774,000 and 928,000, respectively. Including the impact of the January 2016 issuance of shares associated with the July to December 2015 offering period, approximately 3.2 million shares remain available for issuance under the plan, which includes 3.0 million additional shares that stockholders approved in May 2015 for future issuance. Accounting for our ESPP increased annual compensation expense by approximately by $6 million, or $4 million net of tax, for 2015, 2014 and 2013. 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, 2015, approximately 24.4 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 (“RSUs”) and performance share units (“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 2015 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 2015. 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 — Units Weighted Average Fair Value Unvested at January 1, 2015 620 $ 37.44 Granted 167 $ 54.47 Vested (240 ) $ 34.78 Forfeited (23 ) $ 42.41 Unvested at December 31, 2015 524 $ 43.76 The total fair market value of RSUs that vested during the years ended December 31, 2015, 2014 and 2013 was $13 million, $3 million and $1 million, respectively. Net of 84,000 units deferred or used for payment of associated taxes, we issued approximately 156,000 shares of common stock for RSUs that vested during the year ended December 31, 2015. 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 dividend 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 — Units Weighted Average Fair Value Unvested at January 1, 2015 2,033 $ 46.28 Granted 523 $ 66.35 Vested (749 ) $ 47.28 Forfeited (45 ) $ 49.88 Unvested at December 31, 2015 1,762 $ 52.90 The determination of achievement of performance results and corresponding vesting of PSUs for the three-year performance period ended December 31, 2015 was performed by the Management Development and Compensation Committee in February 2016. Accordingly, vesting information for such awards is not included in the table above as of December 31, 2015. The “vested” PSUs are for the three-year performance period ended December 31, 2014, as achievement of performance results and corresponding vesting was determined in February 2015. 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 96.6% of the vested PSUs. In early 2015, we issued approximately 385,000 shares of common stock for these vested PSUs, net of 364,000 units deferred or used for payment of associated taxes. The shares of common stock that were issued or deferred during the years ended December 31, 2015, 2014 and 2013 for prior PSU award grants had a fair market value of $35 million, $8 million and $14 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 Cash Flow PSUs and ROIC 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 — Stock Options — Options Weighted Average Exercise Price Outstanding at January 1, 2015 8,378 $ 37.22 Granted 1,455 $ 54.45 Exercised (2,170 ) $ 36.26 Forfeited or expired (156 ) $ 38.98 Outstanding at December 31, 2015(a) 7,507 $ 40.80 Exercisable at December 31, 2015(b) 3,940 $ 36.44 (a) Stock options outstanding as of December 31, 2015 have a weighted average remaining contractual term of 7.0 years and an aggregate intrinsic value of $96 million based on the market value of our common stock on December 31, 2015. (b) Stock options exercisable as of December 31, 2015 have a weighted average remaining contractual term of 5.7 years and an aggregate intrinsic value of $67 million based on the market value of our common stock on December 31, 2015. Stock options exercisable at December 31, 2015 have an exercise price ranging from $32.18 to $44.01. We received cash proceeds of $77 million, $93 million and $132 million during the years ended December 31, 2015, 2014 and 2013, respectively, from employee stock option exercises. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2015, 2014 and 2013 was $37 million, $27 million and $41 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, 2015, 2014 and 2013 was $5.56, $4.55 and $4.26, 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: 2015 2014 2013 Expected option life 4.4 years 4.8 years 5.4 years Expected volatility 16.7% 18.4% 21.8% Expected dividend yield 2.8% 3.6% 4.0% Risk-free interest rate 1.4% 1.6% 1.0% 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, 2015, 2014 and 2013 we recognized $64 million, $59 million and $54 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, 2015, 2014 and 2013 includes related deferred income tax benefits of $26 million, $23 million and $21 million, respectively. We also realized excess tax benefits from stock option exercises and RSU and PSU vestings during the years ended December 31, 2015, 2014 and 2013 of $15 million, $5 million and $10 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. We have not capitalized any equity-based compensation costs during the years ended December 31, 2015, 2014 and 2013. Compensation expense recognized in 2015 and 2014 increased when compared to the respective prior year, primarily due to the increase in expected payout of our PSUs. As of December 31, 2015 we estimate that a total of approximately $48 million of currently unrecognized compensation expense will be recognized over a weighted average period of 1.5 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, 2015 | |
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, 2015 2014 2013 Number of common shares outstanding at year-end 447.2 458.5 464.3 Effect of using weighted average common shares outstanding 5.5 4.1 3.4 Weighted average basic common shares outstanding 452.7 462.6 467.7 Dilutive effect of equity-based compensation awards and other contingently issuable shares 3.2 3.0 2.1 Weighted average diluted common shares outstanding 455.9 465.6 469.8 Potentially issuable shares 10.2 11.3 12.3 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 2.0 0.4 0.1 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
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 Level 2 Level 3 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, 2015 Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 35 $ 35 $ — $ — Available-for-sale securities 43 — 43 — Fixed-income securities 40 — 40 — Redeemable preferred stock 47 — — 47 Foreign currency derivatives 78 — 78 — Total assets $ 243 $ 35 $ 161 $ 47 Fair Value Measurements at December 31, 2014 Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 1,332 $ 1,332 $ — $ — Available-for-sale securities 46 — 46 — Fixed-income securities 38 — 38 — Redeemable preferred stock 44 — — 44 Foreign currency derivatives 28 — 28 — Total assets $ 1,488 $ 1,332 $ 112 $ 44 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 decrease in the fair value at December 31, 2015 compared to December 31, 2014 is primarily attributable to the utilization, in 2015, of the cash proceeds received from the sale of our Wheelabrator business in 2014. Available-for-Sale Securities Available-for-sale securities are primarily related to the restricted trust funds that were created to settle certain of our final capping, closure, post-closure or environmental remediation obligations, which are discussed further in Note 20. These trust funds are invested in U.S. Treasury securities and equity and bond funds. We measure the fair value of these securities using quoted prices for identical or similar assets in active markets. Any changes in fair value of these trusts related to unrealized gains and losses have been appropriately reflected as a component of “Accumulated other comprehensive income.” 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 Redeemable preferred stock is primarily related to a noncontrolling investment in an unconsolidated entity and is included in “Investments in unconsolidated entities” in our Consolidated Balance Sheet. The fair value of our investment has been measured based on third-party investors’ recent or pending transactions in these securities, which is 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. Redeemable preferred stock also includes stock received in conjunction with the 2014 sale of our Puerto Rico operations, as discussed in Note 19. 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 over the term of the agreements. Refer to Notes 8 and 14 for additional information regarding the derivative instruments discussed above. Fair Value of Debt At December 31, 2015 the carrying value of our debt was approximately $9.0 billion compared with approximately $9.4 billion at December 31, 2014. 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 $9.2 billion at December 31, 2015 and approximately $10.6 billion at December 31, 2014. 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 senior notes and 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, 2015 with December 31, 2014 is primarily related to the net repayment of $427 million of our debt, a substantial portion of which was related to our debt refinancing as further discussed in Note 7. This refinancing resulted in a reduction of high-coupon debt and the payment of related market premiums on these notes, and the replacement of this debt with new notes with a fair value that closely approximates book value. 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, 2015 and 2014. 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, 2015 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | 19. Acquisitions and Divestitures 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, 2015, we acquired 27 businesses primarily related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $661 million, which included $554 million in cash paid in 2015, purchase price holdbacks of $11 million and a liability for contingent consideration with a preliminary estimated fair value of $96 million. The contingent consideration is primarily based on achievement by the acquired businesses of certain negotiated goals, which generally include targeted financial metrics. Our estimated maximum obligations for the contingent cash payments were $126 million at the dates of acquisition. As of December 31, 2015, we had paid $8 million of this contingent consideration. In 2015, we also paid $4 million of contingent consideration associated with acquisitions completed prior to 2015. The allocation of purchase price for 2015 acquisitions was primarily to “Property and equipment,” which had an estimated fair value of $243 million; “Other intangible assets,” which had an estimated fair value of $145 million; and “Goodwill” of $325 million. Other intangible assets included $131 million of customer and supplier relationships and $8 million of covenants not-to-compete and $6 million of trade name. Goodwill is primarily a result of expected synergies from combining the acquired businesses with our existing operations. Goodwill of $166 million is tax deductible and $159 million of goodwill associated with the acquisition of Deffenbaugh, discussed below, is not tax deductible. Deffenbaugh Disposal, Inc. Goodwill of $159 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 Areas that will be integrating these operations as they are expected to benefit from the synergies of the combination. Goodwill related to this acquisition is not deductible for income tax purposes. The allocation of the purchase price for the Deffenbaugh acquisition is preliminary and subject to change based on the finalization of our detailed valuations. The following table presents adjustments since the acquisition date to the allocation of the purchase price (in millions): March 26, Adjustments December 31, Cash and cash equivalents $ 15 $ — $ 15 Accounts and other receivables 18 4 22 Parts and supplies 2 — 2 Deferred income tax asset 9 2 11 Other current assets 12 (2 ) 10 Property and equipment 212 (5 ) 207 Goodwill 140 19 159 Other intangible assets 134 (34 ) 100 Other assets 1 — 1 Accounts payable (4 ) 2 (2 ) Accrued liabilities (12 ) (8 ) (20 ) Deferred revenues (5 ) (1 ) (6 ) Landfill and environmental remediation liabilities (21 ) 3 (18 ) Deferred income tax liability (65 ) 13 (52 ) Other liabilities (20 ) 6 (14 ) Total purchase price $ 416 $ (1 ) $ 415 The preliminary allocation of $100 million for other intangibles includes $94 million for customer relationships and $6 million for a trade name, each with an amortization period of 15 years. The following pro forma consolidated results of operations have been prepared as if the acquisition of Deffenbaugh occurred at January 1, 2014 (in millions, except per share amounts): Years Ended 2015 2014 Operating revenues $ 13,001 $ 14,168 Net income attributable to Waste Management, Inc. 753 1,304 Basic earnings per common share 1.66 2.82 Diluted earnings per common share 1.65 2.80 Prior Year Acquisitions 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. 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 was payable to the sellers, of which $20 million was guaranteed and paid in 2015. The remaining $20 million of this consideration was contingent based on changes in certain recyclable commodity indexes and had an estimated fair value at closing of $16 million. This contingent consideration was not earned. 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. 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. 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, 2013 (in millions, except per share amounts): Year Ended December 31, 2013 Operating revenues $ 14,085 Net income attributable to Waste Management, Inc. 112 Basic earnings per common share 0.24 Diluted earnings per common share 0.24 Current Year Divestitures The aggregate sales price for divestitures of operations was $79 million in 2015 and we recognized net gains on these divestitures of $7 million. These divestitures were made as part of our continuous focus on improving or divesting 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. Prior 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; (ii) the sale of our Puerto Rico operations and (iii) the sale of certain landfill and collection operations in our Eastern Canada Area, as discussed further below. We recognized net gains on these divestitures of $515 million in 2014. These divestitures were made as part of our continuous focus on improving or divesting 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. For the year ended December 31, 2015, net adjustments to this gain were immaterial on a pre-tax basis. 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 through 2021. Other Divestitures During 2014, we sold our Puerto Rico operations and received proceeds of $80 million, consisting of $65 million of cash and $15 million of preferred stock and recognized a loss of $25 million. In addition, we sold certain landfill and collection operations in our Eastern Canada Area and received cash proceeds 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. The aggregate sales price for divestitures of operations in 2013 was $70 million comprised substantially of cash and we recognized net gains of $8 million. These divestitures were made as part of our continuous focus on improving or divesting 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, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [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 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. Significant Unconsolidated Variable Interest Entities Investment in Refined Coal Facility Investment in Low-Income Housing Properties 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 $94 million at December 31, 2015 and $129 million at December 31, 2014. The decline in these balances can be attributed to our decision to work with various beneficiaries to release these funds and secure the obligations with alternate assurance instruments. 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 Sheets, as appropriate. Our investments and receivables related to these trusts had an aggregate carrying value of $93 million and $113 million as of December 31, 2015 and December 31, 2014, 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 Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2015 | |
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. Consistent with prior years, we have analyzed the Areas’ income from operations margin for purposes of segment reporting and have realigned our Solid Waste tiers to reflect recent changes in their relative economic characteristics and prospects. These changes are the results of various factors including acquisitions, divestments, business mix and the economic climate of various geographies. Reclassifications have been made to our prior period consolidated financial information in order to conform to the current year presentation. Tier 1 is now comprised of our operations across the Southern United States, with the exception of Southern California and the Florida peninsula and also includes the New England states, the tri-state area of Michigan, Indiana and Ohio and Western Canada. Tier 2 includes Southern California, Eastern Canada, Wisconsin, Minnesota and a portion of the lower Mid-Atlantic region of the United States. Tier 3 encompasses all the remaining operations including the Pacific Northwest and Northern California, the majority of the Mid-Atlantic region of the United States, the Florida peninsula, Illinois and Missouri. Our Wheelabrator business, which managed waste-to-energy facilities and independent power production plants, was a separate reportable segment until the sale of the business in 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 Operating Revenues Intercompany Operating Revenues(c) Net Operating Revenues Income from Operations (d),(e) Depreciation and Amortization Capital Expenditures (f) Total Assets (g),(h) 2015 Solid Waste: Tier 1 $ 5,083 $ (856 ) $ 4,227 $ 1,290 $ 428 $ 382 $ 6,098 Tier 2 3,304 (613 ) 2,691 629 280 251 5,394 Tier 3 4,898 (813 ) 4,085 808 379 412 5,930 Wheelabrator — — — — — — — Other(a) 2,065 (107 ) 1,958 (160 ) 94 128 1,701 15,350 (2,389 ) 12,961 2,567 1,181 1,173 19,123 Corporate and Other(b) — — — (522 ) 64 56 1,835 Total $ 15,350 $ (2,389 ) $ 12,961 $ 2,045 $ 1,245 $ 1,229 $ 20,958 2014 Solid Waste: Tier 1 $ 5,117 $ (834 ) $ 4,283 $ 1,301 $ 408 $ 388 $ 6,150 Tier 2 3,516 (663 ) 2,853 711 287 223 5,648 Tier 3 4,816 (786 ) 4,030 787 361 351 5,449 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 2,850 Total $ 16,457 $ (2,461 ) $ 13,996 $ 2,299 $ 1,292 $ 1,181 $ 21,888 2013 Solid Waste: Tier 1 $ 5,130 $ (871 ) $ 4,259 $ 1,246 $ 418 $ 367 $ 6,180 Tier 2 3,479 (650 ) 2,829 454 284 267 5,850 Tier 3 4,868 (803 ) 4,065 734 376 367 5,512 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 1,346 Total $ 16,507 $ (2,524 ) $ 13,983 $ 1,079 $ 1,333 $ 1,267 $ 23,102 (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 services and (iii) the impacts of investments in expanded service offerings, such as portable self-storage, long distance moving services, 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. In 2013, we recognized $981 million of impairment charges, the most significant of which impacted our Tier 2 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, 2015 2014 2013 Total assets, as reported above $ 20,958 $ 21,888 $ 23,102 Elimination of intercompany investments and advances (539 ) (591 ) (612 ) Total assets, per Consolidated Balance Sheet $ 20,419 $ 21,297 $ 22,490 (h) Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities are included as a component of their respective Areas and our recycling brokerage business is included as part of our “Other” operations. As discussed in Note 19, the goodwill associated with our acquisition of Deffenbaugh has been assigned to our Areas, primarily in Tier 3 and to a lesser extent Tier 1. The following table presents changes in goodwill during 2014 and 2015 by reportable segment (in millions): Solid Waste Tier 1 Tier 2 Tier 3 Wheelabrator Other Total Balance, December 31, 2013 $ 2,183 $ 1,814 $ 1,653 $ 305 $ 115 $ 6,070 Acquired goodwill 4 16 11 — — 31 Divested goodwill, net of assets held-for-sale — (1 ) (2 ) (305 ) — (308 ) Impairments — — — — (10 ) (10 ) Translation and other adjustments (9 ) (34 ) — — — (43 ) Balance, December 31, 2014 $ 2,178 $ 1,795 $ 1,662 $ — $ 105 $ 5,740 Acquired goodwill 27 42 151 — 105 325 Divested goodwill, net of assets held-for-sale — (6 ) (1 ) — — (7 ) Translation and other adjustments (15 ) (59 ) — — — (74 ) Balance, December 31, 2015 $ 2,190 $ 1,772 $ 1,812 $ — $ 210 $ 5,984 The mix of operating revenues from our major lines of business is reflected in the table below (in millions): Years Ended December 31, 2015 2014 2013 Collection: Commercial $ 3,332 $ 3,393 $ 3,423 Residential 2,499 2,543 2,608 Industrial 2,252 2,231 2,209 Other 356 340 273 Total collection 8,439 8,507 8,513 Landfill 2,919 2,849 2,790 Transfer 1,377 1,353 1,329 Wheelabrator — 817 845 Recycling 1,163 1,370 1,447 Other(a) 1,452 1,561 1,583 Intercompany(b) (2,389 ) (2,461 ) (2,524 ) Total $ 12,961 $ 13,996 $ 13,983 (a) The “Other” line of business includes Strategic Business Solutions, landfill gas-to-energy operations, Port-O-Let ® (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, 2015 2014 2013 United States and Puerto Rico(a) $ 12,196 $ 13,064 $ 13,054 Canada 765 932 929 Total $ 12,961 $ 13,996 $ 13,983 (a) We sold our Puerto Rico operations in 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, 2015 2014 2013 United States and Puerto Rico(a) $ 9,778 $ 9,586 $ 11,198 Canada 887 1,071 1,146 Total $ 10,665 $ 10,657 $ 12,344 (a) We sold our Puerto Rico operations in 2014. Refer to Note 19 for additional information. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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 2015 and 2014 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015 Operating revenues $ 3,040 $ 3,315 $ 3,360 $ 3,246 Income from operations 440 502 601 502 Consolidated net income (loss) (131 ) 273 337 273 Net income (loss) attributable to Waste Management, Inc. (129 ) 274 335 273 Basic earnings (loss) common share (0.28 ) 0.60 0.75 0.61 Diluted earnings (loss) common share (0.28 ) 0.60 0.74 0.61 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 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 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. 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 2015 • The recognition of a pre-tax loss of $550 million associated with the early extinguishment of almost $2 billion of our high-coupon senior notes through a make-whole redemption and cash tender offer. We replaced substantially all of the debt extinguished with new senior notes at significantly lower coupon interest rates, which will reduce future interest expense and extended the average maturity of our debt obligations. The charges incurred for the redemption had a negative impact of $0.74 on our diluted loss per share. • The recognition of pre-tax charges of $14 million associated with divestitures, impairments and restructuring, which include a $7 million net loss associated with the sale of our Wheelabrator business in December 2014 and a $5 million impairment charge related to a landfill in our Western Canada Area. Combined, these charges had a negative impact of $0.03 on our diluted loss per share. Second Quarter 2015 • The recognition of a $55 million charge associated with the withdrawal from certain underfunded multiemployer pension plans had a negative impact of $0.07 on our diluted earnings per share. • The recognition of net pre-tax losses of $6 million primarily related to the impairment of various recycling assets and certain adjustments associated with the sale of our Wheelabrator business. Combined, these charges had a favorable after-tax impact of $0.01 on our diluted earnings per share. Fourth Quarter 2015 • The recognition of $70 million of pre-tax charges primarily to impair our oil and gas producing properties, which negatively affected our diluted earnings per share by $0.09. • The recognition of $8 million of pre-tax restructuring charges and a $4 million other-than-temporary decline in the value of an investment in a waste diversion technology company accounted for under the cost method. These charges had a negative impact of $0.02 on our diluted earnings per share. 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. 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. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 39 $ — $ 39 Other current assets 3 6 2,297 — 2,306 3 6 2,336 — 2,345 Property and equipment, net — — 10,665 — 10,665 Investments in and advances to affiliates 18,557 18,911 7,365 (44,833 ) — Other assets 55 29 7,325 — 7,409 Total assets $ 18,615 $ 18,946 $ 27,691 $ (44,833 ) $ 20,419 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 41 $ — $ 212 $ — $ 253 Accounts payable and other current liabilities 83 9 2,165 — 2,257 124 9 2,377 — 2,510 Long-term debt, less current portion 5,833 304 2,591 — 8,728 Due to affiliates 7,289 76 — (7,365 ) — Other liabilities 24 — 3,790 — 3,814 Total liabilities 13,270 389 8,758 (7,365 ) 15,052 Equity: Stockholders’ equity 5,345 18,557 18,911 (37,468 ) 5,345 Noncontrolling interests — — 22 — 22 5,345 18,557 18,933 (37,468 ) 5,367 Total liabilities and equity $ 18,615 $ 18,946 $ 27,691 $ (44,833 ) $ 20,419 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2014 WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,235 $ — $ 72 $ — $ 1,307 Other current assets 5 6 2,208 — 2,219 1,240 6 2,280 — 3,526 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 $ 26,718 $ (41,839 ) $ 21,297 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 — 3,546 — 3,578 Total liabilities 12,736 504 8,913 (6,745 ) 15,408 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 $ 26,718 $ (41,839 ) $ 21,297 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Operating revenues $ — $ — $ 12,961 $ — $ 12,961 Costs and expenses(a) — (1 ) 10,917 — 10,916 Income from operations — 1 2,044 — 2,045 Other income (expense): Interest expense, net (298 ) (22 ) (65 ) — (385 ) Loss on early extinguishment of debt (500 ) (52 ) (3 ) — (555 ) Equity in earnings of subsidiaries, net of taxes 1,245 1,289 — (2,534 ) — Other, net — — (45 ) — (45 ) 447 1,215 (113 ) (2,534 ) (985 ) Income before income taxes 447 1,216 1,931 (2,534 ) 1,060 Provision for (benefit from) income taxes (306 ) (29 ) 643 — 308 Consolidated net income 753 1,245 1,288 (2,534 ) 752 Less: Net income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Net income attributable to Waste Management, Inc. $ 753 $ 1,245 $ 1,289 $ (2,534 ) $ 753 Year Ended December 31, 2014 Operating revenues $ — $ — $ 13,996 $ — $ 13,996 Costs and expenses(a) — (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 (loss) 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(a) — — 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 (loss) attributable to noncontrolling interests — — 32 — 32 Net income attributable to Waste Management, Inc. $ 98 $ 313 $ 332 $ (645 ) $ 98 (a) 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 Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Comprehensive income (loss) $ 762 $ 1,245 $ 1,129 $ (2,534 ) $ 602 Less: Comprehensive income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income (loss) attributable to Waste Management, Inc. $ 762 $ 1,245 $ 1,130 $ (2,534 ) $ 603 Year Ended December 31, 2014 Comprehensive income (loss) $ 1,300 $ 1,510 $ 977 $ (2,580 ) $ 1,207 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 40 — 40 Comprehensive income (loss) attributable to Waste Management, Inc. $ 1,300 $ 1,510 $ 937 $ (2,580 ) $ 1,167 Year Ended December 31, 2013 Comprehensive income (loss) $ 112 $ 313 $ 311 $ (645 ) $ 91 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 32 — 32 Comprehensive income (loss) attributable to Waste Management, Inc. $ 112 $ 313 $ 279 $ (645 ) $ 59 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Cash flows from operating activities: Consolidated net income (loss) $ 753 $ 1,245 $ 1,288 $ (2,534 ) $ 752 Equity in earnings of subsidiaries, net of taxes (1,245 ) (1,289 ) — 2,534 — Other adjustments 9 (6 ) 1,743 — 1,746 Net cash provided by (used in) operating activities (483 ) (50 ) 3,031 — 2,498 Cash flows from investing activities: Acquisitions of businesses, net of cash acquired — — (554 ) — (554 ) Capital expenditures — — (1,233 ) — (1,233 ) Proceeds from divestitures of businesses and other assets (net of cash divested) — — 145 — 145 Net receipts from restricted trust and escrow accounts and other, net — — 34 — 34 Net cash provided by (used in) investing activities — — (1,608 ) — (1,608 ) Cash flows from financing activities: New borrowings 1,881 — 456 — 2,337 Debt repayments (1,920 ) (145 ) (699 ) — (2,764 ) Premiums paid on early extinguishment of debt (503 ) (52 ) — — (555 ) Common stock repurchases (600 ) — — — (600 ) Cash dividends (695 ) — — — (695 ) Exercise of common stock options 77 — — — 77 Acquisitions of and distributions paid to noncontrolling interests and other 9 — 36 — 45 (Increase) decrease in intercompany and investments, net 999 247 (1,246 ) — — Net cash provided by (used in) financing activities (752 ) 50 (1,453 ) — (2,155 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Increase (decrease) in cash and cash equivalents (1,235 ) — (33 ) — (1,268 ) Cash and cash equivalents at beginning of year 1,235 — 72 — 1,307 Cash and cash equivalents at end of year $ — $ — $ 39 $ — $ 39 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2014 Cash flows from operating activities: Consolidated net income (loss) $ 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 Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2013 Cash flows from operating activities: Consolidated net income (loss) $ 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 |
New Accounting Standard Pending
New Accounting Standard Pending Adoption (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2018. 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. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | 25. Subsequent Event On January 8, 2016, Waste Management Inc. of Florida, a wholly-owned subsidiary of WM, acquired certain operations and business assets of Southern Waste Systems/Sun Recycling in Southern Florida. The acquired business assets include residential, commercial, and industrial solid waste collection, processing/recycling and transfer operations, equipment, vehicles, real estate and customer agreements. Total consideration, inclusive of amounts for estimated working capital, paid at closing was $516 million and is subject to standard post-closing adjustments. The acquisition was funded primarily with borrowings under our $2.25 billion revolving credit facility. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | WASTE MANAGEMENT, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (In Millions) Balance Beginning of Year Charged to Income Accounts Written Off/Use of Reserve Balance End of Year 2013 — Reserves for doubtful accounts(a) $ 45 $ 39 $ (50 ) $ 34 2014 — Reserves for doubtful accounts(a) $ 34 $ 42 $ (45 ) $ 31 2015 — Reserves for doubtful accounts(a) $ 31 $ 36 $ (42 ) $ 25 2013 — Merger and restructuring accruals(b) $ 32 $ 18 $ (36 ) $ 14 2014 — Merger and restructuring accruals(b) $ 14 $ 82 $ (51 ) $ 45 2015 — Merger and restructuring accruals(b) $ 45 $ 15 $ (47 ) $ 13 (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 Reclas34
Accounting Changes and Reclassifications (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Accounting Changes | Accounting Changes Deferred Income Taxes |
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 serve. At December 31, 2015 and 2014, 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, 2015 and 2014 include receivables related to tax payments in excess of the provision of $439 million and $255 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 Final Capping, Closure and Post-Closure Costs • Final Capping • Closure • Post-Closure 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, 2015, 2014 and 2013, 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 long-term asset retirement obligations at December 31, 2015 is approximately 6.25%. We expect to apply a credit-adjusted, risk-free discount rate of 4.50% to liabilities incurred in the first quarter of 2016. 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” expenses within our Consolidated Statements of Operations. Amortization of Landfill Assets 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 • Expansion Airspace • Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals; • 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 meets Company criteria for investment. 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 21 landfill sites with expansions included at December 31, 2015, three landfills required the Chief Financial Officer to approve the inclusion of the unpermitted airspace. One landfill required approval by our Chief Financial Officer because of community or political opposition that could impede the expansion process. The remaining two landfills required approval because the permit application process did 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 $209 million recorded in the Consolidated Financial Statements as of December 31, 2015. 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, 2015 and 2014) 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” 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, 2015 2014 2013 Charge (reduction) to Operating expenses $ (2 ) $ 10 $ (13 ) Risk-free discount rate applied to environmental remediation liabilities and recovery assets 2.25 % 2.00 % 3.00 % The portion of our recorded environmental remediation liabilities that were not subject to inflation or discounting, as the amounts and timing of payments are not fixed or reliably determinable, was $52 million at December 31, 2015 and $41 million at December 31, 2014. Had we not inflated and discounted any portion of our environmental remediation liability, the amount recorded would have decreased by $3 million and $6 million at December 31, 2015 and 2014, respectively. |
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 5 to 40 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. |
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) Capital Leases excluding landfills discussed below) Landfill Leases |
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 — Acquired Assets and Assumed Liabilities — 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 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 Goodwill 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. 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 also incurred $10 million of charges to impair goodwill associated with our Puerto Rico operations. In 2014, we recognized $10 million of goodwill impairment charges associated with our recycling operations. Refer to Note 13 for information related to impairments recognized during the reported periods. Indefinite-Lived Intangible Assets Other Than Goodwill 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 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. 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. As of December 31, 2015 and 2014, we had $105 million and $171 million, respectively, of restricted trust and escrow accounts, which are primarily included in “Other assets” in our Consolidated Balance Sheets. See Note 20 for additional discussion related to restricted trust and escrow accounts. |
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. The following table summarizes our equity and cost method investments as of December 31 (in millions): 2015 2014 Equity investments $ 186 $ 228 Cost investments 174 180 Investments in unconsolidated entities $ 360 $ 408 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 and investments in Hong Kong. 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. We use foreign currency exchange rate derivatives to hedge our exposure to fluctuations in exchange rates for anticipated intercompany cash transactions between Waste Management Holdings, Inc., a wholly-owned subsidiary (“WM Holdings”), and its Canadian subsidiaries. Prior to the sale of our Wheelabrator business in December 2014, 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 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 2015, 2014 or 2013. • Foreign Currency Derivatives • Interest Rate Derivatives |
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, or recycling commodities are delivered. 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 2015, 2014 and 2013, total interest costs were $407 million, $487 million and $500 million, respectively, of which $16 million was capitalized in 2015, $16 million was capitalized in 2014 and $19 million was capitalized in 2013. In 2015, 2014 and 2013, interest was capitalized primarily for landfill construction costs. |
Income Taxes | Income Taxes The Company is subject to income tax in the U.S. 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. Should interest and penalties be assessed by taxing authorities on any underpayment of income tax, such amounts would be accrued and 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. 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. See Note 11 for discussion of our commitments and contingencies. |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Years Ended December 31, Cash paid during the year (in millions): 2015 2014 2013 Interest, net of capitalized interest and periodic settlements from interest rate swap agreements $ 384 $ 461 $ 478 Income taxes 419 758 511 For the year ended December 31, 2015, non-cash investing and financing activities included $262 million of tax-exempt bond refundings and reissuances as discussed further in Note 7. 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 we did not have any significant non-cash investing and financing activities. Non-cash investing and financing activities are generally excluded from the Consolidated Statements of Cash Flows. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Impacts of Revisions to the 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, 2015 2014 2013 Charge (reduction) to Operating expenses $ (2 ) $ 10 $ (13 ) Risk-free discount rate applied to environmental remediation liabilities and recovery assets 2.25 % 2.00 % 3.00 % |
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 5 to 40 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): 2015 2014 Equity investments $ 186 $ 228 Cost investments 174 180 Investments in unconsolidated entities $ 360 $ 408 |
Schedule of Supplemental Cash Flow Information | Supplemental Cash Flow Information Years Ended December 31, Cash paid during the year (in millions): 2015 2014 2013 Interest, net of capitalized interest and periodic settlements from interest rate swap agreements $ 384 $ 461 $ 478 Income taxes 419 758 511 |
Landfill and Environmental Re36
Landfill and Environmental Remediation Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 December 31, 2014 Landfill Environmental Remediation Total Landfill Environmental Remediation Total Current (in accrued liabilities) $ 112 $ 31 $ 143 $ 104 $ 43 $ 147 Long-term 1,406 178 1,584 1,339 192 1,531 $ 1,518 $ 209 $ 1,727 $ 1,443 $ 235 $ 1,678 |
Changes to Landfill and Environmental Remediation Liabilities | The changes to landfill and environmental remediation liabilities for the years ended December 31, 2014 and 2015 are reflected in the table below (in millions): Landfill Environmental Remediation 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 Obligations incurred and capitalized 61 — Obligations settled (71 ) (30 ) Interest accretion 89 3 Revisions in estimates and interest rate assumptions(a)(b) (11 ) 5 Acquisitions, divestitures and other adjustments(c) 7 (4 ) December 31, 2015 $ 1,518 $ 209 (a) The amounts reported for our landfill liabilities include an increase of approximately $2 million for 2014 and a decrease of approximately $18 million for 2015, related to our year-end annual review of landfill final capping, closure and post-closure obligations. (b) 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. The amount reported in 2015 for our environmental remediation liabilities includes the impact of an increase in the risk-free discount rate used to measure our liabilities from 2.0% at December 31, 2014 to 2.25% at December 31, 2015, resulting in a decrease of $3 million to our environmental remediation liabilities and a corresponding decrease 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. The amounts reported for our 2015 landfill liabilities include an increase of approximately $18 million associated with the acquisition of Deffenbaugh Disposal, Inc. (“Deffenbaugh”). |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment at December 31 consisted of the following (in millions): 2015 2014 Land $ 592 $ 611 Landfills 13,772 13,463 Vehicles 4,257 4,131 Machinery and equipment 2,499 2,470 Containers 2,426 2,377 Buildings and improvements 2,546 2,588 Furniture, fixtures and office equipment 993 985 27,085 26,625 Less accumulated depreciation on tangible property and equipment (8,495 ) (8,278 ) Less accumulated landfill airspace amortization (7,925 ) (7,690 ) $ 10,665 $ 10,657 |
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): 2015 2014 2013 Depreciation of tangible property and equipment $ 760 $ 834 $ 853 Amortization of landfill airspace 409 380 400 Depreciation and amortization expense $ 1,169 $ 1,214 $ 1,253 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Other Intangible Assets | Our other intangible assets as of December 31, 2015 and 2014 were comprised of the following (in millions): Customer and Supplier Relationships Covenants Not-to- Compete Licenses, Total December 31, 2015: Intangible assets $ 658 $ 51 $ 119 $ 828 Less accumulated amortization (270 ) (35 ) (46 ) (351 ) $ 388 $ 16 $ 73 $ 477 December 31, 2014: Intangible assets $ 576 $ 63 $ 116 $ 755 Less accumulated amortization (231 ) (44 ) (40 ) (315 ) $ 345 $ 19 $ 76 $ 440 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015: 2015 2014 U.S. revolving credit facility, maturing July 2020 $ 20 $ — Letter of credit facilities, maturing through December 2018 — — Canadian credit facility and term loan, maturing November 2017 (weighted average effective interest rate of 2.2% at December 31, 2015 and 2.6% at December 31, 2014) 84 232 Senior notes maturing through 2045, interest rates ranging from 2.60% to 7.75% (weighted average interest rate of 4.7% at December 31, 2015 and 5.7% at December 31, 2014) 6,082 6,273 Tax-exempt bonds maturing through 2045, fixed and variable interest rates ranging from 0.02% to 5.7% (weighted average interest rate of 1.9% at December 31, 2015 and 2.2% at December 31, 2014) 2,467 2,541 Capital leases and other, maturing through 2055, interest rates up to 12% 328 389 $ 8,981 $ 9,435 Current portion of long-term debt 253 1,090 $ 8,728 $ 8,345 |
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 < 3.50 to 1 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Our “Provision for income taxes” consisted of the following (in millions): Years Ended December 31, 2015 2014 2013 Current: Federal $ 192 $ 414 $ 389 State 50 61 79 Foreign 36 56 45 278 531 513 Deferred: Federal 43 (89 ) (82 ) State (17 ) (33 ) (14 ) Foreign 4 4 (53 ) 30 (118 ) (149 ) Provision for income taxes $ 308 $ 413 $ 364 |
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, 2015 2014 2013 Income tax expense at U.S. federal statutory rate 35.00 % 35.00 % 35.00 % Federal tax credits (5.49 ) (3.21 ) (11.74 ) Taxing authority audit settlements and other tax adjustments (2.67 ) (1.59 ) (3.56 ) Noncontrolling interests 0.04 (0.81 ) (2.28 ) State and local income taxes, net of federal income tax benefit 3.20 1.77 9.81 Tax rate differential on foreign income (0.99 ) (0.46 ) 1.63 Tax impact of impairments 0.23 0.46 41.95 Tax impact of divestitures (0.34 ) (7.89 ) — Other 0.13 0.34 2.94 Provision for income taxes 29.11 % 23.61 % 73.75 % |
Income Before Income Taxes Showing Domestic and Foreign Source | For financial reporting purposes, income (loss) before income taxes by source was as follows (in millions): Years Ended December 31, 2015 2014 2013 Domestic $ 922 $ 1,601 $ 548 Foreign 138 150 (54 ) Income before income taxes $ 1,060 $ 1,751 $ 494 |
Components of Net Deferred Tax Assets (Liabilities) | The components of net deferred tax assets (liabilities) are as follows (in millions): December 31, 2015 2014 Deferred tax assets: Net operating loss, capital loss and tax credit carry-forwards $ 280 $ 297 Landfill and environmental remediation liabilities 120 53 Miscellaneous and other reserves, net 373 380 Subtotal 773 730 Valuation allowance (273 ) (300 ) Deferred tax liabilities: Property and equipment (709 ) (673 ) Goodwill and other intangibles (1,182 ) (1,095 ) Net deferred tax liabilities $ (1,391 ) $ (1,338 ) |
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 is as follows (in millions): 2015 2014 2013 Balance at January 1 $ 42 $ 49 $ 54 Additions based on tax positions related to the current year 18 9 6 Additions based on tax positions of prior years 21 2 — Accrued interest 2 1 2 Reductions for tax positions of prior years (1 ) — (7 ) Settlements (3 ) (11 ) (1 ) Lapse of statute of limitations (8 ) (8 ) (5 ) Balance at December 31 $ 71 $ 42 $ 49 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Number Pension Protection Act Reported Status(a) FIP/RP Status(b),(c) Company Contributions(d) Expiration Date of Collective Bargaining Agreement(s) Pension Fund 2015 2014 2015 2014 2013 Automotive Industries Pension Plan EIN: 94-1133245; Critical Critical Implemented $ 1 $ 1 $ 1 Various dates Local 731 Private Scavengers and Garage Attendants Pension Trust Fund EIN: 36-6513567; Endangered as of 9/30/2014 Endangered as of 9/30/2013 Implemented 7 6 6 9/30/2018 Suburban Teamsters of Northern Illinois Pension Plan EIN: 36-6155778; Critical Critical Implemented 2 3 2 Various dates Teamsters Local 301 Pension Plan EIN: 36-6492992; Not Not Not Applicable 1 1 1 9/30/2018 Western Conference of Teamsters Pension Plan EIN: 91-6145047; Not Not Not 24 24 22 Various dates Western Pennsylvania Teamsters EIN: 25-6029946; Critical Critical Implemented 1 1 1 12/31/2016 and Employers Pension Plan Plan Number: 001 $ 36 $ 36 $ 33 Contributions to other multiemployer pension plans 7 8 7 Total contributions to multiemployer pension plans(e) $ 43 $ 44 $ 40 (a) Unless otherwise noted in the table, the most recent Pension Protection Act zone status available in 2015 and 2014 is for the plan’s year-end at December 31, 2014 and 2013, 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 9/30/2014 and 9/30/2013 Suburban Teamsters of Northern Illinois Pension Plan 12/31/2014 and 12/31/2013 Teamsters Local 301 Pension Plan 12/31/2014 and 12/31/2013 (e) Total contributions to multiemployer pension plans excludes contributions related to withdrawal liabilities discussed below. |
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 9/30/2014 and 9/30/2013 Suburban Teamsters of Northern Illinois Pension Plan 12/31/2014 and 12/31/2013 Teamsters Local 301 Pension Plan 12/31/2014 and 12/31/2013 At the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2015. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Changes to Net Insurance Liabilities | The changes to our net insurance liabilities for the three years ended December 31, 2015 are summarized below (in millions): Gross Claims Liability Receivables Associated with Insured Claims(a) Net Claims Liability 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 597 (183 ) 414 Self-insurance expense (benefit) 202 (39 ) 163 Cash (paid) received (156 ) 4 (152 ) Balance, December 31, 2015(b) $ 643 $ (218 ) $ 425 Current portion at December 31, 2015 $ 141 $ (20 ) $ 121 Long-term portion at December 31, 2015 $ 502 $ (198 ) $ 304 (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, 2015 | |
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): 2015 2014 2013 Solid Waste $ 14 $ 10 $ 7 Wheelabrator — 1 1 Corporate and Other 1 71 10 $ 15 $ 82 $ 18 |
Asset Impairments and Unusual44
Asset Impairments and Unusual Items (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 (other than goodwill) and unusual items” for the years ended December 31 for the respective periods (in millions): 2015 2014 2013 (Income) expense from divestitures $ (7 ) $ (515 ) $ (8 ) Asset impairments (other than goodwill) 89 345 472 $ 82 $ (170 ) $ 464 |
Accumulated Other Comprehensi45
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Components 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 Instruments Available- for-Sale Securities Foreign Post- Retirement Benefit Plans Total 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, net of tax expense (benefit) of $20, $(1), $0 and $1, respectively 30 (2 ) (164 ) 2 (134 ) Amounts reclassified from accumulated other comprehensive income, net of tax (expense) benefit of $(14), $0, $0 and $0, respectively (21 ) — 5 — (16 ) Net current period other comprehensive income (loss) 9 (2 ) (159 ) 2 (150 ) Balance, December 31, 2015 $ (52 ) $ 8 $ (75 ) $ (8 ) $ (127 ) |
Other Comprehensive Income (Loss) Before Reclassifications Associated with the Effective Portion of Derivatives Designated as Cash Flow Hedges | The amounts of other comprehensive income (loss) before reclassifications associated with the effective portion of derivatives designated as cash flow hedges are as follows (in millions): Years Ended December 31, 2015 2014 2013 Forward-starting interest rate swaps $ — $ (8 ) $ 14 Foreign currency derivatives 50 23 17 Electricity commodity derivatives — (5 ) (8 ) Total before tax 50 10 23 Tax (expense) benefit (20 ) (4 ) (9 ) Net of tax $ 30 $ 6 $ 14 |
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): Years Ended December 31, Statement of Operations Classification 2015 2014 2013 Gains and losses on cash flow hedges: Forward-starting interest rate swaps $ (12 ) $ (10 ) $ (7 ) Interest expense, net Treasury rate locks (4 ) (1 ) (2 ) Interest expense, net Foreign currency derivatives 51 27 21 Other, net Electricity commodity derivatives — (8 ) (9 ) Operating revenues 35 8 3 Total before tax (14 ) (3 ) (1 ) Tax (expense) benefit Total reclassifications for the period $ 21 $ 5 $ 2 Net of tax |
Capital Stock, Dividends and 46
Capital Stock, Dividends and Share Repurchases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Stock Repurchase Programs | The following is a summary of our share repurchases for the periods presented: Years Ended December 31, 2015(a) 2014(a) 2013(c) Shares repurchased (in thousands) 14,823(b) 9,569(b) 5,368 Weighted average per share purchase price $49.83 $43.89(b) $43.48 - $45.95 Total repurchases (in millions) $600 $600 $239 (a) Share repurchases in 2015 and 2014 were completed through accelerated share repurchase (“ASR”) agreements. The terms of these agreements required that we deliver cash at the beginning of each ASR repurchase period. In exchange, we received 70% of the shares expected to be repurchased based on the then-current market price of our common stock. The remaining shares repurchased over the course of each repurchase period were delivered to us once the repurchase period was complete. Additional information related to our ASRs is included below. (b) In July 2014, we executed ASR agreements to repurchase $600 million of our common stock. At the beginning of the ASR repurchase periods, we delivered $600 million in cash and received 9.6 million shares based on a stock price of $43.89. The share repurchase periods of the agreements concluded in February 2015, at which time we received 2.8 million additional shares based on a final weighted average per share purchase price during the repurchase period of $48.58. The amounts reported here as “Shares repurchased” are based on when shares were delivered to WM. (c) Share repurchases in 2013 were completed through open market purchases. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of RSUs | Restricted Stock Units — Units Weighted Average Fair Value Unvested at January 1, 2015 620 $ 37.44 Granted 167 $ 54.47 Vested (240 ) $ 34.78 Forfeited (23 ) $ 42.41 Unvested at December 31, 2015 524 $ 43.76 |
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, 2015 2,033 $ 46.28 Granted 523 $ 66.35 Vested (749 ) $ 47.28 Forfeited (45 ) $ 49.88 Unvested at December 31, 2015 1,762 $ 52.90 |
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, 2015 8,378 $ 37.22 Granted 1,455 $ 54.45 Exercised (2,170 ) $ 36.26 Forfeited or expired (156 ) $ 38.98 Outstanding at December 31, 2015(a) 7,507 $ 40.80 Exercisable at December 31, 2015(b) 3,940 $ 36.44 (a) Stock options outstanding as of December 31, 2015 have a weighted average remaining contractual term of 7.0 years and an aggregate intrinsic value of $96 million based on the market value of our common stock on December 31, 2015. (b) Stock options exercisable as of December 31, 2015 have a weighted average remaining contractual term of 5.7 years and an aggregate intrinsic value of $67 million based on the market value of our common stock on December 31, 2015. Stock options exercisable at December 31, 2015 have an exercise price ranging from $32.18 to $44.01. |
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: 2015 2014 2013 Expected option life 4.4 years 4.8 years 5.4 years Expected volatility 16.7% 18.4% 21.8% Expected dividend yield 2.8% 3.6% 4.0% Risk-free interest rate 1.4% 1.6% 1.0% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 2014 2013 Number of common shares outstanding at year-end 447.2 458.5 464.3 Effect of using weighted average common shares outstanding 5.5 4.1 3.4 Weighted average basic common shares outstanding 452.7 462.6 467.7 Dilutive effect of equity-based compensation awards and other contingently issuable shares 3.2 3.0 2.1 Weighted average diluted common shares outstanding 455.9 465.6 469.8 Potentially issuable shares 10.2 11.3 12.3 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 2.0 0.4 0.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 35 $ 35 $ — $ — Available-for-sale securities 43 — 43 — Fixed-income securities 40 — 40 — Redeemable preferred stock 47 — — 47 Foreign currency derivatives 78 — 78 — Total assets $ 243 $ 35 $ 161 $ 47 Fair Value Measurements at December 31, 2014 Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds $ 1,332 $ 1,332 $ — $ — Available-for-sale securities 46 — 46 — Fixed-income securities 38 — 38 — Redeemable preferred stock 44 — — 44 Foreign currency derivatives 28 — 28 — Total assets $ 1,488 $ 1,332 $ 112 $ 44 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Allocation of Purchase Price | The allocation of the purchase price for the Deffenbaugh acquisition is preliminary and subject to change based on the finalization of our detailed valuations. The following table presents adjustments since the acquisition date to the allocation of the purchase price (in millions): March 26, Adjustments December 31, Cash and cash equivalents $ 15 $ — $ 15 Accounts and other receivables 18 4 22 Parts and supplies 2 — 2 Deferred income tax asset 9 2 11 Other current assets 12 (2 ) 10 Property and equipment 212 (5 ) 207 Goodwill 140 19 159 Other intangible assets 134 (34 ) 100 Other assets 1 — 1 Accounts payable (4 ) 2 (2 ) Accrued liabilities (12 ) (8 ) (20 ) Deferred revenues (5 ) (1 ) (6 ) Landfill and environmental remediation liabilities (21 ) 3 (18 ) Deferred income tax liability (65 ) 13 (52 ) Other liabilities (20 ) 6 (14 ) Total purchase price $ 416 $ (1 ) $ 415 |
RCI and Greenstar [Member] | |
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, 2013 (in millions, except per share amounts): Year Ended December 31, 2013 Operating revenues $ 14,085 Net income attributable to Waste Management, Inc. 112 Basic earnings per common share 0.24 Diluted earnings per common share 0.24 |
Deffenbaugh Disposal, Inc. [Member] | |
Pro Forma Consolidated Results of Operations | The following pro forma consolidated results of operations have been prepared as if the acquisition of Deffenbaugh occurred at January 1, 2014 (in millions, except per share amounts): Years Ended 2015 2014 Operating revenues $ 13,001 $ 14,168 Net income attributable to Waste Management, Inc. 753 1,304 Basic earnings per common share 1.66 2.82 Diluted earnings per common share 1.65 2.80 |
Segment and Related Informati51
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 Operating Revenues Intercompany Operating Revenues(c) Net Operating Revenues Income from Operations (d),(e) Depreciation and Amortization Capital Expenditures (f) Total Assets (g),(h) 2015 Solid Waste: Tier 1 $ 5,083 $ (856 ) $ 4,227 $ 1,290 $ 428 $ 382 $ 6,098 Tier 2 3,304 (613 ) 2,691 629 280 251 5,394 Tier 3 4,898 (813 ) 4,085 808 379 412 5,930 Wheelabrator — — — — — — — Other(a) 2,065 (107 ) 1,958 (160 ) 94 128 1,701 15,350 (2,389 ) 12,961 2,567 1,181 1,173 19,123 Corporate and Other(b) — — — (522 ) 64 56 1,835 Total $ 15,350 $ (2,389 ) $ 12,961 $ 2,045 $ 1,245 $ 1,229 $ 20,958 2014 Solid Waste: Tier 1 $ 5,117 $ (834 ) $ 4,283 $ 1,301 $ 408 $ 388 $ 6,150 Tier 2 3,516 (663 ) 2,853 711 287 223 5,648 Tier 3 4,816 (786 ) 4,030 787 361 351 5,449 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 2,850 Total $ 16,457 $ (2,461 ) $ 13,996 $ 2,299 $ 1,292 $ 1,181 $ 21,888 2013 Solid Waste: Tier 1 $ 5,130 $ (871 ) $ 4,259 $ 1,246 $ 418 $ 367 $ 6,180 Tier 2 3,479 (650 ) 2,829 454 284 267 5,850 Tier 3 4,868 (803 ) 4,065 734 376 367 5,512 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 1,346 Total $ 16,507 $ (2,524 ) $ 13,983 $ 1,079 $ 1,333 $ 1,267 $ 23,102 (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 services and (iii) the impacts of investments in expanded service offerings, such as portable self-storage, long distance moving services, 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. In 2013, we recognized $981 million of impairment charges, the most significant of which impacted our Tier 2 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, 2015 2014 2013 Total assets, as reported above $ 20,958 $ 21,888 $ 23,102 Elimination of intercompany investments and advances (539 ) (591 ) (612 ) Total assets, per Consolidated Balance Sheet $ 20,419 $ 21,297 $ 22,490 (h) Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities are included as a component of their respective Areas and our recycling brokerage business is included as part of our “Other” operations. As discussed in Note 19, the goodwill associated with our acquisition of Deffenbaugh has been assigned to our Areas, primarily in Tier 3 and to a lesser extent Tier 1. The following table presents changes in goodwill during 2014 and 2015 by reportable segment (in millions): Solid Waste Tier 1 Tier 2 Tier 3 Wheelabrator Other Total Balance, December 31, 2013 $ 2,183 $ 1,814 $ 1,653 $ 305 $ 115 $ 6,070 Acquired goodwill 4 16 11 — — 31 Divested goodwill, net of assets held-for-sale — (1 ) (2 ) (305 ) — (308 ) Impairments — — — — (10 ) (10 ) Translation and other adjustments (9 ) (34 ) — — — (43 ) Balance, December 31, 2014 $ 2,178 $ 1,795 $ 1,662 $ — $ 105 $ 5,740 Acquired goodwill 27 42 151 — 105 325 Divested goodwill, net of assets held-for-sale — (6 ) (1 ) — — (7 ) Translation and other adjustments (15 ) (59 ) — — — (74 ) Balance, December 31, 2015 $ 2,190 $ 1,772 $ 1,812 $ — $ 210 $ 5,984 |
Reconciliation of Segment Assets to Consolidated Total | December 31, 2015 2014 2013 Total assets, as reported above $ 20,958 $ 21,888 $ 23,102 Elimination of intercompany investments and advances (539 ) (591 ) (612 ) Total assets, per Consolidated Balance Sheet $ 20,419 $ 21,297 $ 22,490 |
Changes in Goodwill by Reportable Segment | The following table presents changes in goodwill during 2014 and 2015 by reportable segment (in millions): Solid Waste Tier 1 Tier 2 Tier 3 Wheelabrator Other Total Balance, December 31, 2013 $ 2,183 $ 1,814 $ 1,653 $ 305 $ 115 $ 6,070 Acquired goodwill 4 16 11 — — 31 Divested goodwill, net of assets held-for-sale — (1 ) (2 ) (305 ) — (308 ) Impairments — — — — (10 ) (10 ) Translation and other adjustments (9 ) (34 ) — — — (43 ) Balance, December 31, 2014 $ 2,178 $ 1,795 $ 1,662 $ — $ 105 $ 5,740 Acquired goodwill 27 42 151 — 105 325 Divested goodwill, net of assets held-for-sale — (6 ) (1 ) — — (7 ) Translation and other adjustments (15 ) (59 ) — — — (74 ) Balance, December 31, 2015 $ 2,190 $ 1,772 $ 1,812 $ — $ 210 $ 5,984 |
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, 2015 2014 2013 Collection: Commercial $ 3,332 $ 3,393 $ 3,423 Residential 2,499 2,543 2,608 Industrial 2,252 2,231 2,209 Other 356 340 273 Total collection 8,439 8,507 8,513 Landfill 2,919 2,849 2,790 Transfer 1,377 1,353 1,329 Wheelabrator — 817 845 Recycling 1,163 1,370 1,447 Other(a) 1,452 1,561 1,583 Intercompany(b) (2,389 ) (2,461 ) (2,524 ) Total $ 12,961 $ 13,996 $ 13,983 (a) The “Other” line of business includes Strategic Business Solutions, landfill gas-to-energy operations, Port-O-Let ® (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, 2015 2014 2013 United States and Puerto Rico(a) $ 12,196 $ 13,064 $ 13,054 Canada 765 932 929 Total $ 12,961 $ 13,996 $ 13,983 (a) We sold our Puerto Rico operations in 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, 2015 2014 2013 United States and Puerto Rico(a) $ 9,778 $ 9,586 $ 11,198 Canada 887 1,071 1,146 Total $ 10,665 $ 10,657 $ 12,344 (a) We sold our Puerto Rico operations in 2014. Refer to Note 19 for additional information. |
Quarterly Financial Data (Una52
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Financial Data | The following table summarizes the unaudited quarterly results of operations for 2015 and 2014 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2015 Operating revenues $ 3,040 $ 3,315 $ 3,360 $ 3,246 Income from operations 440 502 601 502 Consolidated net income (loss) (131 ) 273 337 273 Net income (loss) attributable to Waste Management, Inc. (129 ) 274 335 273 Basic earnings (loss) common share (0.28 ) 0.60 0.75 0.61 Diluted earnings (loss) common share (0.28 ) 0.60 0.74 0.61 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 |
Condensed Consolidating Finan53
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2015 WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 39 $ — $ 39 Other current assets 3 6 2,297 — 2,306 3 6 2,336 — 2,345 Property and equipment, net — — 10,665 — 10,665 Investments in and advances to affiliates 18,557 18,911 7,365 (44,833 ) — Other assets 55 29 7,325 — 7,409 Total assets $ 18,615 $ 18,946 $ 27,691 $ (44,833 ) $ 20,419 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 41 $ — $ 212 $ — $ 253 Accounts payable and other current liabilities 83 9 2,165 — 2,257 124 9 2,377 — 2,510 Long-term debt, less current portion 5,833 304 2,591 — 8,728 Due to affiliates 7,289 76 — (7,365 ) — Other liabilities 24 — 3,790 — 3,814 Total liabilities 13,270 389 8,758 (7,365 ) 15,052 Equity: Stockholders’ equity 5,345 18,557 18,911 (37,468 ) 5,345 Noncontrolling interests — — 22 — 22 5,345 18,557 18,933 (37,468 ) 5,367 Total liabilities and equity $ 18,615 $ 18,946 $ 27,691 $ (44,833 ) $ 20,419 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2014 WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,235 $ — $ 72 $ — $ 1,307 Other current assets 5 6 2,208 — 2,219 1,240 6 2,280 — 3,526 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 $ 26,718 $ (41,839 ) $ 21,297 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 — 3,546 — 3,578 Total liabilities 12,736 504 8,913 (6,745 ) 15,408 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 $ 26,718 $ (41,839 ) $ 21,297 |
Condensed Consolidating Statements of Operations | CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Operating revenues $ — $ — $ 12,961 $ — $ 12,961 Costs and expenses(a) — (1 ) 10,917 — 10,916 Income from operations — 1 2,044 — 2,045 Other income (expense): Interest expense, net (298 ) (22 ) (65 ) — (385 ) Loss on early extinguishment of debt (500 ) (52 ) (3 ) — (555 ) Equity in earnings of subsidiaries, net of taxes 1,245 1,289 — (2,534 ) — Other, net — — (45 ) — (45 ) 447 1,215 (113 ) (2,534 ) (985 ) Income before income taxes 447 1,216 1,931 (2,534 ) 1,060 Provision for (benefit from) income taxes (306 ) (29 ) 643 — 308 Consolidated net income 753 1,245 1,288 (2,534 ) 752 Less: Net income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Net income attributable to Waste Management, Inc. $ 753 $ 1,245 $ 1,289 $ (2,534 ) $ 753 Year Ended December 31, 2014 Operating revenues $ — $ — $ 13,996 $ — $ 13,996 Costs and expenses(a) — (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 (loss) 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(a) — — 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 (loss) attributable to noncontrolling interests — — 32 — 32 Net income attributable to Waste Management, Inc. $ 98 $ 313 $ 332 $ (645 ) $ 98 (a) 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 Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Comprehensive income (loss) $ 762 $ 1,245 $ 1,129 $ (2,534 ) $ 602 Less: Comprehensive income (loss) attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income (loss) attributable to Waste Management, Inc. $ 762 $ 1,245 $ 1,130 $ (2,534 ) $ 603 Year Ended December 31, 2014 Comprehensive income (loss) $ 1,300 $ 1,510 $ 977 $ (2,580 ) $ 1,207 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 40 — 40 Comprehensive income (loss) attributable to Waste Management, Inc. $ 1,300 $ 1,510 $ 937 $ (2,580 ) $ 1,167 Year Ended December 31, 2013 Comprehensive income (loss) $ 112 $ 313 $ 311 $ (645 ) $ 91 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 32 — 32 Comprehensive income (loss) attributable to Waste Management, Inc. $ 112 $ 313 $ 279 $ (645 ) $ 59 |
Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2015 Cash flows from operating activities: Consolidated net income (loss) $ 753 $ 1,245 $ 1,288 $ (2,534 ) $ 752 Equity in earnings of subsidiaries, net of taxes (1,245 ) (1,289 ) — 2,534 — Other adjustments 9 (6 ) 1,743 — 1,746 Net cash provided by (used in) operating activities (483 ) (50 ) 3,031 — 2,498 Cash flows from investing activities: Acquisitions of businesses, net of cash acquired — — (554 ) — (554 ) Capital expenditures — — (1,233 ) — (1,233 ) Proceeds from divestitures of businesses and other assets (net of cash divested) — — 145 — 145 Net receipts from restricted trust and escrow accounts and other, net — — 34 — 34 Net cash provided by (used in) investing activities — — (1,608 ) — (1,608 ) Cash flows from financing activities: New borrowings 1,881 — 456 — 2,337 Debt repayments (1,920 ) (145 ) (699 ) — (2,764 ) Premiums paid on early extinguishment of debt (503 ) (52 ) — — (555 ) Common stock repurchases (600 ) — — — (600 ) Cash dividends (695 ) — — — (695 ) Exercise of common stock options 77 — — — 77 Acquisitions of and distributions paid to noncontrolling interests and other 9 — 36 — 45 (Increase) decrease in intercompany and investments, net 999 247 (1,246 ) — — Net cash provided by (used in) financing activities (752 ) 50 (1,453 ) — (2,155 ) Effect of exchange rate changes on cash and cash equivalents — — (3 ) — (3 ) Increase (decrease) in cash and cash equivalents (1,235 ) — (33 ) — (1,268 ) Cash and cash equivalents at beginning of year 1,235 — 72 — 1,307 Cash and cash equivalents at end of year $ — $ — $ 39 $ — $ 39 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS (Continued) WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2014 Cash flows from operating activities: Consolidated net income (loss) $ 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 Holdings Non-Guarantor Subsidiaries Eliminations Consolidated Year Ended December 31, 2013 Cash flows from operating activities: Consolidated net income (loss) $ 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 |
Business - Additional Informati
Business - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Areas | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of geographical areas | 17 |
Summary of Significant Accoun55
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2014USD ($) | Dec. 31, 2015USD ($)site | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)Property | |
Significant Accounting Policies [Line Items] | |||||
Inflation rate | 2.50% | 2.50% | 2.50% | ||
Number of landfill sites with expansions that require the Chief Financial Officer to approve the inclusion of the unpermitted airspace | site | 3 | ||||
Number of landfill sites with expansions that require the Chief Financial Officer to approve the inclusion of the unpermitted airspace because of community or political opposition | site | 1 | ||||
Number of landfill sites with expansions that require the Chief Financial Officer to approve the inclusion of the unpermitted airspace due to permit application process | site | 2 | ||||
Environmental remediation reasonably possible additional losses high estimate | $ 190 | ||||
Environmental remediation liabilities | 209 | ||||
Environmental remediation liabilities that have never been subject to inflation or discounting | $ 41 | 52 | $ 41 | ||
Increase (decrease) in environmental remediation liabilities due to the impacts of inflation and discounting | 6 | $ 3 | 6 | ||
Other intangible assets, amortization method | 150% declining balance approach or a straight-line basis | ||||
Asset impairments (other than goodwill) | $ 89 | 345 | $ 472 | ||
Goodwill impairment charges | 10 | 509 | |||
Restricted trust and escrow accounts | 171 | 105 | 171 | ||
Total interest costs | 407 | 487 | 500 | ||
Total capitalized interest costs | 16 | 16 | 19 | ||
Non-cash proceeds from tax-exempt borrowings, net of principal payments | 0 | ||||
Recycling Operations [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Asset impairments (other than goodwill) | 18 | ||||
Goodwill impairment charges | 10 | 10 | |||
Puerto Rico [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment charges | 10 | ||||
Wheelabrator [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Goodwill impairment charges | 483 | ||||
Other Receivables [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Receivables related to tax payments in excess of the provision | $ 255 | $ 439 | $ 255 | ||
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 | ||||
Supplier Relationships [Member] | Customer Relationships [Member] | Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortizable period of the intangible assets | 10 years | ||||
Supplier Relationships [Member] | Customer Relationships [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Amortizable period of the intangible assets | 15 years | ||||
Tax-exempt Bonds [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Proceeds from tax-exempt bonds | $ 262 | ||||
Repayment of tax-exempt bonds | $ 262 | ||||
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 long-term asset retirement obligations | 6.25% | ||||
Number of landfills sites with expansion | site | 21 | ||||
Asset impairments (other than goodwill) | 262 | ||||
Landfill [Member] | Eastern Canada Area [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Asset impairments (other than goodwill) | $ 262 | ||||
Number of facilities impaired | Property | 2 | ||||
Landfill [Member] | Scenario, Forecast [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Expected credit adjusted, risk free discount rate applied to liabilities incurred | 4.50% | ||||
Accounts Receivable Net [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 Accoun56
Summary of Significant Accounting Policies - Summary of Impacts of Revisions to the Risk-Free Discount Rate Applied to Environmental Remediation Liabilities and Recovery Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Charge (reduction) to Operating expenses | $ (2) | $ 10 | $ (13) |
Risk-free discount rate applied to environmental remediation liabilities and recovery assets | 2.25% | 2.00% | 3.00% |
Summary of Significant Accoun57
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives for Significant Property and Equipment Categories (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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] | Building and Improvements [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] | Building and Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 40 years |
Maximum [Member] | Furniture, Fixtures and Office Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful Life | 10 years |
Summary of Significant Accoun58
Summary of Significant Accounting Policies - Summary of Equity and Cost Method Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounting Policies [Abstract] | ||
Equity investments | $ 186 | $ 228 |
Cost investments | 174 | 180 |
Investments in unconsolidated entities | $ 360 | $ 408 |
Summary of Significant Accoun59
Summary of Significant Accounting Policies - Schedule of Supplemental Cash Flow Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Interest, net of capitalized interest and periodic settlements from interest rate swap agreements | $ 384 | $ 461 | $ 478 |
Income taxes | $ 419 | $ 758 | $ 511 |
Landfill and Environmental Re60
Landfill and Environmental Remediation Liabilities - Liabilities for Landfill and Environmental Remediation Costs (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Site Contingency [Line Items] | |||
Total, Environmental Remediation | $ 209 | ||
Current (in accrued liabilities) | 143 | $ 147 | |
Long-term | 1,584 | 1,531 | |
Total | 1,727 | 1,678 | |
Landfill [Member] | |||
Site Contingency [Line Items] | |||
Current (in accrued liabilities), Landfill | 112 | 104 | |
Long-term, Landfill | 1,406 | 1,339 | |
Total, Landfill | 1,518 | 1,443 | $ 1,421 |
Environmental Remediation Liabilities [Member] | |||
Site Contingency [Line Items] | |||
Current (in accrued liabilities), Environmental Remediation | 31 | 43 | |
Long-term, Environmental Remediation | 178 | 192 | |
Total, Environmental Remediation | $ 209 | $ 235 | $ 227 |
Landfill and Environmental Re61
Landfill and Environmental Remediation Liabilities - Changes to Landfill and Environmental Remediation Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Environmental Exit Cost [Line Items] | |||
Interest accretion | $ 89 | $ 88 | $ 87 |
Ending balance, environmental remediation | 209 | ||
Landfill [Member] | |||
Environmental Exit Cost [Line Items] | |||
Beginning balance, landfill | 1,443 | 1,421 | |
Obligations incurred and capitalized | 61 | 54 | |
Obligations settled | (71) | (69) | |
Interest accretion | 89 | 88 | |
Revisions in estimates and interest rate assumptions | (11) | (9) | |
Acquisitions, divestitures and other adjustments | 7 | (42) | |
Ending balance, landfill | 1,518 | 1,443 | 1,421 |
Environmental Remediation Liabilities [Member] | |||
Environmental Exit Cost [Line Items] | |||
Beginning balance, environmental remediation | 235 | 227 | |
Obligations settled | (30) | (21) | |
Interest accretion | 3 | 5 | |
Revisions in estimates and interest rate assumptions | 5 | 25 | |
Acquisitions, divestitures and other adjustments | (4) | (1) | |
Ending balance, environmental remediation | $ 209 | $ 235 | $ 227 |
Landfill and Environmental Re62
Landfill and Environmental Remediation Liabilities - Changes to Landfill and Environmental Remediation Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Environmental Exit Cost [Line Items] | |||
Risk-free discount rate of the obligations | 2.25% | 2.00% | 3.00% |
Increase (Decrease) to operating expenses due to change in discount rate used to estimate the present value of environmental remediation obligations | $ (3) | $ 13 | |
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 | (18) | 2 | |
Increase (Decrease) in landfill liabilities | 7 | (42) | |
Landfill [Member] | Deffenbaugh Disposal, Inc. [Member] | |||
Environmental Exit Cost [Line Items] | |||
Increase (Decrease) in landfill liabilities | $ 18 | ||
Landfill [Member] | Wheelabrator [Member] | |||
Environmental Exit Cost [Line Items] | |||
Increase (Decrease) in landfill liabilities | $ (25) |
Landfill and Environmental Re63
Landfill and Environmental Remediation Liabilities - Additional Information (Detail) $ in Millions | Dec. 31, 2015USD ($) |
Environmental Remediation Obligations [Abstract] | |
Anticipated payments for currently identified environmental remediation liabilities, in 2016 | $ 32 |
Anticipated payments for currently identified environmental remediation liabilities, in 2017 | 26 |
Anticipated payments for currently identified environmental remediation liabilities, in 2018 | 30 |
Anticipated payments for currently identified environmental remediation liabilities, in 2019 | 19 |
Anticipated payments for currently identified environmental remediation liabilities, in 2020 | 11 |
Anticipated payments for currently identified environmental remediation liabilities, after 2020 | $ 89 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | $ 27,085 | $ 26,625 | |
Less accumulated depreciation and amortization | (16,420) | (15,968) | |
Property and equipment, net | 10,665 | 10,657 | $ 12,344 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 592 | 611 | |
Landfill [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 13,772 | 13,463 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 4,257 | 4,131 | |
Machinery and Equipment-Including Containers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,499 | 2,470 | |
Containers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,426 | 2,377 | |
Building and Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 2,546 | 2,588 | |
Furniture, Fixtures and Office Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment , gross | 993 | 985 | |
Tangible Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Less accumulated depreciation and amortization | (8,495) | (8,278) | |
Landfill Airspace [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Less accumulated depreciation and amortization | $ (7,925) | $ (7,690) |
Property and Equipment - Deprec
Property and Equipment - Depreciation and Amortization Expense Including Amortization Expense for Assets Recorded as Capital Leases (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 1,245 | $ 1,292 | $ 1,333 |
Tangible Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 760 | 834 | 853 |
Landfill Airspace [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | 409 | 380 | 400 |
Property and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization expense | $ 1,169 | $ 1,214 | $ 1,253 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 5,984 | $ 5,740 | $ 6,070 |
Increase in goodwill during the period | 244 | ||
Amortization expenses for other intangible assets | 76 | $ 78 | $ 80 |
Indefinite-lived intangible assets | 18 | ||
Expected amortization expenses related to other intangible assets in 2016 | 76 | ||
Expected amortization expenses related to other intangible assets in 2017 | 67 | ||
Expected amortization expenses related to other intangible assets in 2018 | 61 | ||
Expected amortization expenses related to other intangible assets in 2019 | 54 | ||
Expected amortization expenses related to other intangible assets in 2020 | $ 47 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | $ 828 | $ 755 |
Less accumulated amortization | (351) | (315) |
Total | 477 | 440 |
Customer and Supplier Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 658 | 576 |
Less accumulated amortization | (270) | (231) |
Total | 388 | 345 |
Covenants Not-to-Compete [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 51 | 63 |
Less accumulated amortization | (35) | (44) |
Total | 16 | 19 |
Licenses Permits and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets | 119 | 116 |
Less accumulated amortization | (46) | (40) |
Total | $ 73 | $ 76 |
Debt - Components of Debt (Deta
Debt - Components of Debt (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Credit facility | $ 8,981 | $ 9,435 |
Current portion of long-term debt | 253 | 1,090 |
Long-term debt, less current portion | 8,728 | 8,345 |
U.S. Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 20 | |
Canadian Credit Facility and Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 84 | 232 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 6,082 | 6,273 |
Tax-exempt Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | 2,467 | 2,541 |
Capital Leases and Other [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility | $ 328 | $ 389 |
Debt - Components of Debt (Pare
Debt - Components of Debt (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 4.70% | 5.70% |
Interest rate lower range | 2.60% | |
Interest rate upper range | 7.75% | |
End period of maturity for debt instrument | Mar. 1, 2045 | |
Tax-exempt Bonds [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 1.90% | 2.20% |
Interest rate lower range | 0.02% | |
Interest rate upper range | 5.70% | |
End period of maturity for debt instrument | Aug. 1, 2045 | |
Capital Leases and Other [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate upper range | 12.00% | |
End period of maturity for debt instrument | Dec. 31, 2055 | |
U.S. Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of credit facility | Jul. 10, 2020 | |
Standby Letters of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Maturity date of credit facility | Dec. 31, 2018 | |
Canadian Credit Facility and Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Weighted average interest rate | 2.20% | 2.60% |
Maturity date of credit facility | Nov. 7, 2017 |
Debt - Additional Information (
Debt - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||||
Feb. 28, 2015USD ($) | Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CAD | Dec. 31, 2015CAD | Jul. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2014CAD | Jan. 31, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||||
Debt maturing within the next twelve months | $ 732,000,000 | ||||||||
Tax-exempt bonds subject to re-pricing within next 12 months | 316,000,000 | ||||||||
Debt maturing within twelve months classified as long-term | 775,000,000 | ||||||||
Current debt obligations | 253,000,000 | $ 1,090,000,000 | |||||||
Charges related to refundings | (555,000,000) | ||||||||
Debt and capital lease principal payments in 2016 | 730,000,000 | ||||||||
Debt and capital lease principal payments in 2017 | 221,000,000 | ||||||||
Debt and capital lease principal payments in 2018 | 792,000,000 | ||||||||
Debt and capital lease principal payments in 2019 | 175,000,000 | ||||||||
Debt and capital lease principal payments in 2020 | 740,000,000 | ||||||||
Senior Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Senior notes issued | $ 1,800,000,000 | ||||||||
Proceeds from notes | $ 1,780,000,000 | ||||||||
3.125% Senior Notes Due March 1, 2025 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of senior notes | 3.125% | ||||||||
Debt instrument face amount | $ 600,000,000 | ||||||||
Maturity Date | Mar. 1, 2025 | ||||||||
3.90% Senior Notes Due March 1, 2035 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of senior notes | 3.90% | ||||||||
Debt instrument face amount | $ 450,000,000 | ||||||||
Maturity Date | Mar. 1, 2035 | ||||||||
4.10% Senior Notes Due March 1, 2045 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate of senior notes | 4.10% | ||||||||
Debt instrument face amount | $ 750,000,000 | ||||||||
Maturity Date | Mar. 1, 2045 | ||||||||
Tax-exempt Bonds [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Tax-exempt bonds, current | 146,000,000 | ||||||||
Repayment of tax exempt bonds | 262,000,000 | ||||||||
Proceeds from tax-exempt bonds | 262,000,000 | ||||||||
Related debt issuance costs and premiums paid | 5,000,000 | ||||||||
Charges related to refundings | 3,000,000 | ||||||||
Tax-exempt Bonds [Member] | Variable Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Variable-rate tax-exempt bonds | 491,000,000 | ||||||||
Senior Notes Maturing In 2015 2017 And 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Early repayment of senior notes | $ 947,000,000 | ||||||||
2.6% Senior Notes Mature in September 2016 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | 500,000,000 | ||||||||
Greenstar LLC [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Additional consideration guaranteed amount | 20,000,000 | $ 20,000,000 | |||||||
Cash [Member] | Tax-exempt Bonds [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of tax exempt bonds | 79,000,000 | ||||||||
Early Extinguishment of Debt [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net borrowings (repayments) of senior notes charges | 430,000,000 | ||||||||
Early Extinguishment of Debt [Member] | 6.125% Senior Notes Due 2039 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | 600,000,000 | ||||||||
Early repayment of senior notes | $ 326,000,000 | ||||||||
Interest rate of senior notes | 6.125% | 6.125% | |||||||
Maturity period | 2,039 | 2,039 | |||||||
Early Extinguishment of Debt [Member] | Senior Notes Maturing In 2015 2017 And 2019 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net borrowings (repayments) of senior notes charges | $ 122,000,000 | ||||||||
Early Extinguishment of Debt [Member] | 7.10% Senior Notes Due 2026 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | 449,000,000 | ||||||||
Early repayment of senior notes | $ 145,000,000 | ||||||||
Interest rate of senior notes | 7.10% | 7.10% | |||||||
Maturity period | 2,026 | 2,026 | |||||||
Early Extinguishment of Debt [Member] | 7.00% Senior Notes Due 2028 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | $ 577,000,000 | ||||||||
Early repayment of senior notes | $ 182,000,000 | ||||||||
Interest rate of senior notes | 7.00% | 7.00% | |||||||
Maturity period | 2,028 | 2,028 | |||||||
Early Extinguishment of Debt [Member] | 7.375% Senior Notes Due 2029 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | $ 223,000,000 | ||||||||
Early repayment of senior notes | $ 84,000,000 | ||||||||
Interest rate of senior notes | 7.375% | 7.375% | |||||||
Maturity period | 2,029 | 2,029 | |||||||
Early Extinguishment of Debt [Member] | 7.75% Senior Notes Due 2032 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of senior notes | $ 496,000,000 | ||||||||
Early repayment of senior notes | $ 286,000,000 | ||||||||
Interest rate of senior notes | 7.75% | 7.75% | |||||||
Maturity period | 2,032 | 2,032 | |||||||
U.S. Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings under credit facility | $ 20,000,000 | ||||||||
Outstanding borrowings under credit facility classified as long-term | 20,000,000 | ||||||||
Credit Facility, aggregate capacity | $ 2,250,000,000 | $ 2,250,000,000 | |||||||
Maturity date of credit facility | Jul. 10, 2020 | Jul. 10, 2020 | |||||||
Letters of credit outstanding revolving credit facility | $ 831,000,000 | ||||||||
Unused and available credit capacity | $ 1,399,000,000 | ||||||||
Domestic Line of Credit [Member] | Minimum [Member] | London Interbank Offered Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread rate | 0.805% | 0.805% | |||||||
Domestic Line of Credit [Member] | Maximum [Member] | London Interbank Offered Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread rate | 1.30% | 1.30% | |||||||
Letter of Credit Facilities [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, aggregate capacity | $ 150,000,000 | ||||||||
Maturity date of credit facility | Dec. 31, 2018 | Dec. 31, 2018 | |||||||
Canadian Credit Facility and Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, aggregate capacity | CAD | CAD 150,000,000 | ||||||||
Maturity date of credit facility | Nov. 7, 2017 | Nov. 7, 2017 | |||||||
Canadian Credit Facility and Term Loan [Member] | Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, aggregate capacity | CAD | 500,000,000 | ||||||||
Canadian Credit Facility and Term Loan [Member] | Minimum [Member] | Canadian Dealer Offered Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread rate | 1.125% | 1.125% | |||||||
Canadian Credit Facility and Term Loan [Member] | Maximum [Member] | Canadian Dealer Offered Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Spread rate | 2.15% | 2.15% | |||||||
Canadian Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Outstanding borrowings under credit facility | CAD | 0 | CAD 0 | |||||||
Credit Facility, aggregate capacity | CAD | 50,000,000 | ||||||||
Letters of credit outstanding revolving credit facility | CAD | 0 | CAD 0 | |||||||
Net borrowings (repayments) | $ 11,000,000 | CAD 15,000,000 | |||||||
Canadian Credit Facility [Member] | Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayment of credit facility | CAD | 383,000,000 | ||||||||
Increase (Decrease) in borrowings under credit facility | 84,000,000 | 117,000,000 | |||||||
Canadian Credit Facility Term Loan [Member] | RCI Environment Inc [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Credit Facility, aggregate capacity | CAD | CAD 500,000,000 | ||||||||
Canadian Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Net borrowings (repayments) | $ (119,000,000) | CAD (153,000,000) |
Debt - Summary of Requirements
Debt - Summary of Requirements of Financial Covenants Contained in Revolving Credit Facilities (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | |
Debt Instrument Covenant Compliance [Line Items] | |
Interest Coverage Ratio | 2.75 |
Maximum [Member] | |
Debt Instrument Covenant Compliance [Line Items] | |
Debt to EBITDA ratio | 3.50 |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015CAD | |
Foreign Currency Derivatives [Member] | Principal [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivatives | CAD | CAD 370,000,000 | ||||
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | Long-term other assets [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign currency derivatives, Assets | $ 63 | $ 28 | |||
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | Current Other Assets [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign currency derivatives, Assets | 15 | ||||
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | October 31, 2016 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivatives | CAD | 70,000,000 | ||||
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | October 31, 2017 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivatives | CAD | 150,000,000 | ||||
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | October 31, 2018 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivatives | CAD | CAD 150,000,000 | ||||
Forward Starting Interest Rate Swap [Member] | Interest Expense [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Deferred losses for previously terminated swaps recorded as interest expense | $ 3 | ||||
Forward Starting Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Notional amount of derivatives | $ 175 | ||||
Cash received (paid) to settle hedges | $ 36 | ||||
Maximum term of cash flow hedges | 10 years | ||||
Deferred losses, net of taxes, related to cash flow hedges included in accumulated other comprehensive income | $ 43 | 50 | |||
Treasury rate locks [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Deferred losses scheduled to be reclassified out of accumulated other comprehensive into interest expense over next 12 months, pre-tax | 11 | ||||
Interest Rate Swaps [Member] | Fair Value Hedge [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Increase in carrying value of debt instruments from fair value hedge accounting for interest rate swaps | 23 | 45 | |||
Benefits (losses) to interest expense associated with the amortization of our terminated interest rate swaps | 8 | $ 14 | $ 20 | ||
Interest Rate Swaps [Member] | Fair Value Hedge [Member] | Early Extinguishment of Debt [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Benefits (losses) to interest expense associated with the amortization of our terminated interest rate swaps | $ 14 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current: | |||
Federal | $ 192 | $ 414 | $ 389 |
State | 50 | 61 | 79 |
Foreign | 36 | 56 | 45 |
Current total | 278 | 531 | 513 |
Deferred: | |||
Federal | 43 | (89) | (82) |
State | (17) | (33) | (14) |
Foreign | 4 | 4 | (53) |
Deferred total | 30 | (118) | (149) |
Provision for income taxes | $ 308 | $ 413 | $ 364 |
Income Taxes - U.S. Federal Sta
Income Taxes - U.S. Federal Statutory Income Tax Rate Reconciled to Effective Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense at U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
Federal tax credits | (5.49%) | (3.21%) | (11.74%) |
Taxing authority audit settlements and other tax adjustments | (2.67%) | (1.59%) | (3.56%) |
Noncontrolling interests | 0.04% | (0.81%) | (2.28%) |
State and local income taxes, net of federal income tax benefit | 3.20% | 1.77% | 9.81% |
Tax rate differential on foreign income | (0.99%) | (0.46%) | 1.63% |
Tax impact of impairments | 0.23% | 0.46% | 41.95% |
Tax impact of divestitures | (0.34%) | (7.89%) | |
Other | 0.13% | 0.34% | 2.94% |
Provision for income taxes | 29.11% | 23.61% | 73.75% |
Income Taxes - Income Before In
Income Taxes - Income Before Income Taxes Showing Domestic and Foreign Source (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 922 | $ 1,601 | $ 548 |
Foreign | 138 | 150 | (54) |
Income before income taxes | $ 1,060 | $ 1,751 | $ 494 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Line Items] | |||||
Equity in net losses of unconsolidated entities | $ 38,000,000 | $ 53,000,000 | $ 34,000,000 | ||
Interest expense | 385,000,000 | 466,000,000 | 477,000,000 | ||
Federal tax credits | 15,000,000 | 13,000,000 | 13,000,000 | ||
Increase (decrease) to accruals and related deferred taxes | (18,000,000) | (24,000,000) | 4,000,000 | ||
Reduction in provision for income taxes due to state net operating losses and credits | 17,000,000 | 16,000,000 | 16,000,000 | ||
Reduction in provision for income taxes due to tax audit settlements | (10,000,000) | (12,000,000) | (11,000,000) | ||
(Income) expense from divestitures | (7,000,000) | (515,000,000) | (8,000,000) | ||
Increase (decrease) in provision for income taxes due to impairments | 2,000,000 | 8,000,000 | 235,000,000 | ||
Unremitted earnings in foreign subsidiaries | 825,000,000 | ||||
Decrease in valuation allowance | 27,000,000 | ||||
Net unrecognized tax benefits that would impact effective tax rate in future period | 57,000,000 | ||||
Accrued interest | 2,000,000 | 1,000,000 | 2,000,000 | ||
Accrued interest in balance sheet | $ 3,000,000 | 3,000,000 | 3,000,000 | ||
Unrecognized tax benefits related to accrued liabilities or expense for penalties | 0 | 0 | 0 | 0 | |
Liabilities for unrecognized tax benefits including accrued interest that may be reversed within the next 12 months | 36,000,000 | ||||
Deferred tax assets related to unrecognized tax benefits that may be reversed within the next 12 months | $ 5,000,000 | ||||
Percentage of Bonus Depreciation allowance on qualifying capital expenditures | 50.00% | ||||
Wheelabrator [Member] | |||||
Income Taxes [Line Items] | |||||
(Income) expense from divestitures | $ 7,000,000 | $ (519,000,000) | (519,000,000) | ||
2014 Audit [Member] | |||||
Income Taxes [Line Items] | |||||
Expected time of completion of IRS audits | 3 months | ||||
2015 Audit [Member] | |||||
Income Taxes [Line Items] | |||||
Expected time of completion of IRS audits | 15 months | ||||
2016 Audit [Member] | |||||
Income Taxes [Line Items] | |||||
Expected time of completion of IRS audits | 27 months | ||||
Tax Implications [Member] | Wheelabrator [Member] | |||||
Income Taxes [Line Items] | |||||
Hypothetical tax expense (benefit) associated with gain on sale of business | $ 4,000,000 | 138,000,000 | |||
(Income) expense from divestitures | (10,000,000) | (515,000,000) | |||
Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry-forwards | $ 47,000,000 | ||||
Operating loss carry-forwards, expiration date | Dec. 31, 2035 | ||||
Capital loss carry-forward | $ 423,000,000 | ||||
Capital loss carry-forward, expiration date | Expire in 2019 | ||||
State [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry-forwards | $ 1,800,000,000 | ||||
Operating loss carry-forwards, expiration date | Dec. 31, 2035 | ||||
State tax credit carry-forward | $ 32,000,000 | ||||
Investment in Refined Coal Facility [Member] | |||||
Income Taxes [Line Items] | |||||
Equity in net losses of unconsolidated entities | 7,000,000 | 7,000,000 | 8,000,000 | ||
Income tax benefit, including federal tax credits, from equity method investment | 23,000,000 | 21,000,000 | 20,000,000 | ||
Investment in Low-Income Housing Properties [Member] | |||||
Income Taxes [Line Items] | |||||
Equity in net losses of unconsolidated entities | 23,000,000 | 25,000,000 | 25,000,000 | ||
Interest expense | 4,000,000 | 5,000,000 | 6,000,000 | ||
Affordable housing tax credits and other tax benefits amount from equity method investment | 34,000,000 | 37,000,000 | 38,000,000 | ||
Federal tax credits from equity method investment | $ 23,000,000 | $ 25,000,000 | $ 26,000,000 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss, capital loss and tax credit carry-forwards | $ 280 | $ 297 |
Landfill and environmental remediation liabilities | 120 | 53 |
Miscellaneous and other reserves, net | 373 | 380 |
Subtotal | 773 | 730 |
Valuation allowance | (273) | (300) |
Deferred tax liabilities: | ||
Property and equipment | (709) | (673) |
Goodwill and other intangibles | (1,182) | (1,095) |
Net deferred tax liabilities | $ (1,391) | $ (1,338) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits, Including Accrued interest (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Balance beginning | $ 42 | $ 49 | $ 54 |
Additions based on tax positions related to the current year | 18 | 9 | 6 |
Additions based on tax positions of prior years | 21 | 2 | |
Accrued interest | 2 | 1 | 2 |
Reductions for tax positions of prior years | (1) | (7) | |
Settlements | (3) | (11) | (1) |
Lapse of statute of limitations | (8) | (8) | (5) |
Balance ending | $ 71 | $ 42 | $ 49 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 non-union employee contributions on first specified percentage of eligible compensation | 100.00% | |||
First percentage of eligible compensation on which specified percentage of non-union employee contribution is matched by the employer in cash | 3.00% | |||
Employer's match in cash of non-union employee contributions on next specified percentage of eligible compensation | 50.00% | |||
Next percentage of eligible compensation on which specified percentage of non-union employee contribution is matched by the employer in cash | 3.00% | |||
Employer maximum match of non-union employee contribution on eligible compensation | 4.50% | |||
Operating, selling, general and administrative expenses for our defined contribution plans | $ 61 | $ 63 | $ 63 | |
Accrued benefit liabilities for defined benefit pension and other post retirement plans | 56 | |||
Contributions to Multiemployer Plan | 43 | 44 | 40 | |
Multiemployer Health and Welfare Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to Multiemployer Plan | 33 | 34 | 34 | |
Withdrawal from Multiemployer Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Charge to "Operating" expenses | $ 55 | 51 | $ 4 | $ 5 |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Combined accumulated benefit obligation of pension plans | 116 | |||
Plan assets of pension plans | 88 | |||
Unfunded benefit obligation | 28 | |||
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Unfunded benefit obligation | $ 28 |
Employee Benefit Plans - Indivi
Employee Benefit Plans - Individually Significant Multiemployer Pension Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Multiemployer Plans [Line Items] | |||
Company Contributions | $ 43 | $ 44 | $ 40 |
Total Company Contributions to Individually Significant Plans | 36 | 36 | 33 |
Contributions to other multi employer pension plans | $ 7 | $ 8 | 7 |
Automotive Industries Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 941,133,245 | ||
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 |
Local 731 Private Scavengers and Garage Attendants Pension Trust Fund [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366,513,567 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Yellow | Yellow | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | 9/30/2018 | ||
Company Contributions | $ 7 | $ 6 | 6 |
Suburban Teamsters of Northern Illinois Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366,155,778 | ||
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 | $ 2 | $ 3 | 2 |
Teamsters Local 301 Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 366,492,992 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status | NA | ||
Expiration date of Collective-Bargaining Agreement | 9/30/2018 | ||
Company Contributions | $ 1 | $ 1 | 1 |
Western Conference of Teamsters Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 916,145,047 | ||
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 | $ 24 | 22 |
Western Pennsylvania Teamsters and Employers Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
EIN | 256,029,946 | ||
Pension Plan Number | 1 | ||
Pension Protection Act Zone Status | Red | Red | |
FIP/RP Status | Implemented | ||
Expiration date of Collective-Bargaining Agreement | 12/31/2016 | ||
Company Contributions | $ 1 | $ 1 | $ 1 |
Employee Benefit Plans - Indi81
Employee Benefit Plans - Individually Significant Multiemployer Pension Plans (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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 - Multie
Employee Benefit Plans - Multiemployer Plan and Year with Employer's Total Contribution Greater Than 5% (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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) | 9/30/2014 and 9/30/2013 |
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) | 12/31/2014 and 12/31/2013 |
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) | 12/31/2014 and 12/31/2013 |
Commitments and Contingencies -
Commitments and Contingencies - Additional information (Detail) | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($) | Dec. 31, 2015USD ($)siteLandfillHomeowners | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 18, 2015USD ($) | |
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 | 140,000,000 | $ 159,000,000 | $ 170,000,000 | ||
Minimum contractual payments for operating leases in 2016 | 89,000,000 | ||||
Minimum contractual payments for operating leases in 2017 | 77,000,000 | ||||
Minimum contractual payments for operating leases in 2018 | 61,000,000 | ||||
Minimum contractual payments for operating leases in 2019 | 51,000,000 | ||||
Minimum contractual payments for operating leases in 2020 | 42,000,000 | ||||
Minimum contractual payments for operating leases thereafter | 281,000,000 | ||||
Estimated minimum purchase obligation in 2016 | 184,000,000 | ||||
Estimated minimum purchase obligation in 2017 | 164,000,000 | ||||
Estimated minimum purchase obligation in 2018 | 126,000,000 | ||||
Estimated minimum purchase obligation in 2019 | 100,000,000 | ||||
Estimated minimum purchase obligation in 2020 | 86,000,000 | ||||
Estimated minimum purchase obligation in thereafter | 424,000,000 | ||||
Maximum future payments regarding guarantees of unconsolidated entities financial obligations | $ 7,000,000 | ||||
Approximate number of homeowners' properties adjacent to or near certain of our landfills with agreements guaranteeing market value | Homeowners | 850 | ||||
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value | Landfill | 21 | ||||
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 76 | ||||
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 15 | ||||
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 61 | ||||
Assessment of civil penalty amount | $ 190,000 | ||||
Approximate percentage of workforce covered by collective bargaining agreements | 20.00% | ||||
Withdrawal from Multiemployer Pension Plans [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Charge to "Operating" expenses | $ 55,000,000 | $ 51,000,000 | 4,000,000 | $ 5,000,000 | |
WM's Senior Indebtedness [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Maturity date of senior indebtedness | 2,045 | ||||
WM Holdings Senior Indebtedness [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Maturity date of senior indebtedness | 2,026 | ||||
Disposal [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Purchase agreements expiring through the period | 2,052 | ||||
Waste Paper [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Purchase agreements expiring through the period | 2,018 | ||||
Wheelabrator [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Maximum future payments regarding guarantees of unconsolidated entities financial obligations | $ 106,000,000 | ||||
Financial and performance obligations, net liability | 13,000,000 | $ 18,000,000 | |||
Maximum [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Dollar threshold for environmental matters requiring disclosure under item 103 of the SEC's Regulation S-K | 100,000 | ||||
Domestic Line of Credit [Member] | |||||
Commitments And Contingencies [Line Items] | |||||
Credit Facility, aggregate capacity | $ 2,250,000,000 |
Commitments and Contingencies84
Commitments and Contingencies - Changes to Net Insurance Liabilities (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Contingencies And Commitments [Line Items] | |||
Beginning Balance | $ 414 | $ 393 | $ 367 |
Self-insurance expense (benefit) | 163 | 159 | 172 |
Cash (paid) received | (152) | (138) | (146) |
Ending Balance | 425 | 414 | 393 |
Current portion at December 31, 2015 | 121 | ||
Long-term portion at December 31, 2015 | 304 | ||
Gross Claims Liability [Member] | |||
Contingencies And Commitments [Line Items] | |||
Beginning Balance | 597 | 590 | 569 |
Self-insurance expense (benefit) | 202 | 168 | 177 |
Cash (paid) received | (156) | (161) | (156) |
Ending Balance | 643 | 597 | 590 |
Current portion at December 31, 2015 | 141 | ||
Long-term portion at December 31, 2015 | 502 | ||
Receivables Associated with Insured Claims [Member] | |||
Contingencies And Commitments [Line Items] | |||
Beginning Balance | (183) | (197) | (202) |
Self-insurance expense (benefit) | (39) | (9) | (5) |
Cash (paid) received | 4 | 23 | 10 |
Ending Balance | (218) | $ (183) | $ (197) |
Current portion at December 31, 2015 | (20) | ||
Long-term portion at December 31, 2015 | $ (198) |
Commitments and Contingencies85
Commitments and Contingencies - Changes to Net Insurance Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
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 C
Restructuring - Restructuring Charges Pre Tax by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, Total | $ 8 | $ 67 | $ 15 | $ 82 | $ 18 |
Corporate and Other [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, Total | 1 | 71 | 10 | ||
Solid Waste [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, Total | $ 14 | 10 | 7 | ||
Wheelabrator [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges, Total | $ 1 | $ 1 |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2014Employees | Dec. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Restructuring and Related Activities [Abstract] | ||||||
Pre-tax restructuring charges | $ 8 | $ 67 | $ 15 | $ 82 | $ 18 | |
Pre-tax restructuring charges related to employee severance and benefit costs | $ 10 | $ 70 | $ 7 | |||
Number of employee positions eliminated | Employees | 650 |
Asset Impairments and Unusual88
Asset Impairments and Unusual Items - Additional Information (Detail) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($)PropertyInvestment | |
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Goodwill impairment charges | $ 10 | $ 509 | ||||||
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | $ 82 | (170) | 464 | |||||
Asset impairments (other than goodwill) | 89 | 345 | 472 | |||||
(Income) expense from divestitures | (7) | (515) | (8) | |||||
Recycling Operations [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Goodwill impairment charges | $ 10 | 10 | ||||||
Asset impairments (other than goodwill) | 18 | |||||||
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 | |||||||
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 | |||||||
Investment in Waste Diversion Technology Company [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | 25 | |||||||
Impairment Charge | 11 | |||||||
Impairment charge | $ 4 | 20 | 5 | 22 | 71 | |||
Gain on investment | 4 | |||||||
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 | 70 | 270 | 66 | 272 | 15 | |||
Fair value of oil and gas properties | $ 30 | 30 | ||||||
(Income) expense from divestitures | $ (6) | |||||||
Landfill [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | 262 | |||||||
Waste-to-Energy Facility [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | $ 144 | |||||||
Number of facilities impaired | Investment | 3 | |||||||
Recycling Assets [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | $ 31 | |||||||
Puerto Rico Operations [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
(Income) expense from divestitures | $ 25 | 25 | ||||||
Eastern Canada Area [Member] | Landfill [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | $ 262 | |||||||
(Income) expense from divestitures | (18) | |||||||
Number of facilities impaired | Property | 2 | |||||||
Puerto Rico [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Goodwill impairment charges | $ 10 | |||||||
Wheelabrator [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Goodwill impairment charges | $ 483 | |||||||
(Income) expense from divestitures | $ 7 | $ (519) | (519) | |||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | $ 155 | |||||||
Western Canada Area [Member] | Landfill [Member] | ||||||||
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items] | ||||||||
Asset impairments (other than goodwill) | $ 5 |
Asset Impairments and Unusual89
Asset Impairments and Unusual Items - Components of (Income) Expense from Divestitures, Asset Impairments (Other Than Goodwill) and Unusual Items (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Extraordinary and Unusual Items [Abstract] | |||
(Income) expense from divestitures | $ (7) | $ (515) | $ (8) |
Asset impairments (other than goodwill) | 89 | 345 | 472 |
(Income) expense from divestitures, asset impairments (other than goodwill) and unusual items | $ 82 | $ (170) | $ 464 |
Accumulated Other Comprehensi90
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | $ 23 | $ 154 | $ 193 |
Other comprehensive income (loss) before reclassifications, net of tax | (134) | (108) | (37) |
Amounts reclassified from accumulated other comprehensive income, net of tax | (16) | (23) | (2) |
Other comprehensive income (loss), net of taxes | (150) | (131) | (39) |
Accumulated Other Comprehensive Income (Loss), Ending balance | (127) | 23 | 154 |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | (61) | (62) | (74) |
Other comprehensive income (loss) before reclassifications, net of tax | 30 | 6 | 14 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (21) | (5) | (2) |
Other comprehensive income (loss), net of taxes | 9 | 1 | 12 |
Accumulated Other Comprehensive Income (Loss), Ending balance | (52) | (61) | (62) |
Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 10 | 6 | 4 |
Other comprehensive income (loss) before reclassifications, net of tax | (2) | 4 | 2 |
Other comprehensive income (loss), net of taxes | (2) | 4 | 2 |
Accumulated Other Comprehensive Income (Loss), Ending balance | 8 | 10 | 6 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | 84 | 208 | 276 |
Other comprehensive income (loss) before reclassifications, net of tax | (164) | (107) | (68) |
Amounts reclassified from accumulated other comprehensive income, net of tax | 5 | (17) | |
Other comprehensive income (loss), net of taxes | (159) | (124) | (68) |
Accumulated Other Comprehensive Income (Loss), Ending balance | (75) | 84 | 208 |
Post - Retirement Benefit Plans [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Beginning balance | (10) | 2 | (13) |
Other comprehensive income (loss) before reclassifications, net of tax | 2 | (11) | 15 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (1) | ||
Other comprehensive income (loss), net of taxes | 2 | (12) | 15 |
Accumulated Other Comprehensive Income (Loss), Ending balance | $ (8) | $ (10) | $ 2 |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | $ 20 | $ 4 | $ 9 |
Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | 20 | 4 | 9 |
Amounts reclassified from accumulated other comprehensive income, tax | (14) | (3) | (1) |
Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss), tax | (1) | 2 | 1 |
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 | 1 | (8) | 10 |
Amounts reclassified from accumulated other comprehensive income, tax | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Income - Other Comprehensive Income (Loss) Before Reclassifications Associated With the Effective Portion of Derivatives Designated as Cash Flow Hedges (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | $ 50 | $ 10 | $ 23 |
Tax (expense) benefit | (20) | (4) | (9) |
Net of tax | 30 | 6 | 14 |
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 | |
Foreign Currency Derivatives [Member] | Cash Flow Hedging [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other comprehensive income (loss) on derivatives before tax | $ 50 | 23 | 17 |
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 Comprehensi93
Accumulated Other Comprehensive Income - Reclassification of Component of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest expense, net | $ (385) | $ (466) | $ (477) | ||||||||
Other, net | (7) | (29) | (74) | ||||||||
Operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | 12,961 | 13,996 | 13,983 |
Income before income taxes | 1,060 | 1,751 | 494 | ||||||||
Tax (expense) benefit | (308) | (413) | (364) | ||||||||
Total reclassifications for the period, Net of tax | $ 273 | $ 337 | $ 273 | $ (131) | $ 598 | $ 281 | $ 222 | $ 237 | 752 | 1,338 | 130 |
Amount Reclassified from Accumulated Other Comprehensive Income [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 35 | 8 | 3 | ||||||||
Tax (expense) benefit | (14) | (3) | (1) | ||||||||
Total reclassifications for the period, Net of tax | 21 | 5 | 2 | ||||||||
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, net | (12) | (10) | (7) | ||||||||
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, net | (4) | (1) | (2) | ||||||||
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 | $ 51 | 27 | 21 | ||||||||
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) |
Capital Stock, Dividends and 94
Capital Stock, Dividends and Share Repurchases - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $ 0.01 | $ 0.01 | $ 0.01 | |
Common stock, shares issued | 630,282,461 | 630,282,461 | 630,282,461 | |
Common stock, shares outstanding | 447,200,000 | 447,200,000 | 458,500,000 | 464,300,000 |
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 | $ 695,000,000 | $ 693,000,000 | $ 683,000,000 | |
Cash dividends declared and paid per common share | $ 0.385 | $ 1.54 | $ 1.50 | $ 1.46 |
Accelerated Share Repurchase Agreement (ASR) [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Maximum capital allocated for repurchases of shares | $ 150,000,000 | $ 150,000,000 | ||
Share Repurchase Program [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Maximum capital allocated for repurchases of shares | $ 1,000,000,000 | $ 1,000,000,000 | ||
Dividend Declared [Member] | ||||
Stock Repurchase Program [Line Items] | ||||
Expected quarterly common stock dividend per share declared | $ 0.41 | |||
Dividends Payable, Year | 2,016 | 2,016 |
Capital Stock, Dividends and 95
Capital Stock, Dividends and Share Repurchases - Stock Repurchase Programs (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Repurchase Program [Line Items] | |||
Shares repurchased | 14,823 | 9,569 | 5,368 |
ASR weighted average per share purchase price | $ 49.83 | $ 43.89 | |
Total repurchases | $ 600 | $ 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 96
Capital Stock, Dividends and Share Repurchases - Stock Repurchase Programs (Parenthetical) (Detail) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2015 | Jul. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock Repurchase Program [Line Items] | |||||
Cash paid for repurchase of common stock | $ 600 | $ 600 | $ 239 | ||
Initial shares of common stock received under ASR | 14,823,000 | 9,569,000 | 5,368,000 | ||
Accelerated Share Repurchase Agreement (ASR) [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Accelerated share repurchase percentage of shares expected to be repurchased | 70.00% | 70.00% | |||
Cash paid for repurchase of common stock | $ 600 | ||||
Common stock repurchases | $ 600 | ||||
Initial shares of common stock received under ASR | 9,600,000 | ||||
Accelerated share repurchase,price per share | $ 43.89 | ||||
Shares received from the banks to settle the ASRs | 2,800,000 | ||||
Accelerated Share Repurchase Agreement (ASR) [Member] | Weighted Average [Member] | |||||
Stock Repurchase Program [Line Items] | |||||
Accelerated share repurchase,price per share | $ 48.58 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
May. 31, 2015shares | Dec. 31, 2015USD ($)OfferingPeriods$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($)$ / sharesshares | May. 31, 2014shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cash proceeds received | $ 77 | $ 93 | $ 132 | ||
Excess tax benefits associated with employee stock plan | $ 15 | $ 5 | $ 10 | ||
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 | shares | 786,000 | 774,000 | 928,000 | ||
Shares available under employee stock plans | shares | 3,200,000 | ||||
Number of offering periods | OfferingPeriods | 2 | ||||
Additional shares approved for future issuance | shares | 3,000,000 | ||||
Increase in annual compensation expense due to employee stock plan | $ 6 | $ 6 | $ 6 | ||
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 | shares | 24,400,000 | ||||
Maximum number of shares authorized for issuance under stock incentive plan | shares | 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 | shares | 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 | $ 64 | 59 | 54 | ||
Deferred income tax benefits included in provision for income taxes | 26 | 23 | 21 | ||
Excess tax benefits associated with employee stock plan | 15 | 5 | 10 | ||
Currently unrecognized compensation expense that will be recognized in future periods for unvested RSU, PSU and stock option awards issued and outstanding | $ 48 | ||||
Weighted average period of under which unrecognized compensation expenses associated with all unvested awards currently outstanding is expected to be recognized | 1 year 6 months | ||||
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 | shares | 156,000 | ||||
Total fair market value of vested awards | $ 13 | 3 | 1 | ||
Vested deferred units outstanding | shares | 84,000 | ||||
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 | shares | 385,000 | ||||
Total fair market value of vested awards | $ 35 | 8 | 14 | ||
Vested deferred units outstanding | shares | 364,000 | ||||
Range of performance share units awarded at end of three year period range | 0% to 200% of the targeted amount | ||||
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% | ||||
Performance Share Units [Member] | First Anniversary [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested shares issued, percentage of the established target | 96.60% | ||||
Deferred Units [Member] | Employee Stock Incentive Plans [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vested deferred units outstanding | shares | 423,000 | ||||
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 | $ 77 | 93 | 132 | ||
Aggregate intrinsic value of stock options exercised | $ 37 | $ 27 | $ 41 | ||
Fair value of stock options granted | $ / shares | $ 5.56 | $ 4.55 | $ 4.26 | ||
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% |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of RSUs (Detail) - Restricted Stock Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Units, beginning of year | shares | 620 |
Granted, Units | shares | 167 |
Vested, Units | shares | (240) |
Forfeited, Units | shares | (23) |
Unvested, Units, end of year | shares | 524 |
Unvested, Weighted Average Fair Value, beginning of year | $ / shares | $ 37.44 |
Granted, Weighted Average Fair Value | $ / shares | 54.47 |
Vested, Weighted Average Fair Value | $ / shares | 34.78 |
Forfeited, Weighted Average Fair Value | $ / shares | 42.41 |
Unvested, Weighted Average Fair Value, end of year | $ / shares | $ 43.76 |
Stock-Based Compensation - Su99
Stock-Based Compensation - Summary of PSUs (Detail) - Performance Share Units [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested, Units, beginning of year | shares | 2,033 |
Granted, Units | shares | 523 |
Vested, Units | shares | (749) |
Forfeited, Units | shares | (45) |
Unvested, Units, end of year | shares | 1,762 |
Unvested, Weighted Average Fair Value, beginning of year | $ / shares | $ 46.28 |
Granted, Weighted Average Fair Value | $ / shares | 66.35 |
Vested, Weighted Average Fair Value | $ / shares | 47.28 |
Forfeited, Weighted Average Fair Value | $ / shares | 49.88 |
Unvested, Weighted Average Fair Value, end of year | $ / shares | $ 52.90 |
Stock-Based Compensation - S100
Stock-Based Compensation - Summary of Stock Options (Detail) - Stock Options [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding shares, beginning of year | shares | 8,378 |
Granted, shares | shares | 1,455 |
Exercised, shares | shares | (2,170) |
Forfeited or expired, shares | shares | (156) |
Outstanding shares, end of year | shares | 7,507 |
Exercisable shares, end of year | shares | 3,940 |
Outstanding, Weighted Average Exercise Price, beginning of year | $ / shares | $ 37.22 |
Granted, Weighted Average Exercise Price | $ / shares | 54.45 |
Exercised, Weighted Average Exercise Price | $ / shares | 36.26 |
Forfeited or expired, Weighted Average Exercise Price | $ / shares | 38.98 |
Outstanding, Weighted Average Exercise Price, end of year | $ / shares | 40.80 |
Exercisable, Weighted Average Exercise Price, end of year | $ / shares | $ 36.44 |
Stock-Based Compensation - S101
Stock-Based Compensation - Summary of Stock Options (Parenthetical) (Detail) - Stock Options [Member] $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average remaining contractual term of stock options outstanding | 7 years |
Aggregate intrinsic value of stock options outstanding based on the market value of company's common stock | $ | $ 96 |
Weighted average remaining contractual term of stock options exercisable | 5 years 8 months 12 days |
Aggregate intrinsic value of stock options exercisable based on the market value of company's common stock | $ | $ 67 |
Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options exercise price | $ / shares | $ 32.18 |
Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock options exercise price | $ / shares | $ 44.01 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Assumptions Used to Value Employee Stock Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected option life | 4 years 4 months 24 days | 4 years 9 months 18 days | 5 years 4 months 24 days |
Expected volatility | 16.70% | 18.40% | 21.80% |
Expected dividend yield | 2.80% | 3.60% | 4.00% |
Risk-free interest rate | 1.40% | 1.60% | 1.00% |
Earnings Per Share - Common Sha
Earnings Per Share - Common Share Data Used for Computing Basic and Diluted Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Number of common shares outstanding at year-end | 447.2 | 458.5 | 464.3 |
Effect of using weighted average common shares outstanding | 5.5 | 4.1 | 3.4 |
Weighted average basic common shares outstanding | 452.7 | 462.6 | 467.7 |
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 3.2 | 3 | 2.1 |
Weighted average diluted common shares outstanding | 455.9 | 465.6 | 469.8 |
Potentially issuable shares | 10.2 | 11.3 | 12.3 |
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 2 | 0.4 | 0.1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value of Assets and Liabilities Measured on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | $ 243 | $ 1,488 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 35 | 1,332 |
Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 43 | 46 |
Fixed-Income Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 40 | 38 |
Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47 | 44 |
Foreign Currency Derivatives [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivatives | 78 | 28 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 35 | 1,332 |
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 | 35 | 1,332 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 161 | 112 |
Significant Other Observable Inputs (Level 2) [Member] | Available-for-sale Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities | 43 | 46 |
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 | 40 | 38 |
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 | 78 | 28 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets | 47 | 44 |
Significant Unobservable Inputs (Level 3) [Member] | Redeemable Preferred Stock [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 47 | $ 44 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Repayment of debt | $ 427,000,000 | |
Reported Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | 9,000,000,000 | $ 9,400,000,000 |
Estimate of Fair Value Measurement [Member] | ||
Debt Instrument [Line Items] | ||
Carrying value of debt | 9,200,000,000 | $ 10,600,000,000 |
Domestic Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | $ 2,250,000,000 |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Additional Information (Detail) CAD in Millions | Mar. 26, 2015USD ($) | Dec. 19, 2014USD ($) | Jul. 05, 2013USD ($) | Jul. 05, 2013CAD | Jan. 31, 2013USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)Business | Dec. 31, 2014USD ($)Business | Dec. 31, 2013USD ($)Business |
Business Acquisition [Line Items] | ||||||||||||||||
Total consideration, net of cash acquired, for business acquisitions closed during the year | $ 661,000,000 | $ 32,000,000 | $ 772,000,000 | |||||||||||||
Business acquisitions closed during the year, cash payments | 554,000,000 | 26,000,000 | 714,000,000 | |||||||||||||
Estimated fair value of liability for additional cash payments related to acquisitions | $ 96,000,000 | $ 6,000,000 | 96,000,000 | 6,000,000 | 29,000,000 | |||||||||||
Contingent consideration paid for acquisitions closed in current year | 8,000,000 | 4,000,000 | 4,000,000 | |||||||||||||
Contingent consideration paid for acquisitions closed in previous year | 4,000,000 | 5,000,000 | 6,000,000 | |||||||||||||
Purchase price holdbacks | 11,000,000 | 11,000,000 | ||||||||||||||
Allocation of purchase price to property and equipment | 243,000,000 | 6,000,000 | 243,000,000 | 6,000,000 | 195,000,000 | |||||||||||
Allocation of purchase price to other intangible assets | 145,000,000 | 9,000,000 | 145,000,000 | 9,000,000 | 232,000,000 | |||||||||||
Allocation of purchase price to goodwill | 325,000,000 | 17,000,000 | 325,000,000 | 17,000,000 | 327,000,000 | |||||||||||
Tax deductible, goodwill | 166,000,000 | 166,000,000 | ||||||||||||||
Cash paid for acquisitions, net of cash acquired | 554,000,000 | 35,000,000 | 724,000,000 | |||||||||||||
Total operating revenues | 3,246,000,000 | $ 3,360,000,000 | $ 3,315,000,000 | $ 3,040,000,000 | 3,437,000,000 | $ 3,602,000,000 | $ 3,561,000,000 | $ 3,396,000,000 | 12,961,000,000 | 13,996,000,000 | 13,983,000,000 | |||||
Consolidated net income | 273,000,000 | $ 337,000,000 | $ 273,000,000 | (131,000,000) | 598,000,000 | $ 281,000,000 | $ 222,000,000 | $ 237,000,000 | 752,000,000 | 1,338,000,000 | 130,000,000 | |||||
Business acquisition, estimated working capital adjustment | 7,000,000 | |||||||||||||||
Business acquisition debt assumed | 22,000,000 | |||||||||||||||
Aggregate sales prices for divestitures of operations | 79,000,000 | 2,090,000,000 | 70,000,000 | |||||||||||||
(Income) expense from divestitures | (7,000,000) | (515,000,000) | (8,000,000) | |||||||||||||
Maximum [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Estimated fair value of liability for additional cash payments related to acquisitions | 126,000,000 | 6,000,000 | $ 126,000,000 | 6,000,000 | 33,000,000 | |||||||||||
Landfill [Member] | Eastern Canada Area [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
(Income) expense from divestitures | $ (18,000,000) | |||||||||||||||
Solid Waste [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of business acquired | Business | 27 | 15 | ||||||||||||||
Wheelabrator [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total operating revenues | $ 715,000,000 | 733,000,000 | ||||||||||||||
Aggregate sales prices for divestitures of operations | $ 1,950,000,000 | |||||||||||||||
(Income) expense from divestitures | $ 7,000,000 | (519,000,000) | (519,000,000) | |||||||||||||
Cash [Member] | Eastern Canada Area [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Aggregate sales prices for divestitures of operations | 39,000,000 | |||||||||||||||
Puerto Rico Operations and Certain Other Collection and Landfill Assets [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Aggregate sales prices for divestitures of operations | 80,000,000 | |||||||||||||||
(Income) expense from divestitures | 25,000,000 | |||||||||||||||
Puerto Rico Operations and Certain Other Collection and Landfill Assets [Member] | Redeemable Preferred Stock [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Aggregate sales prices for divestitures of operations | 15,000,000 | |||||||||||||||
Puerto Rico Operations and Certain Other Collection and Landfill Assets [Member] | Cash [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Aggregate sales prices for divestitures of operations | 65,000,000 | |||||||||||||||
Customer and Supplier Relationships [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Allocation of purchase price to other intangible assets | 131,000,000 | 7,000,000 | $ 131,000,000 | 7,000,000 | 218,000,000 | |||||||||||
Non-compete Covenant [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Allocation of purchase price to other intangible assets | 8,000,000 | $ 2,000,000 | 8,000,000 | $ 2,000,000 | 5,000,000 | |||||||||||
Other Intangible Assets [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Allocation of purchase price to other intangible assets | $ 9,000,000 | |||||||||||||||
Trade Name [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Allocation of purchase price to other intangible assets | 6,000,000 | 6,000,000 | ||||||||||||||
Solid Waste Business and Energy Services Operations [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Number of business acquired | Business | 14 | |||||||||||||||
RCI Environment Inc [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total consideration, net of cash acquired, for business acquisitions closed during the year | $ 487,000,000 | CAD 515 | ||||||||||||||
Business acquisitions closed during the year, cash payments | $ 481,000,000 | CAD 509 | ||||||||||||||
Deffenbaugh Disposal, Inc. [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Allocation of purchase price to property and equipment | $ 212,000,000 | 207,000,000 | 207,000,000 | |||||||||||||
Allocation of purchase price to other intangible assets | 134,000,000 | 100,000,000 | 100,000,000 | |||||||||||||
Allocation of purchase price to goodwill | 140,000,000 | 159,000,000 | 159,000,000 | |||||||||||||
Cash paid for acquisitions, net of cash acquired | 413,000,000 | |||||||||||||||
Total consideration paid | 416,000,000 | 415,000,000 | 415,000,000 | |||||||||||||
Total operating revenues | 134,000,000 | |||||||||||||||
Consolidated net income | $ 2,000,000 | |||||||||||||||
Deffenbaugh Disposal, Inc. [Member] | Customer Relationships [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total intangible assets subject to amortization | $ 94,000,000 | |||||||||||||||
Total other intangible assets subject to amortization, Weighted average amortization period | 15 years | |||||||||||||||
Deffenbaugh Disposal, Inc. [Member] | Trade Name [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Total intangible assets subject to amortization | $ 6,000,000 | |||||||||||||||
Total other intangible assets subject to amortization, Weighted average amortization period | 15 years | |||||||||||||||
Greenstar LLC [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Business acquisitions closed during the year, cash payments | $ 170,000,000 | |||||||||||||||
Estimated fair value of liability for additional cash payments related to acquisitions | 16,000,000 | |||||||||||||||
Additional consideration payable | 40,000,000 | |||||||||||||||
Additional consideration guaranteed amount | 20,000,000 | $ 20,000,000 | $ 20,000,000 | |||||||||||||
Contingent consideration maximum obligation | $ 20,000,000 |
Acquisitions and Divestiture107
Acquisitions and Divestitures - Allocation of Purchase Price (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Mar. 26, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||
Property and equipment | $ 243 | $ 6 | $ 195 | |
Goodwill | 325 | 17 | 327 | |
Other intangible assets | 145 | $ 9 | $ 232 | |
Deffenbaugh Disposal, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | 15 | $ 15 | ||
Accounts and other receivables | 22 | 18 | ||
Parts and supplies | 2 | 2 | ||
Deferred income tax asset | 11 | 9 | ||
Other current assets | 10 | 12 | ||
Property and equipment | 207 | 212 | ||
Goodwill | 159 | 140 | ||
Other intangible assets | 100 | 134 | ||
Other assets | 1 | 1 | ||
Accounts payable | (2) | (4) | ||
Accrued liabilities | (20) | (12) | ||
Deferred revenues | (6) | (5) | ||
Landfill and environmental remediation liabilities | (18) | (21) | ||
Deferred income tax liability | (52) | (65) | ||
Other liabilities | (14) | (20) | ||
Total purchase price | 415 | $ 416 | ||
Deffenbaugh Disposal, Inc. [Member] | Adjustments [Member] | ||||
Business Acquisition [Line Items] | ||||
Accounts and other receivables | 4 | |||
Deferred income tax asset | 2 | |||
Other current assets | (2) | |||
Property and equipment | (5) | |||
Goodwill | 19 | |||
Other intangible assets | (34) | |||
Accounts payable | 2 | |||
Accrued liabilities | (8) | |||
Deferred revenues | (1) | |||
Landfill and environmental remediation liabilities | 3 | |||
Deferred income tax liability | 13 | |||
Other liabilities | 6 | |||
Total purchase price | $ (1) |
Acquisitions and Divestiture108
Acquisitions and Divestitures - ProForma Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Deffenbaugh Disposal, Inc. [Member] | |||
Business Acquisition [Line Items] | |||
Operating revenues | $ 13,001 | $ 14,168 | |
Net income attributable to Waste Management, Inc. | $ 753 | $ 1,304 | |
Basic earnings per common share | $ 1.66 | $ 2.82 | |
Diluted earnings per common share | $ 1.65 | $ 2.80 | |
RCI Environnement, Inc and Greenstar LLC [Member] | |||
Business Acquisition [Line Items] | |||
Operating revenues | $ 14,085 | ||
Net income attributable to Waste Management, Inc. | $ 112 | ||
Basic earnings per common share | $ 0.24 | ||
Diluted earnings per common share | $ 0.24 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2011 | Apr. 30, 2010 | Jun. 30, 2000 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Variable Interest Entity [Line Items] | ||||||
Net income (loss) attributable to noncontrolling interests | $ (1) | $ 40 | $ 32 | |||
Investment balance | 186 | 228 | ||||
Trust for Final Capping Closure Post Closure or Environmental Remediation Obligations [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Variable interest entities primary beneficiary trust fair value assets | 94 | 129 | ||||
Carrying value of trusts for which company is not the sole beneficiary | 93 | 113 | ||||
Investment in Refined Coal Facility [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash payment to acquire equity method investment | $ 48 | |||||
Investment balance | 29 | 32 | ||||
Investment in Low-Income Housing Properties [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Cash payment to acquire equity method investment | $ 6 | |||||
Investment balance | 81 | 104 | ||||
Consideration for investment | 221 | |||||
Consideration for investment, notes payable | $ 215 | |||||
Equity method investments debt balance | $ 80 | 104 | ||||
Waste To Energy LLC [Member] | ||||||
Variable Interest Entity [Line Items] | ||||||
Net income (loss) attributable to noncontrolling interests | $ 39 | $ 43 | ||||
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 Informat110
Segment and Related Information - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2015Areas | |
Segment Reporting Information [Line Items] | |
Number of geographical areas | 17 |
Solid Waste [Member] | |
Segment Reporting Information [Line Items] | |
Number of geographical areas | 17 |
Segment and Related Informat111
Segment and Related Information - Reportable Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | $ 12,961 | $ 13,996 | $ 13,983 |
Income from operations | 502 | $ 601 | $ 502 | $ 440 | 752 | $ 546 | $ 532 | $ 469 | 2,045 | 2,299 | 1,079 |
Depreciation and amortization | 1,245 | 1,292 | 1,333 | ||||||||
Capital Expenditures | 1,229 | 1,181 | 1,267 | ||||||||
Total Assets | 20,419 | 21,297 | 20,419 | 21,297 | 22,490 | ||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 15,350 | 16,457 | 16,507 | ||||||||
Total Assets | 20,958 | 21,888 | 20,958 | 21,888 | 23,102 | ||||||
Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (2,389) | (2,461) | (2,524) | ||||||||
Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from operations | (522) | (769) | (667) | ||||||||
Depreciation and amortization | 64 | 71 | 72 | ||||||||
Capital Expenditures | 56 | 74 | 123 | ||||||||
Total Assets | 1,835 | 2,850 | 1,835 | 2,850 | 1,346 | ||||||
Solid Waste: Tier 1 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 4,227 | 4,283 | 4,259 | ||||||||
Income from operations | 1,290 | 1,301 | 1,246 | ||||||||
Depreciation and amortization | 428 | 408 | 418 | ||||||||
Capital Expenditures | 382 | 388 | 367 | ||||||||
Solid Waste: Tier 1 [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 5,083 | 5,117 | 5,130 | ||||||||
Total Assets | 6,098 | 6,150 | 6,098 | 6,150 | 6,180 | ||||||
Solid Waste: Tier 1 [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (856) | (834) | (871) | ||||||||
Solid Waste: Tier 2 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 2,691 | 2,853 | 2,829 | ||||||||
Income from operations | 629 | 711 | 454 | ||||||||
Depreciation and amortization | 280 | 287 | 284 | ||||||||
Capital Expenditures | 251 | 223 | 267 | ||||||||
Solid Waste: Tier 2 [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 3,304 | 3,516 | 3,479 | ||||||||
Total Assets | 5,394 | 5,648 | 5,394 | 5,648 | 5,850 | ||||||
Solid Waste: Tier 2 [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (613) | (663) | (650) | ||||||||
Solid Waste: Tier 3 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 4,085 | 4,030 | 4,065 | ||||||||
Income from operations | 808 | 787 | 734 | ||||||||
Depreciation and amortization | 379 | 361 | 376 | ||||||||
Capital Expenditures | 412 | 351 | 367 | ||||||||
Solid Waste: Tier 3 [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 4,898 | 4,816 | 4,868 | ||||||||
Total Assets | 5,930 | 5,449 | 5,930 | 5,449 | 5,512 | ||||||
Solid Waste: Tier 3 [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (813) | (786) | (803) | ||||||||
Wheelabrator [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 715 | 733 | |||||||||
Income from operations | 669 | (517) | |||||||||
Depreciation and amortization | 37 | 61 | |||||||||
Capital Expenditures | 11 | 17 | |||||||||
Wheelabrator [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 817 | 845 | |||||||||
Total Assets | 2,037 | ||||||||||
Wheelabrator [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (102) | (112) | |||||||||
Operating Group Total [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 12,961 | 13,996 | 13,983 | ||||||||
Income from operations | 2,567 | 3,068 | 1,746 | ||||||||
Depreciation and amortization | 1,181 | 1,221 | 1,261 | ||||||||
Capital Expenditures | 1,173 | 1,107 | 1,144 | ||||||||
Operating Group Total [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 15,350 | 16,457 | 16,507 | ||||||||
Total Assets | 19,123 | 19,038 | 19,123 | 19,038 | 21,756 | ||||||
Operating Group Total [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | (2,389) | (2,461) | (2,524) | ||||||||
Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 1,958 | 2,115 | 2,097 | ||||||||
Income from operations | (160) | (400) | (171) | ||||||||
Depreciation and amortization | 94 | 128 | 122 | ||||||||
Capital Expenditures | 128 | 134 | 126 | ||||||||
Other [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | 2,065 | 2,191 | 2,185 | ||||||||
Total Assets | $ 1,701 | $ 1,791 | 1,701 | 1,791 | 2,177 | ||||||
Other [Member] | Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross Operating revenues | $ (107) | $ (76) | $ (88) |
Segment and Related Informat112
Segment and Related Information - Reportable Segments (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||
Impairment charges | $ 89 | $ 345 | $ 472 | ||
(Income) expense from divestitures | (7) | (515) | (8) | ||
Assets | $ 21,297 | 20,419 | 21,297 | 22,490 | |
Goodwill, Beginning balance | $ 5,740 | 5,740 | 6,070 | ||
Acquired goodwill | 325 | 31 | |||
Divested goodwill, net of assets held-for-sale | (7) | (308) | |||
Impairments | (10) | (509) | |||
Translation and other adjustments | (74) | (43) | |||
Goodwill, Ending balance | 5,740 | 5,984 | 5,740 | 6,070 | |
Operating Segments Corporate and Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Impairment charges | 981 | ||||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 21,888 | 20,958 | 21,888 | 23,102 | |
Elimination of Intercompany Investments and Advances [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | (591) | (539) | (591) | (612) | |
Solid Waste: Tier 1 [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Beginning balance | 2,178 | 2,178 | 2,183 | ||
Acquired goodwill | 27 | 4 | |||
Translation and other adjustments | (15) | (9) | |||
Goodwill, Ending balance | 2,178 | 2,190 | 2,178 | 2,183 | |
Solid Waste: Tier 1 [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 6,150 | 6,098 | 6,150 | 6,180 | |
Solid Waste: Tier 2 [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Beginning balance | 1,795 | 1,795 | 1,814 | ||
Acquired goodwill | 42 | 16 | |||
Divested goodwill, net of assets held-for-sale | (6) | (1) | |||
Translation and other adjustments | (59) | (34) | |||
Goodwill, Ending balance | 1,795 | 1,772 | 1,795 | 1,814 | |
Solid Waste: Tier 2 [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 5,648 | 5,394 | 5,648 | 5,850 | |
Solid Waste: Tier 3 [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Beginning balance | 1,662 | 1,662 | 1,653 | ||
Acquired goodwill | 151 | 11 | |||
Divested goodwill, net of assets held-for-sale | (1) | (2) | |||
Goodwill, Ending balance | 1,662 | 1,812 | 1,662 | 1,653 | |
Solid Waste: Tier 3 [Member] | Operating Segments Corporate and Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Impairment charges | 253 | ||||
Solid Waste: Tier 3 [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 5,449 | 5,930 | 5,449 | 5,512 | |
Wheelabrator [Member] | |||||
Segment Reporting Information [Line Items] | |||||
(Income) expense from divestitures | 7 | (519) | (519) | ||
Goodwill, Beginning balance | 305 | ||||
Divested goodwill, net of assets held-for-sale | (305) | ||||
Impairments | (483) | ||||
Goodwill, Ending balance | 305 | ||||
Wheelabrator [Member] | Operating Segments Corporate and Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Impairment charges | 627 | ||||
Wheelabrator [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | 2,037 | ||||
Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill, Beginning balance | $ 105 | 105 | 115 | ||
Acquired goodwill | 105 | ||||
Impairments | (10) | ||||
Goodwill, Ending balance | 105 | 210 | 105 | 115 | |
Other [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | $ 1,791 | $ 1,701 | $ 1,791 | $ 2,177 |
Segment and Related Informat113
Segment and Related Information - Total Revenues by Principal Line of Business (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | $ 12,961 | $ 13,996 | $ 13,983 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 15,350 | 16,457 | 16,507 | ||||||||
Operating Segments [Member] | Commercial [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 3,332 | 3,393 | 3,423 | ||||||||
Operating Segments [Member] | Residential [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,499 | 2,543 | 2,608 | ||||||||
Operating Segments [Member] | Industrial [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,252 | 2,231 | 2,209 | ||||||||
Operating Segments [Member] | Other Collection [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 356 | 340 | 273 | ||||||||
Operating Segments [Member] | Collection [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 8,439 | 8,507 | 8,513 | ||||||||
Operating Segments [Member] | Landfill [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 2,919 | 2,849 | 2,790 | ||||||||
Operating Segments [Member] | Transfer [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,377 | 1,353 | 1,329 | ||||||||
Operating Segments [Member] | Wheelabrator [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 817 | 845 | |||||||||
Operating Segments [Member] | Recycling [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,163 | 1,370 | 1,447 | ||||||||
Operating Segments [Member] | Other Revenue [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 1,452 | 1,561 | 1,583 | ||||||||
Intercompany Operating Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $ (2,389) | $ (2,461) | $ (2,524) |
Segment and Related Informat114
Segment and Related Information - Summary of Net Operating Revenues by Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | $ 12,961 | $ 13,996 | $ 13,983 |
United States and Puerto Rico [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | 12,196 | 13,064 | 13,054 | ||||||||
Canada [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total operating revenues | $ 765 | $ 932 | $ 929 |
Segment and Related Informat115
Segment and Related Information - Summary of Property and Equipment (Net) Relating to Operations by Segment (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 10,665 | $ 10,657 | $ 12,344 |
United States and Puerto Rico [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 9,778 | 9,586 | 11,198 |
Canada [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 887 | $ 1,071 | $ 1,146 |
Quarterly Financial Data (Un116
Quarterly Financial Data (Unaudited) - Schedule of Unaudited Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | $ 12,961 | $ 13,996 | $ 13,983 |
Income from operations | 502 | 601 | 502 | 440 | 752 | 546 | 532 | 469 | 2,045 | 2,299 | 1,079 |
Consolidated net income | 273 | 337 | 273 | (131) | 598 | 281 | 222 | 237 | 752 | 1,338 | 130 |
Net income (loss) attributable to Waste Management, Inc. | $ 273 | $ 335 | $ 274 | $ (129) | $ 590 | $ 270 | $ 210 | $ 228 | $ 753 | $ 1,298 | $ 98 |
Basic earnings (loss) common share | $ 0.61 | $ 0.75 | $ 0.60 | $ (0.28) | $ 1.29 | $ 0.59 | $ 0.45 | $ 0.49 | $ 1.66 | $ 2.80 | $ 0.21 |
Diluted earnings (loss) common share | $ 0.61 | $ 0.74 | $ 0.60 | $ (0.28) | $ 1.28 | $ 0.58 | $ 0.45 | $ 0.49 | $ 1.65 | $ 2.79 | $ 0.21 |
Quarterly Financial Data (Un117
Quarterly Financial Data (Unaudited) - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information [Line Items] | |||||||||
Loss on early extinguishment of debt | $ (555) | ||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.02) | $ 0.01 | $ (0.03) | $ (0.49) | $ (0.09) | $ (0.03) | |||
Net pre-tax charges | $ 14 | $ 364 | $ 16 | ||||||
(Income) expense from divestitures | (7) | $ (515) | $ (8) | ||||||
Impairment charges | 89 | 345 | 472 | ||||||
Pre-tax restructuring charges | $ 8 | $ 67 | 15 | 82 | 18 | ||||
Income tax expense (benefit) | 308 | 413 | 364 | ||||||
Goodwill impairment charges | 10 | 509 | |||||||
Senior Notes [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Loss on early extinguishment of debt | $ (550) | ||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.74) | ||||||||
Early extinguishment of high-coupon senior notes | $ 2,000 | ||||||||
Restructuring Charges [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.02) | ||||||||
Pre-tax restructuring charges | $ 13 | ||||||||
Recycling Operations [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | 18 | ||||||||
Goodwill impairment charges | 10 | 10 | |||||||
Investment in Waste Diversion Technology Company [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | 25 | ||||||||
Impairment charge relating to decline in value of investment accounted under cost method | $ 4 | 20 | 5 | 22 | 71 | ||||
Eastern Canada Area [Member] | Investment in Waste Diversion Technology Company [Member] | Legal Reserve [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.05) | ||||||||
Net pre-tax charges | $ 20 | ||||||||
Landfill [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | 262 | ||||||||
Landfill [Member] | Western Canada Area [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | 5 | ||||||||
Landfill [Member] | Eastern Canada Area [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
(Income) expense from divestitures | (18) | ||||||||
Impairment charges | 262 | ||||||||
Recycling Assets [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | 31 | ||||||||
Oil and Gas Well [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.09) | ||||||||
(Income) expense from divestitures | $ (6) | ||||||||
Impairment of oil and gas property to its estimated fair value | $ 70 | $ 270 | 66 | 272 | 15 | ||||
Waste Processing Facility [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Impairment charges | $ 12 | ||||||||
Puerto Rico Operations [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.12) | ||||||||
(Income) expense from divestitures | $ 25 | 25 | |||||||
Income tax expense (benefit) | 0 | ||||||||
Tax charges incurred prior to divestment | $ 32 | ||||||||
Withdrawal from Multiemployer Pension Plans [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ (0.07) | ||||||||
Charge to "Operating" expenses | $ 55 | $ 51 | 4 | 5 | |||||
Wheelabrator [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Positive (Negative) impact on diluted earnings per common share | $ 1.12 | ||||||||
(Income) expense from divestitures | $ 7 | $ (519) | (519) | ||||||
Pre-tax restructuring charges | $ 1 | 1 | |||||||
Goodwill impairment charges | $ 483 | ||||||||
Wheelabrator [Member] | Recycling Assets [Member] | |||||||||
Quarterly Financial Information [Line Items] | |||||||||
Net pre-tax charges | $ 6 |
Condensed Consolidating Fina118
Condensed Consolidating Financial Statements - Condensed Consolidating Balance Sheets (Detail) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 39 | $ 1,307 | $ 58 | $ 194 |
Other current assets | 2,306 | 2,219 | ||
Total current assets | 2,345 | 3,526 | ||
Property and equipment, net | 10,665 | 10,657 | 12,344 | |
Other assets | 7,409 | 7,114 | ||
Total assets | 20,419 | 21,297 | 22,490 | |
Current liabilities: | ||||
Current portion of long-term debt | 253 | 1,090 | ||
Accounts payable and other current liabilities | 2,257 | 2,395 | ||
Total current liabilities | 2,510 | 3,485 | ||
Long-term debt, less current portion | 8,728 | 8,345 | ||
Other liabilities | 3,814 | 3,578 | ||
Total liabilities | 15,052 | 15,408 | ||
Equity: | ||||
Stockholders' equity | 5,345 | 5,866 | ||
Noncontrolling interests | 22 | 23 | ||
Total equity | 5,367 | 5,889 | 6,002 | 6,675 |
Total liabilities and equity | 20,419 | 21,297 | ||
Eliminations [Member] | ||||
Current assets: | ||||
Investments in and advances to affiliates | (44,833) | (41,839) | ||
Total assets | (44,833) | (41,839) | ||
Current liabilities: | ||||
Due to affiliates | (7,365) | (6,745) | ||
Total liabilities | (7,365) | (6,745) | ||
Equity: | ||||
Stockholders' equity | (37,468) | (35,094) | ||
Total equity | (37,468) | (35,094) | ||
Total liabilities and equity | (44,833) | (41,839) | ||
WM [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 1,235 | 60 | ||
Other current assets | 3 | 5 | ||
Total current assets | 3 | 1,240 | ||
Investments in and advances to affiliates | 18,557 | 17,312 | ||
Other assets | 55 | 50 | ||
Total assets | 18,615 | 18,602 | ||
Current liabilities: | ||||
Current portion of long-term debt | 41 | 957 | ||
Accounts payable and other current liabilities | 83 | 86 | ||
Total current liabilities | 124 | 1,043 | ||
Long-term debt, less current portion | 5,833 | 4,958 | ||
Due to affiliates | 7,289 | 6,703 | ||
Other liabilities | 24 | 32 | ||
Total liabilities | 13,270 | 12,736 | ||
Equity: | ||||
Stockholders' equity | 5,345 | 5,866 | ||
Total equity | 5,345 | 5,866 | ||
Total liabilities and equity | 18,615 | 18,602 | ||
WM Holdings [Member] | ||||
Current assets: | ||||
Other current assets | 6 | 6 | ||
Total current assets | 6 | 6 | ||
Investments in and advances to affiliates | 18,911 | 17,782 | ||
Other assets | 29 | 28 | ||
Total assets | 18,946 | 17,816 | ||
Current liabilities: | ||||
Accounts payable and other current liabilities | 9 | 13 | ||
Total current liabilities | 9 | 13 | ||
Long-term debt, less current portion | 304 | 449 | ||
Due to affiliates | 76 | 42 | ||
Total liabilities | 389 | 504 | ||
Equity: | ||||
Stockholders' equity | 18,557 | 17,312 | ||
Total equity | 18,557 | 17,312 | ||
Total liabilities and equity | 18,946 | 17,816 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 39 | 72 | $ 58 | $ 134 |
Other current assets | 2,297 | 2,208 | ||
Total current assets | 2,336 | 2,280 | ||
Property and equipment, net | 10,665 | 10,657 | ||
Investments in and advances to affiliates | 7,365 | 6,745 | ||
Other assets | 7,325 | 7,036 | ||
Total assets | 27,691 | 26,718 | ||
Current liabilities: | ||||
Current portion of long-term debt | 212 | 133 | ||
Accounts payable and other current liabilities | 2,165 | 2,296 | ||
Total current liabilities | 2,377 | 2,429 | ||
Long-term debt, less current portion | 2,591 | 2,938 | ||
Other liabilities | 3,790 | 3,546 | ||
Total liabilities | 8,758 | 8,913 | ||
Equity: | ||||
Stockholders' equity | 18,911 | 17,782 | ||
Noncontrolling interests | 22 | 23 | ||
Total equity | 18,933 | 17,805 | ||
Total liabilities and equity | $ 27,691 | $ 26,718 |
Condensed Consolidating Fina119
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | $ 3,246 | $ 3,360 | $ 3,315 | $ 3,040 | $ 3,437 | $ 3,602 | $ 3,561 | $ 3,396 | $ 12,961 | $ 13,996 | $ 13,983 |
Costs and expenses | 10,916 | 11,697 | 12,904 | ||||||||
Income from operations | 502 | 601 | 502 | 440 | 752 | 546 | 532 | 469 | 2,045 | 2,299 | 1,079 |
Other income (expense): | |||||||||||
Interest expense, net | (385) | (466) | (477) | ||||||||
Loss on early extinguishment of debt | (555) | ||||||||||
Other, net | (45) | (82) | (108) | ||||||||
Total other income (expense) | (985) | (548) | (585) | ||||||||
Income before income taxes | 1,060 | 1,751 | 494 | ||||||||
Provision for (benefit from) income taxes | 308 | 413 | 364 | ||||||||
Consolidated net income | 273 | 337 | 273 | (131) | 598 | 281 | 222 | 237 | 752 | 1,338 | 130 |
Less: Net income (loss) attributable to noncontrolling interests | (1) | 40 | 32 | ||||||||
Net income attributable to Waste Management, Inc. | $ 273 | $ 335 | $ 274 | $ (129) | $ 590 | $ 270 | $ 210 | $ 228 | 753 | 1,298 | 98 |
Eliminations [Member] | |||||||||||
Other income (expense): | |||||||||||
Equity in earnings of subsidiaries, net of taxes | (2,534) | (2,580) | (645) | ||||||||
Total other income (expense) | (2,534) | (2,580) | (645) | ||||||||
Income before income taxes | (2,534) | (2,580) | (645) | ||||||||
Consolidated net income | (2,534) | (2,580) | (645) | ||||||||
Net income attributable to Waste Management, Inc. | (2,534) | (2,580) | (645) | ||||||||
WM [Member] | |||||||||||
Other income (expense): | |||||||||||
Interest expense, net | (298) | (351) | (355) | ||||||||
Loss on early extinguishment of debt | (500) | ||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,245 | 1,510 | 313 | ||||||||
Total other income (expense) | 447 | 1,159 | (42) | ||||||||
Income before income taxes | 447 | 1,159 | (42) | ||||||||
Provision for (benefit from) income taxes | (306) | (139) | (140) | ||||||||
Consolidated net income | 753 | 1,298 | 98 | ||||||||
Net income attributable to Waste Management, Inc. | 753 | 1,298 | 98 | ||||||||
WM Holdings [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Costs and expenses | (1) | (459) | |||||||||
Income from operations | 1 | 459 | |||||||||
Other income (expense): | |||||||||||
Interest expense, net | (22) | (31) | (32) | ||||||||
Loss on early extinguishment of debt | (52) | ||||||||||
Equity in earnings of subsidiaries, net of taxes | 1,289 | 1,070 | 332 | ||||||||
Total other income (expense) | 1,215 | 1,039 | 300 | ||||||||
Income before income taxes | 1,216 | 1,498 | 300 | ||||||||
Provision for (benefit from) income taxes | (29) | (12) | (13) | ||||||||
Consolidated net income | 1,245 | 1,510 | 313 | ||||||||
Net income attributable to Waste Management, Inc. | 1,245 | 1,510 | 313 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Operating revenues | 12,961 | 13,996 | 13,983 | ||||||||
Costs and expenses | 10,917 | 12,156 | 12,904 | ||||||||
Income from operations | 2,044 | 1,840 | 1,079 | ||||||||
Other income (expense): | |||||||||||
Interest expense, net | (65) | (84) | (90) | ||||||||
Loss on early extinguishment of debt | (3) | ||||||||||
Other, net | (45) | (82) | (108) | ||||||||
Total other income (expense) | (113) | (166) | (198) | ||||||||
Income before income taxes | 1,931 | 1,674 | 881 | ||||||||
Provision for (benefit from) income taxes | 643 | 564 | 517 | ||||||||
Consolidated net income | 1,288 | 1,110 | 364 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | (1) | 40 | 32 | ||||||||
Net income attributable to Waste Management, Inc. | $ 1,289 | $ 1,070 | $ 332 |
Condensed Consolidating Fina120
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income (loss) | $ 602 | $ 1,207 | $ 91 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (1) | 40 | 32 |
Comprehensive income (loss) attributable to Waste Management, Inc. | 603 | 1,167 | 59 |
Eliminations [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income (loss) | (2,534) | (2,580) | (645) |
Comprehensive income (loss) attributable to Waste Management, Inc. | (2,534) | (2,580) | (645) |
WM [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income (loss) | 762 | 1,300 | 112 |
Comprehensive income (loss) attributable to Waste Management, Inc. | 762 | 1,300 | 112 |
WM Holdings [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income (loss) | 1,245 | 1,510 | 313 |
Comprehensive income (loss) attributable to Waste Management, Inc. | 1,245 | 1,510 | 313 |
Non-Guarantor Subsidiaries [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Comprehensive income (loss) | 1,129 | 977 | 311 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (1) | 40 | 32 |
Comprehensive income (loss) attributable to Waste Management, Inc. | $ 1,130 | $ 937 | $ 279 |
Condensed Consolidating Fina121
Condensed Consolidating Financial Statements - Condensed Consolidating Statements of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | $ 273 | $ 337 | $ 273 | $ (131) | $ 598 | $ 281 | $ 222 | $ 237 | $ 752 | $ 1,338 | $ 130 |
Other adjustments | 1,746 | 993 | 2,325 | ||||||||
Net cash provided by (used in) operating activities | 2,498 | 2,331 | 2,455 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of businesses, net of cash acquired | (554) | (35) | (724) | ||||||||
Capital expenditures | (1,233) | (1,151) | (1,271) | ||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | 145 | 2,253 | 138 | ||||||||
Net receipts from restricted trust and escrow accounts and other, net | 34 | (72) | (43) | ||||||||
Net cash provided by (used in) investing activities | (1,608) | 995 | (1,900) | ||||||||
Cash flows from financing activities: | |||||||||||
New borrowings | 2,337 | 2,817 | 2,232 | ||||||||
Debt repayments | (2,764) | (3,568) | (2,077) | ||||||||
Premiums paid on early extinguishment of debt | (555) | ||||||||||
Common stock repurchases | (600) | (600) | (239) | ||||||||
Cash dividends | (695) | (693) | (683) | ||||||||
Exercise of common stock options | 77 | 93 | 132 | ||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 45 | (121) | (52) | ||||||||
Net cash used in financing activities | (2,155) | (2,072) | (687) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (3) | (5) | (4) | ||||||||
Increase (decrease) in cash and cash equivalents | (1,268) | 1,249 | (136) | ||||||||
Cash and cash equivalents at beginning of year | 1,307 | 58 | 1,307 | 58 | 194 | ||||||
Cash and cash equivalents at end of year | 39 | 1,307 | 39 | 1,307 | 58 | ||||||
Eliminations [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | (2,534) | (2,580) | (645) | ||||||||
Equity in earnings of subsidiaries, net of taxes | 2,534 | 2,580 | 645 | ||||||||
WM [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | 753 | 1,298 | 98 | ||||||||
Equity in earnings of subsidiaries, net of taxes | (1,245) | (1,510) | (313) | ||||||||
Other adjustments | 9 | (36) | (2) | ||||||||
Net cash provided by (used in) operating activities | (483) | (248) | (217) | ||||||||
Cash flows from financing activities: | |||||||||||
New borrowings | 1,881 | 2,572 | 1,140 | ||||||||
Debt repayments | (1,920) | (3,005) | (1,120) | ||||||||
Premiums paid on early extinguishment of debt | (503) | ||||||||||
Common stock repurchases | (600) | (600) | (239) | ||||||||
Cash dividends | (695) | (693) | (683) | ||||||||
Exercise of common stock options | 77 | 93 | 132 | ||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 9 | 5 | 14 | ||||||||
(Increase) decrease in intercompany and investments, net | 999 | 3,111 | 913 | ||||||||
Net cash used in financing activities | (752) | 1,483 | 157 | ||||||||
Increase (decrease) in cash and cash equivalents | (1,235) | 1,235 | (60) | ||||||||
Cash and cash equivalents at beginning of year | 1,235 | 1,235 | 60 | ||||||||
Cash and cash equivalents at end of year | 1,235 | 1,235 | |||||||||
WM Holdings [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | 1,245 | 1,510 | 313 | ||||||||
Equity in earnings of subsidiaries, net of taxes | (1,289) | (1,070) | (332) | ||||||||
Other adjustments | (6) | (1) | |||||||||
Net cash provided by (used in) operating activities | (50) | 439 | (19) | ||||||||
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: | |||||||||||
Debt repayments | (145) | ||||||||||
Premiums paid on early extinguishment of debt | (52) | ||||||||||
(Increase) decrease in intercompany and investments, net | 247 | (2,057) | 19 | ||||||||
Net cash used in financing activities | 50 | (2,057) | 19 | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Cash flows from operating activities: | |||||||||||
Consolidated net income (loss) | 1,288 | 1,110 | 364 | ||||||||
Other adjustments | 1,743 | 1,030 | 2,327 | ||||||||
Net cash provided by (used in) operating activities | 3,031 | 2,140 | 2,691 | ||||||||
Cash flows from investing activities: | |||||||||||
Acquisitions of businesses, net of cash acquired | (554) | (35) | (724) | ||||||||
Capital expenditures | (1,233) | (1,151) | (1,271) | ||||||||
Proceeds from divestitures of businesses and other assets (net of cash divested) | 145 | 635 | 138 | ||||||||
Net receipts from restricted trust and escrow accounts and other, net | 34 | (72) | (43) | ||||||||
Net cash provided by (used in) investing activities | (1,608) | (623) | (1,900) | ||||||||
Cash flows from financing activities: | |||||||||||
New borrowings | 456 | 245 | 1,092 | ||||||||
Debt repayments | (699) | (563) | (957) | ||||||||
Acquisitions of and distributions paid to noncontrolling interests and other | 36 | (126) | (66) | ||||||||
(Increase) decrease in intercompany and investments, net | (1,246) | (1,054) | (932) | ||||||||
Net cash used in financing activities | (1,453) | (1,498) | (863) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (3) | (5) | (4) | ||||||||
Increase (decrease) in cash and cash equivalents | (33) | 14 | (76) | ||||||||
Cash and cash equivalents at beginning of year | $ 72 | $ 58 | 72 | 58 | 134 | ||||||
Cash and cash equivalents at end of year | $ 39 | $ 72 | $ 39 | $ 72 | $ 58 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) | Jan. 08, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2015 |
Subsequent Event [Line Items] | |||||
Total consideration, net of cash acquired, for business acquisitions closed during the year | $ 661,000,000 | $ 32,000,000 | $ 772,000,000 | ||
U.S. Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Credit Facility, aggregate capacity | $ 2,250,000,000 | $ 2,250,000,000 | |||
Subsequent Event [Member] | Southern Waste Systems [Member] | |||||
Subsequent Event [Line Items] | |||||
Total consideration, net of cash acquired, for business acquisitions closed during the year | $ 516,000,000 |
Valuation and Qualifying Acc123
Valuation and Qualifying Accounts (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reserves for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | $ 31 | $ 34 | $ 45 |
Charged to Income | 36 | 42 | 39 |
Accounts Written Off/Use of Reserve | (42) | (45) | (50) |
Balance End of Year | 25 | 31 | 34 |
Merger and Restructuring Accruals [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance Beginning of Year | 45 | 14 | 32 |
Charged to Income | 15 | 82 | 18 |
Accounts Written Off/Use of Reserve | (47) | (51) | (36) |
Balance End of Year | $ 13 | $ 45 | $ 14 |