Condensed Consolidating Financial Statements | 14. 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 March 31, 2017 (Unaudited) WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 30 $ — $ 30 Other current assets 4 5 2,184 — 2,193 4 5 2,214 — 2,223 Property and equipment, net — — 10,929 — 10,929 Investments in affiliates 20,267 20,686 — (40,953 ) — Advances to affiliates — — 13,389 (13,389 ) — Other assets 14 36 7,448 — 7,498 Total assets $ 20,285 $ 20,727 $ 33,980 $ (54,342 ) $ 20,650 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 255 $ — $ 141 $ — $ 396 Accounts payable and other current liabilities 61 4 2,097 — 2,162 316 4 2,238 — 2,558 Long-term debt, less current portion 6,027 304 2,315 — 8,646 Due to affiliates 13,712 153 5,299 (19,164 ) — Other liabilities 12 — 3,896 — 3,908 Total liabilities 20,067 461 13,748 (19,164 ) 15,112 Equity: Stockholders’ equity 5,517 20,266 20,687 (40,953 ) 5,517 Advances to affiliates (5,299 ) — (476 ) 5,775 — Noncontrolling interests — — 21 — 21 218 20,266 20,232 (35,178 ) 5,538 Total liabilities and equity $ 20,285 $ 20,727 $ 33,980 $ (54,342 ) $ 20,650 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2016 WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 32 $ — $ 32 Other current assets 5 5 2,334 — 2,344 5 5 2,366 — 2,376 Property and equipment, net — — 10,950 — 10,950 Investments in affiliates 19,924 20,331 — (40,255 ) — Investments to affiliates — — 13,000 (13,000 ) — Other assets 14 30 7,489 — 7,533 Total assets $ 19,943 $ 20,366 $ 33,805 $ (53,255 ) $ 20,859 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 269 $ — $ 148 $ — $ 417 Accounts payable and other current liabilities 81 9 2,287 — 2,377 350 9 2,435 — 2,794 Long-term debt, less current portion 6,229 304 2,360 — 8,893 Due to affiliates 13,350 128 5,299 (18,777 ) — Other liabilities 16 — 3,836 — 3,852 Total liabilities 19,945 441 13,930 (18,777 ) 15,539 Equity: Stockholders’ equity 5,297 19,925 20,330 (40,255 ) 5,297 Advances to affiliates (5,299 ) — (478 ) 5,777 — Noncontrolling interests — — 23 — 23 (2 ) 19,925 19,875 (34,478 ) 5,320 Total liabilities and equity $ 19,943 $ 20,366 $ 33,805 $ (53,255 ) $ 20,859 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS Three Months Ended March 31, 2017 (Unaudited) WM WM Non-Guarantor Eliminations Consolidated Operating revenues $ — $ — $ 3,440 $ — $ 3,440 Costs and expenses — — 2,882 — 2,882 Income from operations — — 558 — 558 Other income (expense): Interest expense, net (74 ) (5 ) (13 ) — (92 ) Equity in earnings of subsidiaries, net of tax expense 343 346 — (689 ) — Other, net — — (32 ) — (32 ) 269 341 (45 ) (689 ) (124 ) Income before income taxes 269 341 513 (689 ) 434 Income tax expense (benefit) (29 ) (2 ) 168 — 137 Consolidated net income 298 343 345 (689 ) 297 Less: Net loss attributable to noncontrolling interests — — (1 ) — (1 ) Net income attributable to Waste Management, Inc. $ 298 $ 343 $ 346 $ (689 ) $ 298 Three Months Ended March 31, 2016 (Unaudited) WM WM Non-Guarantor Eliminations Consolidated Operating revenues $ — $ — $ 3,176 $ — $ 3,176 Costs and expenses — — 2,668 — 2,668 Income from operations — — 508 — 508 Other income (expense): Interest expense, net (74 ) (5 ) (16 ) — (95 ) Equity in earnings of subsidiaries, net of tax expense 304 307 — (611 ) — Other, net (1 ) — (16 ) — (17 ) 229 302 (32 ) (611 ) (112 ) Income before income taxes 229 302 476 (611 ) 396 Income tax expense (benefit) (29 ) (2 ) 171 — 140 Consolidated net income 258 304 305 (611 ) 256 Less: Net loss attributable to noncontrolling interests — — (2 ) — (2 ) Net income attributable to Waste Management, Inc. $ 258 $ 304 $ 307 $ (611 ) $ 258 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) WM WM Non-Guarantor Eliminations Consolidated Three Months Ended March 31, 2017 Comprehensive income $ 300 $ 343 $ 357 $ (689 ) $ 311 Less: Comprehensive loss attributable to noncontrolling interests — — (1 ) — (1 ) Comprehensive income attributable to Waste Management, Inc. $ 300 $ 343 $ 358 $ (689 ) $ 312 Three Months Ended March 31, 2016 Comprehensive income $ 260 $ 304 $ 372 $ (611 ) $ 325 Less: Comprehensive loss attributable to noncontrolling interests — — (2 ) — (2 ) Comprehensive income attributable to Waste Management, Inc. $ 260 $ 304 $ 374 $ (611 ) $ 327 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2017 (Unaudited) WM(a) WM Non-Guarantor Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 721 $ — $ 721 Investing activities — — (340 ) — (340 ) Financing activities — — (383 ) — (383 ) Effect of exchange rate changes on cash and cash equivalents — — — — — Intercompany activity — — — — — Increase (decrease) in cash and cash equivalents — — (2 ) — (2 ) Cash and cash equivalents at beginning of period — — 32 — 32 Cash and cash equivalents at end of period $ — $ — $ 30 $ — $ 30 (a) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Three Months Ended March 31, 2016 (Unaudited) WM(b) WM Non-Guarantor Eliminations Consolidated Cash flows provided by (used in): Operating activities $ — $ — $ 732 $ — $ 732 Investing activities — — (847 ) — (847 ) Financing activities — — 180 — 180 Effect of exchange rate changes on cash and cash equivalents — — — — — Intercompany activity — — — — — Increase (decrease) in cash and cash equivalents — — 65 — 65 Cash and cash equivalents at beginning of period — — 39 — 39 Cash and cash equivalents at end of period $ — $ — $ 104 $ — $ 104 (b) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Non-Guarantor |