Condensed Consolidating Financial Statements | 22. 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, 2019 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 3,485 $ — $ 76 $ — $ 3,561 Other current assets 2 4 2,642 — 2,648 3,487 4 2,718 — 6,209 Property and equipment, net — — 12,893 — 12,893 Investments in affiliates 26,221 26,673 — (52,894) — Advances to affiliates — — 19,047 (19,047) — Other assets 6 10 8,625 — 8,641 Total assets $ 29,714 $ 26,687 $ 43,283 $ (71,941) $ 27,743 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 15 $ — $ 203 $ — $ 218 Accounts payable and other current liabilities 105 7 2,814 — 2,926 120 7 3,017 — 3,144 Long-term debt, less current portion 10,736 248 2,296 — 13,280 Due to affiliates 19,131 214 7,345 (26,690) — Other liabilities 4 — 4,245 — 4,249 Total liabilities 29,991 469 16,903 (26,690) 20,673 Equity: Stockholders’ equity 7,068 26,218 26,676 (52,894) 7,068 Advances to affiliates (7,345) — (298) 7,643 — Noncontrolling interests — — 2 — 2 (277) 26,218 26,380 (45,251) 7,070 Total liabilities and equity $ 29,714 $ 26,687 $ 43,283 $ (71,941) $ 27,743 CONDENSED CONSOLIDATING BALANCE SHEETS (Continued) December 31, 2018 WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ — $ 61 $ — $ 61 Other current assets 2 5 2,577 — 2,584 2 5 2,638 — 2,645 Property and equipment, net — — 11,942 — 11,942 Investments in affiliates 24,547 24,968 — (49,515) — Advances to affiliates — — 17,129 (17,129) — Other assets 8 31 8,024 — 8,063 Total assets $ 24,557 $ 25,004 $ 39,733 $ (66,644) $ 22,650 LIABILITIES AND EQUITY Current liabilities: Current portion of long-term debt $ 258 $ — $ 174 $ — $ 432 Accounts payable and other current liabilities 82 9 2,585 — 2,676 340 9 2,759 — 3,108 Long-term debt, less current portion 7,377 304 1,913 — 9,594 Due to affiliates 17,269 146 6,709 (24,124) — Other liabilities 5 — 3,667 — 3,672 Total liabilities 24,991 459 15,048 (24,124) 16,374 Equity: Stockholders’ equity 6,275 24,545 24,970 (49,515) 6,275 Advances to affiliates (6,709) — (286) 6,995 — Noncontrolling interests — — 1 — 1 (434) 24,545 24,685 (42,520) 6,276 Total liabilities and equity $ 24,557 $ 25,004 $ 39,733 $ (66,644) $ 22,650 CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Years Ended December 31: 2019 Operating revenues (a) $ — $ — $ 15,455 $ — $ 15,455 Costs and expenses (a) — — 12,749 — 12,749 Income from operations — — 2,706 — 2,706 Other income (expense): Interest expense, net (347) (19) (45) — (411) Loss on early extinguishment of debt (70) (14) (1) — (85) Equity in earnings of subsidiaries, net of tax 1,976 2,007 — (3,983) — Other, net — 68 (101) (72) (105) 1,559 2,042 (147) (4,055) (601) Income before income taxes 1,559 2,042 2,559 (4,055) 2,105 Income tax expense (benefit) (111) (5) 550 — 434 Consolidated net income 1,670 2,047 2,009 (4,055) 1,671 Less: Net income (loss) attributable to noncontrolling interests — — 1 — 1 Net income attributable to Waste Management, Inc. $ 1,670 $ 2,047 $ 2,008 $ (4,055) $ 1,670 2018 Operating revenues (a) $ — $ — $ 14,914 $ — $ 14,914 Costs and expenses (a) — — 12,125 — 12,125 Income from operations — — 2,789 — 2,789 Other income (expense): Interest expense, net (312) (20) (42) — (374) Equity in earnings of subsidiaries, net of tax 2,155 2,169 — (4,324) — Other, net — — (39) — (39) 1,843 2,149 (81) (4,324) (413) Income before income taxes 1,843 2,149 2,708 (4,324) 2,376 Income tax expense (benefit) (82) (5) 540 — 453 Consolidated net income 1,925 2,154 2,168 (4,324) 1,923 Less: Net income (loss) attributable to noncontrolling interests — — (2) — (2) Net income attributable to Waste Management, Inc. $ 1,925 $ 2,154 $ 2,170 $ (4,324) $ 1,925 2017 Operating revenues $ — $ — $ 15,040 $ (555) $ 14,485 Costs and expenses 555 — 11,849 (555) 11,849 Income from operations (555) — 3,191 — 2,636 Other income (expense): Interest expense, net (299) (20) (44) — (363) Loss on early extinguishment of debt (6) — — — (6) Equity in earnings of subsidiaries, net of tax 2,469 2,482 — (4,951) — Other, net 2 (1) (77) — (76) 2,166 2,461 (121) (4,951) (445) Income before income taxes 1,611 2,461 3,070 (4,951) 2,191 Income tax expense (benefit) (338) (8) 588 — 242 Consolidated net income 1,949 2,469 2,482 (4,951) 1,949 Less: Net income (loss) attributable to noncontrolling interests — — — — — Net income attributable to Waste Management, Inc. $ 1,949 $ 2,469 $ 2,482 $ (4,951) $ 1,949 (a) For 2019 and 2018, operating revenues and costs and expenses related to insurance premiums for a wholly-owned insurance captive are included in Non-Guarantor Subsidiaries to more accurately reflect those transactions. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME WM Non-Guarantor WM Holdings Subsidiaries Eliminations Consolidated Years Ended December 31: 2019 Comprehensive income $ 1,678 $ 2,047 $ 2,080 $ (4,055) $ 1,750 Less: Comprehensive income (loss) attributable to noncontrolling interests — — 1 — 1 Comprehensive income attributable to Waste Management, Inc. $ 1,678 $ 2,047 $ 2,079 $ (4,055) $ 1,749 2018 Comprehensive income $ 1,933 $ 2,154 $ 2,070 $ (4,324) $ 1,833 Less: Comprehensive income (loss) attributable to noncontrolling interests — — (2) — (2) Comprehensive income attributable to Waste Management, Inc. $ 1,933 $ 2,154 $ 2,072 $ (4,324) $ 1,835 2017 Comprehensive income $ 1,955 $ 2,469 $ 2,564 $ (4,951) $ 2,037 Less: Comprehensive income (loss) attributable to noncontrolling interests — — — — — Comprehensive income attributable to Waste Management, Inc. $ 1,955 $ 2,469 $ 2,564 $ (4,951) $ 2,037 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS WM Non-Guarantor WM(a) Holdings(a) Subsidiaries(a) Eliminations Consolidated Years Ended December 31: 2019 Cash flows provided by (used in): Operating activities $ — $ — $ 3,874 $ — $ 3,874 Investing activities — — (2,376) — (2,376) Financing activities — — 1,964 — 1,964 Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — 2 — 2 Intercompany activity 3,485 — (3,485) — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents 3,485 — (21) — 3,464 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 183 — 183 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ 3,485 $ — $ 162 $ — $ 3,647 2018 Cash flows provided by (used in): Operating activities $ — $ — $ 3,570 $ — $ 3,570 Investing activities — — (2,169) — (2,169) Financing activities — — (1,508) — (1,508) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — (3) — (3) Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents — — (110) — (110) Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 293 — 293 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ — $ — $ 183 $ — $ 183 2017 Cash flows provided by (used in): Operating activities $ — $ — $ 3,180 $ — $ 3,180 Investing activities — — (1,620) — (1,620) Financing activities — — (1,361) — (1,361) Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents — — — — — Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents — — 199 — 199 Cash, cash equivalents and restricted cash and cash equivalents at beginning of period — — 94 — 94 Cash, cash equivalents and restricted cash and cash equivalents at end of period $ — $ — $ 293 $ — $ 293 (a) Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of December 31, 2019 include remaining proceeds from our senior note issuances which are discussed further in Notes 7 and 17. |