Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 22, 2024 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2024 | |
Securities Act File Number | 1-12154 | |
Entity Registrant Name | Waste Management, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 73-1309529 | |
Entity Address, Address Line One | 800 Capitol Street | |
Entity Address, Address Line Two | Suite 3000 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 512-6200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | WM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 401,314,827 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000823768 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 172 | $ 458 |
Accounts receivable, net of allowance for doubtful accounts of $29 and $30, respectively | 2,728 | 2,633 |
Other receivables, net of allowance for doubtful accounts of $4 and $4, respectively | 252 | 237 |
Parts and supplies | 183 | 173 |
Other current assets | 1,104 | 303 |
Total current assets | 4,439 | 3,804 |
Property and equipment, net of accumulated depreciation and depletion of $23,310 and $22,826, respectively | 17,420 | 16,968 |
Goodwill | 9,363 | 9,254 |
Other intangible assets, net | 753 | 759 |
Restricted funds | 465 | 422 |
Investments in unconsolidated entities | 552 | 606 |
Other long-term assets | 1,007 | 1,010 |
Total assets | 33,999 | 32,823 |
Current liabilities: | ||
Accounts payable | 1,785 | 1,709 |
Accrued liabilities | 1,525 | 1,605 |
Deferred revenues | 584 | 578 |
Current portion of long-term debt | 242 | 334 |
Total current liabilities | 4,136 | 4,226 |
Long-term debt, less current portion | 16,501 | 15,895 |
Deferred income taxes | 1,826 | 1,826 |
Landfill and environmental remediation liabilities | 2,936 | 2,888 |
Other long-term liabilities | 1,149 | 1,092 |
Total liabilities | 26,548 | 25,927 |
Commitments and contingencies (Note 6) | ||
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 | 5,433 | 5,351 |
Retained earnings | 15,104 | 14,334 |
Accumulated other comprehensive (loss) income | (73) | (37) |
Treasury stock at cost, 229,183,391 and 228,827,218 shares, respectively | (13,013) | (12,751) |
Total Waste Management, Inc. stockholders' equity | 7,457 | 6,903 |
Noncontrolling interests | (6) | (7) |
Total equity | 7,451 | 6,896 |
Total liabilities and equity | $ 33,999 | $ 32,823 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
Allowance for doubtful accounts | $ 29 | $ 30 |
Allowance for other receivables | 4 | 4 |
Accumulated depreciation and amortization | $ 23,310 | $ 22,826 |
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 | 229,183,391 | 228,827,218 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Operating revenues | $ 5,402 | $ 5,119 | $ 10,561 | $ 10,011 |
Costs and expenses: | ||||
Operating | 3,291 | 3,186 | 6,431 | 6,272 |
Selling, general and administrative | 501 | 467 | 992 | 943 |
Depreciation, depletion and amortization | 543 | 521 | 1,057 | 1,026 |
Restructuring | 1 | 4 | ||
(Gain) loss from divestitures, asset impairments and unusual items, net | 58 | 56 | (3) | |
Total costs and expenses | 4,393 | 4,175 | 8,536 | 8,242 |
Income from operations | 1,009 | 944 | 2,025 | 1,769 |
Other income (expense): | ||||
Interest expense, net | (136) | (125) | (266) | (245) |
Equity in net income (losses) of unconsolidated entities | 22 | (12) | 3 | (23) |
Other, net | (1) | 2 | 1 | 4 |
Total other income (expense) | (115) | (135) | (262) | (264) |
Income before income taxes | 894 | 809 | 1,763 | 1,505 |
Income tax expense | 214 | 196 | 376 | 360 |
Consolidated net income | 680 | 613 | 1,387 | 1,145 |
Less: Net income (loss) attributable to noncontrolling interests | (2) | (1) | (3) | |
Net income attributable to Waste Management, Inc. | $ 680 | $ 615 | $ 1,388 | $ 1,148 |
Basic earnings per common share | $ 1.70 | $ 1.52 | $ 3.46 | $ 2.82 |
Diluted earnings per common share | $ 1.69 | $ 1.51 | $ 3.44 | $ 2.81 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Consolidated net income | $ 680 | $ 613 | $ 1,387 | $ 1,145 |
Other comprehensive income (loss), net of tax: | ||||
Derivative instruments, net | (1) | 6 | (1) | 11 |
Available-for-sale securities, net | (1) | 5 | ||
Foreign currency translation adjustments | (10) | 20 | (34) | 22 |
Post-retirement benefit obligations, net | (1) | (1) | (1) | (1) |
Other comprehensive income (loss), net of tax | (13) | 25 | (36) | 37 |
Comprehensive income | 667 | 638 | 1,351 | 1,182 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | (2) | (1) | (3) | |
Comprehensive income attributable to Waste Management, Inc. | $ 667 | $ 640 | $ 1,352 | $ 1,185 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 1,387 | $ 1,145 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 1,057 | 1,026 |
Deferred income tax expense (benefit) | 14 | 31 |
Interest accretion on landfill and environmental remediation liabilities | 66 | 65 |
Provision for bad debts | 26 | 20 |
Equity-based compensation expense | 57 | 47 |
Net gain on disposal of assets | (50) | (20) |
(Gain) loss from divestitures, asset impairments and other, net | 56 | (3) |
Equity in net (income) losses of unconsolidated entities, net of dividends | (3) | 23 |
Change in operating assets and liabilities, net of effects of acquisitions and divestitures: | ||
Receivables | (127) | (105) |
Other current assets | (30) | (29) |
Other assets | 63 | 43 |
Accounts payable and accrued liabilities | 85 | (22) |
Deferred revenues and other liabilities | (80) | (147) |
Net cash provided by operating activities | 2,521 | 2,074 |
Cash flows from investing activities: | ||
Acquisitions of businesses, net of cash acquired | (243) | (118) |
Capital expenditures | (1,335) | (1,180) |
Proceeds from divestitures of businesses and other assets, net of cash divested | 58 | 46 |
Other, net | (839) | (87) |
Net cash used in investing activities | (2,359) | (1,339) |
Cash flows from financing activities: | ||
New borrowings | 9,180 | 11,356 |
Debt repayments | (8,752) | (11,074) |
Common stock repurchase program | (262) | (620) |
Cash dividends | (608) | (572) |
Exercise of common stock options | 36 | 25 |
Tax payments associated with equity-based compensation transactions | (48) | (28) |
Other, net | (10) | (6) |
Net cash used in financing activities | (464) | (919) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents | (4) | 2 |
(Decrease) increase in cash, cash equivalents and restricted cash and cash equivalents | (306) | (182) |
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period | 552 | 445 |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 246 | $ 263 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2024 | Jun. 30, 2023 |
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period: | ||
Cash and cash equivalents | $ 172 | $ 144 |
Restricted cash and cash equivalents included in other current assets | $ 4 | $ 43 |
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration] | Other Assets, Current | Other Assets, Current |
Restricted cash and cash equivalents included in restricted funds | $ 70 | $ 76 |
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Restricted Cash and Investments, Noncurrent | Restricted Cash and Investments, Noncurrent |
Cash, cash equivalents and restricted cash and cash equivalents at end of period | $ 246 | $ 263 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Noncontrolling Interests [Member] | Cumulative Effect, Period of Adoption, Adjustment [Member] | Total |
Beginning balance at Dec. 31, 2022 | $ 6 | $ 5,314 | $ 13,167 | $ (69) | $ (11,569) | $ 15 | $ 6,864 | ||
Beginning balance, common shares at Dec. 31, 2022 | 630,282,000 | ||||||||
Beginning balance, treasury shares at Dec. 31, 2022 | (222,396,000) | ||||||||
Equity roll forward | |||||||||
Consolidated net income | 1,148 | (3) | 1,145 | ||||||
Other comprehensive income (loss), net of tax | 37 | 37 | |||||||
Cash dividends declared | (572) | (572) | |||||||
Equity-based compensation transactions, net | 27 | 1 | $ 47 | 75 | |||||
Equity-based compensation transactions, net, shares | 923,000 | ||||||||
Common stock repurchase program | $ (628) | (628) | |||||||
Common stock repurchase program, shares | (3,936,000) | ||||||||
Other, net | 7 | 7 | |||||||
Other, net, shares | 2,000 | ||||||||
Ending balance at Jun. 30, 2023 | $ 6 | 5,341 | 13,744 | (32) | $ (12,150) | 19 | $ 6,928 | ||
Ending balance, common shares at Jun. 30, 2023 | 630,282,000 | 404,900,000 | |||||||
Ending balance, treasury shares at Jun. 30, 2023 | (225,407,000) | ||||||||
Beginning balance at Mar. 31, 2023 | $ 6 | 5,244 | 13,414 | (57) | $ (11,813) | 14 | $ 6,808 | ||
Beginning balance, common shares at Mar. 31, 2023 | 630,282,000 | ||||||||
Beginning balance, treasury shares at Mar. 31, 2023 | (223,491,000) | ||||||||
Equity roll forward | |||||||||
Consolidated net income | 615 | (2) | 613 | ||||||
Other comprehensive income (loss), net of tax | 25 | 25 | |||||||
Cash dividends declared | (283) | (283) | |||||||
Equity-based compensation transactions, net | 27 | (2) | $ 8 | 33 | |||||
Equity-based compensation transactions, net, shares | 157,000 | ||||||||
Common stock repurchase program | 70 | $ (345) | (275) | ||||||
Common stock repurchase program, shares | (2,074,000) | ||||||||
Other, net | 7 | 7 | |||||||
Other, net, shares | 1,000 | ||||||||
Ending balance at Jun. 30, 2023 | $ 6 | 5,341 | 13,744 | (32) | $ (12,150) | 19 | $ 6,928 | ||
Ending balance, common shares at Jun. 30, 2023 | 630,282,000 | 404,900,000 | |||||||
Ending balance, treasury shares at Jun. 30, 2023 | (225,407,000) | ||||||||
Beginning balance at Dec. 31, 2023 | $ 6 | 5,351 | 14,334 | (37) | $ (12,751) | (7) | $ 6,896 | ||
Beginning balance, common shares at Dec. 31, 2023 | 630,282,000 | ||||||||
Beginning balance, treasury shares at Dec. 31, 2023 | (228,827,000) | (228,827,218) | |||||||
Equity roll forward | |||||||||
Consolidated net income | 1,388 | (1) | $ 1,387 | ||||||
Other comprehensive income (loss), net of tax | (36) | (36) | |||||||
Cash dividends declared | (608) | (608) | |||||||
Equity-based compensation transactions, net | 17 | 2 | $ 63 | 82 | |||||
Equity-based compensation transactions, net, shares | 1,137,000 | ||||||||
Common stock repurchase program | 60 | $ (325) | (265) | ||||||
Common stock repurchase program, shares | (1,494,000) | ||||||||
Other, net | 5 | 2 | 7 | ||||||
Other, net, shares | 1,000 | ||||||||
Ending balance at Jun. 30, 2024 | $ 6 | 5,433 | $ (12) | 15,104 | (73) | $ (13,013) | (6) | $ (12) | $ 7,451 |
Ending balance, common shares at Jun. 30, 2024 | 630,282,000 | (12,000,000) | (12,000,000) | 401,100,000 | |||||
Ending balance, treasury shares at Jun. 30, 2024 | (229,183,000) | (229,183,391) | |||||||
Beginning balance at Mar. 31, 2024 | $ 6 | 5,352 | 14,738 | (60) | $ (12,954) | (4) | $ 7,078 | ||
Beginning balance, common shares at Mar. 31, 2024 | 630,282,000 | ||||||||
Beginning balance, treasury shares at Mar. 31, 2024 | (228,980,000) | ||||||||
Equity roll forward | |||||||||
Consolidated net income | 680 | 680 | |||||||
Other comprehensive income (loss), net of tax | (13) | (13) | |||||||
Cash dividends declared | (301) | (301) | |||||||
Equity-based compensation transactions, net | 29 | (1) | $ 3 | 31 | |||||
Equity-based compensation transactions, net, shares | 62,000 | ||||||||
Common stock repurchase program | 50 | $ (62) | (12) | ||||||
Common stock repurchase program, shares | (266,000) | ||||||||
Other, net | 2 | (2) | |||||||
Other, net, shares | 1,000 | ||||||||
Ending balance at Jun. 30, 2024 | $ 6 | $ 5,433 | $ (12) | $ 15,104 | $ (73) | $ (13,013) | $ (6) | $ (12) | $ 7,451 |
Ending balance, common shares at Jun. 30, 2024 | 630,282,000 | (12,000,000) | (12,000,000) | 401,100,000 | |||||
Ending balance, treasury shares at Jun. 30, 2024 | (229,183,000) | (229,183,391) |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ||||
Cash dividends declared per common share | $ 0.75 | $ 0.70 | $ 1.50 | $ 1.40 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation | |
Basis of Presentation | 1. The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 13. Waste Management, Inc. 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., together with its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WMI,” we are referring only to Waste Management, Inc., the parent holding company. We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our 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 business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, including our Waste Management Renewable Energy (“WM Renewable Energy”) business, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet. Our senior management evaluates, oversees and manages the financial performance of our business through four reportable segments, referred to as (i) Collection and Disposal - East Tier (“East Tier”); (ii) Collection and Disposal - West Tier (“West Tier”); (iii) Recycling Processing and Sales and (iv) WM Renewable Energy. Our East and West Tier, along with certain ancillary services (“Other Ancillary”) not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses. We also provide additional services not managed through our four reportable segments, which are presented as Corporate and Other. Refer to Note 7 for further discussion. The Condensed Consolidated Financial Statements as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. 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, long-lived asset impairments, intangible asset impairments and the fair value of assets and liabilities acquired in business combinations. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. Revenue Recognition 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 and other commodities, such as RNG, electricity and capacity, Renewable Identification Numbers (“RINs”) and Renewable Energy Credits (“RECs”), are sold. We also bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts, and equipment rentals. These advanced billings are included in deferred revenues and recognized as revenue in the period service is provided. Substantially all our deferred revenues during the reported periods are realized as revenues within one Contract Acquisition Costs Our incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are generally deferred and amortized to selling, general and administrative expense over the estimated life of the relevant customer relationship, ranging from five Leases Amounts for our operating lease right-of-use assets are recorded in long-term other assets and the current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets. Amounts for our financing leases are recorded in property and equipment, net of accumulated depreciation and depletion, and current or long-term debt in our Condensed Consolidated Balance Sheets, as appropriate. 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 restricted funds, and accounts receivable. 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 and diversity of customers we serve. Other Current Assets As of June 30, 2024, other current assets included $778 million of investments in certain WM tax-exempt bonds. We purchased these bonds because they were subject to mandatory scheduled remarketings during a period of time that we determined that we were unable to remarket the bonds to third-party investors because we were in possession of material non-public information about the pending announcement of our planned acquisition of Stericycle, Inc. (“Stericycle”). These investments are classified as current because we have the intent and ability to remarket the bonds within the next twelve months. The related tax-exempt debt is included in our Condensed Consolidated Balance Sheet as of June 30, 2024 as a component of long-term debt. In July 2024 we received $349 million from the successful remarketing of these tax-exempt bonds and expect to successfully remarket the remaining bonds held within the third quarter of 2024. Reclassifications When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our Condensed Consolidated Financial Statements. |
Landfill and Environmental Reme
Landfill and Environmental Remediation Liabilities | 6 Months Ended |
Jun. 30, 2024 | |
Landfill and Environmental Remediation Liabilities | |
Landfill and Environmental Remediation Liabilities | 2. Landfill and Environmental Remediation Liabilities Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): June 30, 2024 December 31, 2023 Environmental Environmental Landfill Remediation Total Landfill Remediation Total Current (in accrued liabilities) $ 144 $ 31 $ 175 $ 143 $ 31 $ 174 Long-term 2,759 177 2,936 2,710 178 2,888 $ 2,903 $ 208 $ 3,111 $ 2,853 $ 209 $ 3,062 The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2024 are reflected in the table below (in millions): Environmental Landfill Remediation December 31, 2023 $ 2,853 $ 209 Obligations incurred and capitalized 43 — Obligations settled (58) (11) Interest accretion 66 — Revisions in estimates 1 10 Acquisitions, divestitures and other adjustments (2) — June 30, 2024 $ 2,903 $ 208 At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements. See Note 13 for additional information related to these trusts. |
Debt
Debt | 6 Months Ended |
Jun. 30, 2024 | |
Debt | |
Debt | 3. Debt The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2024: June 30, December 31, 2024 2023 Commercial paper program (weighted average interest rate of 5.5% as of June 30, 2024 and 5.6% as of December 31, 2023) $ 1,565 $ 860 Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.7% as of June 30, 2024 and December 31, 2023) 11,220 11,376 Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6% 366 378 Tax-exempt bonds, maturing through 2053, fixed and variable interest rates ranging from 0.55% to 5.0% (weighted average interest rate of 3.3% as of June 30, 2024 and December 31, 2023) 2,853 2,883 Financing leases and other, maturing through 2082 (weighted average interest rate of 5.0% as of June 30, 2024 and December 31, 2023) (a) 856 855 Debt issuance costs, discounts and other (117) (123) 16,743 16,229 Current portion of long-term debt 242 334 Long-term debt, less current portion $ 16,501 $ 15,895 (a) Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059 . Debt Classification As of June 30, 2024, we had approximately $3.8 billion of debt maturing within the next 12 months, including (i) $1.6 billion of short-term borrowings under our commercial paper program (net of related discount on issuance); (ii) $1.6 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities; (iii) $422 million of 3.125% senior notes that mature in March 2025 and (iv) $167 million of other debt with scheduled maturities within the next 12 months, including $30 million of tax-exempt bonds. As of June 30, 2024, we have classified $3.6 billion of debt maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $3.5 billion long-term U.S. and Canadian revolving credit facility (“$3.5 billion revolving credit facility”) and our issuance of $1.5 billion of senior notes in July 2024, the proceeds of which were used primarily to reduce outstanding borrowings under our commercial paper program. The remaining $242 million of debt maturing in the next 12 months is classified as current obligations. Access to and Utilization of Credit Facilities and Commercial Paper Program $3.5 Billion Revolving Credit Facility — Holdings, a wholly-owned subsidiary of WMI, guarantees all the obligations under the $3.5 billion revolving credit facility. The $3.5 billion revolving credit facility provides us with credit capacity to be used for cash borrowings, to support letters of credit and to support our commercial paper program. The interest rates we pay on outstanding U.S. or Canadian loans are based on the Secured Overnight Financing Rate (“SOFR”) administered by the Federal Reserve Bank of New York or the Canadian Overnight Repo Rate Average (“CORRA”) administered by the Bank of Canada, respectively, plus a spread depending on our senior public debt rating assigned by Moody’s Investors Service, Inc. and Standard and Poor’s Global Ratings. The spread above SOFR or CORRA can range from 0.585% to 1.025% per annum, plus applicable credit adjustments. We also pay certain other fees set forth in the $3.5 billion revolving credit facility agreement, including a facility fee based on the aggregate commitment, regardless of usage. As of June 30, 2024, we had no outstanding borrowings under this facility. We had $180 million of letters of credit issued and $1.6 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program, both supported by the facility, leaving unused and available credit capacity of $1.7 billion as of June 30, 2024. Commercial Paper Program Other Letter of Credit Lines — Debt Borrowings and Repayments Commercial Paper Program Senior Notes |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Taxes | |
Income Taxes | 4. Income Taxes Our effective income tax rate was 23.9% and 21.3% for the three and six months ended June 30, 2024, respectively, compared with 24.2% and 23.9% for the three and six months ended June 30, 2023, respectively. The decrease in our effective income tax rate when comparing the three and six months ended June 30, 2024 and 2023 was primarily driven by an increase in federal tax credits; partially offset by (i) the impacts of adopting Accounting Standards Update (“ASU”) 2023-02 and (ii) an increase in pre-tax income in the current period. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant. Investments Qualifying for Federal Tax Credits Renewable Natural Gas During the three and six months ended June 30, 2024, we recognized a reduction in our income tax expense of $37 million and $74 million, respectively, due to federal tax credits expected to be realized from our RNG investments compared with $2 million and $4 million, respectively, for the comparable prior year periods. Low-Income Housing As a result of adopting ASU 2023-02, we amortize our investments in these entities using the proportional amortization method. Under the proportional amortization method, the equity investment is amortized in proportion to the income tax credits and other income tax benefits received. The amortization expense and the income tax credits are required to be presented on a net basis in income tax expense on the Condensed Consolidated Statements of Operations. Prior to fiscal year 2024, we accounted for our investments in these entities using the equity method of accounting, recognizing our share of each entity’s results of operations and other reductions in the value of our investments in equity in net income (losses) of unconsolidated entities, within our Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2024, we recognized additional income tax expense of $37 million related to amortization under ASU 2023-02 and a reduction in our income tax expense primarily due to federal tax credits of $22 million and $50 million, respectively. In addition, during the three and six months ended June 30, 2024, we recognized interest expense of $5 million and $11 million, respectively, associated with our investments in low-income housing properties. See Note 13 for additional information related to these unconsolidated variable interest entities. During the three and six months ended June 30, 2023, we recognized $12 million and $25 million of net losses, respectively, and a reduction in our income tax expense of $26 million and $48 million, respectively, primarily due to federal tax credits realized from these investments as well as the tax benefits from the pre-tax losses realized. In addition, during the three and six months ended June 30, 2023, we recognized interest expense of $3 million and $7 million, respectively, associated with our investments in low-income housing properties. See Note 13 for additional information related to these unconsolidated variable interest entities. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share | |
Earnings Per Share | 5. Earnings Per Share Basic and diluted earnings per share were computed using the following common share data (shares in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Number of common shares outstanding at end of period 401.1 404.9 401.1 404.9 Effect of using weighted average common shares outstanding 0.2 1.0 0.4 2.5 Weighted average basic common shares outstanding 401.3 405.9 401.5 407.4 Dilutive effect of equity-based compensation awards and other contingently issuable shares 1.9 1.8 1.8 1.7 Weighted average diluted common shares outstanding 403.2 407.7 403.3 409.1 Potentially issuable shares 4.9 5.4 4.9 5.4 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 1.2 1.3 1.3 1.7 Refer to the Condensed Consolidated Statements of Operations for net income attributable to Waste Management, Inc. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies. | |
Commitments and Contingencies | 6. 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 financial condition, results of operations or cash flows. 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 health and welfare, general liability, automobile 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 portions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation or internal estimates. The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from such valuations and estimates. We use a wholly-owned insurance captive to insure the deductibles for our general liability, automobile liability and workers’ compensation claims programs. 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. Guarantees — As of June 30, 2024, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover the difference, if any, between the sale value and the guaranteed market or contractually-determined value of certain homeowner’s properties that are adjacent to or near 19 of our landfills. We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale. We do not believe that the remaining contingent obligations will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Environmental Matters — environment. Under current laws and regulations, we may have liabilities for environmental damage caused by our operations, or for damage caused by conditions that existed before we acquired a site. In addition to remediation activity required by state or local authorities, such liabilities include potentially responsible party (“PRP”) investigations. The costs associated with these liabilities can include settlements, certain legal and consultant fees, as well as incremental internal and external costs directly associated with site investigation and clean-up. 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 environmental impact investigation. In these cases, we use the amount within the range that is 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 (where estimable), our aggregate potential liability would be approximately $18 million higher than the $208 million recorded in the Condensed Consolidated Balance Sheet as of June 30, 2024. 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 our balance sheet and income from operations. These adjustments could be material in any given period. As of June 30, 2024, we had been notified by the government that we are a PRP in connection with 73 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List, or NPL. Of the 73 sites at which claims have been made against us, 14 are sites we own. Each of the NPL sites we own was initially developed by others as a landfill disposal facility. At each of these facilities, we are working in conjunction with the government to characterize or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement. We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures. The other 59 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. In 2018, both of McGinnes Industrial Maintenance Corporation (“MIMC”), a subsidiary of Waste Management of Texas, Inc., and International Paper Company (“IPC”) entered into an Administrative Order on Consent with the EPA as PRPs to develop a remedial design for the San Jacinto River Waste Pits Superfund Site in Harris County, Texas. We recorded a liability for MIMC’s estimated potential share of the EPA’s proposed remedy and related costs, although allocation of responsibility among the PRPs for the proposed remedy has not been established. MIMC and IPC have continued to work on a remedial design to support the EPA’s proposed remedy; however, in the first quarter of 2024, the EPA publicly issued a letter alleging that the remedial design has serious deficiencies. MIMC and IPC subsequently engaged with the EPA and provided responses to the EPA letter. In the second quarter of 2024, the EPA provided a response that, while the parties had not remedied all concerns from its letter, the parties had sufficiently demonstrated a path forward and were given additional time to submit a full remedial design. As of June 30, 2024 and December 31, 2023, the recorded liability for MIMC’s estimated potential share of costs for the remedy was approximately $85 million. MIMC’s ultimate liability could be materially different from current estimates, including potential increases resulting from MIMC’s continued engagement with the EPA regarding a final remedial design for the site. 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, below a stated threshold. In accordance with this SEC regulation, the Company uses a threshold of $1 million for purposes of determining whether disclosure of any such environmental proceedings is required. As of the date of this filing, we are not aware of any matters that are required to be disclosed pursuant to this standard. 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. Litigation — In June 2022, we and certain of our officers were named as defendants in a complaint alleging violation of the federal securities laws and seeking certification as a class action in the U.S. District Court for the Southern District of New York. A lead plaintiff has been appointed and an amended complaint was filed in January 2023. The amended complaint seeks damages on behalf of a putative class of secondary market purchasers of our senior notes with a special mandatory redemption feature issued in May 2019, asserting claims under the Securities Exchange Act based on alleged misrepresentations and omissions concerning the time for completion of our acquisition of Advanced Disposal. The case is currently in the discovery phase, and we intend to vigorously defend against this pending suit. We believe any potential recovery by the plaintiffs, in excess of applicable deductibles, will be covered by insurance, and we do not believe that the eventual outcome of this suit will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. WMI’s charter and bylaws provide that WMI 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 permitted to have such fees advanced under Delaware law. Additionally, the Company has direct contractual obligations to provide indemnification to each of the members of WMI’s Board of Directors and each of WMI’s executive officers. 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 — We do not believe that any future liability relating to our past or current participation in, or withdrawals from, the Multiemployer Pension Plans to which we contribute will have a material adverse effect on our business, financial condition or liquidity. However, liability for future 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 and the financial condition of the Multiemployer Pension Plan(s) at the time of such withdrawal(s). Tax Matters — In addition, we are in the examination phase of IRS audits for the 2023 and 2024 tax years and expect the audits to be completed within the next 18 months. We are also currently undergoing audits by the Canada Revenue Agency for the 2021 tax year and various state and local jurisdictions for tax years that date back to 2014. We maintain a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse effect on our financial condition, results of operations or cash flows. |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2024 | |
Segment and Related Information | |
Segment and Related Information | 7. Segment and Related Information Our senior management evaluates, oversees and manages the financial performance of our business through four reportable segments, referred to as (i) East Tier; (ii) West Tier; (iii) Recycling Processing and Sales and (iv) WM Renewable Energy. Our East and West Tier, along with Other Ancillary services not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses. We also provide additional services not managed through our four reportable segments, which are presented as Corporate and Other. Summarized financial information concerning our reportable segments is shown in the following table (in millions): Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues(a) Revenues Operations(b) Three Months Ended June 30: 2024 Collection and Disposal: East Tier $ 2,751 $ (573) $ 2,178 $ 692 West Tier 2,616 (540) 2,076 674 Other Ancillary 713 (45) 668 (7) Collection and Disposal 6,080 (1,158) 4,922 1,359 Recycling Processing and Sales 475 (70) 405 29 WM Renewable Energy 70 (1) 69 18 Corporate and Other 12 (6) 6 (397) Total $ 6,637 $ (1,235) $ 5,402 $ 1,009 2023 Collection and Disposal: East Tier $ 2,673 $ (550) $ 2,123 $ 599 West Tier 2,512 (524) 1,988 576 Other Ancillary 672 (49) 623 (2) Collection and Disposal 5,857 (1,123) 4,734 1,173 Recycling Processing and Sales 394 (78) 316 24 WM Renewable Energy 63 (1) 62 14 Corporate and Other 14 (7) 7 (267) Total $ 6,328 $ (1,209) $ 5,119 $ 944 Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues(a) Revenues Operations(b) Six Months Ended June 30: 2024 Collection and Disposal: East Tier $ 5,367 $ (1,108) $ 4,259 $ 1,346 West Tier 5,113 (1,044) 4,069 1,301 Other Ancillary 1,399 (89) 1,310 (9) Collection and Disposal 11,879 (2,241) 9,638 2,638 Recycling Processing and Sales 911 (138) 773 48 WM Renewable Energy 140 (2) 138 39 Corporate and Other 24 (12) 12 (700) Total $ 12,954 $ (2,393) $ 10,561 $ 2,025 2023 Collection and Disposal: East Tier $ 5,234 $ (1,066) $ 4,168 $ 1,130 West Tier 4,904 (1,019) 3,885 1,107 Other Ancillary 1,297 (93) 1,204 — Collection and Disposal 11,435 (2,178) 9,257 2,237 Recycling Processing and Sales 768 (158) 610 37 WM Renewable Energy 133 (2) 131 34 Corporate and Other 26 (13) 13 (539) Total $ 12,362 $ (2,351) $ 10,011 $ 1,769 (a) 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. (b) 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 1. The mix of operating revenues from our major lines of business are as follows (in millions): Gross Intercompany Net Operating Operating Operating Revenues Revenues (a) Revenues Three Months Ended June 30: 2024 Commercial $ 1,526 $ (196) $ 1,330 Industrial 978 (199) 779 Residential 886 (23) 863 Other collection 781 (52) 729 Total collection 4,171 (470) 3,701 Landfill 1,291 (418) 873 Transfer 618 (270) 348 Total Collection and Disposal 6,080 (1,158) 4,922 Recycling Processing and Sales 475 (70) 405 WM Renewable Energy 70 (1) 69 Corporate and Other 12 (6) 6 Total $ 6,637 $ (1,235) $ 5,402 2023 Commercial $ 1,424 $ (168) $ 1,256 Industrial 974 (192) 782 Residential 866 (25) 841 Other collection 745 (56) 689 Total collection 4,009 (441) 3,568 Landfill 1,263 (417) 846 Transfer 585 (265) 320 Total Collection and Disposal 5,857 (1,123) 4,734 Recycling Processing and Sales 394 (78) 316 WM Renewable Energy 63 (1) 62 Corporate and Other 14 (7) 7 Total $ 6,328 $ (1,209) $ 5,119 Gross Intercompany Net Operating Operating Operating Revenues Revenues Revenues Six Months Ended June 30: 2024 Commercial $ 3,027 $ (381) $ 2,646 Industrial 1,912 (386) 1,526 Residential 1,762 (45) 1,717 Other collection 1,532 (105) 1,427 Total collection 8,233 (917) 7,316 Landfill 2,468 (803) 1,665 Transfer 1,178 (521) 657 Total Collection and Disposal 11,879 (2,241) 9,638 Recycling Processing and Sales 911 (138) 773 WM Renewable Energy 140 (2) 138 Corporate and Other 24 (12) 12 Total $ 12,954 $ (2,393) $ 10,561 2023 Commercial $ 2,836 $ (329) $ 2,507 Industrial 1,907 (369) 1,538 Residential 1,720 (50) 1,670 Other collection 1,434 (106) 1,328 Total collection 7,897 (854) 7,043 Landfill 2,413 (808) 1,605 Transfer 1,125 (516) 609 Total Collection and Disposal 11,435 (2,178) 9,257 Recycling Processing and Sales 768 (158) 610 WM Renewable Energy 133 (2) 131 Corporate and Other 26 (13) 13 Total $ 12,362 $ (2,351) $ 10,011 Our financial and operating results may fluctuate for many reasons, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. Our operating revenues and volumes typically experience seasonal increases in the summer months that are reflected in second and third quarter revenues and results of operations. Service or operational disruptions caused by severe storms, extended periods of inclement weather or climate events can significantly affect the operating results of the geographic areas affected. Extreme weather events may also lead to supply chain disruption and delayed project development, or disruption of our customers’ businesses, reducing the amount of waste generated by their operations. Conversely, certain destructive weather and climate conditions, such as wildfires in the Western U.S. and hurricanes that most often impact our operations in the Southern and Eastern U.S. during the second half of the year, can increase our revenues in the geographic areas affected as a result of the waste volumes generated by these events. While weather-related and other event-driven special projects can boost revenues through additional work for a limited time, due to significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2024 | |
Acquisitions | |
Acquisitions | 8. Acquisitions During the six months ended June 30, 2024, we completed solid waste and recycling acquisitions primarily in Florida, North Carolina, and Arizona with total consideration of $240 million, which included $234 million in cash paid and $6 million of other consideration, specifically purchase price holdbacks. In addition, we paid $16 million of holdbacks, primarily related to prior year acquisitions. Total consideration for our 2024 acquisitions was primarily allocated to $57 million of property and equipment, $57 million of other intangible assets, primarily customer relationships, and $127 million of goodwill. We remain in the measurement period for most of our acquisitions, and adjustments to our preliminary purchase price allocation may occur. The goodwill was primarily a result of expected synergies from combining the acquired businesses with our existing operations and substantially all was tax deductible. Pending Acquisition of Stericycle On June 3, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire all outstanding shares of Stericycle for $62.00 per share in cash, representing a total enterprise value of approximately $7.2 billion when including approximately $1.4 billion of Stericycle’s net debt. Stericycle is a U.S. based leading provider of compliance-based solutions for regulated waste, including medical waste, and secure information destruction. Stericycle serves customers in North America and Europe. We expect the Stericycle acquisition to close as early as the fourth quarter of 2024, and we intend to finance the Stericycle acquisition through a combination of bank debt and proceeds from the issuance of senior notes. See Part II. Item 1A. Risk Factors in this Quarterly Report on Form 10-Q for information about certain risks and uncertainties related to the Stericycle acquisition. |
(Gain) Loss from Divestitures,
(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net | 6 Months Ended |
Jun. 30, 2024 | |
(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net | |
(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net | 9. (Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net (Gain) loss from divestitures, asset impairments and unusual items, net for the three and six months ended June 30, 2024 primarily relates to a $54 million charge required to increase the estimated fair value of a liability associated with the expected disposition of an investment the Company holds in a waste diversion technology business. This charge is reflected in our Corporate and Other measures within our segment reporting. (Gain) loss from divestitures, asset impairments and unusual items, net for the three and six months ended June 30, 2023 were not material. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive (Loss) Income | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive (Loss) Income | |
Accumulated Other Comprehensive (Loss) Income | 10. Accumulated Other Comprehensive (Loss) Income The changes in the balances of each component of accumulated other comprehensive (loss) 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): Foreign Post- Available- Currency Retirement Derivative for-Sale Translation Benefit Instruments Securities Adjustments Obligations Total Balance, December 31, 2023 $ 17 $ 8 $ (68) $ 6 $ (37) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $0, $0 and $0, respectively — — (34) (34) Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $0, $0, $0 and $0, respectively (1) — — (1) (2) Net current period other comprehensive income (loss) (1) — (34) (1) (36) Balance, June 30, 2024 $ 16 $ 8 $ (102) $ 5 $ (73) |
Common Stock Repurchase Program
Common Stock Repurchase Program | 6 Months Ended |
Jun. 30, 2024 | |
Capital Stock, Dividends and Common Stock Repurchase Program | |
Common Stock Repurchase Program | 11. Common Stock Repurchase Program The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors. In February 2024, we repurchased 0.2 million shares of our common stock through an October 2023 Accelerated Share Repurchase (“ASR”) agreement that completed in February 2024, based on a final weighted average price of $175.29. Also in February 2024, we entered into an ASR agreement to repurchase $250 million of our common stock. At the beginning of the repurchase period, we delivered $250 million cash and initially received 1 million shares based on a stock price of $199.16, exclusive of the applicable 1% excise tax. The ASR agreement completed in April 2024 and we received 0.2 million additional shares based on a final weighted average price of $206.23. In the second quarter of 2024 we repurchased 0.1 million shares of our common stock in open market transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act for $12 million, inclusive of per-share commissions, at a weighted average price of $209.20. As of June 30, 2024, the Company has authorization for $1,238 million of future share repurchases. As a result of the planned Stericycle acquisition discussed in Note 8, the Company previously announced that it has temporarily suspended share repurchases. The amount of future share repurchases executed under our Board of Directors’ authorization is determined at management’s discretion, based on various factors, including our net earnings, financial condition and cash required for future business plans, growth and acquisitions. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurements | |
Fair Value Measurements | 12. Fair Value Measurements Assets and Liabilities Accounted for at Fair Value Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions): June 30, December 31, 2024 2023 Quoted prices in active markets (Level 1): Cash equivalents and money market funds $ 37 $ 327 Equity securities 68 61 Debt securities (a) 778 — Significant other observable inputs (Level 2): Available-for-sale securities (b) 496 431 Total Assets $ 1,379 $ 819 (a) Includes $778 million of investments in certain WM tax-exempt bonds as discussed further in Note 1. (b) Our available-for-sale securities primarily relate to debt securities with maturities over the next ten years . See Note 9 for information related to our nonrecurring fair value measurements. Fair Value of Debt As of June 30, 2024 and December 31, 2023, the carrying value of our debt was $16.7 billion and $16.2 billion, respectively. The estimated fair value of our debt was approximately $15.6 billion as of June 30, 2024 and December 31, 2023. 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 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 June 30, 2024 and December 31, 2023. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the amounts presented. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2024 | |
Variable Interest Entities | |
Variable Interest Entities | 13. Variable Interest Entities The following is a description of our financial interests in unconsolidated and consolidated variable interest entities that we consider significant: Low-Income Housing Properties We do not consolidate our investments in entities established to manage low-income housing properties because we are not the primary beneficiary of these entities as we do not have the power to individually direct the activities of these entities. Our aggregate investment balance in these entities was $400 million and $458 million as of June 30, 2024 and December 31, 2023, respectively. The debt balance related to our investments in low-income housing properties was $383 million and $408 million as of June 30, 2024 and December 31, 2023, respectively. Additional information related to these investments is discussed in Note 4. Trust Funds for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations Unconsolidated Variable Interest Entities — Consolidated Variable Interest Entities — |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events | |
Subsequent Events | 14. Subsequent Events Senior Notes Issuance In July 2024, WMI issued $750 million of 4.950% senior notes due 2027 and $750 million of 4.950% senior notes due 2031, the net proceeds of which were $1.5 billion. The net proceeds were used primarily to reduce outstanding borrowings under our commercial paper program. Acquisition On July 15, 2024, we completed the acquisition of Winters Bros. Waste Systems, a large regional waste and recycling company based in Long Island, New York with total purchase price of $550 million. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 680 | $ 615 | $ 1,388 | $ 1,148 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Securities Trading Plans of Directors and Executive Officers During the quarter ended June 30, 2024, no executive officer or member of our Board of Directors adopted a securities trading plan. On June 2, 2024, Mr. James C. Fish, Jr., President, Chief Executive Officer and a member of our Board of Directors, terminated a stock trading plan that was adopted on March 2, 2024 (the “Trading Plan”) that was intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The Trading Plan was to commence on June 3, 2024 and was to automatically terminate on the earlier of June 3, 2025 and the completion of all of the contemplated transactions set forth therein. The Trading Plan provided for the potential sale of up to 86,209 shares of our common stock upon our common stock reaching specified market prices. The Trading Plan was terminated before it took effect, and no sales of shares under the Trading Plan occurred. |
James C Fish, Jr [Member] | |
Trading Arrangements, by Individual | |
Name | Mr. James C. Fish, Jr |
Title | President, Chief Executive Officer |
Rule 10b5-1 Arrangement Terminated | true |
Termination Date | June 2, 2024 |
Aggregate Available | 86,209 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
Basis of Presentation | |
Basis of Presentation | The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 13. Waste Management, Inc. 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., together with its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WMI,” we are referring only to Waste Management, Inc., the parent holding company. We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our 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 business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, including our Waste Management Renewable Energy (“WM Renewable Energy”) business, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet. Our senior management evaluates, oversees and manages the financial performance of our business through four reportable segments, referred to as (i) Collection and Disposal - East Tier (“East Tier”); (ii) Collection and Disposal - West Tier (“West Tier”); (iii) Recycling Processing and Sales and (iv) WM Renewable Energy. Our East and West Tier, along with certain ancillary services (“Other Ancillary”) not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses. We also provide additional services not managed through our four reportable segments, which are presented as Corporate and Other. Refer to Note 7 for further discussion. The Condensed Consolidated Financial Statements as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2023. 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, long-lived asset impairments, intangible asset impairments and the fair value of assets and liabilities acquired in business combinations. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements. |
Revenue Recognition | Revenue Recognition 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 and other commodities, such as RNG, electricity and capacity, Renewable Identification Numbers (“RINs”) and Renewable Energy Credits (“RECs”), are sold. We also bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts, and equipment rentals. These advanced billings are included in deferred revenues and recognized as revenue in the period service is provided. Substantially all our deferred revenues during the reported periods are realized as revenues within one Contract Acquisition Costs Our incremental direct costs of obtaining a contract, which consist primarily of sales incentives, are generally deferred and amortized to selling, general and administrative expense over the estimated life of the relevant customer relationship, ranging from five |
Leases | Leases Amounts for our operating lease right-of-use assets are recorded in long-term other assets and the current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets. Amounts for our financing leases are recorded in property and equipment, net of accumulated depreciation and depletion, and current or long-term debt in our Condensed Consolidated Balance Sheets, as appropriate. |
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 restricted funds, and accounts receivable. 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 and diversity of customers we serve. |
Other Current Assets | Other Current Assets As of June 30, 2024, other current assets included $778 million of investments in certain WM tax-exempt bonds. We purchased these bonds because they were subject to mandatory scheduled remarketings during a period of time that we determined that we were unable to remarket the bonds to third-party investors because we were in possession of material non-public information about the pending announcement of our planned acquisition of Stericycle, Inc. (“Stericycle”). These investments are classified as current because we have the intent and ability to remarket the bonds within the next twelve months. The related tax-exempt debt is included in our Condensed Consolidated Balance Sheet as of June 30, 2024 as a component of long-term debt. In July 2024 we received $349 million from the successful remarketing of these tax-exempt bonds and expect to successfully remarket the remaining bonds held within the third quarter of 2024. |
Reclassifications | Reclassifications When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our Condensed Consolidated Financial Statements. |
Landfill and Environmental Re_2
Landfill and Environmental Remediation Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Landfill and Environmental Remediation Liabilities | |
Liabilities for Landfill and Environmental Remediation Costs | Liabilities for landfill and environmental remediation costs are presented in the table below (in millions): June 30, 2024 December 31, 2023 Environmental Environmental Landfill Remediation Total Landfill Remediation Total Current (in accrued liabilities) $ 144 $ 31 $ 175 $ 143 $ 31 $ 174 Long-term 2,759 177 2,936 2,710 178 2,888 $ 2,903 $ 208 $ 3,111 $ 2,853 $ 209 $ 3,062 |
Changes to Landfill and Environmental Remediation Liabilities | The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2024 are reflected in the table below (in millions): Environmental Landfill Remediation December 31, 2023 $ 2,853 $ 209 Obligations incurred and capitalized 43 — Obligations settled (58) (11) Interest accretion 66 — Revisions in estimates 1 10 Acquisitions, divestitures and other adjustments (2) — June 30, 2024 $ 2,903 $ 208 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt | |
Components of Debt | The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2024: June 30, December 31, 2024 2023 Commercial paper program (weighted average interest rate of 5.5% as of June 30, 2024 and 5.6% as of December 31, 2023) $ 1,565 $ 860 Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.7% as of June 30, 2024 and December 31, 2023) 11,220 11,376 Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6% 366 378 Tax-exempt bonds, maturing through 2053, fixed and variable interest rates ranging from 0.55% to 5.0% (weighted average interest rate of 3.3% as of June 30, 2024 and December 31, 2023) 2,853 2,883 Financing leases and other, maturing through 2082 (weighted average interest rate of 5.0% as of June 30, 2024 and December 31, 2023) (a) 856 855 Debt issuance costs, discounts and other (117) (123) 16,743 16,229 Current portion of long-term debt 242 334 Long-term debt, less current portion $ 16,501 $ 15,895 (a) Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059 . |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share | |
Computing Basic and Diluted Earnings Per Share | Basic and diluted earnings per share were computed using the following common share data (shares in millions): Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Number of common shares outstanding at end of period 401.1 404.9 401.1 404.9 Effect of using weighted average common shares outstanding 0.2 1.0 0.4 2.5 Weighted average basic common shares outstanding 401.3 405.9 401.5 407.4 Dilutive effect of equity-based compensation awards and other contingently issuable shares 1.9 1.8 1.8 1.7 Weighted average diluted common shares outstanding 403.2 407.7 403.3 409.1 Potentially issuable shares 4.9 5.4 4.9 5.4 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 1.2 1.3 1.3 1.7 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment and Related Information | |
Reportable Segments | Summarized financial information concerning our reportable segments is shown in the following table (in millions): Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues(a) Revenues Operations(b) Three Months Ended June 30: 2024 Collection and Disposal: East Tier $ 2,751 $ (573) $ 2,178 $ 692 West Tier 2,616 (540) 2,076 674 Other Ancillary 713 (45) 668 (7) Collection and Disposal 6,080 (1,158) 4,922 1,359 Recycling Processing and Sales 475 (70) 405 29 WM Renewable Energy 70 (1) 69 18 Corporate and Other 12 (6) 6 (397) Total $ 6,637 $ (1,235) $ 5,402 $ 1,009 2023 Collection and Disposal: East Tier $ 2,673 $ (550) $ 2,123 $ 599 West Tier 2,512 (524) 1,988 576 Other Ancillary 672 (49) 623 (2) Collection and Disposal 5,857 (1,123) 4,734 1,173 Recycling Processing and Sales 394 (78) 316 24 WM Renewable Energy 63 (1) 62 14 Corporate and Other 14 (7) 7 (267) Total $ 6,328 $ (1,209) $ 5,119 $ 944 Gross Intercompany Net Income Operating Operating Operating from Revenues Revenues(a) Revenues Operations(b) Six Months Ended June 30: 2024 Collection and Disposal: East Tier $ 5,367 $ (1,108) $ 4,259 $ 1,346 West Tier 5,113 (1,044) 4,069 1,301 Other Ancillary 1,399 (89) 1,310 (9) Collection and Disposal 11,879 (2,241) 9,638 2,638 Recycling Processing and Sales 911 (138) 773 48 WM Renewable Energy 140 (2) 138 39 Corporate and Other 24 (12) 12 (700) Total $ 12,954 $ (2,393) $ 10,561 $ 2,025 2023 Collection and Disposal: East Tier $ 5,234 $ (1,066) $ 4,168 $ 1,130 West Tier 4,904 (1,019) 3,885 1,107 Other Ancillary 1,297 (93) 1,204 — Collection and Disposal 11,435 (2,178) 9,257 2,237 Recycling Processing and Sales 768 (158) 610 37 WM Renewable Energy 133 (2) 131 34 Corporate and Other 26 (13) 13 (539) Total $ 12,362 $ (2,351) $ 10,011 $ 1,769 (a) 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. (b) 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 1. |
Summary of operating revenues mix | The mix of operating revenues from our major lines of business are as follows (in millions): Gross Intercompany Net Operating Operating Operating Revenues Revenues (a) Revenues Three Months Ended June 30: 2024 Commercial $ 1,526 $ (196) $ 1,330 Industrial 978 (199) 779 Residential 886 (23) 863 Other collection 781 (52) 729 Total collection 4,171 (470) 3,701 Landfill 1,291 (418) 873 Transfer 618 (270) 348 Total Collection and Disposal 6,080 (1,158) 4,922 Recycling Processing and Sales 475 (70) 405 WM Renewable Energy 70 (1) 69 Corporate and Other 12 (6) 6 Total $ 6,637 $ (1,235) $ 5,402 2023 Commercial $ 1,424 $ (168) $ 1,256 Industrial 974 (192) 782 Residential 866 (25) 841 Other collection 745 (56) 689 Total collection 4,009 (441) 3,568 Landfill 1,263 (417) 846 Transfer 585 (265) 320 Total Collection and Disposal 5,857 (1,123) 4,734 Recycling Processing and Sales 394 (78) 316 WM Renewable Energy 63 (1) 62 Corporate and Other 14 (7) 7 Total $ 6,328 $ (1,209) $ 5,119 Gross Intercompany Net Operating Operating Operating Revenues Revenues Revenues Six Months Ended June 30: 2024 Commercial $ 3,027 $ (381) $ 2,646 Industrial 1,912 (386) 1,526 Residential 1,762 (45) 1,717 Other collection 1,532 (105) 1,427 Total collection 8,233 (917) 7,316 Landfill 2,468 (803) 1,665 Transfer 1,178 (521) 657 Total Collection and Disposal 11,879 (2,241) 9,638 Recycling Processing and Sales 911 (138) 773 WM Renewable Energy 140 (2) 138 Corporate and Other 24 (12) 12 Total $ 12,954 $ (2,393) $ 10,561 2023 Commercial $ 2,836 $ (329) $ 2,507 Industrial 1,907 (369) 1,538 Residential 1,720 (50) 1,670 Other collection 1,434 (106) 1,328 Total collection 7,897 (854) 7,043 Landfill 2,413 (808) 1,605 Transfer 1,125 (516) 609 Total Collection and Disposal 11,435 (2,178) 9,257 Recycling Processing and Sales 768 (158) 610 WM Renewable Energy 133 (2) 131 Corporate and Other 26 (13) 13 Total $ 12,362 $ (2,351) $ 10,011 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive (Loss) Income (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accumulated Other Comprehensive (Loss) Income | |
Components of Accumulated Other Comprehensive Income (Loss), net of tax | The changes in the balances of each component of accumulated other comprehensive (loss) 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): Foreign Post- Available- Currency Retirement Derivative for-Sale Translation Benefit Instruments Securities Adjustments Obligations Total Balance, December 31, 2023 $ 17 $ 8 $ (68) $ 6 $ (37) Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $0, $0 and $0, respectively — — (34) (34) Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $0, $0, $0 and $0, respectively (1) — — (1) (2) Net current period other comprehensive income (loss) (1) — (34) (1) (36) Balance, June 30, 2024 $ 16 $ 8 $ (102) $ 5 $ (73) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Measurements | |
Fair Value of Assets and Liabilities Measured on Recurring Basis | June 30, December 31, 2024 2023 Quoted prices in active markets (Level 1): Cash equivalents and money market funds $ 37 $ 327 Equity securities 68 61 Debt securities (a) 778 — Significant other observable inputs (Level 2): Available-for-sale securities (b) 496 431 Total Assets $ 1,379 $ 819 (a) Includes $778 million of investments in certain WM tax-exempt bonds as discussed further in Note 1. (b) Our available-for-sale securities primarily relate to debt securities with maturities over the next ten years . |
Basis of Presentation (Detail)
Basis of Presentation (Detail) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2024 USD ($) | Jun. 30, 2024 USD ($) segment | Dec. 31, 2023 USD ($) | |
Capitalized Costs | |||
Number of reportable segments | segment | 4 | ||
Deferred contract costs | $ 217 | $ 207 | |
Deferred sales incentives | 151 | $ 148 | |
Debt instrument repurchase amount | $ 778 | ||
Proceeds from tax-exempt bonds remarketing | $ 349 | ||
Minimum [Member] | |||
Capitalized Costs | |||
Deferred revenue recognition period | 1 month | ||
Contract amortization period | 5 years | ||
Maximum [Member] | |||
Capitalized Costs | |||
Deferred revenue recognition period | 3 months | ||
Contract amortization period | 13 years |
Landfill and Environmental Re_3
Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Landfill and Environmental Remediation Liabilities | ||
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Environmental Loss Contingency, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term | Long-term |
Total, Environmental Remediation | $ 208 | |
Environmental Loss Contingency, Statement of Financial Position [Extensible Enumeration] | Long-term, Accrued Liabilities, Current | Long-term, Accrued Liabilities, Current |
Current (in accrued liabilities) | $ 175 | $ 174 |
Long-term | 2,936 | 2,888 |
Total | 3,111 | 3,062 |
Landfill [Member] | ||
Landfill and Environmental Remediation Liabilities | ||
Current (in accrued liabilities), Landfill | 144 | 143 |
Long-term, Landfill | 2,759 | 2,710 |
Total, Landfill | 2,903 | 2,853 |
Environmental Remediation Liabilities [Member] | ||
Landfill and Environmental Remediation Liabilities | ||
Current (in accrued liabilities), Environmental Remediation | 31 | 31 |
Long-term, Environmental Remediation | 177 | 178 |
Total, Environmental Remediation | $ 208 | $ 209 |
Landfill and Environmental Re_4
Landfill and Environmental Remediation Liabilities - Changes (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Landfill and Environmental Remediation Liabilities | |
Ending balance, environmental remediation | $ 208 |
Landfill [Member] | |
Landfill and Environmental Remediation Liabilities | |
Beginning balance, landfill | 2,853 |
Obligations incurred and capitalized | 43 |
Obligations settled | (58) |
Interest accretion | 66 |
Revisions in estimates | 1 |
Acquisitions, divestitures and other adjustments | (2) |
Ending balance, landfill | 2,903 |
Environmental Remediation Liabilities [Member] | |
Landfill and Environmental Remediation Liabilities | |
Beginning balance, environmental remediation | 209 |
Obligations settled | (11) |
Revisions in estimates and interest rate assumptions | 10 |
Ending balance, environmental remediation | $ 208 |
Debt - Components (Detail)
Debt - Components (Detail) $ in Millions, $ in Millions | Jun. 30, 2024 USD ($) | Jun. 30, 2024 CAD ($) | Dec. 31, 2023 USD ($) |
Debt | |||
Debt | $ 16,743 | $ 16,229 | |
Debt issuance costs, discounts and other | (117) | (123) | |
Current portion of long-term debt | 242 | 334 | |
Long-term debt, less current portion | 16,501 | 15,895 | |
Commercial Paper Program [Member] | |||
Debt | |||
Debt | $ 1,565 | $ 860 | |
Weighted average interest rate | 5.50% | 5.50% | 5.60% |
Senior Notes, Aggregate [Member] | |||
Debt | |||
Debt | $ 11,220 | $ 11,376 | |
Weighted average interest rate | 3.70% | 3.70% | 3.70% |
Senior Notes, Aggregate [Member] | Minimum [Member] | |||
Debt | |||
Interest rate (as a percent) | 0.75% | 0.75% | 0.75% |
Senior Notes, Aggregate [Member] | Maximum [Member] | |||
Debt | |||
Interest rate (as a percent) | 7.75% | 7.75% | 7.75% |
Canadian Senior Notes [Member] | |||
Debt | |||
Debt | $ 366 | $ 500 | $ 378 |
Interest rate (as a percent) | 2.60% | 2.60% | 2.60% |
Tax Exempt Bonds [Member] | |||
Debt | |||
Debt | $ 2,853 | $ 2,883 | |
Weighted average interest rate | 3.30% | 3.30% | 3.30% |
Tax Exempt Bonds [Member] | Minimum [Member] | |||
Debt | |||
Interest rate (as a percent) | 0.55% | 0.55% | 0.55% |
Tax Exempt Bonds [Member] | Maximum [Member] | |||
Debt | |||
Interest rate (as a percent) | 5% | 5% | 5% |
Financing leases and other [Member] | |||
Debt | |||
Debt | $ 856 | $ 855 | |
Weighted average interest rate | 5% | 5% | 5% |
Debt - Classification and Utili
Debt - Classification and Utilization (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
May 31, 2024 | Jun. 30, 2024 | Dec. 31, 2023 | |
Debt | |||
Debt maturing or subject to remarketing within twelve months | $ 3,800 | ||
Debt classified as long-term due to intent and ability to refinance on long-term basis | 3,600 | ||
Current portion of long-term debt | 242 | $ 334 | |
Commercial Paper Program [Member] | |||
Debt | |||
Debt maturing or subject to remarketing within twelve months | 1,600 | ||
Commercial paper borrowings | $ 1,600 | ||
Debt term | 397 days | ||
Tax Exempt Bonds [Member] | |||
Debt | |||
Debt maturing or subject to remarketing within twelve months | $ 30 | ||
Debt with interest rate periods that expire in the next 12 months | $ 1,600 | ||
Tax Exempt Bonds [Member] | Minimum | |||
Debt | |||
Interest rate (as a percent) | 0.55% | 0.55% | |
Tax Exempt Bonds [Member] | Maximum | |||
Debt | |||
Interest rate (as a percent) | 5% | 5% | |
3.125% senior notes due 2025 [Member] | |||
Debt | |||
Debt maturing or subject to remarketing within twelve months | $ 422 | ||
Interest rate (as a percent) | 3.125% | ||
Financing leases and other [Member] | |||
Debt | |||
Debt maturing or subject to remarketing within twelve months | $ 167 | ||
Revolving Credit Facility [Member] | |||
Debt | |||
Maximum capacity | 3,500 | ||
Accordion option capacity | $ 1,000 | ||
Outstanding borrowings under credit facility | 0 | ||
Letters of credit outstanding | 180 | ||
Unused and available credit capacity | 1,700 | ||
Revolving Credit Facility [Member] | Minimum | |||
Debt | |||
Spread rate (as a percent) | 0.585% | ||
Revolving Credit Facility [Member] | Maximum | |||
Debt | |||
Spread rate (as a percent) | 1.025% | ||
Credit Facility Revolving Canadian [Member] | |||
Debt | |||
Maximum capacity | $ 375 | ||
Other Letter Of Credit Lines [Member] | |||
Debt | |||
Letters of credit outstanding | 846 | ||
Senior Notes 4.950 Percent [Member] | |||
Debt | |||
Debt instrument face amount | $ 1,500 |
Debt - Borrowings and Repayment
Debt - Borrowings and Repayments (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | |
Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt | |||
Debt repayments | $ 8,752 | $ 11,074 | |
Net proceeds | 9,180 | $ 11,356 | |
Subsequent Event [Member] | |||
Debt | |||
Net proceeds | $ 1,500 | ||
Commercial Paper Program [Member] | |||
Debt | |||
Commercial paper repayments | 8,500 | ||
Commercial paper borrowings | $ 9,200 | ||
3.50% senior notes due 2024 [Member] | |||
Debt | |||
Interest rate (as a percent) | 3.50% | ||
Debt repayments | $ 156 | ||
Senior Notes 4.950 Percent, Due 2027 [Member] | Subsequent Event [Member] | |||
Debt | |||
Interest rate (as a percent) | 4.95% | ||
Debt instrument face amount | $ 750 | ||
Senior Notes 4.950 Percent, Due 2031 [Member] | Subsequent Event [Member] | |||
Debt | |||
Interest rate (as a percent) | 4.95% | ||
Debt instrument face amount | $ 750 |
Income Taxes (Detail)
Income Taxes (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Taxes | ||||
Effective tax rate of income (loss) before income taxes | 23.90% | 24.20% | 21.30% | 23.90% |
Tax credits and adjustments | $ 37 | $ 2 | $ 74 | $ 4 |
Investment proportional amortization | 37 | 37 | ||
Income tax benefit from low-income housing investments | 22 | 26 | 50 | 48 |
Variable interest entities interest expense | 5 | 3 | 11 | 7 |
Equity in net losses of unconsolidated entities | $ (22) | 12 | $ (3) | 23 |
Low income housing investments [Member] | ||||
Income Taxes | ||||
Equity in net losses of unconsolidated entities | $ 12 | $ 25 |
Earnings Per Share (Detail)
Earnings Per Share (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share | ||||
Number of common shares outstanding at end of period | 401.1 | 404.9 | 401.1 | 404.9 |
Effect of using weighted average common shares outstanding | 0.2 | 1 | 0.4 | 2.5 |
Weighted average basic common shares outstanding | 401.3 | 405.9 | 401.5 | 407.4 |
Dilutive effect of equity-based compensation awards and other contingently issuable shares | 1.9 | 1.8 | 1.8 | 1.7 |
Weighted average diluted common shares outstanding | 403.2 | 407.7 | 403.3 | 409.1 |
Potentially issuable shares | 4.9 | 5.4 | 4.9 | 5.4 |
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 1.2 | 1.3 | 1.3 | 1.7 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2022 USD ($) | Jun. 30, 2024 USD ($) site | Dec. 31, 2023 USD ($) | |
Commitments and Contingencies | |||
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value | site | 19 | ||
Increase environmental remediation liabilities | $ 18 | ||
Environmental remediation liabilities | $ 208 | ||
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 73 | ||
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 14 | ||
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP | site | 59 | ||
Dollar threshold for environmental matters requiring disclosure under item 103 of the SEC's Regulation S-K | $ 1 | ||
Workforce covered by collective bargaining (as a percent) | 20% | ||
Tax Year 2017 [Member] | |||
Commitments and Contingencies | |||
Income tax deposit paid | $ 103 | ||
San Jacinto Waste Pits [Member] | |||
Commitments and Contingencies | |||
Environmental remediation liabilities | $ 85 | $ 85 | |
Revolving Credit Facility [Member] | |||
Commitments and Contingencies | |||
Credit Facility, aggregate capacity | $ 3,500 |
Segment and Related Informati_3
Segment and Related Information - Summary (Detail) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2023 USD ($) | |
Segment Reporting | ||||
Number of reportable segments | segment | 4 | |||
Operating revenues | $ (5,402) | $ (5,119) | $ (10,561) | $ (10,011) |
Net Operating Revenues | 1,009 | 944 | 2,025 | 1,769 |
Collection and Disposal [Member] | ||||
Segment Reporting | ||||
Operating revenues | (4,922) | (4,734) | (9,638) | (9,257) |
Net Operating Revenues | 1,359 | 1,173 | 2,638 | 2,237 |
Collection and Disposal [Member] | East Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | (2,178) | (2,123) | (4,259) | (4,168) |
Net Operating Revenues | 692 | 599 | 1,346 | 1,130 |
Collection and Disposal [Member] | West Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | (2,076) | (1,988) | (4,069) | (3,885) |
Net Operating Revenues | 674 | 576 | 1,301 | 1,107 |
Collection and Disposal [Member] | Other Ancillary [Member] | ||||
Segment Reporting | ||||
Operating revenues | (668) | (623) | (1,310) | (1,204) |
Net Operating Revenues | (7) | (2) | (9) | |
Recycling Processing and Sales [Member] | ||||
Segment Reporting | ||||
Operating revenues | (405) | (316) | (773) | (610) |
Net Operating Revenues | 29 | 24 | 48 | 37 |
WM Renewable Energy [Member] | ||||
Segment Reporting | ||||
Operating revenues | (69) | (62) | (138) | (131) |
Net Operating Revenues | 18 | 14 | 39 | 34 |
Corporate and Other [Member] | ||||
Segment Reporting | ||||
Operating revenues | (6) | (7) | (12) | (13) |
Net Operating Revenues | (397) | (267) | (700) | (539) |
Operating Segments [Member] | ||||
Segment Reporting | ||||
Operating revenues | (6,637) | (6,328) | (12,954) | (12,362) |
Operating Segments [Member] | Collection and Disposal [Member] | ||||
Segment Reporting | ||||
Operating revenues | (6,080) | (5,857) | (11,879) | (11,435) |
Operating Segments [Member] | Collection and Disposal [Member] | East Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | (2,751) | (2,673) | (5,367) | (5,234) |
Operating Segments [Member] | Collection and Disposal [Member] | West Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | (2,616) | (2,512) | (5,113) | (4,904) |
Operating Segments [Member] | Collection and Disposal [Member] | Other Ancillary [Member] | ||||
Segment Reporting | ||||
Operating revenues | (713) | (672) | (1,399) | (1,297) |
Operating Segments [Member] | Recycling Processing and Sales [Member] | ||||
Segment Reporting | ||||
Operating revenues | (475) | (394) | (911) | (768) |
Operating Segments [Member] | WM Renewable Energy [Member] | ||||
Segment Reporting | ||||
Operating revenues | (70) | (63) | (140) | (133) |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment Reporting | ||||
Operating revenues | (12) | (14) | (24) | (26) |
Intercompany Operating Revenues [Member] | ||||
Segment Reporting | ||||
Operating revenues | 1,235 | 1,209 | 2,393 | 2,351 |
Intercompany Operating Revenues [Member] | Collection and Disposal [Member] | ||||
Segment Reporting | ||||
Operating revenues | 1,158 | 1,123 | 2,241 | 2,178 |
Intercompany Operating Revenues [Member] | Collection and Disposal [Member] | East Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | 573 | 550 | 1,108 | 1,066 |
Intercompany Operating Revenues [Member] | Collection and Disposal [Member] | West Tier [Member] | ||||
Segment Reporting | ||||
Operating revenues | 540 | 524 | 1,044 | 1,019 |
Intercompany Operating Revenues [Member] | Collection and Disposal [Member] | Other Ancillary [Member] | ||||
Segment Reporting | ||||
Operating revenues | 45 | 49 | 89 | 93 |
Intercompany Operating Revenues [Member] | Recycling Processing and Sales [Member] | ||||
Segment Reporting | ||||
Operating revenues | 70 | 78 | 138 | 158 |
Intercompany Operating Revenues [Member] | WM Renewable Energy [Member] | ||||
Segment Reporting | ||||
Operating revenues | 1 | 1 | 2 | 2 |
Intercompany Operating Revenues [Member] | Corporate and Other [Member] | ||||
Segment Reporting | ||||
Operating revenues | $ 6 | $ 7 | $ 12 | $ 13 |
Segment and Related Informati_4
Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment revenue | ||||
Operating revenues | $ 5,402 | $ 5,119 | $ 10,561 | $ 10,011 |
Collection and Disposal [Member] | ||||
Segment revenue | ||||
Operating revenues | 4,922 | 4,734 | 9,638 | 9,257 |
Collection and Disposal [Member] | Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | 3,701 | 3,568 | 7,316 | 7,043 |
Collection and Disposal [Member] | Commercial [Member] | ||||
Segment revenue | ||||
Operating revenues | 1,330 | 1,256 | 2,646 | 2,507 |
Collection and Disposal [Member] | Industrial [Member] | ||||
Segment revenue | ||||
Operating revenues | 779 | 782 | 1,526 | 1,538 |
Collection and Disposal [Member] | Residential [Member] | ||||
Segment revenue | ||||
Operating revenues | 863 | 841 | 1,717 | 1,670 |
Collection and Disposal [Member] | Other Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | 729 | 689 | 1,427 | 1,328 |
Collection and Disposal [Member] | Landfill [Member] | ||||
Segment revenue | ||||
Operating revenues | 873 | 846 | 1,665 | 1,605 |
Collection and Disposal [Member] | Transfer [Member] | ||||
Segment revenue | ||||
Operating revenues | 348 | 320 | 657 | 609 |
Recycling Processing and Sales [Member] | ||||
Segment revenue | ||||
Operating revenues | 405 | 316 | 773 | 610 |
WM Renewable Energy [Member] | ||||
Segment revenue | ||||
Operating revenues | 69 | 62 | 138 | 131 |
Corporate and Other [Member] | ||||
Segment revenue | ||||
Operating revenues | 6 | 7 | 12 | 13 |
Operating Segments [Member] | ||||
Segment revenue | ||||
Operating revenues | 6,637 | 6,328 | 12,954 | 12,362 |
Operating Segments [Member] | Collection and Disposal [Member] | ||||
Segment revenue | ||||
Operating revenues | 6,080 | 5,857 | 11,879 | 11,435 |
Operating Segments [Member] | Collection and Disposal [Member] | Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | 4,171 | 4,009 | 8,233 | 7,897 |
Operating Segments [Member] | Collection and Disposal [Member] | Commercial [Member] | ||||
Segment revenue | ||||
Operating revenues | 1,526 | 1,424 | 3,027 | 2,836 |
Operating Segments [Member] | Collection and Disposal [Member] | Industrial [Member] | ||||
Segment revenue | ||||
Operating revenues | 978 | 974 | 1,912 | 1,907 |
Operating Segments [Member] | Collection and Disposal [Member] | Residential [Member] | ||||
Segment revenue | ||||
Operating revenues | 886 | 866 | 1,762 | 1,720 |
Operating Segments [Member] | Collection and Disposal [Member] | Other Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | 781 | 745 | 1,532 | 1,434 |
Operating Segments [Member] | Collection and Disposal [Member] | Landfill [Member] | ||||
Segment revenue | ||||
Operating revenues | 1,291 | 1,263 | 2,468 | 2,413 |
Operating Segments [Member] | Collection and Disposal [Member] | Transfer [Member] | ||||
Segment revenue | ||||
Operating revenues | 618 | 585 | 1,178 | 1,125 |
Operating Segments [Member] | Recycling Processing and Sales [Member] | ||||
Segment revenue | ||||
Operating revenues | 475 | 394 | 911 | 768 |
Operating Segments [Member] | WM Renewable Energy [Member] | ||||
Segment revenue | ||||
Operating revenues | 70 | 63 | 140 | 133 |
Operating Segments [Member] | Corporate and Other [Member] | ||||
Segment revenue | ||||
Operating revenues | 12 | 14 | 24 | 26 |
Intersegment Eliminations [Member] | ||||
Segment revenue | ||||
Operating revenues | (1,235) | (1,209) | (2,393) | (2,351) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | ||||
Segment revenue | ||||
Operating revenues | (1,158) | (1,123) | (2,241) | (2,178) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | (470) | (441) | (917) | (854) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Commercial [Member] | ||||
Segment revenue | ||||
Operating revenues | (196) | (168) | (381) | (329) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Industrial [Member] | ||||
Segment revenue | ||||
Operating revenues | (199) | (192) | (386) | (369) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Residential [Member] | ||||
Segment revenue | ||||
Operating revenues | (23) | (25) | (45) | (50) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Other Collection [Member] | ||||
Segment revenue | ||||
Operating revenues | (52) | (56) | (105) | (106) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Landfill [Member] | ||||
Segment revenue | ||||
Operating revenues | (418) | (417) | (803) | (808) |
Intersegment Eliminations [Member] | Collection and Disposal [Member] | Transfer [Member] | ||||
Segment revenue | ||||
Operating revenues | (270) | (265) | (521) | (516) |
Intersegment Eliminations [Member] | Recycling Processing and Sales [Member] | ||||
Segment revenue | ||||
Operating revenues | (70) | (78) | (138) | (158) |
Intersegment Eliminations [Member] | WM Renewable Energy [Member] | ||||
Segment revenue | ||||
Operating revenues | (1) | (1) | (2) | (2) |
Intersegment Eliminations [Member] | Corporate and Other [Member] | ||||
Segment revenue | ||||
Operating revenues | $ (6) | $ (7) | $ (12) | $ (13) |
Acquisitions (Detail)
Acquisitions (Detail) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | |
Jun. 03, 2024 | Jun. 30, 2024 | |
Business Acquisition | ||
Contingent consideration paid for acquisitions closed in previous year | $ 16 | |
2024 Business Acquisitions [Member] | ||
Business Acquisition | ||
Total consideration, net of cash acquired | 240 | |
Business acquisitions cash payments | 234 | |
Other consideration | $ 6 | |
Stericycle [Member] | ||
Business Acquisition | ||
Price per share | $ 62 | |
Acquisition total enterprise value | $ 7,200 | |
Debt incurred for acquisition | $ 1,400 |
Acquisitions - Allocation (Deta
Acquisitions - Allocation (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Purchase price allocation | ||
Goodwill | $ 9,363 | $ 9,254 |
2024 Business Acquisitions [Member] | ||
Purchase price allocation | ||
Property and equipment | 57 | |
Other intangible assets | 57 | |
Goodwill | $ 127 |
(Gain) Loss from Divestitures_2
(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Asset Impairments and Unusual Items | |||
(Gain) loss from divestitures, asset impairments and unusual items, net | $ 58 | $ 56 | $ (3) |
Waste Diversion Technology Company [Member] | |||
Asset Impairments and Unusual Items | |||
Asset impairments | $ 54 | $ 54 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI roll forward | ||||
Beginning balance | $ 7,078 | $ 6,808 | $ 6,896 | $ 6,864 |
Other comprehensive income (loss), net of tax | (13) | 25 | (36) | 37 |
Ending balance | 7,451 | 6,928 | 7,451 | 6,928 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (60) | (57) | (37) | (69) |
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) | (34) | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit | (2) | |||
Other comprehensive income (loss), net of tax | (13) | 25 | (36) | 37 |
Ending balance | (73) | $ (32) | (73) | $ (32) |
Derivative Instruments [Member] | ||||
AOCI roll forward | ||||
Beginning balance | 17 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit | (1) | |||
Other comprehensive income (loss), net of tax | (1) | |||
Ending balance | 16 | 16 | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 0 | |||
Available-for-Sale Securities [Member] | ||||
AOCI roll forward | ||||
Beginning balance | 8 | |||
Ending balance | 8 | 8 | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 0 | |||
Foreign Currency Translation Adjustments [Member] | ||||
AOCI roll forward | ||||
Beginning balance | (68) | |||
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) | (34) | |||
Other comprehensive income (loss), net of tax | (34) | |||
Ending balance | (102) | (102) | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, tax | 0 | |||
Post - Retirement Benefit Obligations [Member] | ||||
AOCI roll forward | ||||
Beginning balance | 6 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit | (1) | |||
Other comprehensive income (loss), net of tax | (1) | |||
Ending balance | $ 5 | 5 | ||
Other comprehensive income (loss) before reclassifications, tax | 0 | |||
Amounts reclassified from accumulated other comprehensive (income) loss, tax | $ 0 |
Common Stock Repurchase Progr_2
Common Stock Repurchase Program - Repurchases (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2024 | Feb. 29, 2024 | Jun. 30, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Capital Stock, Dividends and Common Stock Repurchase Program | |||||
Cash paid for repurchase of common stock | $ 262 | $ 620 | |||
Authorized share repurchases | $ 1,238 | $ 1,238 | |||
Accelerated Share Repurchase Agreement (ASR) [Member] | |||||
Capital Stock, Dividends and Common Stock Repurchase Program | |||||
Shares repurchased (in shares) | 0.2 | 1 | |||
Weighted average price per share (in dollars per share) | $ 199.16 | ||||
Cash paid for repurchase of common stock | $ 250 | ||||
Weighted average final purchase price (in dollars per share) | $ 206.23 | ||||
10b5-1 Plan [Member] | |||||
Capital Stock, Dividends and Common Stock Repurchase Program | |||||
Shares repurchased (in shares) | 0.1 | ||||
Cash paid for repurchase of common stock | $ 12 | ||||
Weighted average final purchase price (in dollars per share) | $ 209.20 | ||||
October 2023 Accelerated Share Repurchase Agreement [Member] | |||||
Capital Stock, Dividends and Common Stock Repurchase Program | |||||
Shares repurchased (in shares) | 0.2 | ||||
Weighted average final purchase price (in dollars per share) | $ 175.29 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | |
Fair Value | ||
Debt instrument repurchase amount | $ 778 | |
Debt Securities [Member] | ||
Fair Value | ||
Investment maturity | 10 years | |
Fair Value, Recurring [Member] | ||
Fair Value | ||
Total assets | $ 1,379 | $ 819 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value | ||
Cash equivalents and money market funds | 37 | 327 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Common Stocks, by Industry [Member] | ||
Fair Value | ||
Available-for-sale securities | 68 | 61 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Debt Securities [Member] | ||
Fair Value | ||
Available-for-sale securities | 778 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value | ||
Available-for-sale securities | $ 496 | $ 431 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt (Detail) - USD ($) $ in Billions | Jun. 30, 2024 | Dec. 31, 2023 |
Reported Value Measurement [Member] | ||
Fair Value | ||
Fair value of debt | $ 16.7 | $ 16.2 |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value | ||
Fair value of debt | $ 15.6 | $ 15.6 |
Variable Interest Entities (Det
Variable Interest Entities (Detail) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Variable Interest Entity | ||
Carrying value of debt | $ 16,743 | $ 16,229 |
Assets | 33,999 | 32,823 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Variable Interest Entity | ||
Assets | 121 | 119 |
Low income housing investments [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity | ||
Aggregate investment balance | 400 | 458 |
Carrying value of debt | 383 | 408 |
Trust For Final Capping, Closure, Post-closure Or Environmental Remediation Obligations [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | ||
Variable Interest Entity | ||
Aggregate investment balance | $ 107 | $ 104 |
Subsequent Events (Detail)
Subsequent Events (Detail) - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended | ||
Jul. 15, 2024 | Jul. 31, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | |
Subsequent Events | ||||
Net proceeds | $ 9,180 | $ 11,356 | ||
Subsequent Event [Member] | ||||
Subsequent Events | ||||
Net proceeds | $ 1,500 | |||
Subsequent Event [Member] | Senior Notes 4.950 Percent, Due 2027 [Member] | ||||
Subsequent Events | ||||
Debt instrument face amount | $ 750 | |||
Interest rate (as a percent) | 4.95% | |||
Subsequent Event [Member] | Senior Notes 4.950 Percent, Due 2031 [Member] | ||||
Subsequent Events | ||||
Debt instrument face amount | $ 750 | |||
Interest rate (as a percent) | 4.95% | |||
Subsequent Event [Member] | Winters Bros Waste Systems [Member] | ||||
Subsequent Events | ||||
Total consideration, net of cash acquired | $ 550 |