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Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and equipment as of December 31 consisted of the following (in millions):


	2019		2018
Land	$	656	$	656
Landfills		15,910		15,240
Vehicles		5,344		5,059
Machinery and equipment		3,140		2,988
Containers		2,616		2,588
Buildings and improvements		3,174		2,998
Furniture, fixtures and office equipment		710		677
		31,550		30,206
Less: Accumulated depreciation of tangible property and equipment		(9,331)		(9,107)
Less: Accumulated amortization of landfill airspace		(9,326)		(9,157)
Property and equipment, net	$	12,893	$	11,942

Depreciation and Amortization Expense Including Amortization Expense for Assets Recorded as Capital Leases

Depreciation and amortization expense, including amortization expense for assets recorded as financing leases, consisted of the following for the years ended December 31 (in millions):


	2019		2018		2017
Depreciation of tangible property and equipment	$	893	$	838	$	783
Amortization of landfill airspace		575		538		497
Depreciation and amortization expense	$	1,468	$	1,376	$	1,280

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 3,561	$ 61
Accounts receivable, net of allowance for doubtful accounts of $28 and $29, respectively	1,949	1,931
Other receivables	370	344
Parts and supplies	106	102
Other assets	223	207
Total current assets	6,209	2,645
Property and equipment, net of accumulated depreciation and amortization of $18,657 and $18,264, respectively	12,893	11,942
Goodwill	6,532	6,430
Other intangible assets, net	521	572
Restricted trust and escrow accounts	313	296
Investments in unconsolidated entities	483	406
Other assets	792	359
Total assets	27,743	22,650
Current liabilities:
Accounts payable	1,065	1,037
Accrued liabilities	1,327	1,117
Deferred revenues	534	522
Current portion of long-term debt	218	432
Total current liabilities	3,144	3,108
Long-term debt, less current portion	13,280	9,594
Deferred income taxes	1,407	1,291
Landfill and environmental remediation liabilities	1,930	1,828
Other liabilities	912	553
Total liabilities	20,673	16,374
Commitments and contingencies
Waste Management, Inc. stockholders' equity:
Common stock, $0.01 par value; 1,500,000,000 shares authorized; 630,282,461 shares issued	6	6
Additional paid-in capital	5,049	4,993
Retained earnings	10,592	9,797
Accumulated other comprehensive income (loss)	(8)	(87)
Treasury stock at cost, 205,956,366 and 206,299,352 shares, respectively	(8,571)	(8,434)
Total Waste Management, Inc. stockholders' equity	7,068	6,275
Noncontrolling interests	2	1
Total equity	7,070	6,276
Total liabilities and equity	$ 27,743	$ 22,650

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Consolidated net income	$ 1,671	$ 1,923	$ 1,949
Derivative instruments, net	8	8	7
Available-for-sale securities, net	15	5	2
Foreign currency translation adjustments	55	(105)	76
Post-retirement benefit obligations, net	1	2	3
Other comprehensive income (loss), net of tax	79	(90)	88
Comprehensive income	1,750	1,833	2,037
Less: Comprehensive income (loss) attributable to noncontrolling interests	1	(2)
Comprehensive income attributable to Waste Management, Inc.	$ 1,749	$ 1,835	$ 2,037

Business (Detail)	12 Months Ended
Business (Detail)	Dec. 31, 2019 area
Solid Waste [Member]
Segment Reporting Information [Line Items]
Number of areas	17

Leases - Balance sheet (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Assets
Operating leases	$ 424
Operating right of use asset extensible list	us-gaap:OtherAssetsCurrent
Financing lease	$ 374
Financing Lease, right of use asset extensible list	us-gaap:PropertyPlantAndEquipmentNet
Total leased assets	$ 798
Liabilities
Operating, current	$ 79
Operating Lease, Liability current extensible list	us-gaap:AccruedLiabilitiesCurrent
Financing, current	$ 36
Financing Lease, Liability current extensible list	us-gaap:DebtCurrent
Operating, non current	$ 366
Operating lease, liability noncurrent extensible list	us-gaap:OtherLiabilitiesNoncurrent
Financing, non current	$ 323
Financing lease, liability noncurrent extensible list	us-gaap:LongTermDebtAndCapitalLeaseObligations
Total lease liabilities	$ 804

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss [Member]	Treasury Stock [Member]	Noncontrolling Interests [Member]	Total
Beginning balance at Dec. 31, 2016	$ 6	$ 4,850	$ 7,388	$ (80)	$ (6,867)	$ 23	$ 5,320
Beginning balance, shares at Dec. 31, 2016	630,282				(190,967)
Equity roll forward
Consolidated net income			1,949				1,949
Other comprehensive income (loss), net of tax				88			88
Cash dividends declared			(750)				(750)
Equity-based compensation transactions, net		38	1		$ 146		185
Equity-based compensation transaction, shares					4,064
Common stock repurchase program		45			$ (795)		$ (750)
Common stock repurchase program, shares					(10,058)		(10,058,000)
Other, net, shares					(3)
Ending balance at Dec. 31, 2017	$ 6	4,933	8,588	8	$ (7,516)	23	$ 6,042
Ending balance, shares at Dec. 31, 2017	630,282				(196,964)
Equity roll forward
Consolidated net income			1,925			(2)	1,923
Other comprehensive income (loss), net of tax				(90)			(90)
Cash dividends declared			(802)				(802)
Equity-based compensation transactions, net		60	1		$ 90		151
Equity-based compensation transaction, shares					2,345
Common stock repurchase program					$ (1,008)		$ (1,008)
Common stock repurchase program, shares					(11,673)		(11,673,000)
Adoption of new accounting standards			85	(5)			$ 80
Divestiture of noncontrolling interest						(19)	(19)
Other, net						(1)	(1)
Other, net, shares					(7)
Ending balance at Dec. 31, 2018	$ 6	4,993	9,797	(87)	$ (8,434)	1	6,276
Ending balance, shares at Dec. 31, 2018	630,282				(206,299)
Equity roll forward
Consolidated net income			1,670			1	1,671
Other comprehensive income (loss), net of tax				79			79
Cash dividends declared			(876)				(876)
Equity-based compensation transactions, net		56	1		$ 107		164
Equity-based compensation transaction, shares					2,585
Common stock repurchase program					$ (244)		$ (244)
Common stock repurchase program, shares					(2,247)		(2,247,000)
Other, net, shares					5
Ending balance at Dec. 31, 2019	$ 6	$ 5,049	$ 10,592	$ (8)	$ (8,571)	$ 2	$ 7,070
Ending balance, shares at Dec. 31, 2019	630,282				(205,956)

Goodwill and Other Intangible Assets - Intangibles (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Other Intangible Assets
Intangible assets amortization	$ 106	$ 101	$ 96
Indefinite-lived intangible assets	19
Expected amortization expenses related to other intangible assets in 2020	99
Expected amortization expenses related to other intangible assets in 2021	85
Expected amortization expenses related to other intangible assets in 2022	70
Expected amortization expenses related to other intangible assets in 2023	61
Expected amortization expenses related to other intangible assets in 2024	$ 56

Income Taxes - Reconciliation (Detail)	12 Months Ended
Income Taxes - Reconciliation (Detail)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Income tax expense at U.S. federal statutory rate	21.00%	21.00%	35.00%
State and local income taxes, net of federal income tax benefit	4.39%	4.41%	3.25%
Impacts of enactment of tax reform		(0.51%)	(24.14%)
Federal tax credits	(4.38%)	(2.44%)	(2.31%)
Taxing authority audit settlements and other tax adjustments	(0.74%)	(3.85%)	0.03%
Tax impact of equity-based compensation transactions	(0.91%)	(0.54%)	(1.45%)
Tax impact of impairments	0.72%	0.03%	0.66%
Tax rate differential on foreign income	0.40%	0.43%	(0.55%)
Other	0.13%	0.51%	0.55%
Effective income tax rate	20.61%	19.04%	11.04%

Segment and Related Information (Tables)

12 Months Ended

Dec. 31, 2019

Segment and Related Information

Reportable Segments

Summarized financial information concerning our reportable segments as of December 31 and for the years then ended is shown in the following table (in millions):


							Income
	Gross		Intercompany		Net		from		Depreciation		Capital		Total
	Operating		Operating		Operating		Operations		and		Expenditures		Assets
	Revenues		Revenues(c)		Revenues		(d)(e)		Amortization		(f)		(g)(h)
Years Ended December 31:
2019
Solid Waste:
Tier 1	$	6,136	$	(1,141)	$	4,995	$	1,682	$	551	$	508	$	7,519
Tier 2		3,865		(777)		3,088		854		327		329		5,558
Tier 3		6,386		(1,209)		5,177		1,136		585		453		8,243
Solid Waste		16,387		(3,127)		13,260		3,672		1,463		1,290		21,320
Other (a)		2,317		(122)		2,195		(203)		75		118		1,648
		18,704		(3,249)		15,455		3,469		1,538		1,408		22,968
Corporate and Other (b)		—		—		—		(763)		36		407		5,042
Total	$	18,704	$	(3,249)	$	15,455	$	2,706	$	1,574	$	1,815	$	28,010

2018
Solid Waste:
Tier 1	$	5,730	$	(1,045)	$	4,685	$	1,619	$	493	$	584	$	6,736
Tier 2		3,675		(724)		2,951		784		317		322		5,224
Tier 3		6,132		(1,146)		4,986		992		546		493		7,878
Solid Waste		15,537		(2,915)		12,622		3,395		1,356		1,399		19,838
Other (a)		2,487		(195)		2,292		(66)		91		72		1,571
		18,024		(3,110)		14,914		3,329		1,447		1,471		21,409
Corporate and Other (b)		—		—		—		(540)		30		200		1,487
Total	$	18,024	$	(3,110)	$	14,914	$	2,789	$	1,477	$	1,671	$	22,896

2017
Solid Waste:
Tier 1	$	5,441	$	(987)	$	4,454	$	1,506	$	438	$	588	$	6,305
Tier 2		3,599		(654)		2,945		777		274		308		5,214
Tier 3		5,792		(1,024)		4,768		1,006		516		487		7,485
Solid Waste		14,832		(2,665)		12,167		3,289		1,228		1,383		19,004
Other (a)		2,538		(220)		2,318		(68)		103		93		1,785
		17,370		(2,885)		14,485		3,221		1,331		1,476		20,789
Corporate and Other (b)		—		—		—		(585)		45		92		1,327
Total	$	17,370	$	(2,885)	$	14,485	$	2,636	$	1,376	$	1,568	$	22,116

(a)

“Other” includes (i) our WMSBS organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our EES and WM Renewable Energy organizations that are not included in the operations of our reportable segments; (iii) our recycling brokerage services and (iv) certain other expanded service offerings and solutions. In addition, our “Other” segment reflects the results of non-operating entities that provide financial assurance and self-insurance support for our Solid Waste business, net of intercompany activity.

(b)	Corporate operating results reflect certain costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, tax,

insurance, centralized service center processes, other administrative functions and the maintenance of our closed landfills. Income from operations for “Corporate and Other” also includes costs associated with our long-term incentive program and any administrative expenses or revisions to our estimated obligations associated with divested operations.

(c)	Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(d)	For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 3.

(e)

The income from operations provided by our Solid Waste business is generally indicative of the margins provided by our collection, landfill, transfer and recycling lines of business. From time to time, the operating results of our reportable segments are significantly affected by certain transactions or events that management believes are not indicative or representative of our results. Refer to Note 12 for explanations of certain transactions and events affecting our operating results.

(f)	Includes non-cash items. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property and equipment balances and, therefore, may include amounts that have been accrued but not yet paid.

(g) The reconciliation of total assets reported above to total assets in the Consolidated Balance Sheets as of December 31 is as follows (in millions):


	2019		2018		2017
Total assets, as reported above	$	28,010	$	22,896	$	22,116
Elimination of intercompany investments and advances		(267)		(246)		(287)
Total assets, per Consolidated Balance Sheet	$	27,743	$	22,650	$	21,829

(h) Goodwill is included within each segment’s total assets. For segment reporting purposes, our material recovery facilities are included as a component of their respective Areas and our recycling brokerage services are included as part of our “Other” operations. The following table presents changes in goodwill during the reported periods by segment (in millions):


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2017	$	2,117	$	1,595	$	2,414	$	121	$	6,247
Acquired goodwill		82		23		142		1		248
Divested goodwill		(6)		—		—		(19)		(25)
Impairments		—		—		—		(6)		(6)
Foreign currency translation		—		(34)		—		—		(34)
Balance, December 31, 2018	$	2,193	$	1,584	$	2,556	$	97	$	6,430
Acquired goodwill (a)		90		12		6		—		108
Divested goodwill		—		—		—		—		—
Impairments		—		—		—		(27)		(27)
Foreign currency translation		—		21		—		—		21
Balance, December 31, 2019	$	2,283	$	1,617	$	2,562	$	70	$	6,532

(a)	Includes $3 million of post-closing adjustments related to prior year acquisitions.

The mix of operating revenues from our major lines of business for the years ended December 31 are as follows (in millions):


	2019		2018		2017
Commercial	$	4,229	$	3,972	$	3,714
Residential		2,613		2,529		2,528
Industrial		2,916		2,773		2,583
Other collection		482		450		439
Total collection		10,240		9,724		9,264
Landfill		3,846		3,560		3,370
Transfer		1,820		1,711		1,591
Recycling		1,040		1,293		1,432
Other (a)		1,758		1,736		1,713
Intercompany (b)		(3,249)		(3,110)		(2,885)
Total	$	15,455	$	14,914	$	14,485

(a)

The “Other” line of business includes (i) our WMSBS organization; (ii) our landfill gas-to-energy operations; (iii) certain services within our EES organization, including our construction and remediation services and our services associated with the disposal of fly ash and (iv) certain other expanded service offerings and solutions. In addition, our “Other” line of business reflects the results of non-operating entities that provide financial assurance and self-insurance support, net of intercompany activity. Activity related to collection, landfill, transfer and recycling has been reclassified to the appropriate line of business for purposes of presentation.

(b)	Intercompany revenues between lines of business are eliminated in the Consolidated Financial Statements included within this report.

Reconciliation of Segment Assets to Consolidated Total


	2019		2018		2017
Total assets, as reported above	$	28,010	$	22,896	$	22,116
Elimination of intercompany investments and advances		(267)		(246)		(287)
Total assets, per Consolidated Balance Sheet	$	27,743	$	22,650	$	21,829

Changes in Goodwill by Reportable Segment


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2017	$	2,117	$	1,595	$	2,414	$	121	$	6,247
Acquired goodwill		82		23		142		1		248
Divested goodwill		(6)		—		—		(19)		(25)
Impairments		—		—		—		(6)		(6)
Foreign currency translation		—		(34)		—		—		(34)
Balance, December 31, 2018	$	2,193	$	1,584	$	2,556	$	97	$	6,430
Acquired goodwill (a)		90		12		6		—		108
Divested goodwill		—		—		—		—		—
Impairments		—		—		—		(27)		(27)
Foreign currency translation		—		21		—		—		21
Balance, December 31, 2019	$	2,283	$	1,617	$	2,562	$	70	$	6,532

Summary of operating revenues mix


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2017	$	2,117	$	1,595	$	2,414	$	121	$	6,247
Acquired goodwill		82		23		142		1		248
Divested goodwill		(6)		—		—		(19)		(25)
Impairments		—		—		—		(6)		(6)
Foreign currency translation		—		(34)		—		—		(34)
Balance, December 31, 2018	$	2,193	$	1,584	$	2,556	$	97	$	6,430
Acquired goodwill (a)		90		12		6		—		108
Divested goodwill		—		—		—		—		—
Impairments		—		—		—		(27)		(27)
Foreign currency translation		—		21		—		—		21
Balance, December 31, 2019	$	2,283	$	1,617	$	2,562	$	70	$	6,532

Summary of net revenue by geographic area

Net operating revenues relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	14,701	$	14,167	$	13,768
Canada		754		747		717
Total	$	15,455	$	14,914	$	14,485

Summary of Property and Equipment Net of Accumulated Depreciation and Amortization Relating to Operations by Geographic Location

Property and equipment, net of accumulated depreciation and amortization, relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	11,941	$	11,044	$	10,591
Canada		952		898		968
Total	$	12,893	$	11,942	$	11,559

Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

6. Goodwill and Other Intangible Assets

Goodwill was $6,532 million and $6,430 million as of December 31, 2019 and 2018, respectively. The $102 million increase in goodwill during 2019 is primarily related to acquisitions partially offset by impairment charges, which are discussed below, and translation adjustments related to our Canadian operations.

As discussed in Note 3, we perform our annual impairment test of goodwill balances for our reporting units using a measurement date of October 1. We will also perform interim tests if an impairment indicator exists. As a result of our annual impairment test performed in the fourth quarter of 2019, we recorded goodwill impairment charges of $27 million, of which $17 million related to our EES organization and $10 million related to our LampTracker^® reporting unit, because the carrying value including goodwill exceeded the estimated fair value. Fair value was estimated using an income approach based on long-term projected discounted future cash flows of the reporting unit (Level 3).

See Notes 12, 18 and 20 for additional information related to goodwill.

Our other intangible assets consisted of the following as of December 31 (in millions):


	Customer		Covenants		Licenses,
	and Supplier		Not-to-		Permits
	Relationships		Compete		and Other		Total
2019
Intangible assets	$	906	$	72	$	110	$	1,088
Less: Accumulated amortization		(469)		(36)		(62)		(567)
	$	437	$	36	$	48	$	521
2018
Intangible assets	$	949	$	60	$	109	$	1,118
Less: Accumulated amortization		(461)		(24)		(61)		(546)
	$	488	$	36	$	48	$	572

Amortization expense for other intangible assets was $106 million, $101 million and $96 million for 2019, 2018 and 2017, respectively. As of December 31, 2019, we had $19 million of licenses, permits and other intangible assets that are not subject to amortization because they do not have stated expirations or have routine, administrative renewal processes. Additional information related to other intangible assets acquired through business combinations is included in Note 18. As of December 31, 2019, we expect annual amortization expense related to other intangible assets to be $99 million in 2020, $85 million in 2021, $70 million in 2022, $61 million in 2023 and $56 million in 2024.

Property and Equipment - Expense (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Depreciation and amortization expense	$ 1,574	$ 1,477	$ 1,376
Tangible Property and Equipment [Member]
Property, Plant and Equipment
Depreciation and amortization expense	893	838	783
Landfill Airspace [Member]
Property, Plant and Equipment
Depreciation and amortization expense	575	538	497
Property and Equipment [Member]
Property, Plant and Equipment
Depreciation and amortization expense	$ 1,468	$ 1,376	$ 1,280

Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]
Employee waiting period after hire to participate in the defined contribution plans	90 days
Employee maximum contribution towards defined contribution plans as percentage of annual compensation	50.00%
Employee maximum contribution towards defined contribution plans as percentage of annual incentive plan bonus	80.00%
Percentage of contribution upon eligibility for non union employees hired after threshold period	3.00%
Employer's match in cash of non-union employee contributions on first specified percentage of eligible compensation	100.00%
First percentage of eligible compensation on which specified percentage of non-union employee contribution is matched by the employer in cash	3.00%
Employer's match in cash of non-union employee contributions on next specified percentage of eligible compensation	50.00%
Next percentage of eligible compensation on which specified percentage of non-union employee contribution is matched by the employer in cash	3.00%
Employer maximum match of non-union employee contribution on eligible compensation	4.50%
Defined contribution plans expense	$ 88	$ 80	$ 70
Accrued benefit liabilities	19	21
Pension Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Combined accumulated benefit obligation of pension plans	141	120
Plan assets of pension plans	136	117
Unfunded benefit obligation	5	3
Other Postretirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Unfunded benefit obligation	$ 14	$ 18

Commitments and Contingencies - Other (Details)	12 Months Ended
Commitments and Contingencies - Other (Details)	Dec. 31, 2019 USD ($) item site	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Commitments And Contingencies [Line Items]
Number of landfills adjacent to or near homeowners' properties with agreements guaranteeing market value \| item	18
Environmental remediation reasonably possible additional losses high estimate	$ 140,000,000
Environmental remediation liabilities	$ 240,000,000
Number of sites listed on the EPA's NPL for which we have been notified we are a PRP \| site	75
Number of owned sites listed on the EPA's NPL for which we have been notified we are a PRP \| site	15
Number of non-owned sites listed on the EPA's NPL for which we have been notified we are a PRP \| site	60
Dollar threshold for environmental matters requiring disclosure under item 103 of the SEC's Regulation S-K	$ 100,000
Approximate percentage of workforce covered by collective bargaining agreements	20.00%
Expected time of completion of IRS audits	15 months
Withdrawal from Multiemployer Pension Plans [Member]
Commitments And Contingencies [Line Items]
Charge to "Operating" expenses		$ 3,000,000	$ 12,000,000
Maximum [Member] \| Withdrawal from Multiemployer Pension Plans [Member]
Commitments And Contingencies [Line Items]
Charge to "Operating" expenses	$ 1,000,000
San Jacinto Waste Pits [Member]
Commitments And Contingencies [Line Items]
Environmental remediation liabilities	56,000,000	$ 55,000,000
Revisions in estimate			$ 11,000,000
Wheelabrator [Member]
Commitments And Contingencies [Line Items]
Maximum future payments	$ 45,000,000

Income Taxes - Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss, capital loss and tax credit carry-forwards	$ 150	$ 258
Landfill and environmental remediation liabilities	156	143
Operating lease liabilities	114
Miscellaneous and other reserves, net	150	175
Subtotal	570	576
Valuation allowance	(162)	(261)
Deferred tax liabilities:
Property and equipment	(842)	(752)
Goodwill and other intangibles	(865)	(854)
Operating lease right-of-use assets	(108)
Net deferred tax liabilities	(1,407)	$ (1,291)
Increase (decrease) valuation allowance	$ (99)

Segment and Related Information - Goodwill (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Goodwill, Beginning Balance		$ 6,430	$ 6,247
Acquired goodwill		108	248
Divested goodwill			(25)
Impairments	$ (27)	(27)	(6)	$ (34)
Foreign currency translation		21	(34)
Goodwill, Ending Balance	6,532	6,532	6,430	6,247
Goodwill post-closing adjustment increase (decrease)		(3)
Tier 1 [Member]
Segment Reporting Information [Line Items]
Goodwill, Beginning Balance		2,193	2,117
Acquired goodwill		90	82
Divested goodwill			(6)
Goodwill, Ending Balance	2,283	2,283	2,193	2,117
Tier 2 [Member]
Segment Reporting Information [Line Items]
Goodwill, Beginning Balance		1,584	1,595
Acquired goodwill		12	23
Foreign currency translation		21	(34)
Goodwill, Ending Balance	1,617	1,617	1,584	1,595
Tier 3 [Member]
Segment Reporting Information [Line Items]
Goodwill, Beginning Balance		2,556	2,414
Acquired goodwill		6	142
Goodwill, Ending Balance	2,562	2,562	2,556	2,414
Other [Member]
Segment Reporting Information [Line Items]
Goodwill, Beginning Balance		97	121
Acquired goodwill			1
Divested goodwill			(19)
Impairments		(27)	(6)
Goodwill, Ending Balance	$ 70	$ 70	$ 97	$ 121

Condensed Consolidating Financial Statements - Balance Sheets (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 3,561	$ 61	$ 22
Other current assets	2,648	2,584
Total current assets	6,209	2,645
Property and equipment, net	12,893	11,942	11,559
Other assets	8,641	8,063
Total assets	27,743	22,650	21,829
Current liabilities:
Current portion of long-term debt	218	432
Accounts payable and other current liabilities	2,926	2,676
Total current liabilities	3,144	3,108
Long-term debt, less current portion	13,280	9,594
Other liabilities	4,249	3,672
Total liabilities	20,673	16,374
Equity:
Stockholders' equity	7,068	6,275
Noncontrolling interests	2	1
Total equity	7,070	6,276	$ 6,042	$ 5,320
Total liabilities and equity	27,743	22,650
Eliminations [Member]
Current assets:
Investments in affiliates	(52,894)	(49,515)
Advances to affiliates	(19,047)	(17,129)
Total assets	(71,941)	(66,644)
Current liabilities:
Due to affiliates	(26,690)	(24,124)
Total liabilities	(26,690)	(24,124)
Equity:
Stockholders' equity	(52,894)	(49,515)
Advances to affiliates	7,643	6,995
Total equity	(45,251)	(42,520)
Total liabilities and equity	(71,941)	(66,644)
WM [Member] \| Reportable Legal Entities [Member]
Current assets:
Cash and cash equivalents	3,485
Other current assets	2	2
Total current assets	3,487	2
Investments in affiliates	26,221	24,547
Other assets	6	8
Total assets	29,714	24,557
Current liabilities:
Current portion of long-term debt	15	258
Accounts payable and other current liabilities	105	82
Total current liabilities	120	340
Long-term debt, less current portion	10,736	7,377
Due to affiliates	19,131	17,269
Other liabilities	4	5
Total liabilities	29,991	24,991
Equity:
Stockholders' equity	7,068	6,275
Advances to affiliates	(7,345)	(6,709)
Total equity	(277)	(434)
Total liabilities and equity	29,714	24,557
WM Holdings [Member] \| Reportable Legal Entities [Member]
Current assets:
Other current assets	4	5
Total current assets	4	5
Investments in affiliates	26,673	24,968
Other assets	10	31
Total assets	26,687	25,004
Current liabilities:
Accounts payable and other current liabilities	7	9
Total current liabilities	7	9
Long-term debt, less current portion	248	304
Due to affiliates	214	146
Total liabilities	469	459
Equity:
Stockholders' equity	26,218	24,545
Total equity	26,218	24,545
Total liabilities and equity	26,687	25,004
Non-Guarantor Subsidiaries [Member] \| Reportable Legal Entities [Member]
Current assets:
Cash and cash equivalents	76	61
Other current assets	2,642	2,577
Total current assets	2,718	2,638
Property and equipment, net	12,893	11,942
Advances to affiliates	19,047	17,129
Other assets	8,625	8,024
Total assets	43,283	39,733
Current liabilities:
Current portion of long-term debt	203	174
Accounts payable and other current liabilities	2,814	2,585
Total current liabilities	3,017	2,759
Long-term debt, less current portion	2,296	1,913
Due to affiliates	7,345	6,709
Other liabilities	4,245	3,667
Total liabilities	16,903	15,048
Equity:
Stockholders' equity	26,676	24,970
Advances to affiliates	(298)	(286)
Noncontrolling interests	2	1
Total equity	26,380	24,685
Total liabilities and equity	$ 43,283	$ 39,733

New Accounting Standards and Reclassifications (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Jan. 01, 2019
New ASU
Lease, Practical Expedients, Package	true
Lease, Practical Expedient, Land Easement [true false]	true
Right-of-use assets	$ 424
Operating lease liability	$ 445
Accounting Standards Update 2016-02 [Member] \| Adjustment [Member]
New ASU
Right-of-use assets		$ 385
Operating lease liability		$ 385

Debt - Classification and Utilization (Detail) $ in Millions	1 Months Ended	12 Months Ended
	Nov. 30, 2019 USD ($) item	Dec. 31, 2019 USD ($)	Oct. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Debt
Debt maturing or subject to remarketing within twelve months		$ 1,500
Current portion of long-term debt		$ 218		$ 432
4.75% senior notes due June 2020 [Member]
Debt
Interest rate (as a percent)		4.75%
Debt, before unamortized (discount) premium		$ 600
Tax Exempt Bonds [Member]
Debt
Debt instrument face amount		240
Debt with interest rate periods that expire in the next 12 months		669
Current portion of long-term debt		112
Debt classified as long-term due to intent and ability to refinance on long-term basis		1,300
Variable-rate tax-exempt bonds		169
Variable-rate tax-exempt bonds, current		15
Variable-rate tax-exempt bonds, non-current		$ 154
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)		1.35%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)		4.30%
Financing leases and other [Member]
Debt
Current portion of long-term debt		$ 218
Revolving Credit Facility [Member]
Debt
Outstanding borrowings under credit facility		0
Maximum capacity	$ 3,500	3,500	$ 2,750
Accordion option capacity	$ 1,000		750
Number of extension periods \| item	2
Extension term	1 year
Letters of credit outstanding		412
Unused and available credit capacity		$ 3,100
Revolving Credit Facility [Member] \| Minimum [Member] \| London Interbank Offered Rate [Member]
Debt
Spread rate		0.575%
Revolving Credit Facility [Member] \| Maximum [Member] \| London Interbank Offered Rate [Member]
Debt
Spread rate		1.015%
Credit Facility Revolving Canadian [Member]
Debt
Maximum capacity		$ 375
Commercial Paper Program [Member]
Debt
Maximum capacity	$ 3,500		$ 2,750
Commercial paper, borrowings		$ 0
Debt term		397 days
Other Letter Of Credit Facilities [Member]
Debt
Letters of credit outstanding		$ 532

Equity-Based Compensation

12 Months Ended

Dec. 31, 2019

Equity-Based Compensation

Equity-Based Compensation

15. Equity-Based Compensation

Employee Stock Purchase Plan

We have an Employee Stock Purchase Plan (“ESPP”) under which employees that have been employed for at least 30 days may purchase shares of our common stock at a discount. The plan provides for two offering periods for purchases: January through June and July through December. At the end of each offering period, enrolled employees purchase shares of our common stock at a price equal to 85% of the lesser of the market value of the stock on the first and last day of such offering period. The purchases are made at the end of an offering period with funds accumulated through payroll deductions over the course of the offering period. Subject to limitations set forth in the plan and under IRS regulations, eligible employees may elect to have up to 10% of their base pay deducted during the offering period. The total number of shares issued under the plan for the offering periods in 2019, 2018 and 2017 was approximately 537,000, 582,000 and 594,000, respectively. After the January 2020 issuance of shares associated with the July to December 2019 offering period, 0.8 million shares remain available for issuance under the ESPP.

As a result of our ESPP, annual compensation expense increased by $10 million, or $7 million net of tax expense, for 2019, $9 million, or $7 million net of tax expense, for 2018 and $7 million, or $4 million net of tax expense, for 2017.

Employee Stock Incentive Plans

In May 2014, our stockholders approved our 2014 Stock Incentive Plan (the “2014 Plan”) to replace our 2009 Stock Incentive Plan (the “2009 Plan”). The 2014 Plan authorized 23.8 million shares of our common stock for issuance pursuant to the 2014 Plan, plus the approximately 1.1 million shares that then remained available for issuance under the 2009 Plan, and any shares subject to outstanding awards under both incentive plans that are subsequently cancelled, forfeited, terminate, expire or lapse. As of December 31, 2019, approximately 20.0 million shares were available for future grants under the 2014 Plan. All of our equity-based compensation awards described herein have been made pursuant to either our 2009 Plan or our 2014 Plan, collectively referred to as the “Incentive Plans.” We currently utilize treasury shares to meet the needs of our equity-based compensation programs.

Pursuant to the Incentive Plans, we have the ability to issue stock options, stock appreciation rights and stock awards, including restricted stock, restricted stock units (“RSUs”) and performance share units (“PSUs”). The terms and conditions of equity awards granted under the Incentive Plans are determined by the Management Development and Compensation Committee of our Board of Directors.

The 2019 annual Incentive Plan awards granted to the Company’s senior leadership team, which generally includes the Company’s executive officers, included a combination of PSUs and stock options. The annual Incentive Plan awards granted to other eligible employees included a combination of PSUs, RSUs and stock options in 2019. The Company also periodically grants RSUs to employees working on key initiatives, in connection with new hires and promotions and to field-based managers.

Restricted Stock Units — A summary of our RSUs is presented in the table below (units in thousands):


		Weighted Average
		Per Share
	Units	Fair Value
Unvested as of January 1, 2019	392	$	70.52
Granted	121	$	99.91
Vested	(151)	$	56.74
Forfeited	(14)	$	86.11
Unvested as of December 31, 2019	348	$	86.15

The total fair market value of RSUs that vested during the years ended December 31, 2019, 2018 and 2017 was $15 million, $13 million and $12 million, respectively. During the year ended December 31, 2019, we issued approximately 106,000 shares of common stock for these vested RSUs, net of approximately 45,000 units deferred or used for payment of associated taxes.

RSUs may not be voted or sold by award recipients until time-based vesting restrictions have lapsed. RSUs primarily provide for three-year cliff vesting and include dividend equivalents accumulated during the vesting period. Unvested units are subject to forfeiture in the event of voluntary or for-cause termination. RSUs are subject to pro-rata vesting upon an employee’s retirement or involuntary termination other than for cause and generally payout at the end of the three-year vesting period and become immediately vested in the event of an employee’s death or disability.

Compensation expense associated with RSUs is measured based on the grant-date fair value of our common stock and is recognized on a straight-line basis over the required employment period, which is generally the vesting period. Compensation expense is only recognized for those awards that we expect to vest, which we estimate based upon an assessment of expected forfeitures.

Performance Share Units — Two types of PSUs are currently outstanding: (i) PSUs for which payout is dependent on total shareholder return relative to the S&P 500 (“TSR PSUs”) and (ii) PSUs for which payout is dependent on the Company’s performance against pre-established adjusted cash flow metrics (“Cash Flow PSUs”). Both types of PSUs are payable in shares of common stock after the end of a three-year performance period, when the Company’s financial performance for the entire performance period is reported, typically in mid- to late-February of the succeeding year. At the end of the performance period, the number of shares awarded can range from 0% to 200% of the targeted amount, depending on the performance against the pre-established targets. A summary of our PSUs, at 100% of the targeted amount, is presented in the table below (units in thousands):


		Weighted Average
		Per Share
	Units	Fair Value
Unvested as of January 1, 2019	1,164	$	90.17
Granted	364	$	116.26
Vested	(427)	$	93.03
Forfeited	(24)	$	98.33
Unvested as of December 31, 2019	1,077	$	99.66

The determination of achievement of performance results and corresponding vesting of PSUs for the three-year performance period ended December 31, 2019 was performed by the Management Development and Compensation Committee in February 2020. Accordingly, vesting information for such awards is not included in the table above as of December 31, 2019. The “vested” PSUs are for the three-year performance period ended December 31, 2018, as achievement of performance results and corresponding vesting was determined in February 2019. The Company’s

financial results, as measured for purposes of these awards, achieved the maximum performance criteria. Accordingly, recipients of these PSU awards were entitled to receive a payout of 200% of the vested TSR PSUs and Cash Flow PSUs. In February 2019, approximately 853,000 PSUs vested and we issued approximately 532,000 shares of common stock for these vested PSUs, net of units deferred or used for payment of associated taxes. The shares of common stock that were issued or deferred during the years ended December 31, 2019, 2018 and 2017 for prior PSU award grants had a fair market value of $84 million, $78 million and $80 million, respectively.

PSUs have no voting rights. PSUs receive dividend equivalents that are paid out in cash based on the number of shares that vest at the end of the awards’ performance period. Subject to attainment of the performance metrics described above, PSUs are payable to an employee (or his beneficiary) upon death or disability as if that employee had remained employed until the end of the performance period. PSUs are generally subject to pro-rata vesting upon an employee’s involuntary termination other than for cause and are subject to forfeiture in the event of voluntary or for-cause termination. The terms of the award agreements for outstanding PSUs provide for continued vesting following retirement as if the employee had remained employed until the end of the performance period, and compensation expense for PSUs granted to retirement-eligible employees is accelerated over the period that the recipient becomes retirement-eligible plus a defined service requirement.

Compensation expense associated with our Cash Flow PSUs is based on the grant-date fair value of our common stock. Compensation expense is recognized ratably over the performance period based on our estimated achievement of the established performance criteria. Compensation expense is only recognized for those awards that we expect to vest, which we estimate based upon an assessment of both the probability that the performance criteria will be achieved and expected forfeitures. The grant-date fair value of our TSR PSUs is based on a Monte Carlo valuation and compensation expense is recognized on a straight-line basis over the vesting period. Compensation expense is recognized for all TSR PSUs whether or not the market conditions are achieved less expected forfeitures.

Deferred Units — Certain employees can elect to defer some or all of the vested RSU or PSU awards until a specified date or dates they choose. Deferred units are not invested, nor do they earn interest, but deferred amounts do receive dividend equivalents paid in cash during deferral at the same time and at the same rate as dividends on the Company’s common stock. Deferred amounts are paid out in shares of common stock at the end of the deferral period. As of December 31, 2019, we had approximately 225,000 vested deferred units outstanding.

Stock Options — Stock options granted vest primarily in 25% increments on the first two anniversaries of the date of grant with the remaining 50% vesting on the third anniversary. The exercise price of the options is the average of the high and low market value of our common stock on the date of grant, and the options have a term of 10 years. A summary of our stock options is presented in the table below (options in thousands):


		Weighted Average
		Per Share
	Options	Exercise Price
Outstanding as of January 1, 2019	4,441	$	59.46
Granted	839	$	98.90
Exercised	(1,278)	$	107.96
Forfeited or expired	(64)	$	83.20
Outstanding as of December 31, 2019 (a)	3,938	$	69.66
Exercisable as of December 31, 2019 (b)	2,063	$	52.90

(a)	Stock options outstanding as of December 31, 2019 have a weighted average remaining contractual term of 6.5 years and an aggregate intrinsic value of $174 million based on the market value of our common stock on December 31, 2019.

(b)	Stock options exercisable as of December 31, 2019 have an aggregate intrinsic value of $126 million based on the market value of our common stock on December 31, 2019.

We received cash proceeds of $67 million, $52 million and $95 million during the years ended December 31, 2019, 2018 and 2017, respectively, from employee stock option exercises. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2019, 2018 and 2017 was $71 million, $41 million and $71 million, respectively.

Stock options exercisable as of December 31, 2019 were as follows (options in thousands):


		Weighted Average
		Per Share		Weighted Average
Range of Exercise Prices	Options	Exercise Price		Remaining Years
$33.49-$50.00	829	$	37.94	2.6
$50.01-$70.00	809	$	55.58	5.7
$70.01-$98.90	425	$	76.98	7.5
$33.49-$98.90	2,063	$	52.90	4.8

All unvested stock options shall become exercisable upon the award recipient’s death or disability. In the event of a recipient’s retirement, stock options shall continue to vest pursuant to the original schedule set forth in the award agreement. If the recipient is terminated by the Company without cause or voluntarily resigns, the recipient shall be entitled to exercise all stock options outstanding and exercisable within a specified time frame after such termination. All outstanding stock options, whether exercisable or not, are forfeited upon termination for cause.

We account for our employee stock options under the fair value method of accounting using a Black-Scholes valuation model to measure stock option expense at the date of grant. The weighted average grant-date fair value of stock options granted during the years ended December 31, 2019, 2018 and 2017 was $12.22, $12.16 and $11.71, respectively. The fair value of stock options at the date of grant is amortized to expense over the vesting period less expected forfeitures, except for stock options granted to retirement-eligible employees, for which expense is accelerated over the period that the recipient becomes retirement-eligible. The following table presents the weighted average assumptions used to value employee stock options granted during the years ended December 31 under the Black-Scholes valuation model:


	2019		2018		2017
Expected option life	4.2	years	4.3	years	3.5	years
Expected volatility	15.5	%	17.9	%	15.3	%
Expected dividend yield	2.1	%	2.2	%	2.3	%
Risk-free interest rate	2.5	%	2.6	%	1.7	%

The Company bases its expected option life on the expected exercise and termination behavior of its optionees and an appropriate model of the Company’s future stock price. The expected volatility assumption is derived from the historical volatility of the Company’s common stock over the most recent period commensurate with the estimated expected life of the Company’s stock options, combined with other relevant factors including implied volatility in market-traded options on the Company’s stock. The dividend yield is the annual rate of dividends per share over the exercise price of the option as of the grant date.

For the years ended December 31, 2019, 2018 and 2017, we recognized $75 million, $79 million and $92 million, respectively, of compensation expense associated with RSU, PSU and stock option awards as a component of selling, general and administrative expenses in our Consolidated Statements of Operations. Our income tax expense for the years ended December 31, 2019, 2018 and 2017 includes related income tax benefits of $17 million, $17 million and $36 million, respectively. We have not capitalized any equity-based compensation costs during the reported periods.

The higher compensation expense in 2017 was primarily due to charges related to the retirement treatment for unexercised stock options of certain former employees. As of December 31, 2019, we estimate that $40 million of currently unrecognized compensation expense will be recognized over a weighted average period of 1.5 years for our unvested RSU, PSU and stock option awards issued and outstanding.

Non-Employee Director Plan

Our non-employee directors currently receive annual grants of shares of our common stock, generally payable in two equal installments, under the 2014 Plan described above.

Capital Stock, Dividends and Common Stock Repurchase Program (Tables)

12 Months Ended

Dec. 31, 2019

Capital Stock, Dividends and Common Stock Repurchase Program

Summary of share repurchases under common stock repurchase program


	2019(a)		2018(b)		2017(c)
Shares repurchased (in thousands)		2,247		11,673		10,058
Weighted average price per share	$	108.60	$	86.35	$	77.67
Total repurchases (in millions)	$	244	$	1,008	$	750

(a)

During 2019, we executed and completed an ASR agreement to repurchase $180 million of our common stock and received 1.6 million shares in connection with this ASR agreement. We also repurchased an additional 0.7 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 $64 million, inclusive of per-share commissions. As a result of the pending acquisition of Advanced Disposal discussed in Note 18, we limited our 2019 share repurchases to an amount sufficient to offset dilution impacts from our stock-based compensation plans.

(b)

During 2018, we executed and completed four ASR agreements to repurchase $850 million of our common stock and we received 9.8 million shares in connection with these ASR agreements. We also repurchased an additional 1.9 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 $158 million, inclusive of per-share commissions, which includes $4 million paid in 2019.

(c)	During 2017, we executed and completed two ASR agreements to repurchase $750 million of our common stock. Our “Shares repurchased” includes the 0.4 million shares related to the ASR agreement executed in November 2016.

Goodwill and Other Intangible Assets - Goodwill (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible assets
Goodwill	$ 6,532	$ 6,532	$ 6,430	$ 6,247
Increase in goodwill during the period		102
Goodwill impairment charges	27	27	6	$ 34
Intangible assets	1,088	1,088	1,118
Less: Accumulated amortization	(567)	(567)	(546)
Total	521	521	572
Customer and Supplier Relationships [Member]
Intangible assets
Intangible assets	906	906	949
Less: Accumulated amortization	(469)	(469)	(461)
Total	437	437	488
Non-compete Covenant [Member]
Intangible assets
Intangible assets	72	72	60
Less: Accumulated amortization	(36)	(36)	(24)
Total	36	36	36
Licenses Permits and Other [Member]
Intangible assets
Intangible assets	110	110	109
Less: Accumulated amortization	(62)	(62)	(61)
Total	48	48	$ 48
Energy and Environmental Services [Member]
Intangible assets
Goodwill impairment charges	17	17
Lamp Tracker Reporting Unit [Member]
Intangible assets
Goodwill impairment charges	$ 10	$ 10

Capital Stock, Dividends and Common Stock Repurchase Program

12 Months Ended

Dec. 31, 2019

Capital Stock, Dividends and Common Stock Repurchase Program

Capital Stock, Dividends and Common Stock Repurchase Program

14. Capital Stock, Dividends and Common Stock Repurchase Program

Capital Stock

We have 1.5 billion shares of authorized common stock with a par value of $0.01 per common share. As of December 31, 2019, we had 424.3 million shares of common stock issued and outstanding. The Board of Directors is authorized to issue preferred stock in series, and with respect to each series, to fix its designation, relative rights (including

voting, dividend, conversion, sinking fund, and redemption rights), preferences (including dividends and liquidation) and limitations. We have 10 million shares of authorized preferred stock, $0.01 par value, none of which is currently outstanding.

Dividends

Our quarterly dividends have been declared by our Board of Directors. Cash dividends declared and paid were $876 million in 2019, or $2.05 per common share, $802 million in 2018, or $1.86 per common share, and $750 million in 2017, or $1.70 per common share.

In December 2019, we announced that our Board of Directors expects to increase the quarterly dividend from $0.5125 to $0.545 per share for dividends declared in 2020. However, all future dividend declarations are at the discretion of the Board of Directors and depend on various factors, including our net earnings, financial condition, cash required for future business plans, growth and acquisitions and other factors the Board of Directors may deem relevant.

Common Stock Repurchase Program

The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors. Share repurchases during the reported periods were completed through accelerated share repurchase (“ASR”) agreements and, to a lesser extent, open market transactions. The terms of these ASR agreements required that we deliver cash at the beginning of each ASR repurchase period. In exchange, we received a portion of the total shares expected to be repurchased based on the then-current market price of our common stock. The remaining shares repurchased over the course of each repurchase period are delivered to us once the repurchase period is complete. Shares repurchased are reflected in the period the shares are delivered to us. The following is a summary of our share repurchases under our common stock repurchase program for the years ended December 31:


	2019(a)		2018(b)		2017(c)
Shares repurchased (in thousands)		2,247		11,673		10,058
Weighted average price per share	$	108.60	$	86.35	$	77.67
Total repurchases (in millions)	$	244	$	1,008	$	750

(a)

(b)

(c)	During 2017, we executed and completed two ASR agreements to repurchase $750 million of our common stock. Our “Shares repurchased” includes the 0.4 million shares related to the ASR agreement executed in November 2016.

In December 2019, we publicly confirmed that the Company has $1.32 billion remaining on its existing Board of Directors’ authorization to repurchase shares of the Company’s common stock. Any future share repurchases will be made at the discretion of management and will depend on factors similar to those considered by the Board of Directors in making

dividend declarations, including our net earnings, financial condition and cash required for future business plans, growth and acquisitions.

Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data

Schedule of Unaudited Quarterly Financial Data

The following table summarizes the unaudited quarterly results of operations for 2019 and 2018 (in millions, except per share amounts):


	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
2019
Operating revenues	$	3,696	$	3,946		3,967		3,846
Income from operations		621		696		734		655
Consolidated net income		347		382		495		447
Net income attributable to Waste Management, Inc.		347		381		495		447
Basic earnings per common share		0.82		0.90		1.17		1.05
Diluted earnings per common share		0.81		0.89		1.16		1.05

2018
Operating revenues	$	3,511	$	3,739	$	3,822	$	3,842
Income from operations		608		715		699		767
Consolidated net income		395		499		498		531
Net income attributable to Waste Management, Inc.		396		499		499		531
Basic earnings per common share		0.91		1.16		1.16		1.25
Diluted earnings per common share		0.91		1.15		1.16		1.24

Summary of Significant Accounting Policies - Property and Equipment (Detail)	12 Months Ended
	Dec. 31, 2019
Minimum [Member] \| Vehicles - Excluding Rail Haul Cars [Member]
Property, Plant and Equipment
Useful Life	3 years
Minimum [Member] \| Vehicles - Rail Haul Cars [Member]
Property, Plant and Equipment
Useful Life	10 years
Minimum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment
Useful Life	3 years
Minimum [Member] \| Building and Improvements [Member]
Property, Plant and Equipment
Useful Life	5 years
Minimum [Member] \| Furniture, Fixtures and Office Equipment [Member]
Property, Plant and Equipment
Useful Life	3 years
Maximum [Member] \| Vehicles - Excluding Rail Haul Cars [Member]
Property, Plant and Equipment
Useful Life	10 years
Maximum [Member] \| Vehicles - Rail Haul Cars [Member]
Property, Plant and Equipment
Useful Life	30 years
Maximum [Member] \| Machinery and Equipment [Member]
Property, Plant and Equipment
Useful Life	30 years
Maximum [Member] \| Building and Improvements [Member]
Property, Plant and Equipment
Useful Life	40 years
Maximum [Member] \| Furniture, Fixtures and Office Equipment [Member]
Property, Plant and Equipment
Useful Life	10 years

Accumulated Other Comprehensive Loss - Reclassification (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Outstanding derivatives	$ 0				$ 0				$ 0	$ 0	$ 0
Reclassifications for the period, before tax									2,105	2,376	2,191
Reclassifications for the period, net of tax	$ 447	$ 495	$ 382	$ 347	$ 531	$ 498	$ 499	$ 395	1,671	1,923	1,949
Derivative Instruments [Member] \| Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassifications for the period, before tax									11	11	12
Reclassifications for the period, net of tax									$ 8	$ 8	$ 7

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1A
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669619-108580

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (a)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 1B
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=118930883&loc=SL7669625-108580

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 50
-Paragraph 1A
-Subparagraph (c)(1)
-URI http://asc.fasb.org/extlink&oid=109239629&loc=SL4573702-111684

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8736-108599

Reference 6: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591551-111686

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=118932676&loc=d3e3000-108585

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 45
-Paragraph 19
-URI http://asc.fasb.org/extlink&oid=108774443&loc=SL4569616-111683

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=115929826&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 810
-SubTopic 10
-Section 55
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=116874947&loc=SL4591552-111686

+ Details

Summary of Significant Accounting Policies - Intangibles (Detail)	12 Months Ended
	Dec. 31, 2019
Customer and Supplier Relationships [Member]
Significant accounting policies
Amortizable period of the intangible assets	10 years
Non-compete Covenant [Member]
Significant accounting policies
Amortizable period of the intangible assets	5 years

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share

Common Share Data Used for Computing Basic and Diluted Earnings Per Share

Basic and diluted earnings per share were computed using the following common share data for the years ended December 31 (shares in millions):


	2019	2018	2017
Number of common shares outstanding at end of period	424.3	424.0	433.3
Effect of using weighted average common shares outstanding	0.3	5.1	5.5
Weighted average basic common shares outstanding	424.6	429.1	438.8
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.9	3.1	3.1
Weighted average diluted common shares outstanding	427.5	432.2	441.9
Potentially issuable shares	6.7	7.4	8.1
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.7	1.5	1.9

Landfill and Environmental Remediation Liabilities - Changes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Landfill and environmental remediation liabilities
Interest accretion	$ 98	$ 95	$ 92
Ending balance, environmental remediation	240
Landfill [Member]
Landfill and environmental remediation liabilities
Beginning balance, landfill	1,760
Obligations incurred and capitalized	72
Obligations settled	(113)
Interest accretion	98
Revisions in estimates and interest rate assumptions	33
Acquisitions, divestitures and other adjustments	5
Ending balance, landfill	$ 1,855	$ 1,760
Risk-free discount rate of the obligations	1.75%	2.75%	2.50%
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Beginning balance, environmental remediation	$ 237
Obligations settled	(22)
Interest accretion	4
Revisions in estimates and interest rate assumptions	21
Ending balance, environmental remediation	$ 240	$ 237
Risk-free discount rate of the obligations	1.75%	2.75%
Increase (decrease) operating expenses due to change in discount rate	$ 11

Leases (Detail)	12 Months Ended
Leases (Detail)	Dec. 31, 2019
Minimum [Member]
Leases
Renewal term	1 year
Maximum [Member]
Leases
Renewal term	10 years

Equity-Based Compensation - Assumptions (Detail) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) item $ / shares	Dec. 31, 2018 USD ($) $ / shares	Dec. 31, 2017 USD ($) $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Deferred income tax benefits included in income tax expense	$ 25	$ 17	$ 37
Employee Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized	75	79	92
Deferred income tax benefits included in income tax expense	17	$ 17	$ 36
Currently unrecognized compensation expense	$ 40
Weighted average period unrecognized compensation expenses expected to be recognized	1 year 6 months
Non-Employee Director Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments \| item	2
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of stock options granted \| $ / shares	$ 12.22	$ 12.16	$ 11.71
Expected option life	4 years 2 months 12 days	4 years 3 months 18 days	3 years 6 months
Expected volatility	15.50%	17.90%	15.30%
Expected dividend yield	2.10%	2.20%	2.30%
Risk-free interest rate	2.50%	2.60%	1.70%

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Taxes

Income Taxes

9. Income Taxes

Income Tax Expense

Our income tax expense consisted of the following for the years ended December 31 (in millions):


	2019		2018		2017
Current:
Federal	$	204	$	256	$	400
State		94		132		56
Foreign		36		40		37
		334		428		493
Deferred:
Federal		94		59		(316)
State		8		(32)		62
Foreign		(2)		(2)		3
		100		25		(251)
Income tax expense	$	434	$	453	$	242

The U.S. federal statutory income tax rate is reconciled to the effective income tax rate for the years ended December 31 as follows:


	2019		2018		2017
Income tax expense at U.S. federal statutory rate	21.00	%	21.00	%	35.00	%
State and local income taxes, net of federal income tax benefit	4.39		4.41		3.25
Impacts of enactment of tax reform	—		(0.51)		(24.14)
Federal tax credits	(4.38)		(2.44)		(2.31)
Taxing authority audit settlements and other tax adjustments	(0.74)		(3.85)		0.03
Tax impact of equity-based compensation transactions	(0.91)		(0.54)		(1.45)
Tax impact of impairments	0.72		0.03		0.66
Tax rate differential on foreign income	0.40		0.43		(0.55)
Other	0.13		0.51		0.55
Effective income tax rate	20.61	%	19.04	%	11.04	%

The comparability of our income tax expense for the reported periods has been primarily affected by (i) variations in our income before income taxes; (ii) federal tax credits; (iii) excess tax benefits associated with equity-based compensation transactions (iv) adjustments to our accruals and deferred taxes; (v) the tax implications of impairments; (vi) the realization of state net operating losses and credits; (vii) tax audit settlements and (viii) the impacts of enactment of tax reform.

For financial reporting purposes, income before income taxes by source for the years ended December 31 was as follows (in millions):


	2019		2018		2017
Domestic	$	2,025	$	2,235	$	2,040
Foreign (a)		80		141		151
Income before income taxes	$	2,105	$	2,376	$	2,191

(a)	Foreign income before income taxes for the year ended December 31, 2019 includes a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business. See Note 12 for further discussion.

Investments Qualifying for Federal Tax Credits — We have significant financial interests in entities established to invest in and manage low-income housing properties and a refined coal facility. On August 28, 2019 we acquired an additional noncontrolling interest in a limited liability company established to invest in and manage low-income housing properties. Our consideration for this investment totaled $160 million, which was comprised of a $140 million note payable and an initial cash payment of $20 million. We support the operations of these entities in exchange for a pro-rata share of the tax credits they generate. The low-income housing investments and the coal facility’s refinement processes qualify for federal tax credits that we expect to realize through 2030 under Section 42, through 2024 under Section 45D, and through 2019 under Section 45 of the Internal Revenue Code.

We account for our investments in these entities using the equity method of accounting, recognizing our share of each entity’s pre-tax results of operations and other reductions in the value of our investments in equity in net losses of unconsolidated entities, within our Consolidated Statements of Operations. During the years ended December 31, 2019, 2018 and 2017, we recognized $46 million, $30 million and $30 million of net losses and a reduction in our income tax expense of $96 million, $57 million and $51 million, respectively, primarily due to tax credits realized from these investments. In addition, during the years ended December 31, 2019, 2018 and 2017, we recognized interest expense of $9 million, $3 million and $2 million, respectively, associated with our investments in low-income housing properties. See Note 19 for additional information related to these unconsolidated variable interest entities.

Other Federal Tax Credits — During 2019, 2018 and 2017, we recognized federal tax credits in addition to the tax credits realized from our investments in low-income housing properties and the refined coal facility, resulting in a reduction in our income tax expense of $11 million, $10 million and $13 million, respectively.

Equity-Based Compensation — During 2019, 2018 and 2017, we recognized excess tax benefits related to the vesting or exercise of equity-based compensation awards resulting in a reduction in our income tax expense of $25 million, $17 million and $37 million, respectively.

Adjustments to Accruals and Deferred Taxes — Adjustments to our accruals and deferred taxes due to the filing of our income tax returns, analysis of our deferred tax balances and changes in state and foreign laws resulted in a reduction in our income tax expense of $22 million, $52 million and $5 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Tax Implications of Impairments — Portions of the impairment charges recognized during the reported periods are not deductible for tax purposes resulting in an increase in income tax expense of $15 million, $1 million and $15 million for the years ended December 31, 2019, 2018 and 2017, respectively. See Note 12 for more information related to our impairment charges.

State Net Operating Losses and Credits — During 2019, 2018 and 2017, we recognized state net operating losses and credits resulting in a reduction in our income tax expense of $14 million, $22 million and $12 million, respectively.

Tax Audit Settlements — We file income tax returns in the U.S. and Canada, as well as other state and local jurisdictions. We are currently under audit by various taxing authorities, as discussed below, and our audits are in various stages of completion. During the reported periods, we settled various tax audits which resulted in a reduction in our income tax expense of $2 million, $40 million and $2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

We participate in the IRS’s Compliance Assurance Process, which means we work with the IRS throughout the year towards resolving any material issues prior to the filing of our annual tax return. Any unresolved issues as of the tax return filing date are subject to routine examination procedures. We are currently in the examination phase of IRS audits for the 2017 through 2019 tax years and expect these audits to be completed within the next 15 months. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2013.

Enactment of Tax Reform – In accordance with applicable accounting guidance, the Company recognized the provisional tax impacts and subsequent measurement period adjustments related to the remeasurement of our deferred income tax assets and liabilities and the one-time, mandatory transition tax on deemed repatriation of previously tax-deferred and unremitted foreign earnings, resulting in a reduction in our income tax expense of $12 million and $529 million for the years ended December 31, 2018 and 2017, respectively.

Unremitted Earnings in Foreign Subsidiaries — No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the one-time, mandatory transition tax, or any additional outside basis difference, as these amounts continue to be indefinitely reinvested in foreign operations.

Deferred Tax Assets (Liabilities)

The components of net deferred tax liabilities as of December 31 are as follows (in millions):


	2019		2018
Deferred tax assets:
Net operating loss, capital loss and tax credit carry-forwards	$	150	$	258
Landfill and environmental remediation liabilities		156		143
Operating lease liabilities		114		—
Miscellaneous and other reserves, net		150		175
Subtotal		570		576
Valuation allowance		(162)		(261)
Deferred tax liabilities:
Property and equipment		(842)		(752)
Goodwill and other intangibles		(865)		(854)
Operating lease right-of-use assets		(108)		—
Net deferred tax liabilities	$	(1,407)	$	(1,291)

The valuation allowance decreased by $99 million in 2019 primarily due to the utilization and expiration of federal capital loss carry-forwards.

As of December 31, 2019, we had $1.8 billion of state net operating loss carry-forwards with expiration dates through 2039. We also had $27 million of federal capital loss carry-forwards with expiration dates through 2024, $32 million of foreign tax credit carry-forwards with expiration dates through 2029 and $17 million of state tax credit carry-forwards with expiration dates through 2035.

We have established valuation allowances for uncertainties in realizing the benefit of certain tax loss and credit carry-forwards and other deferred tax assets. While we expect to realize the deferred tax assets, net of the valuation allowances, changes in estimates of future taxable income or in tax laws may alter this expectation.

Liabilities for Uncertain Tax Positions

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, including accrued interest, is as follows (in millions):


	2019		2018		2017
Balance as of January 1	$	36	$	109	$	82
Additions based on tax positions related to the current year		5		6		19
Additions based on tax positions of prior years		—		12		11
Accrued interest		2		2		4
Settlements		—		(88)		(1)
Lapse of statute of limitations		(3)		(5)		(6)
Balance as of December 31	$	40	$	36	$	109

These liabilities are included as a component of other long-term liabilities in our Consolidated Balance Sheets because the Company does not anticipate that settlement of the liabilities will require payment of cash within the next 12 months. As of December 31, 2019, we have $33 million of net unrecognized tax benefits that, if recognized in future periods, would impact our effective income tax rate.

We recognize interest expense related to unrecognized tax benefits in our income tax expense, which was not material for the reported periods. We did not have any accrued liabilities or expense for penalties related to unrecognized tax benefits for the reported periods.

Income Taxes - Carryforward (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Federal [Member]
Income Taxes
Capital loss carry-forward	$ 27
State [Member]
Income Taxes
Net operating loss carry-forwards	1,800
Tax credit carry-forward	17
Foreign [Member]
Income Taxes
Tax credit carry-forward	$ 32

Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue from External Customer [Line Items]
Operating revenues	$ 3,846	$ 3,967	$ 3,946	$ 3,696	$ 3,842	$ 3,822	$ 3,739	$ 3,511	$ 15,455	$ 14,914	$ 14,485
Operating Segments [Member]
Revenue from External Customer [Line Items]
Operating revenues									18,704	18,024	17,370
Operating Segments [Member] \| Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues									10,240	9,724	9,264
Operating Segments [Member] \| Commercial [Member]
Revenue from External Customer [Line Items]
Operating revenues									4,229	3,972	3,714
Operating Segments [Member] \| Residential [Member]
Revenue from External Customer [Line Items]
Operating revenues									2,613	2,529	2,528
Operating Segments [Member] \| Industrial [Member]
Revenue from External Customer [Line Items]
Operating revenues									2,916	2,773	2,583
Operating Segments [Member] \| Other Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues									482	450	439
Operating Segments [Member] \| Landfill [Member]
Revenue from External Customer [Line Items]
Operating revenues									3,846	3,560	3,370
Operating Segments [Member] \| Transfer [Member]
Revenue from External Customer [Line Items]
Operating revenues									1,820	1,711	1,591
Operating Segments [Member] \| Recycling [Member]
Revenue from External Customer [Line Items]
Operating revenues									1,040	1,293	1,432
Operating Segments [Member] \| Other Revenue [Member]
Revenue from External Customer [Line Items]
Operating revenues									1,758	1,736	1,713
Intercompany Operating Revenues [Member]
Revenue from External Customer [Line Items]
Operating revenues									$ (3,249)	$ (3,110)	$ (2,885)

Acquisitions and Divestitures (Detail) $ / shares in Units, $ in Millions			12 Months Ended
	Apr. 14, 2019 USD ($) item $ / shares	Mar. 08, 2019 item	Dec. 31, 2019 USD ($) item	Dec. 31, 2018 USD ($) item	Dec. 31, 2017 USD ($) item	Jun. 28, 2019
Business Acquisition [Line Items]
Total enterprise value			$ 515	$ 471	$ 205
Number of business acquired \| item			18	32	24
Business acquisitions closed during the year, cash payments			$ 501	$ 440	$ 183
Other consideration			14	31	22
Increase (decrease) in contingent consideration			(6)
Contingent consideration paid for acquisitions closed in previous year			4	6	3
Purchase price holdbacks paid			20	20	14
Purchase price holdbacks paid for acquisitions closed in current year			9	15	13
Allocation of consideration to property and equipment			350	115	127
Allocation of consideration to other intangible assets			53	141	46
Allocation of consideration to goodwill			$ 111	$ 248	$ 39
Advanced Disposal Services [Member]
Business Acquisition [Line Items]
Price per share \| $ / shares	$ 33.15
Total enterprise value	$ 4,900
Advanced Disposal's net debt	$ 1,900
Number of collection operations \| item	95
Number of transfer stations \| item	73
Number of landfills \| item	41
Number of owned or operated recycling facilities \| item	22
Merger approval percentage						85.90%
Petro Waste Environmental [Member]
Business Acquisition [Line Items]
Number of landfills \| item		7

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2019

Fair Value Measurements

Fair Value of Assets and Liabilities Measured on Recurring Basis


	2019		2018
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	3,527	$	70
Significant other observable inputs (Level 2):
Available-for-sale securities		350		288
Significant unobservable inputs (Level 3):
Redeemable preferred stock		49		66
Total Assets	$	3,926	$	424

Employee Benefit Plans - Individually Significant Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Multiemployer Plans [Line Items]
High end of funded percentage of multiemployer plans in critical status	65.00%
High end of funded percentage of multiemployer plans in endangered status	80.00%
Surcharge percentage during first twelve months on contribution rates for plans certified as endangered, seriously endangered or critical	5.00%
Period for which surcharge is 5% on contribution rates for plans certified as endangered, seriously endangered or critical	12 months
Accrued benefit liabilities	$ 19	$ 21
Surcharge percentage after first twelve months on contribution rates for plans certified as endangered, seriously endangered or critical	10.00%
Company Contributions	$ 52	$ 47	$ 47
Minimum [Member]
Multiemployer Plans [Line Items]
Projected insolvency period	15 years
Maximum [Member]
Multiemployer Plans [Line Items]
Projected insolvency period	20 years
Suburban Teamsters of Northern Illinois Pension Plan [Member]
Multiemployer Plans [Line Items]
Minimum percentage of total contributions provided by the Company relating to multiemployer plans		5.00%
Company Contributions	$ 3	$ 3	3
Multiemployer Health and Welfare Plan [Member]
Multiemployer Plans [Line Items]
Company Contributions	45	43	42
Withdrawal from Multiemployer Pension Plans [Member]
Multiemployer Plans [Line Items]
Charge to "Operating" expenses		$ 3	$ 12
Withdrawal from Multiemployer Pension Plans [Member] \| Maximum [Member]
Multiemployer Plans [Line Items]
Charge to "Operating" expenses	$ 1

Accumulated Other Comprehensive Loss - Tax Impact (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	$ 0	$ 0	$ 0
Amounts reclassified from accumulated other comprehensive (income) loss, tax	3	3	5
Available for sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	5	2	2
Amounts reclassified from accumulated other comprehensive (income) loss, tax	0	0	(1)
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	0	0	0
Amounts reclassified from accumulated other comprehensive (income) loss, tax	0	0	0
Post - Retirement Benefit Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax	1	1	1
Amounts reclassified from accumulated other comprehensive (income) loss, tax	$ 0	$ 0	$ 0

Landfill and Environmental Remediation Liabilities

12 Months Ended

Dec. 31, 2019

Landfill and Environmental Remediation Liabilities

Landfill and Environmental Remediation Liabilities

4. Landfill and Environmental Remediation Liabilities

Liabilities for landfill and environmental remediation costs as of December 31 are presented in the table below (in millions):


	2019						2018
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	138	$	27	$	165	$	143	$	26	$	169
Long-term		1,717		213		1,930		1,617		211		1,828
	$	1,855	$	240	$	2,095	$	1,760	$	237	$	1,997

The changes to landfill and environmental remediation liabilities for the year ended December 31, 2019 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2018	$	1,760	$	237
Obligations incurred and capitalized		72		—
Obligations settled		(113)		(22)
Interest accretion		98		4
Revisions in estimates and interest rate assumptions (a) (b)		33		21
Acquisitions, divestitures and other adjustments		5		—
December 31, 2019	$	1,855	$	240

(a)	The amount reported for our landfill liabilities includes revisions in estimates resulting primarily from changes in the timing and amount of costs as well as changes in estimates of remaining airspace.

(b)	The amount reported for our environmental remediation liabilities includes an increase of $11 million due to a decrease in the risk-free discount rate used to measure our liabilities from 2.75% at December 31, 2018 to 1.75% at December 31, 2019.

Our recorded liabilities as of December 31, 2019 include the impacts of inflating certain of these costs based on our expectations of the timing of cash settlement and of discounting certain of these costs to present value. Anticipated payments of currently identified environmental remediation liabilities, as measured in current dollars, are $27 million in 2020, $33 million in 2021, $44 million in 2022, $34 million in 2023, $22 million in 2024 and $72 million thereafter.

At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Generally, these trust funds are established to comply with statutory requirements and operating agreements. See Notes 17 and 19 for additional information related to these trusts.

Commitments and Contingencies (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 30, 2019	Oct. 31, 2019
Contingencies And Commitments [Line Items]
Maximum self insurance exposures per incident under general liability insurance program	$ 5
Maximum self insurance exposures per incident under workers' compensation insurance program	5
Per incident base deductible under auto liability insurance program	10
Insurance claims receivable	126	$ 130
Beginning Balance	567	582
Self-insurance expense (benefit)	171	142
Cash paid and other	(163)	(157)
Ending Balance	575	567
Current portion	145	137
Long-term portion	$ 430	$ 430
Expected time period in years for cash settlement of recorded obligations associated with insurance liabilities	6 years
Revolving Credit Facility [Member]
Contingencies And Commitments [Line Items]
Credit Facility, aggregate capacity	$ 3,500		$ 3,500	$ 2,750

Income Taxes - Additional information (Detail) - USD ($) $ in Millions		3 Months Ended		12 Months Ended
	Aug. 28, 2019	Mar. 31, 2019	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Investment impairment		$ 52		$ 52
Income tax expense at U.S. federal statutory rate				21.00%	21.00%	35.00%
Net reduction in income tax expense due to Tax Cuts and Jobs Act					$ (12)	$ (529)
Equity in net losses of unconsolidated entities				$ 55	41	68
Other federal tax credits				11	10	13
Reduction in provision for income taxes due to tax audit settlements			$ 33	$ 2	40	2
Expected time of completion of IRS audits				15 months
Increase (decrease) to accruals and related deferred taxes				$ (22)	(52)	(5)
Reduction in provision for income taxes due to state net operating losses and credits				14	22	12
Excess tax benefits associated with equity-based compensation				25	17	37
Increase (decrease) in provision for income taxes due to impairments				15	1	15
Investments Qualifying for Federal Tax Credits [Member]
Income Taxes
Total consideration	$ 160
Payment to acquire investment	$ 20
Equity in net losses of unconsolidated entities				46	30	30
Income tax (expense) benefit, including tax credits, from equity method investment				96	57	51
Interest expense				$ 9	$ 3	$ 2

Asset Impairments and Unusual Items

12 Months Ended

Dec. 31, 2019

Asset Impairments and Unusual Items

Asset Impairments and Unusual Items

12. Asset Impairments and Unusual Items

(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net

The following table summarizes the major components of (gain) loss from divestitures, asset impairments and unusual items, net for the years ended December 31 (in millions):


	2019		2018		2017
(Gain) loss from divestitures	$	—	$	(96)	$	(38)
Asset impairments		42		38		41
Other		—		—		(19)
	$	42	$	(58)	$	(16)

During the year ended December 31, 2019, we recognized asset impairments of $42 million, related to (i) $27 million of goodwill impairment charges, as discussed further in Note 6, of which $17 million related to our EES organization and $10 million related to our LampTracker^® reporting unit and (ii) $15 million of asset impairment charges primarily related to certain solid waste operations.

During the year ended December 31, 2018, we recognized net gains of $58 million, primarily related to (i) a $52 million gain associated with the sale of certain collection and disposal operations in our Tier 1 segment and (ii) net gains of $44 million primarily all from divestitures of certain ancillary operations. These gains were partially offset by (i) a $30 million charge to impair a landfill in our Tier 3 segment based on an internally developed discounted projected cash

flow analysis, taking into account continued volume decreases and revised capping cost estimates and (ii) $8 million of impairment charges primarily related to our LampTracker^® reporting unit.

During the year ended December 31, 2017, we recognized net gains of $16 million, primarily related to (i) gains of $31 million from the sale of certain oil and gas producing properties and (ii) a $30 million reduction in post-closing, performance-based contingent consideration obligations associated with an acquired business in our EES organization. These gains were partially offset by (i) $34 million of goodwill impairment charges primarily related to our EES organization; (ii) $11 million of charges to adjust our subsidiary’s estimated potential share of an environmental remediation liability and related costs for a closed site in Harris County, Texas, as discussed in Note 11 and (iii) $7 million of charges to write down certain renewable energy assets.

See Note 3 for additional information related to the accounting policy and analysis involved in identifying and calculating impairments and see Note 20 for additional information related to the impact of impairments on the results of operations of our reportable segments.

Equity in Net Losses of Unconsolidated Entities

During the year ended December 31, 2017, we recognized $29 million of impairment charges to write down equity method investments in waste diversion technology companies to their estimated fair values.

Other, Net

During the first quarter of 2019, we recognized a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business. We wrote down our investment to its estimated fair value as the result of recent third-party investor’s transactions in securities of this business. The fair value of our investment was not readily determinable; thus, we determined the fair value utilizing a combination of quoted price inputs for the equity in our investment (Level 2) and certain management assumptions pertaining to investment value (Level 3).

During the year ended December 31, 2017, we recognized impairment charges of $11 million related to other-than-temporary declines in the value of minority-owned investments in waste diversion technology companies. We wrote down our investments to their estimated fair values which was primarily determined using an income approach based on estimated future cash flow projections and, to a lesser extent, third-party investors’ recent transactions in these securities.

Asset Impairments and Unusual Items - Components (Detail) - USD ($) $ in Millions	3 Months Ended			12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Asset Impairments and Unusual Items
(Gain) loss from divestitures			$ (40)		$ (96)	$ (38)
Asset impairments	$ 16	$ 8		$ 42	38	41
Other						(19)
(Gain) loss from divestitures, asset impairments and unusual items				$ 42	$ (58)	$ (16)

Property and Equipment

12 Months Ended

Dec. 31, 2019

Property, Plant and Equipment [Abstract]

Property and Equipment

5. Property and Equipment

Property and equipment as of December 31 consisted of the following (in millions):


	2019		2018
Land	$	656	$	656
Landfills		15,910		15,240
Vehicles		5,344		5,059
Machinery and equipment		3,140		2,988
Containers		2,616		2,588
Buildings and improvements		3,174		2,998
Furniture, fixtures and office equipment		710		677
		31,550		30,206
Less: Accumulated depreciation of tangible property and equipment		(9,331)		(9,107)
Less: Accumulated amortization of landfill airspace		(9,326)		(9,157)
Property and equipment, net	$	12,893	$	11,942

Depreciation and amortization expense, including amortization expense for assets recorded as financing leases, consisted of the following for the years ended December 31 (in millions):


	2019		2018		2017
Depreciation of tangible property and equipment	$	893	$	838	$	783
Amortization of landfill airspace		575		538		497
Depreciation and amortization expense	$	1,468	$	1,376	$	1,280

Leases - Other (Detail)	Dec. 31, 2019
Leases
Weighted-average remaining lease term for operating lease	16 years
Weighted-average remaining lease term for financing lease	14 years
Weighted-average discount rate for operating lease	3.50%
Weighted-average discount rate for financing lease	4.10%

Acquisitions and Divestitures - Divestitures (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Divestitures
Gain (loss) on sale of assets	$ 40		$ 96	$ 38
Disposed of by Sale, Not Discontinued Operations [Member]
Divestitures
Aggregate sales prices for divestitures of hauling and ancillary operations		$ 8	153	62
Gain (loss) on sale of assets			$ 96	$ 38
Disposed of by Sale, Not Discontinued Operations [Member] \| Maximum [Member]
Divestitures
Gain (loss) on sale of assets		$ (1)

Summary of Significant Accounting Policies - Landfill (Detail) $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($) site	Dec. 31, 2018 USD ($)	Dec. 31, 2017
Significant accounting policies
Receivables related to income tax payments in excess of our provision for income taxes	$ 231	$ 284
Federal Fuel Credits Receivable	70
Environmental remediation reasonably possible additional losses high estimate	140
Environmental remediation liabilities	240
Environmental remediation liabilities not subject to inflation or discounting	36	35
Increase of environmental remediation liability	$ 8	$ 3
Landfill [Member]
Significant accounting policies
Inflation rate	2.50%	2.50%	2.50%
Credit adjusted, risk free discount rate applicable to long-term asset retirement obligations	5.25%
Number of landfills sites with expansion \| site	15
Number of expansion landfill sites require CFO approval inclusion of unpermitted airspace \| site	1
Increase (decrease) in operating expenses	$ 9	$ (2)
Risk-free discount rate applied to environmental remediation liabilities and recovery assets	1.75%	2.75%	2.50%
Landfill [Member] \| Minimum [Member]
Significant accounting policies
Permit application process period requirement	1 year
Landfill [Member] \| Maximum [Member]
Significant accounting policies
Permit application process period requirement	5 years
Accounts Receivable Net [Member] \| Concentration of Credit Risk [Member] \| Maximum [Member]
Significant accounting policies
Concentration of risk threshold (as a percent)	5.00%	5.00%

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Provision for Income Taxes

Our income tax expense consisted of the following for the years ended December 31 (in millions):


	2019		2018		2017
Current:
Federal	$	204	$	256	$	400
State		94		132		56
Foreign		36		40		37
		334		428		493
Deferred:
Federal		94		59		(316)
State		8		(32)		62
Foreign		(2)		(2)		3
		100		25		(251)
Income tax expense	$	434	$	453	$	242

U.S. Federal Statutory Income Tax Rate Reconciled to Effective Rate

The U.S. federal statutory income tax rate is reconciled to the effective income tax rate for the years ended December 31 as follows:


	2019		2018		2017
Income tax expense at U.S. federal statutory rate	21.00	%	21.00	%	35.00	%
State and local income taxes, net of federal income tax benefit	4.39		4.41		3.25
Impacts of enactment of tax reform	—		(0.51)		(24.14)
Federal tax credits	(4.38)		(2.44)		(2.31)
Taxing authority audit settlements and other tax adjustments	(0.74)		(3.85)		0.03
Tax impact of equity-based compensation transactions	(0.91)		(0.54)		(1.45)
Tax impact of impairments	0.72		0.03		0.66
Tax rate differential on foreign income	0.40		0.43		(0.55)
Other	0.13		0.51		0.55
Effective income tax rate	20.61	%	19.04	%	11.04	%

Summary of income source

For financial reporting purposes, income before income taxes by source for the years ended December 31 was as follows (in millions):


	2019		2018		2017
Domestic	$	2,025	$	2,235	$	2,040
Foreign (a)		80		141		151
Income before income taxes	$	2,105	$	2,376	$	2,191

(a)	Foreign income before income taxes for the year ended December 31, 2019 includes a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business. See Note 12 for further discussion.

Components of Net Deferred Tax Assets (Liabilities)

The components of net deferred tax liabilities as of December 31 are as follows (in millions):


	2019		2018
Deferred tax assets:
Net operating loss, capital loss and tax credit carry-forwards	$	150	$	258
Landfill and environmental remediation liabilities		156		143
Operating lease liabilities		114		—
Miscellaneous and other reserves, net		150		175
Subtotal		570		576
Valuation allowance		(162)		(261)
Deferred tax liabilities:
Property and equipment		(842)		(752)
Goodwill and other intangibles		(865)		(854)
Operating lease right-of-use assets		(108)		—
Net deferred tax liabilities	$	(1,407)	$	(1,291)

Summary of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, including accrued interest, is as follows (in millions):


	2019		2018		2017
Balance as of January 1	$	36	$	109	$	82
Additions based on tax positions related to the current year		5		6		19
Additions based on tax positions of prior years		—		12		11
Accrued interest		2		2		4
Settlements		—		(88)		(1)
Lapse of statute of limitations		(3)		(5)		(6)
Balance as of December 31	$	40	$	36	$	109

Equity-Based Compensation - Exercise price (Detail)	12 Months Ended
Equity-Based Compensation - Exercise price (Detail)	Dec. 31, 2019 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, low end of range	$ 33.49
Exercise price, high end of range	$ 98.90
Exercisable shares, end of year \| shares	2,063
Exercisable, weighted average per share exercise price	$ 52.90
Weighted average remaining years	4 years 9 months 18 days
$33.49-$50.00 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, low end of range	$ 33.49
Exercise price, high end of range	$ 50.00
Exercisable shares, end of year \| shares	829
Exercisable, weighted average per share exercise price	$ 37.94
Weighted average remaining years	2 years 7 months 6 days
$50.01-$70.00 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, low end of range	$ 50.01
Exercise price, high end of range	$ 70.00
Exercisable shares, end of year \| shares	809
Exercisable, weighted average per share exercise price	$ 55.58
Weighted average remaining years	5 years 8 months 12 days
$70.01-$98.90 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, low end of range	$ 70.01
Exercise price, high end of range	$ 98.90
Exercisable shares, end of year \| shares	425
Exercisable, weighted average per share exercise price	$ 76.98
Weighted average remaining years	7 years 6 months

Landfill and Environmental Remediation Liabilities (Tables)

12 Months Ended

Dec. 31, 2019

Landfill and Environmental Remediation Liabilities

Liabilities for Landfill and Environmental Remediation Costs

Liabilities for landfill and environmental remediation costs as of December 31 are presented in the table below (in millions):


	2019						2018
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	138	$	27	$	165	$	143	$	26	$	169
Long-term		1,717		213		1,930		1,617		211		1,828
	$	1,855	$	240	$	2,095	$	1,760	$	237	$	1,997

Changes to Landfill and Environmental Remediation Liabilities

The changes to landfill and environmental remediation liabilities for the year ended December 31, 2019 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2018	$	1,760	$	237
Obligations incurred and capitalized		72		—
Obligations settled		(113)		(22)
Interest accretion		98		4
Revisions in estimates and interest rate assumptions (a) (b)		33		21
Acquisitions, divestitures and other adjustments		5		—
December 31, 2019	$	1,855	$	240

(a)	The amount reported for our landfill liabilities includes revisions in estimates resulting primarily from changes in the timing and amount of costs as well as changes in estimates of remaining airspace.

(b)	The amount reported for our environmental remediation liabilities includes an increase of $11 million due to a decrease in the risk-free discount rate used to measure our liabilities from 2.75% at December 31, 2018 to 1.75% at December 31, 2019.

Earnings Per Share (Detail) - shares shares in Millions	12 Months Ended
Earnings Per Share (Detail) - shares shares in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share
Number of common shares outstanding at end of period	424.3	424.0	433.3
Effect of using weighted average common shares outstanding	0.3	5.1	5.5
Weighted average basic common shares outstanding	424.6	429.1	438.8
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.9	3.1	3.1
Weighted average diluted common shares outstanding	427.5	432.2	441.9
Potentially issuable shares	6.7	7.4	8.1
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.7	1.5	1.9

Income Taxes - Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Balance beginning	$ 36	$ 109	$ 82
Additions based on tax positions related to the current year	5	6	19
Additions based on tax positions of prior years		12	11
Accrued interest	2	2	4
Settlements		(88)	(1)
Lapse of statute of limitations	(3)	(5)	(6)
Balance ending	40	$ 36	$ 109
Net unrecognized tax benefits that would impact effective tax rate	$ 33

Equity-Based Compensation - Stock Options (Detail) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercisable shares, end of year	2,063
Exercisable, weighted average per share exercise price	$ 52.90
Exercise of common stock options	$ 67	$ 52	$ 95
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Term of awards	10 years
Outstanding shares, beginning of year	4,441
Granted, shares	839
Exercised, shares	(1,278)
Forfeited or expired, shares	(64)
Outstanding shares, end of year	3,938	4,441
Exercisable shares, end of year	2,063
Outstanding, Weighted Average Per Share Fair Value, beginning of year	$ 59.46
Granted, Weighted Average Per Share Fair Value	98.90
Exercised, Weighted Average Per Share Fair Value	107.96
Forfeited or expired, Weighted Average Per Share Fair Value	83.20
Outstanding, Weighted Average Per Share Fair Value, end of year	69.66	$ 59.46
Exercisable, weighted average per share exercise price	$ 52.90
Weighted average remaining contractual term of stock options outstanding	6 years 6 months
Aggregate intrinsic value of stock options outstanding based on the market value of company's common stock	$ 174
Aggregate intrinsic value of stock options exercisable based on the market value of company's common stock	126
Exercise of common stock options	67	$ 52	95
Aggregate intrinsic value of stock options exercised	$ 71	$ 41	$ 71
First Anniversary [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (as a percent)	25.00%
Second Anniversary [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (as a percent)	25.00%
Third Anniversary [Member] \| Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting (as a percent)	50.00%

Equity-Based Compensation - RSUs (Detail) - Restricted Stock Units [Member] - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested, Units, beginning of year	392
Granted, Units	121
Vested, Units	(151)
Forfeited, Units	(14)
Unvested, Units, end of year	348	392
Unvested, Weighted Average Per Share Fair Value, beginning of year	$ 70.52
Granted, Weighted Average Per Share Fair Value	99.91
Vested, Weighted Average Per Share Fair Value	56.74
Forfeited, Weighted Average Per Share Fair Value	86.11
Unvested, Weighted Average Per Share Fair Value, end of year	$ 86.15	$ 70.52
Total fair market value of vested awards	$ 15	$ 13	$ 12
Shares issued under the plan	106,000
Vested deferred units outstanding	45,000
Vesting period	3 years

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies.

Changes to Gross Insurance Liabilities


	2019(a)		2018
Balance as of January 1	$	567	$	582
Self-insurance expense		171		142
Cash paid and other		(163)		(157)
Balance as of December 31	$	575	$	567
Current portion as of December 31	$	145	$	137
Long-term portion as of December 31	$	430	$	430

(a)	Based on current estimates, we anticipate that most of our insurance reserves will be settled in cash over the next six years.

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2019	Feb. 07, 2020	Jun. 30, 2019
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Transition Report	false
Document Period End Date	Dec. 31, 2019
Entity 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	1001 Fannin Street
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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		424,708,758
Entity Public Float			$ 48.8
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Entity Central Index Key	0000823768
Amendment Flag	false

Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2019

Condensed Consolidating Financial Statements

Condensed Consolidating Financial Statements

22. Condensed Consolidating Financial Statements

WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness. WM has fully and unconditionally guaranteed all of WM Holdings’ senior indebtedness. None of WM’s other subsidiaries have guaranteed any of WM’s or WM Holdings’ debt. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information (in millions):

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2019


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,485	$	—	$	76	$	—	$	3,561
Other current assets		2		4		2,642		—		2,648
		3,487		4		2,718		—		6,209
Property and equipment, net		—		—		12,893		—		12,893
Investments in affiliates		26,221		26,673		—		(52,894)		—
Advances to affiliates		—		—		19,047		(19,047)		—
Other assets		6		10		8,625		—		8,641
Total assets	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	15	$	—	$	203	$	—	$	218
Accounts payable and other current liabilities		105		7		2,814		—		2,926
		120		7		3,017		—		3,144
Long-term debt, less current portion		10,736		248		2,296		—		13,280
Due to affiliates		19,131		214		7,345		(26,690)		—
Other liabilities		4		—		4,245		—		4,249
Total liabilities		29,991		469		16,903		(26,690)		20,673
Equity:
Stockholders’ equity		7,068		26,218		26,676		(52,894)		7,068
Advances to affiliates		(7,345)		—		(298)		7,643		—
Noncontrolling interests		—		—		2		—		2
		(277)		26,218		26,380		(45,251)		7,070
Total liabilities and equity	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2018


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	61	$	—	$	61
Other current assets		2		5		2,577		—		2,584
		2		5		2,638		—		2,645
Property and equipment, net		—		—		11,942		—		11,942
Investments in affiliates		24,547		24,968		—		(49,515)		—
Advances to affiliates		—		—		17,129		(17,129)		—
Other assets		8		31		8,024		—		8,063
Total assets	$	24,557	$	25,004	$	39,733	$	(66,644)	$	22,650

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	258	$	—	$	174	$	—	$	432
Accounts payable and other current liabilities		82		9		2,585		—		2,676
		340		9		2,759		—		3,108
Long-term debt, less current portion		7,377		304		1,913		—		9,594
Due to affiliates		17,269		146		6,709		(24,124)		—
Other liabilities		5		—		3,667		—		3,672
Total liabilities		24,991		459		15,048		(24,124)		16,374
Equity:
Stockholders’ equity		6,275		24,545		24,970		(49,515)		6,275
Advances to affiliates		(6,709)		—		(286)		6,995		—
Noncontrolling interests		—		—		1		—		1
		(434)		24,545		24,685		(42,520)		6,276
Total liabilities and equity	$	24,557	$	25,004	$	39,733	$	(66,644)	$	22,650

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2019
Operating revenues (a)	$	—	$	—	$	15,455	$	—	$	15,455
Costs and expenses (a)		—		—		12,749		—		12,749
Income from operations		—		—		2,706		—		2,706
Other income (expense):
Interest expense, net		(347)		(19)		(45)		—		(411)
Loss on early extinguishment of debt		(70)		(14)		(1)		—		(85)
Equity in earnings of subsidiaries, net of tax		1,976		2,007		—		(3,983)		—
Other, net		—		68		(101)		(72)		(105)
		1,559		2,042		(147)		(4,055)		(601)
Income before income taxes		1,559		2,042		2,559		(4,055)		2,105
Income tax expense (benefit)		(111)		(5)		550		—		434
Consolidated net income		1,670		2,047		2,009		(4,055)		1,671
Less: Net income (loss) attributable to noncontrolling interests		—		—		1		—		1
Net income attributable to Waste Management, Inc.	$	1,670	$	2,047	$	2,008	$	(4,055)	$	1,670

2018
Operating revenues (a)	$	—	$	—	$	14,914	$	—	$	14,914
Costs and expenses (a)		—		—		12,125		—		12,125
Income from operations		—		—		2,789		—		2,789
Other income (expense):
Interest expense, net		(312)		(20)		(42)		—		(374)
Equity in earnings of subsidiaries, net of tax		2,155		2,169		—		(4,324)		—
Other, net		—		—		(39)		—		(39)
		1,843		2,149		(81)		(4,324)		(413)
Income before income taxes		1,843		2,149		2,708		(4,324)		2,376
Income tax expense (benefit)		(82)		(5)		540		—		453
Consolidated net income		1,925		2,154		2,168		(4,324)		1,923
Less: Net income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,925	$	2,154	$	2,170	$	(4,324)	$	1,925

2017
Operating revenues	$	—	$	—	$	15,040	$	(555)	$	14,485
Costs and expenses		555		—		11,849		(555)		11,849
Income from operations		(555)		—		3,191		—		2,636
Other income (expense):
Interest expense, net		(299)		(20)		(44)		—		(363)
Loss on early extinguishment of debt		(6)		—		—		—		(6)
Equity in earnings of subsidiaries, net of tax		2,469		2,482		—		(4,951)		—
Other, net		2		(1)		(77)		—		(76)
		2,166		2,461		(121)		(4,951)		(445)
Income before income taxes		1,611		2,461		3,070		(4,951)		2,191
Income tax expense (benefit)		(338)		(8)		588		—		242
Consolidated net income		1,949		2,469		2,482		(4,951)		1,949
Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	1,949	$	2,469	$	2,482	$	(4,951)	$	1,949

(a)	For 2019 and 2018, operating revenues and costs and expenses related to insurance premiums for a wholly-owned insurance captive are included in Non-Guarantor Subsidiaries to more accurately reflect those transactions.

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2019
Comprehensive income	$	1,678	$	2,047	$	2,080	$	(4,055)	$	1,750
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		1		—		1
Comprehensive income attributable to Waste Management, Inc.	$	1,678	$	2,047	$	2,079	$	(4,055)	$	1,749

2018
Comprehensive income	$	1,933	$	2,154	$	2,070	$	(4,324)	$	1,833
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,933	$	2,154	$	2,072	$	(4,324)	$	1,835

2017
Comprehensive income	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Years Ended December 31:
2019
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,874	$	—	$	3,874
Investing activities		—		—		(2,376)		—		(2,376)
Financing activities		—		—		1,964		—		1,964
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		2		—		2
Intercompany activity		3,485		—		(3,485)		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		3,485		—		(21)		—		3,464
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		183		—		183
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	3,485	$	—	$	162	$	—	$	3,647

2018
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,570	$	—	$	3,570
Investing activities		—		—		(2,169)		—		(2,169)
Financing activities		—		—		(1,508)		—		(1,508)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		(3)		—		(3)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		(110)		—		(110)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		293		—		293
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	183	$	—	$	183

2017
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,180	$	—	$	3,180
Investing activities		—		—		(1,620)		—		(1,620)
Financing activities		—		—		(1,361)		—		(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		199		—		199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		94		—		94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	293	$	—	$	293

(a)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of December 31, 2019 include remaining proceeds from our senior note issuances which are discussed further in Notes 7 and 17.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies.

Commitments and Contingencies

11. Commitments and Contingencies

Financial Instruments — We have obtained letters of credit, surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds, contracts, performance of landfill final capping, closure and post-closure requirements, environmental remediation and other obligations. Letters of credit generally are supported by our $3.5 billion revolving credit facility and other credit facilities established for that purpose. These facilities are discussed further in Note 7. Surety bonds and insurance policies are supported by (i) a diverse group of third-party surety and insurance companies; (ii) an entity in which we have a noncontrolling financial interest or (iii) a wholly-owned insurance captive, the sole business of which is to issue surety bonds and/or insurance policies on our behalf.

Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our 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 carry insurance coverage for protection of our assets and operations from certain risks including general liability, automobile liability, workers’ compensation, real and personal property, directors’ and officers’ liability, pollution legal liability and other coverages we believe are customary to the industry. Our exposure to loss for insurance claims is generally limited to the per-incident deductible under the related insurance policy. Our exposure could increase if our insurers are unable to meet their commitments on a timely basis.

We have retained a significant portion of the risks related to our 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. As of December 31, 2019, both our commercial General Liability Insurance Policy and our workers’ compensation insurance program carried self-insurance exposures of up to $5 million per incident. As of December 31, 2019, our automobile liability insurance program included a per-incident deductible of up to $10 million. Our receivable balance associated with

insurance claims was $126 million and $130 million as of December 31, 2019 and 2018, respectively. The changes to our insurance reserves for the years ended December 31 are summarized below (in millions):


	2019(a)		2018
Balance as of January 1	$	567	$	582
Self-insurance expense		171		142
Cash paid and other		(163)		(157)
Balance as of December 31	$	575	$	567
Current portion as of December 31	$	145	$	137
Long-term portion as of December 31	$	430	$	430

(a)	Based on current estimates, we anticipate that most of our insurance reserves will be settled in cash over the next six years.

We do not expect the impact of any known casualty, property, environmental or other contingency to have a material impact on our financial condition, results of operations or cash flows.

Operating and Financing Leases — Our operating and financing leases are discussed in Note 8.

Other Commitments

●

Disposal — We have several agreements expiring at various dates through 2052 that require us to dispose of a minimum number of tons at third-party disposal facilities. Under these put-or-pay agreements, we are required to pay for the agreed upon minimum volumes regardless of the actual number of tons placed at the facilities. Following the 2014 divestiture of our Wheelabrator business, which provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants, we entered into several agreements to dispose of a minimum number of tons of waste at certain Wheelabrator facilities. These agreements generally provide for fixed volume commitments with certain market price resets through 2021. We generally fulfill our minimum contractual obligations by disposing of volumes collected in the ordinary course of business at these disposal facilities.

●

Waste Paper — We are party to waste paper purchase agreements expiring at various dates through 2023 that require us to purchase a minimum number of tons of waste paper. The cost per ton we pay is based on market prices.

●

Royalties — We have various arrangements that require us to make royalty payments to third parties including prior land owners, lessors or host communities where our operations are located. Our obligations generally are based on per ton rates for waste actually received at our transfer stations or landfills. Royalty agreements that are non-cancelable and require fixed or minimum payments are included in our financing leases and other debt obligations in our Consolidated Balance Sheets as disclosed in Note 7.

Our unconditional purchase obligations are generally established in the ordinary course of our business and are structured in a manner that provides us with access to important resources at competitive, market-driven rates. As of December 31, 2019, our estimated minimum obligations associated with unconditional purchase obligations, which are not recognized in our Consolidated Balance Sheets, were $156 million in 2020, $143 million in 2021, $65 million in 2022, $57 million in 2023, $47 million in 2024 and $379 million thereafter. We may also establish unconditional purchase obligations in conjunction with acquisitions or divestitures. Our actual future minimum obligations under these outstanding purchase agreements are generally quantity driven and, as a result, our associated financial obligations are not fixed as of December 31, 2019. For contracts that require us to purchase minimum quantities of goods or services, we have estimated our future minimum obligations based on the current market values of the underlying products or services or contractually stated amounts. We currently expect the products and services provided by these agreements to continue to meet the needs

of our ongoing operations. Therefore, we do not expect these established arrangements to materially impact our future financial position, results of operations or cash flows.

Guarantees — We have entered into the following guarantee agreements associated with our operations:

●

As of December 31, 2019, WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness, including its senior notes, $3.5 billion revolving credit facility and certain letter of credit facilities, which mature through 2049. WM has fully and unconditionally guaranteed the senior indebtedness of WM Holdings, which matures in 2026. Performance under these guarantee agreements would be required if either party defaulted on their respective obligations. No additional liabilities have been recorded for these intercompany guarantees because all of the underlying obligations are reflected in our Consolidated Balance Sheets. See Note 22 for further discussion.

●

WM and WM Holdings have guaranteed subsidiary debt obligations, including tax-exempt bonds, financing leases and other indebtedness. If a subsidiary fails to meet its obligations associated with its debt agreements as they come due, WM or WM Holdings will be required to perform under the related guarantee agreement. No additional liabilities have been recorded for these intercompany guarantees because all of the underlying obligations are reflected in our Consolidated Balance Sheets. See Note 7 for information related to the balances and maturities of these debt obligations.

●

Before the divestiture of our Wheelabrator business in 2014, WM had guaranteed certain operational and financial performance obligations of Wheelabrator and its subsidiaries in the ordinary course of business. In conjunction with the divestiture, certain WM guarantees of Wheelabrator obligations were terminated, but others continued and are now guarantees of third-party obligations. When possible, Wheelabrator seeks to have the applicable third-party beneficiaries release WM from these guarantees, but until such efforts are successful, or the underlying financial commitments are restructured, WM has agreed to retain the guarantees and, in exchange, receive a credit support fee or other financial assurances guaranteed by a third-party financial institution to protect WM in the event of non-compliance by Wheelabrator. The most significant of these guarantees specifically define WM’s maximum financial obligation over the course of the relevant agreements. In February 2019, Wheelabrator was acquired by a third party, at which time we agreed to retain certain remaining guarantees. As of December 31, 2019, WM’s maximum future payments under these guarantees were $45 million. WM’s exposure under certain of the performance guarantees is variable and a maximum exposure is not defined. We have recorded the fair value of the operational and financial performance guarantees, some of which could extend through 2038 if not terminated, in our Consolidated Balance Sheets. We currently do not expect the financial impact of such operational and financial performance guarantees to materially exceed the recorded fair value.

●

Certain of our subsidiaries have guaranteed the market or contractually-determined value of certain homeowners’ properties that are adjacent to or near certain of our landfills. These guarantee agreements extend over the life of the respective landfill. Under these agreements, we would be responsible for the difference, if any, between the sale value and the guaranteed market or contractually-determined value of the homeowners’ properties. As of December 31, 2019, we have agreements guaranteeing certain market value losses for certain properties adjacent to or near 18 of our landfills. We do not believe that these contingent obligations will have a material adverse effect on the Company’s financial position, results of operations or cash flows.

●

We have indemnified the purchasers of businesses or divested assets for the occurrence of specified events under certain of our divestiture agreements. Other than certain identified items that are currently recorded as obligations, we do not believe that it is possible to determine the contingent obligations associated with these indemnities. Additionally, under certain of our acquisition agreements, we have provided for additional consideration to be paid to the sellers if established financial targets or other market conditions are achieved post-closing and we have recognized liabilities for these contingent obligations based on an estimate of the fair value of these contingencies at the time of acquisition. We do not currently believe that contingent obligations to provide indemnification or pay additional post-closing consideration in connection with our divestitures or acquisitions

will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

●

WM and WM Holdings guarantee the service, lease, financial and general operating obligations of certain of their subsidiaries. If such a subsidiary fails to meet its contractual obligations as they come due, the guarantor has an unconditional obligation to perform on its behalf. No additional liability has been recorded for service, financial or general operating guarantees because the subsidiaries’ obligations are properly accounted for as costs of operations as services are provided or general operating obligations as incurred. No additional liability has been recorded for the lease guarantees because the subsidiaries’ obligations are properly accounted for as operating or financing leases, as appropriate.

Environmental Matters — A significant portion of our operating costs and capital expenditures could be characterized as costs of environmental protection. The nature of our operations, particularly with respect to the construction, operation and maintenance of our landfills, subjects us to an array of laws and regulations relating to the protection of the environment. Under current laws and regulations, we may have liabilities for environmental damage caused by our operations, or for damage caused by conditions that existed before we acquired a site. In addition to remediation activity required by state or local authorities, such liabilities include PRP investigations. The costs associated with these liabilities can include settlements, certain legal and consultant fees, as well as incremental internal and external costs directly associated with site investigation and clean-up.

As of December 31, 2019, we have been notified by the government that we are a PRP in connection with 75 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List (“NPL”). Of the 75 sites at which claims have been made against us, 15 are sites we own. Each of the NPL sites we own was initially developed by others as a landfill disposal facility. At each of these facilities, we are working in conjunction with the government to evaluate or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement. We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures. The other 60 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.

On October 11, 2017, the EPA issued its Record of Decision (“ROD”) with respect to the previously proposed remediation plan for the San Jacinto waste pits in Harris County, Texas. McGinnes Industrial Maintenance Corporation (“MIMC”), an indirect wholly-owned subsidiary of WM, operated some of the waste pits from 1965 to 1966 and has been named as a site PRP. In 1998, WM acquired the stock of the parent entity of MIMC. MIMC has been working with the EPA and other named PRPs as the process of addressing the site proceeds. On April 9, 2018, MIMC and International Paper Company entered into an Administrative Order on Consent agreement with the EPA to develop a remedial design for the EPA’s proposed remedy for the site. Allocation of responsibility among the PRPs for the proposed remedy has not been established. As of December 31, 2019 and 2018, the recorded liability for MIMC’s estimated potential share of the

EPA’s proposed remedy and related costs was $56 million and $55 million, respectively. MIMC’s ultimate liability could be materially different from current estimates.

Item 103 of the SEC’s Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings, or such proceedings are known to be contemplated, unless we reasonably believe that the matter will result in no monetary sanctions, or in monetary sanctions, exclusive of interest and costs, of less than $100,000. The following matter is disclosed in accordance with that requirement. We do not currently believe that the eventual outcome of such matter could have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

On July 10, 2013, the EPA issued a Notice of Violation ("NOV") to Waste Management of Wisconsin, Inc., an indirect wholly-owned subsidiary of WM, alleging violations of the Resource Conservation Recovery Act concerning acceptance of certain waste that was not permitted to be disposed of at the Metro Recycling & Disposal Facility in Franklin, Wisconsin. The parties are exchanging information and working to resolve the NOV.

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 — As a large company with operations across the U.S. and Canada, we are subject to various proceedings, lawsuits, disputes and claims arising in the ordinary course of our business. Many of these actions raise complex factual and legal issues and are subject to uncertainties. Actions that have been filed against us, and that may be filed against us in the future, include personal injury, property damage, commercial, customer, and employment-related claims, including purported state and national class action lawsuits related to: alleged environmental contamination, including releases of hazardous material and odors; sales and marketing practices, customer service agreements and prices and fees; and federal and state wage and hour and other laws. The plaintiffs in some actions seek unspecified damages or injunctive relief, or both. These actions are in various procedural stages, and some are covered in part by insurance. We currently do not believe that the eventual outcome of any such actions will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

WM’s charter and bylaws provide that WM shall indemnify against all liabilities and expenses, and upon request shall advance expenses to any person, who is subject to a pending or threatened proceeding because such person is or was a director or officer of the Company. Such indemnification is required to the maximum extent permitted under Delaware law. Accordingly, the director or officer must execute an undertaking to reimburse the Company for any fees advanced if it is later determined that the director or officer was not 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 WM’s Board of Directors and each of WM’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 — About 20% of our workforce is covered by collective bargaining agreements with various local unions across the U.S. and Canada. As a result of some of these agreements, certain of our subsidiaries are participating employers in a number of Multiemployer Pension Plans for the covered employees. Refer to Note 10 for additional information about our participation in Multiemployer Pension Plans considered individually significant. In connection with our ongoing renegotiation of various collective bargaining agreements, we may discuss and negotiate for the complete or partial withdrawal from one or more of these Multiemployer Pension Plans. A complete or partial withdrawal from a Multiemployer Pension Plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them. Any other circumstance resulting in a decline in Company contributions to a Multiemployer Pension Plan through a reduction in the labor force, whether through attrition over time or through a business event (such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or discontinuance of certain operations) may also trigger a complete or partial withdrawal from one or more of these pension plans.

In 2019, 2018 and 2017, we recognized less than $1 million, $3 million and $12 million, respectively, of charges to operating expenses for the withdrawal from certain underfunded Multiemployer 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 — 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. See Note 9 for additional discussion regarding income taxes.

Condensed Consolidating Financial Statements - Statements of Comprehensive Income (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Statement Of Income Captions [Line Items]
Comprehensive income	$ 1,750	$ 1,833	$ 2,037
Less: Comprehensive income (loss) attributable to noncontrolling interests	1	(2)
Comprehensive income attributable to Waste Management, Inc.	1,749	1,835	2,037
Eliminations [Member]
Condensed Statement Of Income Captions [Line Items]
Comprehensive income	(4,055)	(4,324)	(4,951)
Comprehensive income attributable to Waste Management, Inc.	(4,055)	(4,324)	(4,951)
WM [Member] \| Reportable Legal Entities [Member]
Condensed Statement Of Income Captions [Line Items]
Comprehensive income	1,678	1,933	1,955
Comprehensive income attributable to Waste Management, Inc.	1,678	1,933	1,955
WM Holdings [Member] \| Reportable Legal Entities [Member]
Condensed Statement Of Income Captions [Line Items]
Comprehensive income	2,047	2,154	2,469
Comprehensive income attributable to Waste Management, Inc.	2,047	2,154	2,469
Non-Guarantor Subsidiaries [Member] \| Reportable Legal Entities [Member]
Condensed Statement Of Income Captions [Line Items]
Comprehensive income	2,080	2,070	2,564
Less: Comprehensive income (loss) attributable to noncontrolling interests	1	(2)
Comprehensive income attributable to Waste Management, Inc.	$ 2,079	$ 2,072	$ 2,564

Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Current:
Federal	$ 204	$ 256	$ 400
State	94	132	56
Foreign	36	40	37
Current tax total	334	428	493
Deferred:
Federal	94	59	(316)
State	8	(32)	62
Foreign	(2)	(2)	3
Deferred tax total	100	25	(251)
Income tax expense	$ 434	$ 453	$ 242

Equity-Based Compensation - PSUs (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Feb. 28, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years	3 years
Vested shares issued, percentage of the established target			200.00%
Range of potential payout (as a percent)		100.00%
Unvested, Units, beginning of year		1,164
Granted, Units		364
Vested, Units	(853,000)	(427)
Forfeited, Units		(24)
Unvested, Units, end of year		1,077	1,164
Unvested, Weighted Average Per Share Fair Value, beginning of year		$ 90.17
Granted, Weighted Average Per Share Fair Value		116.26
Vested, Weighted Average Per Share Fair Value		93.03
Forfeited, Weighted Average Per Share Fair Value		98.33
Unvested, Weighted Average Per Share Fair Value, end of year		$ 99.66	$ 90.17
Shares issued under the plan	532,000
Total fair market value of vested awards		$ 84	$ 78	$ 80
Deferred Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested deferred units outstanding		225,000
Minimum [Member] \| Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of potential payout (as a percent)		0.00%
Maximum [Member] \| Performance Share Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Range of potential payout (as a percent)		200.00%

Quarterly Financial Data (Unaudited) - Summary (Detail) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data
Operating revenues	$ 3,846	$ 3,967	$ 3,946	$ 3,696	$ 3,842	$ 3,822	$ 3,739	$ 3,511	$ 15,455	$ 14,914	$ 14,485
Income from operations	655	734	696	621	767	699	715	608	2,706	2,789	2,636
Consolidated net income	447	495	382	347	531	498	499	395	1,671	1,923	1,949
Net income attributable to Waste Management, Inc.	$ 447	$ 495	$ 381	$ 347	$ 531	$ 499	$ 499	$ 396	$ 1,670	$ 1,925	$ 1,949
Basic earnings per common share	$ 1.05	$ 1.17	$ 0.90	$ 0.82	$ 1.25	$ 1.16	$ 1.16	$ 0.91	$ 3.93	$ 4.49	$ 4.44
Diluted earnings per common share	$ 1.05	$ 1.16	$ 0.89	$ 0.81	$ 1.24	$ 1.16	$ 1.15	$ 0.91	$ 3.91	$ 4.45	$ 4.41

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

+ Details

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 28	$ 29
Accumulated depreciation and amortization	$ 18,657	$ 18,264
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	205,956,366	206,299,352

Condensed Consolidating Financial Statements - Statements of Operations (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Income Statements, Captions [Line Items]
Operating revenues	$ 3,846	$ 3,967	$ 3,946	$ 3,696	$ 3,842	$ 3,822	$ 3,739	$ 3,511	$ 15,455	$ 14,914	$ 14,485
Costs and expenses									12,749	12,125	11,849
Income from operations	655	734	696	621	767	699	715	608	2,706	2,789	2,636
Other income (expense):
Interest expense, net									(411)	(374)	(363)
Loss on early extinguishment of debt									(85)		(6)
Other, net									(105)	(39)	(76)
Total other income (expense)									(601)	(413)	(445)
Income before income taxes									2,105	2,376	2,191
Income tax expense (benefit)									434	453	242
Consolidated net income	447	495	382	347	531	498	499	395	1,671	1,923	1,949
Less: Net income (loss) attributable to noncontrolling interests									1	(2)
Net income attributable to Waste Management, Inc.	$ 447	$ 495	$ 381	$ 347	$ 531	$ 499	$ 499	$ 396	1,670	1,925	1,949
Eliminations [Member]
Condensed Income Statements, Captions [Line Items]
Operating revenues											(555)
Costs and expenses											(555)
Other income (expense):
Equity in earnings of subsidiaries, net of tax									(3,983)	(4,324)	(4,951)
Other, net									(72)
Total other income (expense)									(4,055)	(4,324)	(4,951)
Income before income taxes									(4,055)	(4,324)	(4,951)
Consolidated net income									(4,055)	(4,324)	(4,951)
Net income attributable to Waste Management, Inc.									(4,055)	(4,324)	(4,951)
WM [Member] \| Reportable Legal Entities [Member]
Condensed Income Statements, Captions [Line Items]
Costs and expenses											555
Income from operations											(555)
Other income (expense):
Interest expense, net									(347)	(312)	(299)
Loss on early extinguishment of debt									(70)		(6)
Equity in earnings of subsidiaries, net of tax									1,976	2,155	2,469
Other, net											2
Total other income (expense)									1,559	1,843	2,166
Income before income taxes									1,559	1,843	1,611
Income tax expense (benefit)									(111)	(82)	(338)
Consolidated net income									1,670	1,925	1,949
Net income attributable to Waste Management, Inc.									1,670	1,925	1,949
WM Holdings [Member] \| Reportable Legal Entities [Member]
Other income (expense):
Interest expense, net									(19)	(20)	(20)
Loss on early extinguishment of debt									(14)
Equity in earnings of subsidiaries, net of tax									2,007	2,169	2,482
Other, net									68		(1)
Total other income (expense)									2,042	2,149	2,461
Income before income taxes									2,042	2,149	2,461
Income tax expense (benefit)									(5)	(5)	(8)
Consolidated net income									2,047	2,154	2,469
Net income attributable to Waste Management, Inc.									2,047	2,154	2,469
Non-Guarantor Subsidiaries [Member] \| Reportable Legal Entities [Member]
Condensed Income Statements, Captions [Line Items]
Operating revenues									15,455	14,914	15,040
Costs and expenses									12,749	12,125	11,849
Income from operations									2,706	2,789	3,191
Other income (expense):
Interest expense, net									(45)	(42)	(44)
Loss on early extinguishment of debt									(1)
Other, net									(101)	(39)	(77)
Total other income (expense)									(147)	(81)	(121)
Income before income taxes									2,559	2,708	3,070
Income tax expense (benefit)									550	540	588
Consolidated net income									2,009	2,168	2,482
Less: Net income (loss) attributable to noncontrolling interests									1	(2)
Net income attributable to Waste Management, Inc.									$ 2,008	$ 2,170	$ 2,482

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:
Cash and cash equivalents	$ 3,561	$ 61	$ 22
Restricted cash and cash equivalents included in other current assets	15	49	70
Restricted cash and cash equivalents included in restricted trust and escrow accounts	71	73	201
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 3,647	$ 183	$ 293

Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases

Summary of lease balance sheet information

Supplemental balance sheet information for our leases is as follows (in millions):


Leases	Classification	December 31, 2019
Assets
Long-term:
Operating	Other assets	$	424
Financing	Property and equipment, net of accumulated depreciation and amortization		374
Total lease assets		$	798

Liabilities
Current:
Operating	Accrued liabilities	$	79
Financing	Current portion of long-term debt		36
Long-term:
Operating	Other liabilities		366
Financing	Long-term debt, less current portion		323
Total lease liabilities		$	804

Summary of maturities of operating lease liabilities


		Operating		Financing
2020	$	63	$	47
2021		58		45
2022		57		45
2023		51		44
2024		40		41
Thereafter		359		256
Total lease payments	$	628	$	478
Less: interest		(183)		(119)
Discounted lease liabilities	$	445	$	359

Summary of maturities of finance lease liabilities

Minimum contractual obligations for our leases (undiscounted) as of December 31, 2019 are as follows (in millions):


		Operating		Financing
2020	$	63	$	47
2021		58		45
2022		57		45
2023		51		44
2024		40		41
Thereafter		359		256
Total lease payments	$	628	$	478
Less: interest		(183)		(119)
Discounted lease liabilities	$	445	$	359

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share

Earnings Per Share

16. Earnings Per Share

Basic and diluted earnings per share were computed using the following common share data for the years ended December 31 (shares in millions):


	2019	2018	2017
Number of common shares outstanding at end of period	424.3	424.0	433.3
Effect of using weighted average common shares outstanding	0.3	5.1	5.5
Weighted average basic common shares outstanding	424.6	429.1	438.8
Dilutive effect of equity-based compensation awards and other contingently issuable shares	2.9	3.1	3.1
Weighted average diluted common shares outstanding	427.5	432.2	441.9
Potentially issuable shares	6.7	7.4	8.1
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	0.7	1.5	1.9

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Summary of the impact of revisions in risk-free discount rate


	2019			2018			2017
Increase (decrease) in operating expenses	$	9		$	(2)		$	—
Risk-free discount rate applied to environmental remediation liabilities and recovery assets		1.75	%		2.75	%		2.5	%

Schedule of estimated useful lives

The estimated useful lives for significant property and equipment categories are as follows (in years):


		Useful Lives
Vehicles — excluding rail haul cars		3 to 10
Vehicles — rail haul cars		10 to 30
Machinery and equipment — including containers		3 to 30
Buildings and improvements		5 to 40
Furniture, fixtures and office equipment		3 to 10

Summary of investments in unconsolidated entities


	2019		2018
Equity method investments	$	377	$	257
Investments without readily determinable fair values		57		83
Redeemable preferred stock		49		66
Investments in unconsolidated entities	$	483	$	406

Schedule of Supplemental Cash Flow Information

The following table shows supplemental cash flow information for the years ended December 31 (in millions):


	2019		2018		2017
Interest, net of capitalized interest	$	397	$	339	$	380
Income taxes		292		349		562

Leases

12 Months Ended

Dec. 31, 2019

Leases

Leases

8. Leases

Our operating lease activities primarily consist of leases for real estate, landfills and operating equipment. Our financing lease activities primarily consist of leases for operating equipment, railcars and landfill assets. Leases with an initial term of 12 months or less, which are not expected to be renewed beyond one year, are not recorded on the balance sheet and are recognized as lease expense on a straight-line basis over the lease term. Most leases include one or more options to renew, with renewal terms generally ranging from one to 10 years. The exercise of lease renewal options is at our sole discretion. We include the renewal term in the calculation of the right-of-use asset and related lease liability when

such renewals are reasonably certain of being exercised. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on usage and other lease agreements include rental payments adjusted periodically for inflation; these payments are treated as variable lease payments. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

When the implicit interest rate is not readily available for our leases, we discount future cash flows of the remaining lease payments using the current interest rate that would be paid to borrow on collateralized debt over a similar term, or incremental borrowing rate, at the commencement date.

Supplemental balance sheet information for our leases is as follows (in millions):


Leases	Classification	December 31, 2019
Assets
Long-term:
Operating	Other assets	$	424
Financing	Property and equipment, net of accumulated depreciation and amortization		374
Total lease assets		$	798

Liabilities
Current:
Operating	Accrued liabilities	$	79
Financing	Current portion of long-term debt		36
Long-term:
Operating	Other liabilities		366
Financing	Long-term debt, less current portion		323
Total lease liabilities		$	804

Operating lease expense was $132 million, $129 million and $134 million during 2019, 2018 and 2017, respectively, and is included in operating and selling, general and administrative expenses in our Consolidated Statement of Operations. Financing lease expense for 2019 was $48 million and is included in depreciation and amortization expense and interest expense, net in our Consolidated Statement of Operations.

Minimum contractual obligations for our leases (undiscounted) as of December 31, 2019 are as follows (in millions):


		Operating		Financing
2020	$	63	$	47
2021		58		45
2022		57		45
2023		51		44
2024		40		41
Thereafter		359		256
Total lease payments	$	628	$	478
Less: interest		(183)		(119)
Discounted lease liabilities	$	445	$	359

As of December 31, 2019, we entered into leases, primarily for real estate, that have not yet commenced with future lease payments of $26 million that are not reflected in the table above. These leases will commence through 2020 with non-cancelable lease terms up to 15 years.

Cash paid during 2019 for our operating and financing leases was $87 million and $40 million, respectively. During 2019, right-of-use assets obtained in exchange for lease obligations for our operating and financing leases were $149 million and $134 million, respectively.

As of December 31, 2019, the weighted average remaining lease terms of our operating and financing leases were approximately 16 years and 14 years, respectively. The weighted average discount rates used to determine the lease liabilities as of December 31, 2019 for our operating and financing leases were approximately 3.50% and 4.10%, respectively.

Fair Value Measurements

12 Months Ended

Dec. 31, 2019

Fair Value Measurements

Fair Value Measurements

17. Fair Value Measurements

Assets and Liabilities Accounted for at Fair Value

Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When measuring assets and liabilities that are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 — Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

We use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In measuring the fair value of our assets and liabilities, we use market data or assumptions that we believe market

participants would use in pricing an asset or liability, including assumptions about risk when appropriate. Our assets and liabilities that are measured at fair value on a recurring basis include the following as of December 31 (in millions):


	2019		2018
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	3,527	$	70
Significant other observable inputs (Level 2):
Available-for-sale securities		350		288
Significant unobservable inputs (Level 3):
Redeemable preferred stock		49		66
Total Assets	$	3,926	$	424

Cash Equivalents and Money Market Funds

Cash equivalents primarily include short-term interest-bearing instruments with maturities of three months or less. We invest portions of our restricted trust and escrow account balances in money market funds and we measure the fair value of these investments using quoted prices in active markets for identical assets. The fair value of our cash equivalents and money market funds approximates our cost basis in these instruments. The increase in 2019 is primarily due to proceeds from our May 2019 issuance of senior notes and our September 2019 issuance of Canadian senior notes. See Note 7 for additional information.

Available-for-Sale Securities

Our available-for-sale securities include restricted trust and escrow account balances and an investment in an unconsolidated entity, as discussed in Note 19. We invest primarily in debt securities, including U.S. Treasury securities, U.S. agency securities, municipal securities and mortgage- and asset-backed securities, which generally mature over the next 10 years. Additionally, some funds are invested in equity securities. We measure the fair value of these securities using quoted prices for identical or similar assets in inactive markets. Any changes in fair value of these trusts related to unrealized gains and losses have been appropriately reflected as a component of accumulated other comprehensive income (loss).

Redeemable Preferred Stock

Redeemable preferred stock is related to noncontrolling investments in unconsolidated entities and is included in investments in unconsolidated entities in our Consolidated Balance Sheets. The fair value of our investments have been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. When this evidence is not available, we use other valuation techniques as appropriate and available. These valuation methodologies may include transactions in similar instruments, discounted cash flow techniques, third-party appraisals or industry multiples and public company comparable transactions. In the first quarter of 2019, we redeemed our preferred stock received in conjunction with the 2014 sale of our Puerto Rico operations for $17 million. At the time of redemption, the value of redeemable preferred stock was $20 million, resulting in a $3 million loss on investment.

Fair Value of Debt

As of December 31, 2019 and 2018, the carrying value of our debt was $13.5 billion and $10.0 billion, respectively. The estimated fair value of our debt was approximately $14.5 billion and $10.1 billion as of December 31, 2019 and 2018, respectively. The increase in the fair value of our debt in 2019 is primarily related to net borrowings of $3.1 billion

(inclusive of net commercial paper repayments), which are discussed further in Note 7, and decreases in current market rates for similar types of instruments.

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 December 31, 2019 and 2018. These amounts have not been revalued since those dates, and current estimates of fair value could differ significantly from the amounts presented.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Debt

12 Months Ended

Dec. 31, 2019

Debt

Debt

7. Debt

The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of December 31:


	2019		2018
Revolving credit facility (weighted average interest rate of 3.1% as of December 31, 2018)	$	—	$	11
Commercial paper program (weighted average interest rate of 2.9% as of December 31, 2018)		—		990
Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of December 31, 2019 and 4.3% as of December 31, 2018)		9,965		6,222
Canadian senior notes, maturing September 2026, interest rate of 2.6%		385		—
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 1.35% to 4.3% (weighted average interest rate of 2.3% as of December 31, 2019 and 2.35% as of December 31, 2018)		2,523		2,388
Financing leases and other, maturing through 2071, weighted average interest rate of 4.7%		710		467
Debt issuance costs, discounts and other		(85)		(52)
		13,498		10,026
Current portion of long-term debt		218		432
	$	13,280	$	9,594

Debt Classification

As of December 31, 2019, we had $1.5 billion of debt maturing within the next 12 months, including (i) $600 million of 4.75% senior notes that mature in June 2020; (ii) $669 million of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities, and (iii) $218 million of other debt with scheduled maturities within the next 12 months, including $112 million of tax-exempt bonds. As of December 31, 2019,

we have classified $1.3 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”), as discussed below. The remaining $218 million of debt maturing in the next 12 months is classified as current obligations.

As of December 31, 2019, we also have $169 million of variable-rate tax-exempt bonds that are supported by letters of credit under our $3.5 billion revolving credit facility, of which $15 million mature within the next 12 months. The interest rates on our variable-rate tax-exempt bonds are generally reset on either a daily or weekly basis through a remarketing process. All recent tax-exempt bond remarketings have successfully placed Company bonds with investors at market-driven rates and we currently expect future remarketings to be successful. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the availability under our $3.5 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have classified $154 million of these borrowings as long-term in our Consolidated Balance Sheet as of December 31, 2019.

Access to and Utilization of Credit Facilities and Commercial Paper Program

$3.5 Billion Revolving Credit Facility — In November 2019, we entered into the $3.5 billion revolving credit facility, which amended and restated our prior long-term U.S. and Canadian revolving credit facility. Amendments to the credit agreement included (i) increasing total capacity under the facility from $2.75 billion to $3.5 billion; (ii) increasing the accordion feature that may be used to increase total capacity in future periods from $750 million to $1.0 billion and (iii) extending the term through November 2024. The agreement provides the Company with two one-year extension options. Waste Management of Canada Corporation and WM Quebec Inc., each an indirect wholly-owned subsidiary of WM, are borrowers under the $3.5 billion revolving credit facility, and the agreement permits borrowing in Canadian dollars up to the U.S. dollar equivalent of $375 million, with such borrowings to be repaid in Canadian dollars. WM Holdings, a wholly-owned subsidiary of WM, 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 or to support our commercial paper program. The rates we pay for outstanding U.S. or Canadian loans are generally based on LIBOR or CDOR, respectively, plus a spread depending on the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR or CDOR ranges from 0.575% to 1.015%. Our $3.5 billion revolving credit facility was drafted in anticipation of the phaseout of LIBOR and contains provisions to replace LIBOR with an appropriate alternate benchmark rate as needed. As of December 31, 2019, we had no outstanding borrowings and $412 million of letters of credit issued and supported by the facility, leaving unused and available credit capacity of $3.1 billion.

Commercial Paper Program — We have a commercial paper program that enables us to borrow funds for up to 397 days at competitive interest rates. The rates we pay for outstanding borrowings are based on the term of the notes. The commercial paper program is fully supported by our $3.5 billion revolving credit facility. In November 2019, we amended our commercial paper program, increasing our ability to borrow funds from $2.75 billion to $3.5 billion, provided that the aggregate outstanding amount of commercial paper borrowings, together with borrowings and issued letters of credit under the $3.5 billion revolving credit facility, shall not at any time exceed the aggregate authorized borrowing capacity of such facility. As of December 31, 2019, we had no outstanding borrowings under our commercial paper program.

Other Letter of Credit Facilities — As of December 31, 2019, we had utilized $532 million of other letter of credit facilities, which are both committed and uncommitted, with terms maturing through April 2021.

Debt Borrowings and Repayments

Revolving Credit Facility — In 2019, we repaid C$15 million, or $11 million, of Canadian borrowings under our revolving credit facility with available cash.

Senior Notes — In May 2019, WM issued $4.0 billion of senior notes consisting of:

●

$750 million of 2.95% senior notes due June 15, 2024;

●

$750 million of 3.20% senior notes due June 15, 2026;

●

$1.0 billion of 3.45% senior notes due June 15, 2029;

●

$500 million of 4.00% senior notes due July 15, 2039; and

●

$1.0 billion of 4.15% senior notes due July 15, 2049.

The net proceeds from these debt issuances were $3.97 billion. Concurrently, we used $344 million of the net proceeds from the newly issued senior notes to retire $257 million of certain high-coupon senior notes. The cash paid includes the principal amount of the debt retired, $84 million of related premiums, which are classified as loss on early extinguishment of debt in our Consolidated Statement of Operations, and $3 million of accrued interest. The principal amount of senior notes redeemed within each series was as follows:

●

$304 million of WM Holdings 7.10% senior notes due 2026, of which $56 million were tendered;

●

$395 million of WM 7.00% senior notes due 2028, of which $64 million were tendered;

●

$139 million of WM 7.375% senior notes due 2029, of which $58 million were tendered;

●

$210 million of WM 7.75% senior notes due 2032, of which $57 million were tendered; and

●

$274 million of WM 6.125% senior notes due 2039, of which $22 million were tendered.

We used a portion of the proceeds to repay our commercial paper borrowings as discussed further below. We intend to use the remaining net proceeds to pay a portion of the consideration related to our pending acquisition of Advanced Disposal Services, Inc. (“Advanced Disposal”), pursuant to an Agreement and Plan of Merger (the “Merger Agreement”) which is discussed further in Note 18, and for general corporate purposes. The newly-issued senior notes due 2024, 2026, 2029 and 2039 include a special mandatory redemption feature, which provides that if the acquisition of Advanced Disposal is not completed on or prior to July 14, 2020, or if, prior to such date, the Merger Agreement is terminated for any reason, we will be required to redeem all of such outstanding notes equal to 101% of the aggregate principal amounts of such notes, plus accrued but unpaid interest.

Canadian Senior Notes — In September 2019, Waste Management of Canada Corporation, an indirect wholly-owned subsidiary of WM, issued C$500 million, or $377 million, of 2.6% senior notes due September 23, 2026, all of which are fully and unconditionally guaranteed on a senior unsecured basis by WM and WM Holdings. The net proceeds from the debt issuance were C$496 million, or $373 million, which we intend to use for general corporate purposes.

Commercial Paper Program — During the year ended December 31, 2019, we made net cash repayments of $1.0 billion (net of the related discount on issuance).

Tax-Exempt Bonds — We issued $240 million of new tax-exempt bonds in 2019. The proceeds from the issuance of these bonds were deposited directly into a restricted trust fund and may only be used for the specific purpose for which the money was raised, which is generally to finance expenditures for landfill and solid waste disposal facility construction and development. In the third quarter of 2019, we elected to refund and reissue $99 million of tax-exempt bonds which resulted in the recognition of a $1 million loss on early extinguishment of debt in our Consolidated Statement of Operations. Additionally, during the year ended December 31, 2019, we repaid $105 million of our tax-exempt bonds with available cash.

Financing Leases and Other — The increase in our financing leases and other debt obligations during 2019 is primarily related to (i) our new federal low-income housing investment discussed in Note 9, which increased our debt obligations by $140 million, and (ii) an increase of $159 million attributable to non-cash financing arrangements. These increases were offset by a net decrease of $56 million, primarily due net cash repayments of debt at maturity.

Scheduled Debt Payments

Principal payments of our debt for the next five years and thereafter, based on scheduled maturities are as follows: $823 million in 2020, $629 million in 2021, $660 million in 2022, $646 million in 2023, $1,220 million in 2024 and $9,701 million thereafter. Our recorded debt and financing lease obligations include non-cash adjustments associated with debt issuance costs, discounts, premiums and fair value adjustments attributable to terminated interest rate derivatives, which have been excluded from these amounts because they will not result in cash payments. See Note 8 below for further discussion of our financing lease arrangements.

Secured Debt

Our debt balances are generally unsecured, except for financing leases and the notes payable associated with our investments in low-income housing properties.

Debt Covenants

The terms of certain of our financing arrangements require that we comply with financial and other covenants. Our most restrictive financial covenant is the one contained in our $3.5 billion revolving credit facility, which sets forth a maximum total debt to consolidated earnings before interest, taxes, depreciation and amortization ratio (the “Leverage Ratio”). This covenant requires that the Leverage Ratio for the preceding four fiscal quarters will not be more than 3.75 to 1, provided that if an acquisition permitted under the $3.5 billion revolving credit facility involving aggregate consideration in excess of $200 million occurs during the fiscal quarter, the Company shall have the right to increase the Leverage Ratio to 4.25 to 1 during such fiscal quarter and for the following three fiscal quarters (the “Elevated Leverage Ratio Period”). There shall be no more than two Elevated Leverage Ratio Periods during the term of the $3.5 billion revolving credit facility, and the Leverage Ratio must return to 3.75 to 1 for at least one fiscal quarter between Elevated Leverage Ratio Periods. The calculation of all components used in the Leverage Ratio covenant are as defined in the $3.5 billion revolving credit facility.

Our $3.5 billion revolving credit facility, senior notes and other financing arrangements also contain certain restrictions on the ability of the Company’s subsidiaries to incur additional indebtedness as well as restrictions on the ability of the Company and its subsidiaries to, among other things, incur liens; engage in sale-leaseback transactions and engage in mergers and consolidations. We monitor our compliance with these restrictions, but do not believe that they significantly impact our ability to enter into investing or financing arrangements typical for our business. As of December 31, 2019 and 2018, we were in compliance with all covenants and restrictions under our financing arrangements that may have a material effect on our Consolidated Financial Statements.

Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

13. Accumulated Other Comprehensive Income (Loss)

The changes in the balances of each component of accumulated other comprehensive income (loss), net of tax, which is included as a component of WM 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, 2016	$	(40)	$	13	$	(47)	$	(6)	$	(80)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $1, respectively		—		3		76		3		82
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $5, $(1), $0 and $0, respectively		7		(1)		—		—		6
Net current period other comprehensive income (loss)		7		2		76		3		88
Balance, December 31, 2017	$	(33)	$	15	$	29	$	(3)	$	8
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $1, respectively		—		5		(105)		2		(98)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		—		—		8
Net current period other comprehensive income (loss)		8		5		(105)		2		(90)
Adoption of new accounting standard (a)		(7)		3		—		(1)		(5)
Balance, December 31, 2018	$	(32)	$	23	$	(76)	$	(2)	$	(87)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $5, $0 and $1, respectively		—		15		55		2		72
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		—		(1)		7
Net current period other comprehensive income (loss)		8		15		55		1		79
Balance, December 31, 2019	$	(24)	$	38	$	(21)	$	(1)	$	(8)

(a)	As of January 1, 2018, we adopted ASU 2018-02 and reclassified stranded tax effects to retained earnings.

We had no derivatives outstanding during the reported periods. Amounts reclassified to interest expense associated with our previously terminated cash flow hedges were $11 million, or $8 million net of tax expense, for 2019, $11 million, or $8 million net of tax expense, for 2018 and $12 million, or $7 million net of tax expense, for 2017.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Operating revenues	$ 15,455	$ 14,914	$ 14,485
Costs and expenses:
Operating	9,496	9,249	9,021
Selling, general and administrative	1,631	1,453	1,468
Depreciation and amortization	1,574	1,477	1,376
Restructuring	6	4
(Gain) loss from divestitures, asset impairments and unusual items, net	42	(58)	(16)
Total costs and expenses	12,749	12,125	11,849
Income from operations	2,706	2,789	2,636
Other income (expense):
Interest expense, net	(411)	(374)	(363)
Loss on early extinguishment of debt	(85)		(6)
Equity in net losses of unconsolidated entities	(55)	(41)	(68)
Other, net	(50)	2	(8)
Total other income (expense)	(601)	(413)	(445)
Income before income taxes	2,105	2,376	2,191
Income tax expense	434	453	242
Consolidated net income	1,671	1,923	1,949
Less: Net income (loss) attributable to noncontrolling interests	1	(2)
Net income attributable to Waste Management, Inc.	$ 1,670	$ 1,925	$ 1,949
Basic earnings per common share	$ 3.93	$ 4.49	$ 4.44
Diluted earnings per common share	$ 3.91	$ 4.45	$ 4.41

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Contract Acquisition Costs
Revenue other than customer contracts (as a percent)	1.00%	1.00%
Deferred contract costs	$ 153	$ 145
Long-term revenue contracts (as a percent)	25.00%
Weighted average remaining contract term	5 years
Deferred Sales Incentives [Member]
Contract Acquisition Costs
Deferred contract costs	$ 117	109
Selling, General and Administrative Expenses [Member]
Contract Acquisition Costs
Deferred contract costs amortization	23	22
Reduction to Sales [Member]
Contract Acquisition Costs
Deferred contract costs amortization	$ 17	$ 35
Minimum [Member]
Contract Acquisition Costs
Deferred revenue recognition period	1 month
Contract amortization period	5 years
Maximum [Member]
Contract Acquisition Costs
Deferred revenue recognition period	3 months
Contract amortization period	13 years

Segment and Related Information - Geographical (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating revenues	$ 3,846	$ 3,967	$ 3,946	$ 3,696	$ 3,842	$ 3,822	$ 3,739	$ 3,511	$ 15,455	$ 14,914	$ 14,485
Property and equipment, net	12,893				11,942				12,893	11,942	11,559
US
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating revenues									14,701	14,167	13,768
Property and equipment, net	11,941				11,044				11,941	11,044	10,591
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Operating revenues									754	747	717
Property and equipment, net	$ 952				$ 898				$ 952	$ 898	$ 968

Leases - Cash flow (Detail) $ in Millions	12 Months Ended
Leases - Cash flow (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Operating cash flows from operating leases
Operating cash flows from operating leases	$ 87
Financing cash flows from finance leases	40
Right-of-use assets obtained in exchange for operating lease obligations	149
Right-of-use assets obtained in exchange for financing leases obligations	$ 134

Debt - Borrowings and Repayments (Detail) $ in Millions, $ in Millions		1 Months Ended			3 Months Ended		12 Months Ended
	Aug. 28, 2019 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2019 CAD ($)	May 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 CAD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Sep. 30, 2019 CAD ($)
Debt
Debt repayments							$ 533		$ 499	$ 1,907
New borrowings							4,683		359	1,479
Loss on early extinguishment of debt							(85)			(6)
Net commercial borrowings (repayments)							(1,001)		$ 453	$ 513
Scheduled Debt Payments
Principal payments in 2020							823
Principal payments in 2021							629
Principal payments in 2022							660
Principal payments in 2023							646
Principal payments in 2024							1,220
Principal payments after 2024							9,701
Credit Facility Revolving Canadian [Member]
Debt
Debt repayments							$ 11	$ 15
Senior Notes, Aggregate [Member]
Debt
Debt instrument face amount				$ 4,000
New borrowings				3,970
Amount of debt tendered, including interest				344
Early extinguishment of high-coupon senior notes				257		$ 257
Loss on early extinguishment of debt				84		$ (84)
Accrued interest				3
Senior Notes, Aggregate [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)							2.40%
Senior Notes, Aggregate [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)							7.75%
2.95% senior notes due June 2024 [Member]
Debt
Debt instrument face amount				$ 750
Interest rate (as a percent)				2.95%
Redemption price percentage				101.00%
3.20% senior notes due June 2026 [Member]
Debt
Debt instrument face amount				$ 750
Interest rate (as a percent)				3.20%
Redemption price percentage				101.00%
3.45% senior notes due June 2029 [Member]
Debt
Debt instrument face amount				$ 1,000
Interest rate (as a percent)				3.45%
Redemption price percentage				101.00%
4.00% senior notes due July 2039 [Member]
Debt
Debt instrument face amount				$ 500
Interest rate (as a percent)				4.00%
Redemption price percentage				101.00%
4.15% senior notes due July 2049 [Member]
Debt
Debt instrument face amount				$ 1,000
Interest rate (as a percent)				4.15%
7.10% senior notes due 2026 [Member]
Debt
Interest rate (as a percent)				7.10%
Early extinguishment of high-coupon senior notes				$ 56
Face amount of tender offer				$ 304
7.00% senior notes due 2028 [Member]
Debt
Interest rate (as a percent)				7.00%
Early extinguishment of high-coupon senior notes				$ 64
Face amount of tender offer				$ 395
7.375% senior notes due 2029 [Member]
Debt
Interest rate (as a percent)				7.375%
Early extinguishment of high-coupon senior notes				$ 58
Face amount of tender offer				$ 139
7.75% senior notes due 2032 [Member]
Debt
Interest rate (as a percent)				7.75%
Early extinguishment of high-coupon senior notes				$ 57
Face amount of tender offer				$ 210
6.125% senior notes due 2039 [Member]
Debt
Interest rate (as a percent)				6.125%
Early extinguishment of high-coupon senior notes				$ 22
Face amount of tender offer				$ 274
Commercial Paper Program [Member]
Debt
Net commercial borrowings (repayments)							$ (1,000)
Canadian Senior Notes [Member]
Debt
Debt instrument face amount		$ 377			$ 377						$ 500
Interest rate (as a percent)		2.60%			2.60%		2.60%				2.60%
New borrowings		$ 373	$ 496
Tax Exempt Bonds [Member]
Debt
Debt repayments							$ 105
Debt instrument face amount							$ 240
Loss on early extinguishment of debt					$ (1)
Debt refunded and reissued		$ 99			$ 99
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)							1.35%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)							4.30%
Financing leases and other [Member]
Debt
Debt repayments							$ 56
Non-cash financing lease incurred							$ 159
Financing leases and other [Member] \| Investments Qualifying for Federal Tax Credits [Member]
Debt
Capital obligations	$ 140

Employee Benefit Plans

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans

Employee Benefit Plans

10. Employee Benefit Plans

Defined Contribution Plans — Waste Management sponsors a 401(k) retirement savings plan that covers employees, except those working subject to collective bargaining agreements that do not provide for coverage under the plan. U.S. employees who are not subject to such collective bargaining agreements are generally eligible to participate in the plan following a 90-day waiting period after hire and may contribute as much as 50% of their eligible annual compensation and 80% of their annual incentive plan bonus, subject to annual contribution limitations established by the IRS. Under the retirement savings plan, for non-union employees, we match 100% of employee contributions on the first 3% of their eligible annual compensation and 50% of employee contributions on the next 3% of their eligible annual compensation, resulting in a maximum match of 4.5% of eligible annual compensation. Non-union employees hired on or after January 1, 2018 are automatically enrolled in the plan at a 3% contribution rate upon eligibility. Both employee and Company contributions are in cash and vest immediately. Certain U.S. employees who are subject to collective bargaining agreements may participate in the 401(k) retirement savings plan under terms specified in their collective bargaining agreement. Certain employees outside the U.S., including those in Canada, participate in defined contribution plans maintained by the Company in compliance with laws of the appropriate jurisdiction. Charges to operating and selling, general and administrative expenses for our defined contribution plans totaled $88 million, $80 million and $70 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Defined Benefit Plans (other than multiemployer defined benefit pension plans discussed below) — WM Holdings sponsors a defined benefit plan for certain employees who are subject to collective bargaining agreements that provide for participation in this plan. Further, certain of our Canadian subsidiaries sponsor defined benefit plans that are frozen to new participants. As of December 31, 2019, the combined benefit obligation of these pension plans was $141 million supported by $136 million of combined plan assets, resulting in an aggregate unfunded benefit obligation for these plans of $5 million. As of December 31, 2018, the combined benefit obligation of these pension plans was $120 million supported by $117 million of combined plan assets, resulting in an aggregate unfunded benefit obligation for these plans of $3 million.

In addition, WM Holdings and certain of its subsidiaries provided post-retirement health care and other benefits to eligible retirees. In conjunction with our acquisition of WM Holdings in July 1998, we limited participation in these plans to participating retirees as of December 31, 1998. The unfunded benefit obligation for these plans was $14 million and $18 million as of December 31, 2019 and 2018, respectively.

Our accrued benefit liabilities for our defined benefit pension and other post-retirement plans were $19 million and $21 million as of December 31, 2019 and 2018, respectively, and are included as components of accrued liabilities and long-term other liabilities in our Consolidated Balance Sheets.

Multiemployer Defined Benefit Pension Plans — We are a participating employer in a number of trustee-managed multiemployer defined benefit pension plans (“Multiemployer Pension Plans”) for employees who are covered by collective bargaining agreements. The risks of participating in these Multiemployer Pension Plans are different from single-employer plans in that (i) assets contributed to the Multiemployer Pension Plan by one employer may be used to provide benefits to employees or former employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be required to be assumed by the remaining participating employers and (iii) if we choose to stop participating in any of our Multiemployer Pension Plans, we may be required to

pay those plans a withdrawal amount based on the underfunded status of the plan. The following table outlines our participation in Multiemployer Pension Plans considered to be individually significant (dollars in millions):


											Expiration Date
		Pension Protection Act			Company						of Collective
	EIN/Pension Plan	Reported Status(a)		FIP/RP	Contributions(d)						Bargaining
Pension Fund	Number	2019	2018	Status(b)(c)	2019		2018		2017		Agreement(s)
Automotive Industries Pension Plan	EIN: 94-1133245; Plan Number: 001	Critical and Declining	Critical and Declining	Implemented	$	1	$	1	$	1	9/30/2021
Suburban Teamsters of Northern Illinois Pension Plan	EIN: 36-6155778; Plan Number: 001	Endangered	Endangered	Implemented		3		3		3	Various dates through 3/31/2023
Western Conference of Teamsters Pension Plan	EIN: 91-6145047; Plan Number: 001	Not Endangered or Critical	Not Endangered or Critical	Not Applicable		32		29		27	Various dates through 12/31/2024
					$	36	$	33	$	31
Contributions to other Multiemployer Pension Plans						16		14		16
Total contributions to Multiemployer Pension Plans (e)					$	52	$	47	$	47

(a)

The most recent Pension Protection Act zone status available in 2019 and 2018 is for the plan’s year-end as of December 31, 2018 and 2017, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. As defined in the Pension Protection Act of 2006, among other factors, plans reported as critical are generally less than 65% funded and plans reported as endangered are generally less than 80% funded. Under the Multiemployer Pension Reform Act of 2014, a plan is generally in critical and declining status if it (i) is certified to be in critical status pursuant to the Pension Protection Act of 2006 and (ii) is projected to be insolvent within the next 15 years or, in certain circumstances, 20 years.

As of the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2019.

(b)	The “FIP/RP Status” column indicates plans for which a Funding Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) has been implemented.

(c)

A Multiemployer Pension Plan that has been certified as endangered, seriously endangered or critical may begin to levy a statutory surcharge on contribution rates. Once authorized, the surcharge is at the rate of 5% for the first 12 months and 10% for any periods thereafter. Contributing employers, however, may eliminate the surcharge by entering into a collective bargaining agreement that meets the requirements of the applicable FIP or RP.

(d)	Of the Multiemployer Pension Plans considered to be individually significant, the Company was listed in the Form 5500 of the Suburban Teamsters of Northern Illinois Pension Plan as providing more than 5% of the total contributions for plan years ending December 31, 2018 and 2017.

(e)	Total contributions to Multiemployer Pension Plans excludes contributions related to withdrawal liabilities discussed below.

Our portion of the projected benefit obligation, plan assets and unfunded liability for the Multiemployer Pension Plans is not material to our financial position. However, the failure of participating employers to remain solvent could affect our portion of the plans’ unfunded liability. Specific benefit levels provided by union pension plans are not negotiated with or known by the employer contributors.

In connection with our ongoing renegotiations of various collective bargaining agreements, we may discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. Further, business events, such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or discontinuance of certain operations, which result in the decline of Company contributions to a Multiemployer Pension Plan could trigger a partial or complete withdrawal. In the event of a withdrawal, we may incur expenses associated with our obligations for unfunded vested benefits at the time of the withdrawal. In 2019, 2018 and 2017, we recognized charges

of less than $1 million, $3 million and $12 million, respectively, to operating expenses for the withdrawal from certain underfunded Multiemployer Pension Plans. Refer to Note 11 for additional information related to our obligations to Multiemployer Pension Plans for which we have withdrawn or partially withdrawn.

Multiemployer Plan Benefits Other Than Pensions — During the years ended December 31, 2019, 2018 and 2017, the Company made contributions of $45 million, $43 million and $42 million, respectively, to multiemployer health and welfare plans that also provide other post-retirement employee benefits. Funding of benefit payments for plan participants are made at negotiated rates in the respective collective bargaining agreements as costs are incurred.

Summary of Significant Accounting Policies - Supplemental Cash Flow (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Interest, net of capitalized interest	$ 397	$ 339	$ 380
Income taxes	292	349	$ 562
Non-cash investing and financing activity	$ 299	$ 250

Variable Interest Entities

12 Months Ended

Dec. 31, 2019

Variable Interest Entities

Variable Interest Entities

19. Variable Interest Entities

Following is a description of our financial interests in unconsolidated and consolidated variable interest entities that we consider significant:

Low-Income Housing Properties and Refined Coal Facility Investments

We do not consolidate our investments in entities established to manage low-income housing properties and a refined coal facility 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. Accordingly, we account for these investments under the equity method of accounting. Our aggregate investment balance in these entities was $309 million and $189 million as of December 31, 2019 and 2018, respectively. The debt balance related to our investments in low-income housing properties was $269 million and $151 million as of December 31, 2019 and 2018, respectively. Additional information related to these investments is discussed in Note 9.

Trust Funds for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations

Unconsolidated Variable Interest Entities — Trust funds that are established for both the benefit of the Company and the host community in which we operate are not consolidated because we are not the primary beneficiary of these entities as (i) we do not have the power to direct the significant activities of the trusts or (ii) power over the trusts’ significant activities is shared. Our interests in these trusts are accounted for as investments in unconsolidated entities and receivables. These amounts are recorded in other receivables, investments in unconsolidated entities and long-term other assets in our Consolidated Balance Sheets, as appropriate. We also reflect our share of the unrealized gains and losses on available-for-sale securities held by these trusts as a component of our accumulated other comprehensive income (loss). Our investments and receivables related to these trusts had an aggregate carrying value of $101 million and $92 million as of December 31, 2019 and 2018, respectively.

Consolidated Variable Interest Entities — Trust funds for which we are the sole beneficiary are consolidated because we are the primary beneficiary. These trust funds are recorded in restricted trust and escrow accounts in our Consolidated Balance Sheets. Unrealized gains and losses on available-for-sale securities held by these trusts are recorded as a component of accumulated other comprehensive income (loss). These trusts had a fair value of $109 million and $103 million as of December 31, 2019 and 2018, respectively.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Cash dividends declared per common share	$ 2.05	$ 1.86	$ 1.70

Acquisitions and Divestitures - Intangibles (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Intangible assets
Total other intangible assets subject to amortization	$ 53	$ 141	$ 46
Customer and Supplier Relationships [Member]
Intangible assets
Total other intangible assets subject to amortization	38	124	39
Non-compete Covenant [Member]
Intangible assets
Total other intangible assets subject to amortization	$ 15	16	$ 7
Other Intangible Assets [Member]
Intangible assets
Total other intangible assets subject to amortization		$ 1

New Accounting Standards and Reclassifications

12 Months Ended

Dec. 31, 2019

New Accounting Standards and Reclassifications

New Accounting Standards and Reclassifications

2. New Accounting Standards and Reclassifications

Adoption of New Accounting Standard

Leases — In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 associated with lease accounting. There were further amendments, including practical expedients, with the issuance of ASU 2018-01 in January 2018, ASU 2018-11 in July 2018 and ASU 2018-20 in December 2018. On January 1, 2019, we adopted these ASUs using the optional transition method which allows entities to continue to apply historical accounting guidance in the comparative periods presented in the year of adoption. Accordingly, our financial statements for the reported periods after January 1, 2019 are presented under this amended guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting guidance.

We elected to apply the following package of practical expedients on a consistent basis permitting entities not to reassess: (i) whether any expired or existing contracts are or contain a lease; (ii) lease classification for any expired or existing leases and (iii) whether initial direct costs for any expired or existing leases qualify for capitalization under the amended guidance. In addition, we applied (i) the practical expedient for land easements, which allows the Company to not apply the lease standard to certain existing land easements at transition and (ii) the practical expedient to include both the lease and non-lease components as a single component and account for it as a lease.

The impact of adopting the amended guidance primarily relates to the recognition of lease assets and lease liabilities on the balance sheet for all leases previously classified as operating leases. We recognized $385 million of right-of-use assets and $385 million of related lease liabilities as of January 1, 2019 for our contracts that are classified as operating leases. Leases with an initial term of 12 months or less have not been recorded on the balance sheet. Our accounting for financing leases, which were formerly referred to as capital leases, remained substantially unchanged. There were no other material impacts on our consolidated financial statements. See Note 8 for additional information and disclosures related to our adoption of this amended guidance.

New Accounting Standards Pending Adoption

Financial Instrument Credit Losses — In June 2016, the FASB issued ASU 2016-13 associated with the measurement of credit losses on financial instruments. The amended guidance replaces the current incurred loss impairment methodology of recognizing credit losses when a loss is probable, with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to assess credit loss estimates. This expected loss model will generally result in the earlier recognition of an allowance for losses.

For trade receivables, the Company will rely on, among other factors, historical loss trends and existing economic conditions. For other receivables as well as loans and other instruments, the Company will rely primarily on credit ratings. All receivables as well as other instruments may be adjusted for our expectation of future conditions and trends.

The amended guidance is effective for the Company on January 1, 2020 and will not have a material impact on our consolidated financial statements as current processes primarily align with the expected loss model. The cumulative effect will be recognized as an adjustment to retained earnings upon adoption. We are in the process of updating our business processes and related policies, systems and controls to support recognition and disclosure under the new standard.

Implementation Costs Incurred in a Cloud Computing Arrangement — In August 2018, the FASB issued ASU 2018-15 associated with customer’s accounting for implementation costs incurred in a cloud computing arrangement that is a service contract. The amendments align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. Costs for implementation activities in the application development stage are capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages are expensed as the activities are performed. The amended guidance is effective for the Company on January 1, 2020 and will not have a material impact on our consolidated financial statements.

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 consolidated financial statements.

Summary of Significant Accounting Policies - Capitalized Interest (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Summary of Significant Accounting Policies
Total interest costs	$ 485	$ 400	$ 383
Total capitalized interest costs	$ 21	$ 16	$ 15

Accumulated Other Comprehensive Loss - Changes (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
AOCI roll forward
Beginning balance	$ 6,276	$ 6,042	$ 5,320
Other comprehensive income (loss), net of tax	79	(90)	88
Ending balance	7,070	6,276	6,042
Accumulated Other Comprehensive Loss [Member]
AOCI roll forward
Beginning balance	(87)	8	(80)
Other comprehensive income (loss) before reclassifications, net of tax	72	(98)	82
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	7	8	6
Other comprehensive income (loss), net of tax	79	(90)	88
Ending balance	(8)	(87)	8
Accumulated Other Comprehensive Loss [Member] \| Accounting Standards Update 2018-02 [Member]
AOCI roll forward
Adoption of new accounting standard		(5)
Derivative Instruments [Member]
AOCI roll forward
Beginning balance	(32)	(33)	(40)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	8	8	7
Other comprehensive income (loss), net of tax	8	8	7
Ending balance	(24)	(32)	(33)
Derivative Instruments [Member] \| Accounting Standards Update 2018-02 [Member]
AOCI roll forward
Adoption of new accounting standard		(7)
Available for sale Securities [Member]
AOCI roll forward
Beginning balance	23	15	13
Other comprehensive income (loss) before reclassifications, net of tax	15	5	3
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax			(1)
Other comprehensive income (loss), net of tax	15	5	2
Ending balance	38	23	15
Available for sale Securities [Member] \| Accounting Standards Update 2018-02 [Member]
AOCI roll forward
Adoption of new accounting standard		3
Foreign Currency Translation Adjustments [Member]
AOCI roll forward
Beginning balance	(76)	29	(47)
Other comprehensive income (loss) before reclassifications, net of tax	55	(105)	76
Other comprehensive income (loss), net of tax	55	(105)	76
Ending balance	(21)	(76)	29
Post - Retirement Benefit Obligation [Member]
AOCI roll forward
Beginning balance	(2)	(3)	(6)
Other comprehensive income (loss) before reclassifications, net of tax	2	2	3
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax	(1)
Other comprehensive income (loss), net of tax	1	2	3
Ending balance	$ (1)	(2)	$ (3)
Post - Retirement Benefit Obligation [Member] \| Accounting Standards Update 2018-02 [Member]
AOCI roll forward
Adoption of new accounting standard		$ (1)

Equity-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2019

Equity-Based Compensation

Summary of RSUs

Restricted Stock Units — A summary of our RSUs is presented in the table below (units in thousands):


		Weighted Average
		Per Share
	Units	Fair Value
Unvested as of January 1, 2019	392	$	70.52
Granted	121	$	99.91
Vested	(151)	$	56.74
Forfeited	(14)	$	86.11
Unvested as of December 31, 2019	348	$	86.15

Summary of PSUs


		Weighted Average
		Per Share
	Units	Fair Value
Unvested as of January 1, 2019	1,164	$	90.17
Granted	364	$	116.26
Vested	(427)	$	93.03
Forfeited	(24)	$	98.33
Unvested as of December 31, 2019	1,077	$	99.66

Summary of Stock Options


		Weighted Average
		Per Share
	Options	Exercise Price
Outstanding as of January 1, 2019	4,441	$	59.46
Granted	839	$	98.90
Exercised	(1,278)	$	107.96
Forfeited or expired	(64)	$	83.20
Outstanding as of December 31, 2019 (a)	3,938	$	69.66
Exercisable as of December 31, 2019 (b)	2,063	$	52.90

(a)	Stock options outstanding as of December 31, 2019 have a weighted average remaining contractual term of 6.5 years and an aggregate intrinsic value of $174 million based on the market value of our common stock on December 31, 2019.

(b)	Stock options exercisable as of December 31, 2019 have an aggregate intrinsic value of $126 million based on the market value of our common stock on December 31, 2019.

Summary of Exercisable Stock Options


		Weighted Average
		Per Share		Weighted Average
Range of Exercise Prices	Options	Exercise Price		Remaining Years
$33.49-$50.00	829	$	37.94	2.6
$50.01-$70.00	809	$	55.58	5.7
$70.01-$98.90	425	$	76.98	7.5
$33.49-$98.90	2,063	$	52.90	4.8

Weighted Average Assumptions Used to Value Employee Stock Options Granted


	2019		2018		2017
Expected option life	4.2	years	4.3	years	3.5	years
Expected volatility	15.5	%	17.9	%	15.3	%
Expected dividend yield	2.1	%	2.2	%	2.3	%
Risk-free interest rate	2.5	%	2.6	%	1.7	%

Segment and Related Information

12 Months Ended

Dec. 31, 2019

Segment and Related Information

Segment and Related Information

20. Segment and Related Information

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. The 17 Areas constitute operating segments and we have evaluated the aggregation criteria and concluded that, based on the similarities between our Areas, including the fact that our Solid Waste business is homogenous across geographies with the same services offered across the Areas, aggregation of our Areas is appropriate for purposes of presenting our reportable segments. Accordingly, we have aggregated our 17 Areas into three tiers that we believe have similar economic characteristics and future prospects based in large part on a review of the Areas’ income from operations margins. The economic variations experienced by our Areas are attributable to a variety of factors, including regulatory environment of the Area; economic environment of the Area, including level of commercial and industrial activity; population density; service offering mix and disposal logistics, with no one factor being singularly determinative of an Area’s current or future economic performance.

In 2019, as part of our annual review process, we analyzed the Areas’ income from operations margins for purposes of segment reporting and realigned our Solid Waste tiers to reflect recent changes in their relative economic characteristics and prospects. These changes are the results of various factors including acquisitions, divestments, business mix and the economic climate of various geographies. As a result, we reclassified Western Canada from Tier 1 to Tier 2 and Northern California from Tier 3 to Tier 2. Reclassifications have been made to our prior period consolidated financial information to conform to the current year presentation.

Tier 1 is comprised of our operations across the Southern U.S., with the exception of Southern California and the Florida peninsula, and also includes the New England states and the tri-state area of Michigan, Indiana and Ohio. Tier 2 includes California, Canada, Wisconsin and Minnesota. Tier 3 encompasses all the remaining operations including the Pacific Northwest, the Mid-Atlantic region of the U.S., the Florida peninsula, Illinois and Missouri.

The operating segments not evaluated and overseen through the 17 Areas are presented herein as “Other” as these operating segments do not meet the criteria to be aggregated with other operating segments and do not meet the quantitative criteria to be separately reported.

Summarized financial information concerning our reportable segments as of December 31 and for the years then ended is shown in the following table (in millions):


							Income
	Gross		Intercompany		Net		from		Depreciation		Capital		Total
	Operating		Operating		Operating		Operations		and		Expenditures		Assets
	Revenues		Revenues(c)		Revenues		(d)(e)		Amortization		(f)		(g)(h)
Years Ended December 31:
2019
Solid Waste:
Tier 1	$	6,136	$	(1,141)	$	4,995	$	1,682	$	551	$	508	$	7,519
Tier 2		3,865		(777)		3,088		854		327		329		5,558
Tier 3		6,386		(1,209)		5,177		1,136		585		453		8,243
Solid Waste		16,387		(3,127)		13,260		3,672		1,463		1,290		21,320
Other (a)		2,317		(122)		2,195		(203)		75		118		1,648
		18,704		(3,249)		15,455		3,469		1,538		1,408		22,968
Corporate and Other (b)		—		—		—		(763)		36		407		5,042
Total	$	18,704	$	(3,249)	$	15,455	$	2,706	$	1,574	$	1,815	$	28,010

2018
Solid Waste:
Tier 1	$	5,730	$	(1,045)	$	4,685	$	1,619	$	493	$	584	$	6,736
Tier 2		3,675		(724)		2,951		784		317		322		5,224
Tier 3		6,132		(1,146)		4,986		992		546		493		7,878
Solid Waste		15,537		(2,915)		12,622		3,395		1,356		1,399		19,838
Other (a)		2,487		(195)		2,292		(66)		91		72		1,571
		18,024		(3,110)		14,914		3,329		1,447		1,471		21,409
Corporate and Other (b)		—		—		—		(540)		30		200		1,487
Total	$	18,024	$	(3,110)	$	14,914	$	2,789	$	1,477	$	1,671	$	22,896

2017
Solid Waste:
Tier 1	$	5,441	$	(987)	$	4,454	$	1,506	$	438	$	588	$	6,305
Tier 2		3,599		(654)		2,945		777		274		308		5,214
Tier 3		5,792		(1,024)		4,768		1,006		516		487		7,485
Solid Waste		14,832		(2,665)		12,167		3,289		1,228		1,383		19,004
Other (a)		2,538		(220)		2,318		(68)		103		93		1,785
		17,370		(2,885)		14,485		3,221		1,331		1,476		20,789
Corporate and Other (b)		—		—		—		(585)		45		92		1,327
Total	$	17,370	$	(2,885)	$	14,485	$	2,636	$	1,376	$	1,568	$	22,116

(a)

(b)	Corporate operating results reflect certain costs incurred for various support services that are not allocated to our reportable segments. These support services include, among other things, treasury, legal, information technology, tax,

(c)	Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(d)	For those items included in the determination of income from operations, the accounting policies of the segments are the same as those described in Note 3.

(e)

(f)	Includes non-cash items. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property and equipment balances and, therefore, may include amounts that have been accrued but not yet paid.

(g) The reconciliation of total assets reported above to total assets in the Consolidated Balance Sheets as of December 31 is as follows (in millions):


	2019		2018		2017
Total assets, as reported above	$	28,010	$	22,896	$	22,116
Elimination of intercompany investments and advances		(267)		(246)		(287)
Total assets, per Consolidated Balance Sheet	$	27,743	$	22,650	$	21,829


	Solid Waste
	Tier 1		Tier 2		Tier 3		Other		Total
Balance, December 31, 2017	$	2,117	$	1,595	$	2,414	$	121	$	6,247
Acquired goodwill		82		23		142		1		248
Divested goodwill		(6)		—		—		(19)		(25)
Impairments		—		—		—		(6)		(6)
Foreign currency translation		—		(34)		—		—		(34)
Balance, December 31, 2018	$	2,193	$	1,584	$	2,556	$	97	$	6,430
Acquired goodwill (a)		90		12		6		—		108
Divested goodwill		—		—		—		—		—
Impairments		—		—		—		(27)		(27)
Foreign currency translation		—		21		—		—		21
Balance, December 31, 2019	$	2,283	$	1,617	$	2,562	$	70	$	6,532

(a)	Includes $3 million of post-closing adjustments related to prior year acquisitions.

The mix of operating revenues from our major lines of business for the years ended December 31 are as follows (in millions):


	2019		2018		2017
Commercial	$	4,229	$	3,972	$	3,714
Residential		2,613		2,529		2,528
Industrial		2,916		2,773		2,583
Other collection		482		450		439
Total collection		10,240		9,724		9,264
Landfill		3,846		3,560		3,370
Transfer		1,820		1,711		1,591
Recycling		1,040		1,293		1,432
Other (a)		1,758		1,736		1,713
Intercompany (b)		(3,249)		(3,110)		(2,885)
Total	$	15,455	$	14,914	$	14,485

(a)

(b)	Intercompany revenues between lines of business are eliminated in the Consolidated Financial Statements included within this report.

Net operating revenues relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	14,701	$	14,167	$	13,768
Canada		754		747		717
Total	$	15,455	$	14,914	$	14,485

Property and equipment, net of accumulated depreciation and amortization, relating to operations in the U.S. and Canada for the years ended December 31 are as follows (in millions):


	2019		2018		2017
U.S.	$	11,941	$	11,044	$	10,591
Canada		952		898		968
Total	$	12,893	$	11,942	$	11,559

Fair Value Measurements - Debt (Detail) - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of Debt	$ 13.5	$ 10.0
Significant Other Observable Inputs (Level 2) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net borrowings	3.1
Significant Other Observable Inputs (Level 2) [Member] \| Estimate of Fair Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of Debt	$ 14.5	$ 10.1

Summary of Significant Accounting Policies - Investments (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Summary of Significant Accounting Policies
Current restricted trust and escrow accounts		$ 70
Loss on investment	$ 3
Equity method investments		377	$ 257
Investments without readily determinable fair values		57	83
Redeemable preferred stock		49	66
Investments in unconsolidated entities		$ 483	$ 406

Acquisitions and Divestitures

12 Months Ended

Dec. 31, 2019

Acquisitions and Divestitures

Acquisitions and Divestitures

18. Acquisitions and Divestitures

Pending Acquisition

On April 14, 2019, we entered into an Agreement and Plan of Merger to acquire all outstanding shares of Advanced Disposal for $33.15 per share in cash, representing a total enterprise value of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt. Advanced Disposal’s solid waste network includes 95 collection operations, 73 transfer stations, 41 owned or operated landfills and 22 owned or operated recycling facilities. On June 28, 2019, Advanced Disposal announced that 85.9% of the outstanding shares of its common stock entitled to vote were voted in favor of the proposal to adopt the Merger Agreement at a special meeting of stockholders held that day. We anticipate that we will obtain antitrust regulatory approval by the end of March 2020 and close the Advanced Disposal transaction soon thereafter.

Acquisitions

We continue to pursue the acquisition of businesses that are accretive to our Solid Waste business and enhance and expand our existing service offerings. During the year ended December 31, 2019, we acquired 18 businesses primarily related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $515 million, which included $501 million in cash paid and other consideration of $14 million, primarily purchase price holdbacks. In 2019, we paid $6 million of contingent consideration, of which $4 million was related to acquisitions completed prior to 2019. In addition, we paid $20 million of holdbacks, of which $9 million related to current year acquisitions. Contingent consideration obligations are primarily based on achievement by the acquired businesses of certain negotiated goals, which generally include targeted financial metrics.

Total consideration for our 2019 acquisitions was primarily allocated to $350 million of property and equipment, $53 million of other intangible assets and $111 million of goodwill. Other intangible assets included $38 million of customer and supplier relationships and $15 million of covenants not-to-compete. The goodwill was primarily a result of expected synergies from combining the acquired businesses with our existing operations and was tax deductible.

Petro Waste Environmental LP (“Petro Waste”) — On March 8, 2019, Waste Management Energy Services Holdings, LLC, an indirect wholly-owned subsidiary of WM, acquired Petro Waste. The acquired business provides comprehensive oilfield environmental services and solid waste disposal facilities in the Permian Basin and the Eagle Ford Shale. The acquisition has expanded our offerings and enhanced the quality of solid waste disposal services for oil and gas exploration and production operations in Texas. Our purchase price was primarily allocated to seven landfills, which are included in our property and equipment. The acquisition accounting for this transaction was finalized in 2019 and was funded with borrowings under our commercial paper program. For the year ended December 31, 2019, the impact of the acquisition was not material to our consolidated financial statements.

During the year ended December 31, 2018, we acquired 32 businesses primarily related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $471 million, which included $440 million in cash paid and $31 million of other consideration, primarily purchase price holdbacks. In 2018, we paid $6 million of contingent consideration associated with acquisitions completed prior to 2018. In addition, we paid $20 million of holdbacks, of which $15 million related to current year acquisitions.

Total consideration for our 2018 acquisitions was primarily allocated to $115 million of property and equipment, $141 million of other intangible assets and $248 million of goodwill. Other intangible assets included $124 million of customer and supplier relationships, $16 million of covenants not-to-compete and $1 million of other intangible assets. The goodwill is primarily a result of expected synergies from combining the acquired businesses with our existing operations and substantially all is tax deductible.

During the year ended December 31, 2017, we acquired 24 businesses related to our Solid Waste business. Total consideration, net of cash acquired, for all acquisitions was $205 million, which included $183 million in cash paid and other consideration of $22 million, primarily purchase price holdbacks. In 2017, we paid $3 million of contingent consideration associated with acquisitions completed prior to 2017. In addition, we paid $14 million of holdbacks, of which $13 million related to 2017 acquisitions.

Total consideration for our 2017 acquisitions was primarily allocated to $127 million of property and equipment, $46 million of other intangible assets and $39 million of goodwill. Other intangible assets included $39 million of customer and supplier relationships and $7 million of covenants not-to-compete. The goodwill was primarily a result of expected synergies from combining the acquired businesses with our existing operations and was tax deductible.

Divestitures

In 2019, 2018 and 2017, the aggregate sales price for divestitures of certain hauling and ancillary operations was $8 million, $153 million and $62 million and we recognized net losses of less than $1 million, net gains of $96 million and net gains of $38 million, respectively. These divestitures were made as part of our continuous focus on improving or divesting certain non-strategic or underperforming operations. The remaining amounts reported in the Consolidated Statements of Cash Flows generally relate to the sale of fixed assets.

Capital Stock, Dividends and Common Stock Repurchase Program - Repurchases (Detail) $ / shares in Units, $ in Millions	1 Months Ended	12 Months Ended
	Dec. 31, 2019 $ / shares shares	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares
Capital Stock, Dividends and Common Stock Repurchase Program
Common stock, shares authorized \| shares	1,500,000,000	1,500,000,000	1,500,000,000
Common stock, par value \| $ / shares	$ 0.01	$ 0.01	$ 0.01
Common stock, shares issued \| shares	630,282,461	630,282,461	630,282,461
Number of common shares outstanding \| shares	424,300,000	424,300,000	424,000,000.0	433,300,000
Preferred stock shares authorized \| shares	10,000,000	10,000,000
Preferred stock par value per share \| $ / shares	$ 0.01	$ 0.01
Preferred stock shares outstanding \| shares	0	0
Cash dividends \| $		$ 876	$ 802	$ 750
Cash dividends declared and paid per common share \| $ / shares		$ 2.05	$ 1.86	$ 1.70
Quarterly common stock dividend per share \| $ / shares	0.5125
Expected quarterly common stock dividend per share \| $ / shares	$ 0.545

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Consolidated net income	$ 1,671	$ 1,923	$ 1,949
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	1,574	1,477	1,376
Deferred income tax expense (benefit)	100	25	(251)
Interest accretion on landfill liabilities	98	95	92
Provision for bad debts	39	54	43
Equity-based compensation expense	86	89	101
Net gain on disposal of assets	(27)	(47)	(20)
(Gain) loss from divestitures, asset impairments and other, net	113	(58)	43
Equity in net losses of unconsolidated entities, net of dividends	55	41	39
Loss on early extinguishment of debt	85		6
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	(53)	(16)	(271)
Other current assets	(23)	(16)	50
Other assets	10	(14)	(66)
Accounts payable and accrued liabilities	243	203	126
Deferred revenues and other liabilities	(97)	(186)	(37)
Net cash provided by operating activities	3,874	3,570	3,180
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(521)	(460)	(198)
Capital expenditures	(1,818)	(1,694)	(1,509)
Proceeds from divestitures of businesses and other assets (net of cash divested)	49	208	99
Other, net	(86)	(223)	(12)
Net cash used in investing activities	(2,376)	(2,169)	(1,620)
Cash flows from financing activities:
New borrowings	4,683	359	1,479
Debt repayments	(533)	(499)	(1,907)
Premiums paid on early extinguishment of debt	(84)		(8)
Net commercial paper borrowings (repayments)	(1,001)	453	513
Common stock repurchase program	(248)	(1,004)	(750)
Cash dividends	(876)	(802)	(750)
Exercise of common stock options	67	52	95
Tax payments associated with equity-based compensation transactions	(33)	(29)	(47)
Other, net	(11)	(38)	14
Net cash provided by (used in) financing activities	1,964	(1,508)	(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	2	(3)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	3,464	(110)	199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	183	293	94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 3,647	$ 183	$ 293

Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Employee Benefit Plans

Individually Significant Multiemployer Pension Plans


											Expiration Date
		Pension Protection Act			Company						of Collective
	EIN/Pension Plan	Reported Status(a)		FIP/RP	Contributions(d)						Bargaining
Pension Fund	Number	2019	2018	Status(b)(c)	2019		2018		2017		Agreement(s)
Automotive Industries Pension Plan	EIN: 94-1133245; Plan Number: 001	Critical and Declining	Critical and Declining	Implemented	$	1	$	1	$	1	9/30/2021
Suburban Teamsters of Northern Illinois Pension Plan	EIN: 36-6155778; Plan Number: 001	Endangered	Endangered	Implemented		3		3		3	Various dates through 3/31/2023
Western Conference of Teamsters Pension Plan	EIN: 91-6145047; Plan Number: 001	Not Endangered or Critical	Not Endangered or Critical	Not Applicable		32		29		27	Various dates through 12/31/2024
					$	36	$	33	$	31
Contributions to other Multiemployer Pension Plans						16		14		16
Total contributions to Multiemployer Pension Plans (e)					$	52	$	47	$	47

(a)

As of the date the financial statements were issued, Forms 5500 were not available for the plan years ended in 2019.

(b)	The “FIP/RP Status” column indicates plans for which a Funding Improvement Plan (“FIP”) or a Rehabilitation Plan (“RP”) has been implemented.

(c)

(d)	Of the Multiemployer Pension Plans considered to be individually significant, the Company was listed in the Form 5500 of the Suburban Teamsters of Northern Illinois Pension Plan as providing more than 5% of the total contributions for plan years ending December 31, 2018 and 2017.

(e)	Total contributions to Multiemployer Pension Plans excludes contributions related to withdrawal liabilities discussed below.

Variable Interest Entities (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Variable Interest Entity [Line Items]
Assets	$ 27,743	$ 22,650	$ 21,829
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Assets	109	103
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate investment balance	309	189
Investment In Low Income Housing Properties [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Equity method investments debt balance	269	151
Trust For Final Capping, Closure, Post-closure Or Environmental Remediation Obligations [Member] \| Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Value of unconsolidated VIEs	$ 101	$ 92

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Adoption of New Accounting Standard and New Accounting Standard Pending Adoption

Adoption of New Accounting Standard

New Accounting Standards Pending Adoption

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 consolidated financial statements.

Principles of Consolidation

The accompanying Consolidated Financial Statements include the accounts of WM, its wholly-owned and majority-owned subsidiaries and certain variable interest entities for which we have determined that we are the primary beneficiary. All material intercompany balances and transactions have been eliminated. Investments in unconsolidated entities are accounted for under the appropriate method of accounting.

Estimates and Assumptions

In preparing our financial statements, we make numerous estimates and assumptions that affect the accounting for and recognition and disclosure of assets, liabilities, equity, revenues and expenses. We must make these estimates and assumptions because certain information that we use is dependent on future events, cannot be calculated with precision from available data or simply cannot be calculated. In some cases, these estimates are difficult to determine, and we must exercise significant judgment. In preparing our financial statements, the most difficult, subjective and complex estimates and the assumptions that present the greatest amount of uncertainty relate to our accounting for landfills, environmental remediation liabilities, long-lived asset impairments and reserves associated with our insured and self-insured claims. Each

of these items is discussed in additional detail below. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.

Cash and Cash Equivalents

Cash in excess of current operating requirements is invested in short-term interest-bearing instruments with maturities of three months or less at the date of purchase and is stated at cost, which approximates market value.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within our restricted trust and escrow accounts, 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. As of December 31, 2019 and 2018, no single customer represented greater than 5% of total accounts receivable.

Accounts and Other Receivables

Our receivables, which are recorded when billed, when services are performed or when cash is advanced, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on historical collection trends; type of customer, such as municipal or commercial; the age of outstanding receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. The activity within our allowance for doubtful accounts was not material for the reported periods. Past-due receivable balances are written off when our internal collection efforts have been unsuccessful. Also, we recognize interest income on long-term interest-bearing notes receivable as the interest accrues under the terms of the notes. We no longer accrue interest once the notes are deemed uncollectible.

Other receivables, as of December 31, 2019 and 2018, include receivables related to income tax payments in excess of our current income tax obligations of $231 million and $284 million, respectively. Other receivables as of December 31, 2019 also includes a receivable of $70 million related to federal natural gas fuel credits.

Parts and Supplies

Parts and supplies consist primarily of spare parts, fuel, tires, lubricants and processed recycling materials. Our parts and supplies are stated at the lower of cost, using the average cost method, or market.

Landfill Accounting

Cost Basis of Landfill Assets — We capitalize various costs that we incur to make a landfill ready to accept waste. These costs generally include expenditures for land (including the landfill footprint and required landfill buffer property); permitting; excavation; liner material and installation; landfill leachate collection systems; landfill gas collection systems; environmental monitoring equipment for groundwater and landfill gas; and directly related engineering, capitalized

interest, on-site road construction and other capital infrastructure costs. The cost basis of our landfill assets also includes asset retirement costs, which represent estimates of future costs associated with landfill final capping, closure and post-closure activities. These costs are discussed below.

Final Capping, Closure and Post-Closure Costs — Following is a description of our asset retirement activities and our related accounting:

●

Final Capping — Involves the installation of flexible membrane liners and geosynthetic clay liners, drainage and compacted soil layers and topsoil over areas of a landfill where total airspace has been consumed. Final capping asset retirement obligations are recorded on a units-of-consumption basis as airspace is consumed related to the specific final capping event with a corresponding increase in the landfill asset. Each final capping event is accounted for as a discrete obligation and recorded as an asset and a liability based on estimates of the discounted cash flows and airspace associated with each final capping event.

●

Closure — Includes the construction of the final portion of methane gas collection systems (when required), demobilization and routine maintenance costs. These are costs incurred after the site ceases to accept waste, but before the landfill is certified as closed by the applicable state regulatory agency. These costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing closure activities.

●

Post-Closure — Involves the maintenance and monitoring of a landfill site that has been certified closed by the applicable regulatory agency. Generally, we are required to maintain and monitor landfill sites for a 30-year period. These maintenance and monitoring costs are recorded as an asset retirement obligation as airspace is consumed over the life of the landfill with a corresponding increase in the landfill asset. Post-closure obligations are recorded over the life of the landfill based on estimates of the discounted cash flows associated with performing post-closure activities.

We develop our estimates of these obligations using input from our operations personnel, engineers and accountants. Our estimates are based on our interpretation of current requirements and proposed regulatory changes and are intended to approximate fair value. Absent quoted market prices, the estimate of fair value is based on the best available information, including the results of present value techniques. In many cases, we contract with third parties to fulfill our obligations for final capping, closure and post-closure. We use historical experience, professional engineering judgment and quoted or actual prices paid for similar work to determine the fair value of these obligations. We are required to recognize these obligations at market prices whether we plan to contract with third parties or perform the work ourselves. In those instances where we perform the work with internal resources, the incremental profit margin realized is recognized as a component of operating income when the work is completed.

Once we have determined final capping, closure and post-closure costs, we inflate those costs to the expected time of payment and discount those expected future costs back to present value. During the years ended December 31, 2019, 2018 and 2017, we inflated these costs in current dollars to the expected time of payment using an inflation rate of 2.5%. We discounted these costs to present value using the credit-adjusted, risk-free rate effective at the time an obligation is incurred, consistent with the expected cash flow approach. Any changes in expectations that result in an upward revision to the estimated cash flows are treated as a new liability and discounted at the current rate while downward revisions are discounted at the historical weighted average rate of the recorded obligation. As a result, the credit-adjusted, risk-free discount rate used to calculate the present value of an obligation is specific to each individual asset retirement obligation. The weighted average rate applicable to our long-term asset retirement obligations as of December 31, 2019 was approximately 5.25%.

We record the estimated fair value of final capping, closure and post-closure liabilities for our landfills based on the airspace consumed through the current period. The fair value of final capping obligations is developed based on our estimates of the airspace consumed to date for each final capping event and the expected timing of each final capping event. The fair value of closure and post-closure obligations is developed based on our estimates of the airspace consumed to date for the entire landfill and the expected timing of each closure and post-closure activity. Because these obligations are measured at estimated fair value using present value techniques, changes in the estimated cost or timing of future final capping, closure and post-closure activities could result in a material change in these liabilities, related assets and results of operations. We assess the appropriateness of the estimates used to develop our recorded balances annually, or more often if significant facts change.

Changes in inflation rates or the estimated costs, timing or extent of future final capping, closure and post-closure activities typically result in both (i) a current adjustment to the recorded liability and landfill asset and (ii) a change in liability and asset amounts to be recorded prospectively over either the remaining permitted and expansion airspace (as defined below) of the related discrete final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Any changes related to the capitalized and future cost of the landfill assets are then recognized in accordance with our amortization policy, which would generally result in amortization expense being recognized prospectively over the remaining permitted and expansion airspace of the final capping event or the remaining permitted and expansion airspace of the landfill, as appropriate. Changes in such estimates associated with airspace that has been fully utilized result in an adjustment to the recorded liability and landfill assets with an immediate corresponding adjustment to landfill airspace amortization expense.

Interest accretion on final capping, closure and post-closure liabilities is recorded using the effective interest method and is recorded as final capping, closure and post-closure expense, which is included in operating expenses within our Consolidated Statements of Operations.

Amortization of Landfill Assets — The amortizable basis of a landfill includes (i) amounts previously expended and capitalized; (ii) capitalized landfill final capping, closure and post-closure costs; (iii) projections of future purchase and development costs required to develop the landfill site to its remaining permitted and expansion airspace and (iv) projected asset retirement costs related to landfill final capping, closure and post-closure activities.

Amortization is recorded on a units-of-consumption basis, applying expense as a rate per ton. The rate per ton is calculated by dividing each component of the amortizable basis of a landfill by the number of tons needed to fill the corresponding asset’s airspace. For landfills that we do not own, but operate through lease or other contractual agreements, the rate per ton is calculated based on expected airspace to be utilized over the lesser of the contractual term of the underlying agreement or the life of the landfill.

We apply the following guidelines in determining a landfill’s remaining permitted and expansion airspace:

●

Remaining Permitted Airspace — Our engineers, in consultation with third-party engineering consultants and surveyors, are responsible for determining remaining permitted airspace at our landfills. The remaining permitted airspace is determined by an annual survey, which is used to compare the existing landfill topography to the expected final landfill topography.

●

Expansion Airspace — We also include currently unpermitted expansion airspace in our estimate of remaining permitted and expansion airspace in certain circumstances. First, to include airspace associated with an expansion effort, we must generally expect the initial expansion permit application to be submitted within one year and the final expansion permit to be received within five years. Second, we must believe that obtaining the expansion permit is likely, considering the following criteria:

●

Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals;

●

We have a legal right to use or obtain land to be included in the expansion plan;

●

There are no significant known technical, legal, community, business, or political restrictions or similar issues that could negatively affect the success of such expansion; and

●

Financial analysis has been completed based on conceptual design, and the results demonstrate that the expansion meets Company criteria for investment.

For unpermitted airspace to be initially included in our estimate of remaining permitted and expansion airspace, the expansion effort must meet all the criteria listed above. These criteria are evaluated by our field-based engineers, accountants, managers and others to identify potential obstacles to obtaining the permits. Once the unpermitted airspace is included, our policy provides that airspace may continue to be included in remaining permitted and expansion airspace even if certain of these criteria are no longer met as long as we continue to believe we will ultimately obtain the permit, based on the facts and circumstances of a specific landfill. In these circumstances, continued inclusion must be approved through a landfill-specific review process that includes approval by our Chief Financial Officer on a quarterly basis. Of the 15 landfill sites with expansions included as of December 31, 2019, one landfill required the Chief Financial Officer to approve the inclusion of the unpermitted airspace because the permit application process did not meet the one- or five-year requirements.

When we include the expansion airspace in our calculations of remaining permitted and expansion airspace, we also include the projected costs for development, as well as the projected asset retirement costs related to final capping, closure and post-closure of the expansion in the amortization basis of the landfill.

Once the remaining permitted and expansion airspace is determined in cubic yards, an airspace utilization factor (“AUF”) is established to calculate the remaining permitted and expansion capacity in tons. The AUF is established using the measured density obtained from previous annual surveys and is then adjusted to account for future settlement. The amount of settlement that is forecasted will take into account several site-specific factors including current and projected mix of waste type, initial and projected waste density, estimated number of years of life remaining, depth of underlying waste, anticipated access to moisture through precipitation or recirculation of landfill leachate and operating practices. In addition, the initial selection of the AUF is subject to a subsequent multi-level review by our engineering group and the AUF used is reviewed on a periodic basis and revised as necessary. Our historical experience generally indicates that the impact of settlement at a landfill is greater later in the life of the landfill when the waste placed at the landfill approaches its highest point under the permit requirements.

After determining the costs and remaining permitted and expansion capacity at each of our landfills, we determine the per ton rates that will be expensed as waste is received and deposited at the landfill by dividing the costs by the corresponding number of tons. We calculate per ton amortization rates for each landfill for assets associated with each final capping event, for assets related to closure and post-closure activities and for all other costs capitalized or to be capitalized in the future. These rates per ton are updated annually, or more often, as significant facts change.

It is possible that actual results, including the amount of costs incurred, the timing of final capping, closure and post-closure activities, our airspace utilization or the success of our expansion efforts could ultimately turn out to be significantly different from our estimates and assumptions. To the extent that such estimates, or related assumptions, prove to be significantly different than actual results, lower profitability may be experienced due to higher amortization rates or higher expenses; or higher profitability may result if the opposite occurs. Most significantly, if it is determined that expansion capacity should no longer be considered in calculating the recoverability of a landfill asset, we may be required to recognize an asset impairment or incur significantly higher amortization expense. If at any time management makes the decision to abandon the expansion effort, the capitalized costs related to the expansion effort are expensed immediately.

Environmental Remediation Liabilities

A significant portion of our operating costs and capital expenditures could be characterized as costs of environmental protection. The nature of our operations, particularly with respect to the construction, operation and maintenance of our landfills, subjects us to an array of laws and regulations relating to the protection of the environment. Under current laws and regulations, we may have liabilities for environmental damage caused by our operations, or for damage caused by conditions that existed before we acquired a site. In addition to remediation activity required by state or local authorities, such liabilities include potentially responsible party (“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.

Where it is probable that a liability has been incurred, we estimate costs required to remediate sites based on site-specific facts and circumstances. We routinely review and evaluate sites that require remediation, considering whether we were an owner, operator, transporter, or generator at the site, the amount and type of waste hauled to the site and the number of years we were associated with the site. Next, we review the same type of information with respect to other named and unnamed PRPs. Estimates of the costs for the likely remedy are then either developed using our internal resources or by third-party environmental engineers or other service providers. Internally developed estimates are based on:

●

Management’s judgment and experience in remediating our own and unrelated parties’ sites;

●

Information available from regulatory agencies as to costs of remediation;

●

The number, financial resources and relative degree of responsibility of other PRPs who may be liable for remediation of a specific site; and

●

The typical allocation of costs among PRPs, unless the actual allocation has been determined.

Estimating our degree of responsibility for remediation is inherently difficult. We recognize and accrue for an estimated remediation liability when we determine that such liability is both probable and reasonably estimable. Determining the method and ultimate cost of remediation requires that a number of assumptions be made. There can sometimes be a range of reasonable estimates of the costs associated with the likely site remediation alternatives identified in the 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, our aggregate potential liability would be approximately $140 million higher than the $240 million recorded in the Consolidated Balance Sheet as of December 31, 2019. 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.

Where we believe that both the amount of a particular environmental remediation liability and the timing of the payments are fixed or reliably determinable, we inflate the cost in current dollars (by 2.5%as of December 31, 2019 and 2018) until the expected time of payment and discount the cost to present value using a risk-free discount rate, which is based on the rate for U.S. Treasury bonds with a term approximating the weighted average period until settlement of the underlying obligation. We determine the risk-free discount rate and the inflation rate on an annual basis unless interim changes would materially impact our results of operations. For remedial liabilities that have been discounted, we include interest accretion, based on the effective interest method, in operating expenses in our Consolidated Statements of Operations. The following table summarizes the impacts of revisions in the risk-free discount rate applied to our

environmental remediation liabilities and recovery assets for the years ended December 31 (in millions) and the risk-free discount rate applied as of December 31:


	2019			2018			2017
Increase (decrease) in operating expenses	$	9		$	(2)		$	—
Risk-free discount rate applied to environmental remediation liabilities and recovery assets		1.75	%		2.75	%		2.5	%

The portion of our recorded environmental remediation liabilities that were not subject to inflation or discounting, as the amounts and timing of payments are not fixed or reliably determinable, was $36 million and $35 million as of December 31, 2019 and 2018, respectively. Had we not inflated and discounted any portion of our environmental remediation liability, the amount recorded would have decreased by $8 million and increased by $3 million as of December 31, 2019 and 2018, respectively.

Property and Equipment (exclusive of landfills)

Property and Equipment (exclusive of landfills, discussed above)

We record property and equipment at cost. Expenditures for major additions and improvements are capitalized and maintenance activities are expensed as incurred. We depreciate property and equipment over the estimated useful life of the asset using the straight-line method. We assume no salvage value for our depreciable property and equipment. When property and equipment are retired, sold or otherwise disposed of, the cost and accumulated depreciation are removed from our accounts and any resulting gain or loss is included in results of operations as an offset or increase to operating expense for the period.

The estimated useful lives for significant property and equipment categories are as follows (in years):


		Useful Lives
Vehicles — excluding rail haul cars		3 to 10
Vehicles — rail haul cars		10 to 30
Machinery and equipment — including containers		3 to 30
Buildings and improvements		5 to 40
Furniture, fixtures and office equipment		3 to 10

We include capitalized costs associated with developing or obtaining internal-use software within furniture, fixtures and office equipment. These costs include direct external costs of materials and services used in developing or obtaining the software and internal costs for employees directly associated with the software development project.

Leases

We lease property and equipment in the ordinary course of our business. Our operating lease activities primarily consist of leases for real estate, landfills and operating equipment. Our financing lease activities primarily consist of leases for operating equipment, railcars and landfill assets. Our leases have varying terms. Some may include renewal or purchase options, escalation clauses, restrictions, penalties or other obligations that we consider in determining minimum lease payments. The leases are classified as either operating leases or financing leases, as appropriate. See Note 8 for additional information.

Operating Leases (excluding landfill leases discussed below) — The majority of our leases are operating leases. This classification generally can be attributed to either (i) relatively low fixed minimum lease payments as a result of real property lease obligations that vary based on the volume of waste we receive or process or (ii) minimum lease terms that are much shorter than the assets’ economic useful lives. Management expects that in the normal course of business our

operating leases will be renewed, replaced by other leases, or replaced with fixed asset expenditures. Our rent expense during each of the last three years and our future minimum operating lease payments for each of the next five years for which we are contractually obligated as of December 31, 2019 are disclosed in Note 8.

Financing Leases (excluding landfill leases discussed below) — Assets under financing leases are capitalized using interest rates determined at the commencement of each lease and are amortized over either the useful life of the asset or the lease term, as appropriate, on a straight-line basis. The present value of the related lease payments is recorded as a debt obligation. Our future minimum annual financing lease payments are disclosed in Note 8.

Landfill Leases — From an operating perspective, landfills that we lease are similar to landfills we own because generally we will operate the landfill for the life of the operating permit. The most significant portion of our rental obligations for landfill leases is contingent upon operating factors such as disposal volume and often there are no contractual minimum rental obligations. Contingent rental obligations are expensed as incurred. For landfill financing leases that provide for minimum contractual rental obligations, we record the present value of the minimum obligation as part of the landfill asset, which is amortized on a units-of-consumption basis over the shorter of the lease term or the life of the landfill. Our future minimum annual lease payments for our landfill leases are disclosed in Note 8.

Acquisitions

We generally recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition.

Contingent Consideration — In certain acquisitions, we agree to pay additional amounts to sellers contingent upon achievement by the acquired businesses of certain negotiated goals, such as targeted revenue levels, targeted disposal volumes or the issuance of permits for expanded landfill airspace. We have recognized liabilities for these contingent obligations based on their estimated fair value as of the date of acquisition with any differences between the acquisition-date fair value and the ultimate settlement of the obligations being recognized as an adjustment to income from operations.

Acquired Assets and Assumed Liabilities — Assets and liabilities arising from contingencies such as pre-acquisition environmental matters and litigation are recognized at their acquisition-date fair value when their respective fair values can be determined. If the fair values of such contingencies cannot be determined, they are recognized as of the acquisition date if the contingencies are probable and an amount can be reasonably estimated.

Acquisition-date fair value estimates are revised as necessary if, and when, additional information regarding these contingencies becomes available to further define and quantify assets acquired and liabilities assumed. Subsequent to finalization of purchase accounting, these revisions are accounted for as adjustments to income from operations. All acquisition-related transaction costs are expensed as incurred.

Goodwill and Other Intangible Assets

Goodwill is the excess of our purchase cost over the fair value of the net assets of acquired businesses. We do not amortize goodwill, but as discussed in the Long-Lived Asset Impairments section below, we assess our goodwill for impairment at least annually.

Other intangible assets consist primarily of customer and supplier relationships, covenants not-to-compete, licenses, permits (other than landfill permits, as all landfill-related intangible assets are combined with landfill tangible assets and amortized using our landfill amortization policy), and other contracts. Other intangible assets are recorded at fair value on the acquisition date and are generally amortized using either a 150% declining balance approach or a straight-line basis as we determine appropriate. Customer and supplier relationships are typically amortized over a term of 10 years. Covenants

not-to-compete are amortized over the term of the non-compete covenant, which is generally five years. Licenses, permits and other contracts are amortized over the definitive terms of the related agreements. If the underlying agreement does not contain definitive terms and the useful life is determined to be indefinite, the asset is not amortized.

Long-Lived Asset Impairments

We assess our long-lived assets for impairment as required under the applicable accounting standards. If necessary, impairments are recorded in (gain) loss from divestitures, asset impairments and unusual items, net in our Consolidated Statement of Operations.

Property and Equipment, Including Landfills and Definite-Lived Intangible Assets — We monitor the carrying value of our long-lived assets for potential impairment on an ongoing basis and test the recoverability of such assets generally using significant unobservable (“Level 3”) inputs whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. These events or changes in circumstances, including management decisions pertaining to such assets, are referred to as impairment indicators. If an impairment indicator occurs, we perform a test of recoverability by comparing the carrying value of the asset or asset group to its undiscounted expected future cash flows. If cash flows cannot be separately and independently identified for a single asset, we will determine whether an impairment has occurred for the group of assets for which we can identify the projected cash flows. If the carrying values are in excess of undiscounted expected future cash flows, we measure any impairment by comparing the fair value of the asset or asset group to its carrying value and the difference is recorded in the period that the impairment indicator occurs. Fair value is generally determined by considering (i) internally developed discounted projected cash flow analysis of the asset or asset group; (ii) actual third-party valuations and/or (iii) information available regarding the current market for similar assets. Estimating future cash flows requires significant judgment and projections may vary from the cash flows eventually realized, which could impact our ability to accurately assess whether an asset has been impaired.

The assessment of impairment indicators and the recoverability of our capitalized costs associated with landfills and related expansion projects require significant judgment due to the unique nature of the waste industry, the highly regulated permitting process and the sensitive estimates involved. During the review of a landfill expansion application, a regulator may initially deny the expansion application although the expansion permit is ultimately granted. In addition, management may periodically divert waste from one landfill to another to conserve remaining permitted landfill airspace, or a landfill may be required to cease accepting waste, prior to receipt of the expansion permit. However, such events occur in the ordinary course of business in the waste industry and do not necessarily result in impairment of our landfill assets because, after consideration of all facts, such events may not affect our belief that we will ultimately obtain the expansion permit. As a result, our tests of recoverability, which generally make use of a probability-weighted cash flow estimation approach, may indicate that no impairment loss should be recorded.

Indefinite-Lived Intangible Assets, Including Goodwill — At least annually using a measurement date of October 1, and more frequently if warranted, we assess the indefinite-lived intangible assets including the goodwill of our reporting units for impairment.

We first performed a qualitative assessment to determine if it was more likely than not that the fair value of a reporting unit was less than its carrying value. If the assessment indicated a possible impairment, we completed a quantitative review, comparing the estimated fair value of a reporting unit to its carrying amount, including goodwill. An impairment charge was recognized if the asset’s estimated fair value was less than its carrying amount. Fair value is typically estimated using an income approach using Level 3 inputs. However, when appropriate, we may also use a market approach. The income approach is based on the long-term projected future cash flows of the reporting units. We discount the estimated cash flows to present value using a weighted average cost of capital that considers factors such as market assumptions, the timing of the cash flows and the risks inherent in those cash flows. We believe that this approach is appropriate because it provides a fair value estimate based upon the reporting units’ expected long-term performance considering the economic and market

conditions that generally affect our business. The market approach estimates fair value by measuring the aggregate market value of publicly-traded companies with similar characteristics to our business as a multiple of their reported earnings. We then apply that multiple to the reporting units’ earnings to estimate their fair values. We believe that this approach may also be appropriate in certain circumstances because it provides a fair value estimate using valuation inputs from entities with operations and economic characteristics comparable to our reporting units.

Fair value is computed using several factors, including projected future operating results, economic projections, anticipated future cash flows, comparable marketplace data and the cost of capital. There are inherent uncertainties related to these factors and to our judgment in applying them in our analysis. However, we believe our methodology for estimating the fair value of our reporting units is reasonable.

Refer to Notes 6 and 12 for information related to impairments recognized during the reported periods.

Insured and Self-Insured Claims

We have retained a significant portion of the risks related to our health and welfare, general liability, automobile liability and workers’ compensation claims programs. The exposure for unpaid claims and associated expenses, including incurred but not reported losses, generally is estimated with the assistance of external actuaries and by factoring in pending claims and historical trends and data. The gross estimated liability associated with settling unpaid claims is included in accrued liabilities in our Consolidated Balance Sheets if expected to be settled within one year; otherwise, it is included in other long-term liabilities. Estimated insurance recoveries related to recorded liabilities are reflected as other current receivables or other long-term assets in our Consolidated Balance Sheets when we believe that the receipt of such amounts is probable.

We use a wholly-owned insurance captive to insure the deductibles for our general liability, automobile liability and workers’ compensation claims programs. We continue to maintain conventional insurance policies with third-party insurers. In addition to certain business and operating benefits of having a wholly-owned insurance captive, we expect to receive certain cash flow benefits related to the timing of tax deductions related to these claims. WM will pay an annual premium to the insurance captive, typically in the first quarter of the year, for the estimated losses based on the external actuarial analysis. These premiums are held in a restricted escrow account to be used solely for paying insurance claims, resulting in a transfer of risk from WM to the insurance captive and are allocated between current and long-term assets depending on timing on the use of funds.

Restricted Trust and Escrow Accounts

Our restricted trust and escrow accounts consist principally of funds deposited for purposes of funding insurance claims and settling landfill final capping, closure, post-closure and environmental remediation obligations. These funds are allocated between cash, money market funds and available-for-sale securities depending on the estimated timing and purpose of the use of funds. We use a wholly-owned insurance captive to insure the deductibles for certain claims programs, as discussed above in Insured and Self-Insured Claims, and the premiums paid were directly deposited into a restricted escrow account to be used solely for paying insurance claims. At several of our landfills, we provide financial assurance by depositing cash into restricted trust or escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation obligations. Balances maintained in these restricted trust and escrow accounts will fluctuate based on (i) changes in statutory requirements; (ii) future deposits made to comply with contractual arrangements; (iii) the ongoing use of funds; (iv) acquisitions or divestitures and (v) changes in the fair value of the financial instruments held in the restricted trust or escrow accounts. The current portion of restricted trust and escrow accounts as of December 31, 2019 and 2018 of $70 million is included in other current assets in our Consolidated Balance Sheets.

See Note 19 for additional discussion related to restricted trust and escrow accounts for final capping, closure, post-closure or environmental remediation obligations.

Investments in Unconsolidated Entities

Investments in unconsolidated entities over which the Company has significant influence are accounted for under the equity method of accounting. Equity investments in which the Company does not have the ability to exert significant influence over the investees’ operating and financing activities are measured using a quantitative approach as these investments do not have readily determinable fair values. The quantitative approach, or measurement alternative, is equal to its cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The fair value of our redeemable preferred stock has been measured based on third-party investors’ recent or pending transactions in these securities, which are considered the best evidence of fair value. The following table summarizes our investments in unconsolidated entities as of December 31 (in millions):


	2019		2018
Equity method investments	$	377	$	257
Investments without readily determinable fair values		57		83
Redeemable preferred stock		49		66
Investments in unconsolidated entities	$	483	$	406

We monitor and assess the carrying value of our investments throughout the year for potential impairment and write them down to their fair value when other-than-temporary declines exist. Fair value is generally based on (i) other third-party investors’ recent transactions in the securities; (ii) other information available regarding the current market for similar assets; (iii) a market or income approach, as deemed appropriate and/or (iv) a quantitative approach, or measurement alternative, as noted above. Impairments of our investments are recorded in equity in net losses of unconsolidated entities or other, net in the Consolidated Statements of Operations in accordance with appropriate accounting guidance.

Refer to Notes 12 and 17 for information related to impairments and other adjustments recognized during the reported periods.

Foreign Currency

We have operations in Canada, as well as certain support functions in India. Local currencies generally are considered the functional currencies of our operations and investments outside the U.S. The assets and liabilities of our foreign operations are translated to U.S. dollars using the exchange rate as of the balance sheet date. Revenues and expenses are translated to U.S. dollars using the average exchange rate during the period. The resulting translation difference is reflected as a component of other comprehensive income (loss).

Revenue Recognition

Our Solid Waste operating revenues are primarily generated from fees charged for our collection, transfer, disposal, and recycling and resource recovery services, and from sales of commodities by our recycling and landfill gas-to-energy operations. Revenues from our collection operations are influenced by factors such as collection frequency, type of collection equipment furnished, type and volume or weight of the waste collected, distance to the disposal facility or material recovery facility and our disposal costs. Revenues from our landfill operations consist of tipping fees, which are generally based on the type and weight or volume of waste being disposed of at our disposal facilities. Fees charged at transfer stations are generally based on the weight or volume of waste deposited, taking into account our cost of loading,

transporting and disposing of the solid waste at a disposal site. Recycling revenues generally consist of tipping fees and the sale of recycling commodities to third parties. The fees we charge for our services generally include our environmental, fuel surcharge and regulatory recovery fees, which are intended to pass through to customers direct and indirect costs incurred. We also provide additional services that are not managed through our Solid Waste business, including operations managed by both our Strategic Business Solutions (“WMSBS”) and Energy and Environmental Services (“EES”) organizations, recycling brokerage services, landfill gas-to-energy services and certain other expanded service offerings and solutions.

Our revenue from sources other than customer contracts primarily relates to lease revenue associated with compactors and balers. Revenue from our leasing arrangements was not material and represented approximately 1%of total revenue for each of the reported periods.

We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is collected, tons are received at our landfills or transfer stations, or recycling commodities are collected or delivered as product. We bill for certain services prior to performance. Such services include, among others, certain commercial and residential contracts and equipment rentals. These advance billings are included in deferred revenues and recognized as revenue in the period service is provided.

See Note 20 for additional information related to revenue by reportable segment and major lines of business.

Deferred Revenues

We record deferred revenues when cash payments are received or due in advance of our performance and classify them as current since they are earned within a year and there are no significant financing components. Substantially all our deferred revenues during the reported periods are realized as revenues within one to three months, when the related services are performed.

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 5 to 13 years. Contract acquisition costs that are paid to the customer are deferred and amortized as a reduction in revenue over the contract life. Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and are included in other assets in our Consolidated Balance Sheet.

As of December 31, 2019 and 2018, we had $153 million and $145 million of deferred contract costs, respectively, of which $117 million and $109 million was related to deferred sales incentives, respectively. During the years ended December 31, 2019 and 2018, we amortized $23 million and $22 million of sales incentives to selling, general and administrative expense, respectively, and $17 million and $35 million of other contract acquisition costs as a reduction in revenue, respectively.

Long-Term Contracts

Approximately 25% of our total revenue is derived from contracts with a remaining term greater than one year. The consideration for these contracts is primarily variable in nature. The variable elements of these contracts primarily include the number of homes and businesses served and annual rate changes based on consumer price index, fuel prices or other operating costs. Such contracts are generally within our collection, recycling and other lines of business and have a weighted average remaining contract life of approximately five years. We do not disclose the value of unsatisfied performance obligations for these contracts as our right to consideration corresponds directly to the value provided to the

customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations.

Capitalized Interest

We capitalize interest on certain projects under development, including landfill expansion projects, certain assets under construction, including operating landfills and landfill gas-to-energy projects and internal-use software. During 2019, 2018 and 2017, total interest costs were $485 million, $400 million and $383 million, respectively, of which $21 million, $16 million and $15 million was capitalized in 2019, 2018 and 2017, respectively.

Income Taxes

The Company is subject to income tax in the U.S. and Canada. Current tax obligations associated with our income tax expense are reflected in the accompanying Consolidated Balance Sheets as a component of accrued liabilities and our deferred tax obligations are reflected in deferred income taxes.

Deferred income taxes are based on the difference between the financial reporting and tax basis of assets and liabilities. Deferred income tax expense represents the change during the reporting period in the deferred tax assets and liabilities, net of the effect of acquisitions and dispositions. Deferred tax assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if, based on available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. We establish reserves for uncertain tax positions when, despite our belief that our tax return positions are supportable, we believe that certain positions may be challenged and potentially disallowed. When facts and circumstances change, we adjust these reserves through our income tax expense.

Should interest and penalties be assessed by taxing authorities on any underpayment of income tax, such amounts would be accrued and classified as a component of our income tax expense in our Consolidated Statements of Operations.

See Note 9 for discussion of our income taxes.

Contingent Liabilities

We estimate the amount of potential exposure we may have with respect to claims, assessments and litigation in accordance with authoritative guidance on accounting for contingencies. We are party to pending or threatened legal proceedings covering a wide range of matters in various jurisdictions. It is difficult to predict the outcome of litigation, as it is subject to many uncertainties. Additionally, it is not always possible for management to make a meaningful estimate of the potential loss or range of loss associated with such contingencies. See Note 11 for discussion of our commitments and contingencies.

Supplemental Cash Flow Information

The following table shows supplemental cash flow information for the years ended December 31 (in millions):


	2019		2018		2017
Interest, net of capitalized interest	$	397	$	339	$	380
Income taxes		292		349		562

During 2019, we had $299 million of non-cash financing activities from our recent federal low-income housing investment discussed in Note 9 and new financing leases. During 2018, we had $250 million of non-cash financing activities from a federal low-income housing investment and new financing leases. During 2017, we did not have any

significant non-cash investing and financing activities. Non-cash investing and financing activities are generally excluded from the Consolidated Statements of Cash Flows.

Fair Value Measurements - Recurring (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Loss on investment	$ 3
Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment maturity		10 years
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets		$ 3,926	$ 424
Fair Value, Measurements, Recurring [Member] \| Quoted Prices in Active Markets (Level 1) [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		3,527	70
Fair Value, Measurements, Recurring [Member] \| Significant Other Observable Inputs (Level 2) [Member] \| Available-for-sale securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		350	288
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Redeemable Preferred Stock [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments		$ 49	$ 66
Fair Value, Measurements, Recurring [Member] \| Significant Unobservable Inputs (Level 3) [Member] \| Redeemable Preferred Stock [Member] \| Disposed of by Sale, Not Discontinued Operations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	20
Redemption of preferred stock	17
Loss on investment	$ 3

Employee Benefit Plans - Individually Significant (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Multiemployer Plans [Line Items]
EIN	73-1309529
Company Contributions	$ 52	$ 47	$ 47
Multiemployer Plan, Total Individually Significant Pension Plans [Member]
Multiemployer Plans [Line Items]
Company Contributions	36	33	31
Automotive Industries Pension Plan [Member]
Multiemployer Plans [Line Items]
Company Contributions	1	1	1
Suburban Teamsters of Northern Illinois Pension Plan [Member]
Multiemployer Plans [Line Items]
Company Contributions	3	3	3
Western Conference of Teamsters Pension Plan [Member]
Multiemployer Plans [Line Items]
Company Contributions	32	29	27
Multiemployer Plan, Aggregate Individually Insignificant Pension Plans [Member]
Multiemployer Plans [Line Items]
Company Contributions	$ 16	$ 14	$ 16

Condensed Consolidating Financial Statements - Cash Flows (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed Cash Flow Statements Captions [Line Items]
Operating activities	$ 3,874	$ 3,570	$ 3,180
Investing activities	(2,376)	(2,169)	(1,620)
Financing activities	1,964	(1,508)	(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	2	(3)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	3,464	(110)	199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	183	293	94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	3,647	183	293
WM [Member] \| Reportable Legal Entities [Member]
Condensed Cash Flow Statements Captions [Line Items]
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	3,485
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	3,485
Cash, cash equivalents and restricted cash and cash equivalents at end of period	3,485
Non-Guarantor Subsidiaries [Member] \| Reportable Legal Entities [Member]
Condensed Cash Flow Statements Captions [Line Items]
Operating activities	3,874	3,570	3,180
Investing activities	(2,376)	(2,169)	(1,620)
Financing activities	1,964	(1,508)	(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	(3,485)	(3)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	(21)	(110)	199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	183	293	94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 162	$ 183	$ 293

Asset Impairments and Unusual Items (Tables)

12 Months Ended

Dec. 31, 2019

Asset Impairments and Unusual Items

Summary of the major components of (gain) loss from divestitures, asset impairments and unusual items, net

The following table summarizes the major components of (gain) loss from divestitures, asset impairments and unusual items, net for the years ended December 31 (in millions):


	2019		2018		2017
(Gain) loss from divestitures	$	—	$	(96)	$	(38)
Asset impairments		42		38		41
Other		—		—		(19)
	$	42	$	(58)	$	(16)

Income Taxes - Income Source (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Domestic	$ 2,025	$ 2,235	$ 2,040
Foreign	80	141	151
Income before income taxes	$ 2,105	$ 2,376	$ 2,191

Capital Stock, Dividends and Common Stock Repurchase Program (Detail) $ / shares in Units, shares in Thousands, $ in Millions	2 Months Ended	12 Months Ended
	Feb. 14, 2019 USD ($)	Dec. 31, 2019 USD ($) $ / shares shares	Dec. 31, 2018 USD ($) item $ / shares shares	Dec. 31, 2017 USD ($) item $ / shares shares
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock		$ 248	$ 1,004	$ 750
Shares repurchased (in shares) \| shares		2,247	11,673	10,058
Total repurchases		$ 244	$ 1,008	$ 750
Weighted average per share purchase price \| $ / shares		$ 108.60	$ 86.35	$ 77.67
Authorized share repurchases		$ 1,320
10b5-1 Plan [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock	$ 4
Shares repurchased (in shares) \| shares		700	1,900
Total repurchases		$ 64	$ 158
Accelerated Share Repurchase Agreement (ASR) [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock		$ 180	$ 850	$ 750
Shares repurchased (in shares) \| shares		1,600	9,800	400
Number of ASR agreements \| item			4	2

Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment
Property and equipment , gross	$ 31,550	$ 30,206
Less accumulated depreciation and amortization	(18,657)	(18,264)
Property, Plant and Equipment, Net, Total	12,893	11,942	$ 11,559
Land [Member]
Property, Plant and Equipment
Property and equipment , gross	656	656
Landfill [Member]
Property, Plant and Equipment
Property and equipment , gross	15,910	15,240
Vehicles [Member]
Property, Plant and Equipment
Property and equipment , gross	5,344	5,059
Machinery and Equipment [Member]
Property, Plant and Equipment
Property and equipment , gross	3,140	2,988
Containers [Member]
Property, Plant and Equipment
Property and equipment , gross	2,616	2,588
Building and Improvements [Member]
Property, Plant and Equipment
Property and equipment , gross	3,174	2,998
Furniture, Fixtures and Office Equipment [Member]
Property, Plant and Equipment
Property and equipment , gross	710	677
Tangible Property and Equipment [Member]
Property, Plant and Equipment
Less accumulated depreciation and amortization	(9,331)	(9,107)
Landfill Airspace [Member]
Property, Plant and Equipment
Less accumulated depreciation and amortization	$ (9,326)	$ (9,157)

Equity-Based Compensation (Detail) $ in Millions	12 Months Ended
Equity-Based Compensation (Detail) $ in Millions	Dec. 31, 2019 USD ($) item shares	Dec. 31, 2018 USD ($) shares	Dec. 31, 2017 USD ($) shares	May 31, 2014 shares
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available under employee stock plans	20,000,000.0
Maximum number of shares authorized for issuance				23,800,000
2009 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available under employee stock plans				1,100,000
Employee Stock Purchase Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Service period	30 days
Number of offering periods \| item	2
Price employees purchase shares (as a percent)	85.00%
Annual salary deducted for plan (as a percent)	10.00%
Shares issued under the plan	537,000	582,000	594,000
Shares available under employee stock plans	800,000
Compensation expense recognized \| $	$ 10	$ 9	$ 7
Compensation expense recognized, net of tax \| $	$ 7	$ 7	$ 4

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2019

Goodwill and Other Intangible Assets

Schedule of Other Intangible Assets

Our other intangible assets consisted of the following as of December 31 (in millions):


	Customer		Covenants		Licenses,
	and Supplier		Not-to-		Permits
	Relationships		Compete		and Other		Total
2019
Intangible assets	$	906	$	72	$	110	$	1,088
Less: Accumulated amortization		(469)		(36)		(62)		(567)
	$	437	$	36	$	48	$	521
2018
Intangible assets	$	949	$	60	$	109	$	1,118
Less: Accumulated amortization		(461)		(24)		(61)		(546)
	$	488	$	36	$	48	$	572

Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Consolidating Financial Statements

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS

December 31, 2019


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	3,485	$	—	$	76	$	—	$	3,561
Other current assets		2		4		2,642		—		2,648
		3,487		4		2,718		—		6,209
Property and equipment, net		—		—		12,893		—		12,893
Investments in affiliates		26,221		26,673		—		(52,894)		—
Advances to affiliates		—		—		19,047		(19,047)		—
Other assets		6		10		8,625		—		8,641
Total assets	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	15	$	—	$	203	$	—	$	218
Accounts payable and other current liabilities		105		7		2,814		—		2,926
		120		7		3,017		—		3,144
Long-term debt, less current portion		10,736		248		2,296		—		13,280
Due to affiliates		19,131		214		7,345		(26,690)		—
Other liabilities		4		—		4,245		—		4,249
Total liabilities		29,991		469		16,903		(26,690)		20,673
Equity:
Stockholders’ equity		7,068		26,218		26,676		(52,894)		7,068
Advances to affiliates		(7,345)		—		(298)		7,643		—
Noncontrolling interests		—		—		2		—		2
		(277)		26,218		26,380		(45,251)		7,070
Total liabilities and equity	$	29,714	$	26,687	$	43,283	$	(71,941)	$	27,743

CONDENSED CONSOLIDATING BALANCE SHEETS (Continued)

December 31, 2018


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	—	$	61	$	—	$	61
Other current assets		2		5		2,577		—		2,584
		2		5		2,638		—		2,645
Property and equipment, net		—		—		11,942		—		11,942
Investments in affiliates		24,547		24,968		—		(49,515)		—
Advances to affiliates		—		—		17,129		(17,129)		—
Other assets		8		31		8,024		—		8,063
Total assets	$	24,557	$	25,004	$	39,733	$	(66,644)	$	22,650

LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt	$	258	$	—	$	174	$	—	$	432
Accounts payable and other current liabilities		82		9		2,585		—		2,676
		340		9		2,759		—		3,108
Long-term debt, less current portion		7,377		304		1,913		—		9,594
Due to affiliates		17,269		146		6,709		(24,124)		—
Other liabilities		5		—		3,667		—		3,672
Total liabilities		24,991		459		15,048		(24,124)		16,374
Equity:
Stockholders’ equity		6,275		24,545		24,970		(49,515)		6,275
Advances to affiliates		(6,709)		—		(286)		6,995		—
Noncontrolling interests		—		—		1		—		1
		(434)		24,545		24,685		(42,520)		6,276
Total liabilities and equity	$	24,557	$	25,004	$	39,733	$	(66,644)	$	22,650

Condensed Consolidating Statements of Operations

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2019
Operating revenues (a)	$	—	$	—	$	15,455	$	—	$	15,455
Costs and expenses (a)		—		—		12,749		—		12,749
Income from operations		—		—		2,706		—		2,706
Other income (expense):
Interest expense, net		(347)		(19)		(45)		—		(411)
Loss on early extinguishment of debt		(70)		(14)		(1)		—		(85)
Equity in earnings of subsidiaries, net of tax		1,976		2,007		—		(3,983)		—
Other, net		—		68		(101)		(72)		(105)
		1,559		2,042		(147)		(4,055)		(601)
Income before income taxes		1,559		2,042		2,559		(4,055)		2,105
Income tax expense (benefit)		(111)		(5)		550		—		434
Consolidated net income		1,670		2,047		2,009		(4,055)		1,671
Less: Net income (loss) attributable to noncontrolling interests		—		—		1		—		1
Net income attributable to Waste Management, Inc.	$	1,670	$	2,047	$	2,008	$	(4,055)	$	1,670

2018
Operating revenues (a)	$	—	$	—	$	14,914	$	—	$	14,914
Costs and expenses (a)		—		—		12,125		—		12,125
Income from operations		—		—		2,789		—		2,789
Other income (expense):
Interest expense, net		(312)		(20)		(42)		—		(374)
Equity in earnings of subsidiaries, net of tax		2,155		2,169		—		(4,324)		—
Other, net		—		—		(39)		—		(39)
		1,843		2,149		(81)		(4,324)		(413)
Income before income taxes		1,843		2,149		2,708		(4,324)		2,376
Income tax expense (benefit)		(82)		(5)		540		—		453
Consolidated net income		1,925		2,154		2,168		(4,324)		1,923
Less: Net income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Net income attributable to Waste Management, Inc.	$	1,925	$	2,154	$	2,170	$	(4,324)	$	1,925

2017
Operating revenues	$	—	$	—	$	15,040	$	(555)	$	14,485
Costs and expenses		555		—		11,849		(555)		11,849
Income from operations		(555)		—		3,191		—		2,636
Other income (expense):
Interest expense, net		(299)		(20)		(44)		—		(363)
Loss on early extinguishment of debt		(6)		—		—		—		(6)
Equity in earnings of subsidiaries, net of tax		2,469		2,482		—		(4,951)		—
Other, net		2		(1)		(77)		—		(76)
		2,166		2,461		(121)		(4,951)		(445)
Income before income taxes		1,611		2,461		3,070		(4,951)		2,191
Income tax expense (benefit)		(338)		(8)		588		—		242
Consolidated net income		1,949		2,469		2,482		(4,951)		1,949
Less: Net income (loss) attributable to noncontrolling interests		—		—		—		—		—
Net income attributable to Waste Management, Inc.	$	1,949	$	2,469	$	2,482	$	(4,951)	$	1,949

(a)	For 2019 and 2018, operating revenues and costs and expenses related to insurance premiums for a wholly-owned insurance captive are included in Non-Guarantor Subsidiaries to more accurately reflect those transactions.

Condensed Consolidating Statements of Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME


			WM		Non-Guarantor
	WM		Holdings		Subsidiaries		Eliminations		Consolidated
Years Ended December 31:
2019
Comprehensive income	$	1,678	$	2,047	$	2,080	$	(4,055)	$	1,750
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		1		—		1
Comprehensive income attributable to Waste Management, Inc.	$	1,678	$	2,047	$	2,079	$	(4,055)	$	1,749

2018
Comprehensive income	$	1,933	$	2,154	$	2,070	$	(4,324)	$	1,833
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		(2)		—		(2)
Comprehensive income attributable to Waste Management, Inc.	$	1,933	$	2,154	$	2,072	$	(4,324)	$	1,835

2017
Comprehensive income	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		—		—		—		—
Comprehensive income attributable to Waste Management, Inc.	$	1,955	$	2,469	$	2,564	$	(4,951)	$	2,037

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS


			WM		Non-Guarantor
	WM(a)		Holdings(a)		Subsidiaries(a)		Eliminations		Consolidated
Years Ended December 31:
2019
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,874	$	—	$	3,874
Investing activities		—		—		(2,376)		—		(2,376)
Financing activities		—		—		1,964		—		1,964
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		2		—		2
Intercompany activity		3,485		—		(3,485)		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		3,485		—		(21)		—		3,464
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		183		—		183
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	3,485	$	—	$	162	$	—	$	3,647

2018
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,570	$	—	$	3,570
Investing activities		—		—		(2,169)		—		(2,169)
Financing activities		—		—		(1,508)		—		(1,508)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		(3)		—		(3)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		(110)		—		(110)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		293		—		293
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	183	$	—	$	183

2017
Cash flows provided by (used in):
Operating activities	$	—	$	—	$	3,180	$	—	$	3,180
Investing activities		—		—		(1,620)		—		(1,620)
Financing activities		—		—		(1,361)		—		(1,361)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		—		—		—		—		—
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents		—		—		199		—		199
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		—		—		94		—		94
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	—	$	—	$	293	$	—	$	293

(a)	Cash receipts and payments of WM and WM Holdings are transacted by Non-Guarantor Subsidiaries. Cash, cash equivalents and restricted cash and cash equivalents of WM as of December 31, 2019 include remaining proceeds from our senior note issuances which are discussed further in Notes 7 and 17.

Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Landfill and environmental remediation liabilities
Total, Environmental Remediation	$ 240
Current (in accrued liabilities)	165	$ 169
Long-term	1,930	1,828
Total	2,095	1,997
Landfill [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Landfill	138	143
Long-term, Landfill	1,717	1,617
Total, Landfill	1,855	1,760
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Environmental Remediation	27	26
Long-term, Environmental Remediation	213	211
Total, Environmental Remediation	$ 240	$ 237

Segment and Related Information - Information (Detail) - Solid Waste [Member]	12 Months Ended
	Dec. 31, 2019 area segment
Segment Reporting Information [Line Items]
Number of areas \| area	17
Number of reportable segments \| segment	3

Business

12 Months Ended

Dec. 31, 2019

Business

Business

1. Business

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 19. 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., its consolidated subsidiaries and consolidated variable interest entities. When we use the term “WM,” we are referring only to Waste Management, Inc., the parent holding company.

We are North America’s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our “Solid Waste” business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the United States (“U.S.”).

We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 Areas. We also provide additional services that are not managed through our Solid Waste business, which are presented in this report as “Other.” Additional information related to our segments is included in Note 20.

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt

Components of Debt

The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of December 31:


	2019		2018
Revolving credit facility (weighted average interest rate of 3.1% as of December 31, 2018)	$	—	$	11
Commercial paper program (weighted average interest rate of 2.9% as of December 31, 2018)		—		990
Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of December 31, 2019 and 4.3% as of December 31, 2018)		9,965		6,222
Canadian senior notes, maturing September 2026, interest rate of 2.6%		385		—
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 1.35% to 4.3% (weighted average interest rate of 2.3% as of December 31, 2019 and 2.35% as of December 31, 2018)		2,523		2,388
Financing leases and other, maturing through 2071, weighted average interest rate of 4.7%		710		467
Debt issuance costs, discounts and other		(85)		(52)
		13,498		10,026
Current portion of long-term debt		218		432
	$	13,280	$	9,594

Debt - Components of Debt (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018
Debt
Debt	$ 13,498		$ 10,026
Debt issuance costs, discounts and other	(85)		(52)
Current portion of long-term debt	218		432
Long-term debt, less current portion	$ 13,280		9,594
Revolving Credit Facility [Member]
Debt
Debt			$ 11
Weighted average interest rate			3.10%
Commercial Paper Program [Member]
Debt
Debt			$ 990
Weighted average interest rate	2.90%
Senior Notes, Aggregate [Member]
Debt
Debt	$ 9,965		$ 6,222
Weighted average interest rate	3.90%		4.30%
Canadian Senior Notes [Member]
Debt
Debt	$ 385
Interest rate (as a percent)	2.60%	2.60%
Tax Exempt Bonds [Member]
Debt
Debt	$ 2,523		$ 2,388
Current portion of long-term debt	$ 112
Weighted average interest rate	2.30%		2.35%
Financing leases and other [Member]
Debt
Debt	$ 710		$ 467
Current portion of long-term debt	$ 218
Weighted average interest rate	4.70%
Minimum [Member] \| Senior Notes, Aggregate [Member]
Debt
Interest rate (as a percent)	2.40%
Minimum [Member] \| Tax Exempt Bonds [Member]
Debt
Interest rate (as a percent)	1.35%
Maximum [Member] \| Senior Notes, Aggregate [Member]
Debt
Interest rate (as a percent)	7.75%
Maximum [Member] \| Tax Exempt Bonds [Member]
Debt
Interest rate (as a percent)	4.30%

Landfill and Environmental Remediation Liabilities - Est payments (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Landfill and Environmental Remediation Liabilities
Anticipated payments for currently identified environmental remediation liabilities, in 2020	$ 27
Anticipated payments for currently identified environmental remediation liabilities, in 2021	33
Anticipated payments for currently identified environmental remediation liabilities, in 2022	44
Anticipated payments for currently identified environmental remediation liabilities, in 2023	34
Anticipated payments for currently identified environmental remediation liabilities, in 2024	22
Anticipated payments for currently identified environmental remediation liabilities, after 2024	$ 72

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2019

Quarterly Financial Data

Quarterly Financial Data (Unaudited)

21. Quarterly Financial Data (Unaudited)

The following table summarizes the unaudited quarterly results of operations for 2019 and 2018 (in millions, except per share amounts):


	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter
2019
Operating revenues	$	3,696	$	3,946		3,967		3,846
Income from operations		621		696		734		655
Consolidated net income		347		382		495		447
Net income attributable to Waste Management, Inc.		347		381		495		447
Basic earnings per common share		0.82		0.90		1.17		1.05
Diluted earnings per common share		0.81		0.89		1.16		1.05

2018
Operating revenues	$	3,511	$	3,739	$	3,822	$	3,842
Income from operations		608		715		699		767
Consolidated net income		395		499		498		531
Net income attributable to Waste Management, Inc.		396		499		499		531
Basic earnings per common share		0.91		1.16		1.16		1.25
Diluted earnings per common share		0.91		1.15		1.16		1.24

Basic and diluted earnings per common share for each of the quarters presented above is based on the respective weighted average number of common and dilutive potential common shares outstanding for each quarter and the sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per common share amounts.

Our operating revenues tend to be somewhat higher in summer months, primarily due to higher construction and demolition waste volumes. The volumes of industrial and residential waste in certain regions where we operate also tend to increase during the summer months. Our second and third quarter revenues and results of operations typically reflect these seasonal trends. Additionally, from time to time, our operating results are significantly affected by certain transactions or events that management believes are not indicative or representative of our ongoing results. The following items significantly impacted our operating results during the periods indicated:

First Quarter 2019

●

The recognition of (i) a $52 million impairment charge related to our minority-owned investment in a waste conversion technology business, which was not deductible for tax purposes and (ii) a $3 million loss upon redemption of a preferred stock investment, which is discussed further in Note 17. These charges had a negative impact of $0.13 on our diluted earnings per share.

Second Quarter 2019

●

The recognition of a pre-tax loss of $84 million associated with the early extinguishment of $257 million of our high-coupon senior notes through a cash tender offer, which is discussed further in Note 7. The charge incurred for the redemption had a negative impact of $0.15 on our diluted earnings per share.

●

The recognition of pre-tax charges of $32 million primarily related to (i) a $16 million non-cash charge to write-off certain equipment costs; (ii) $9 million of charges related to preparation for our pending acquisition of Advanced Disposal and (iii) $7 million of asset impairments primarily related to certain solid waste operations. These charges had a negative impact of $0.06 on our diluted earnings per share.

Third Quarter 2019

●

The recognition of pre-tax charges of $8 million related to preparation for our pending acquisition of Advanced Disposal which had a negative impact of $0.02 on our diluted earnings per share.

Fourth Quarter 2019

●

The recognition of pre-tax charges of $38 million primarily related to preparation for our pending acquisition of Advanced Disposal and, to a lesser extent, costs incurred to support our plan to implement a new enterprise resource planning system. These charges had a negative impact of $0.07 on our diluted earnings per share.

●

The recognition of pre-tax charges of $37 million related to (i) goodwill impairment charges of $17 million related to our EES organization and $10 million related to our LampTracker^® reporting unit and (ii) $10 million of asset impairment charges primarily related to certain solid waste operations and, to a lesser extent, restructuring charges. These charges had a negative impact of $0.07 on our diluted earnings per share.

Second Quarter 2018

●

The recognition of net pre-tax gains of $40 million related to the sale of certain ancillary operations, which had a favorable impact of $0.07 on our diluted earnings per share.

●

An income tax benefit of $33 million due to the settlement of various tax audits, which had a favorable impact of $0.07 on our diluted earnings per share.

Third Quarter 2018

●

Income tax benefits of $27 million primarily due to impacts of enactment of tax reform and changes in state laws, which had a favorable impact of $0.06 on our diluted earnings per share.

●

The recognition of pre-tax charges of $32 million primarily related to a $29 million charge to impair a landfill in our Tier 3 segment, which is discussed further in Note 12. These charges had a negative impact of $0.05 on our diluted earnings per share.

Fourth Quarter 2018

●

The recognition of a pre-tax gain of $52 million associated with the sale of certain hauling operations in our Tier 1 segment and $8 million of impairment charges primarily related to our LampTracker^® reporting unit. These items had a favorable impact of $0.07 on our diluted earnings per share.

●

A reduction in our income tax expense of $17 million for an adjustment to our deferred taxes to reduce our deferred tax liability based on an analysis of certain deferred tax balances. This item had a favorable impact of $0.04 on our diluted earnings per share.

Segment and Related Information - Summary (Detail) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Operating revenues	$ 3,846	$ 3,967	$ 3,946	$ 3,696	$ 3,842	$ 3,822	$ 3,739	$ 3,511	$ 15,455	$ 14,914	$ 14,485
Income from operations	655	$ 734	$ 696	$ 621	767	$ 699	$ 715	$ 608	2,706	2,789	2,636
Depreciation and amortization									1,574	1,477	1,376
Capital Expenditures									1,815	1,671	1,568
Total Assets	27,743				22,650				27,743	22,650	21,829
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									18,704	18,024	17,370
Total Assets	28,010				22,896				28,010	22,896	22,116
Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(3,249)	(3,110)	(2,885)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income from operations									(763)	(540)	(585)
Depreciation and amortization									36	30	45
Capital Expenditures									407	200	92
Total Assets	5,042				1,487				5,042	1,487	1,327
Elimination of Intercompany Investments and Advances [Member]
Segment Reporting Information [Line Items]
Total Assets	(267)				(246)				(267)	(246)	(287)
Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues									15,455	14,914	14,485
Operating Group Total [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									18,704	18,024	17,370
Income from operations									3,469	3,329	3,221
Depreciation and amortization									1,538	1,447	1,331
Capital Expenditures									1,408	1,471	1,476
Total Assets	22,968				21,409				22,968	21,409	20,789
Operating Group Total [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(3,249)	(3,110)	(2,885)
Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues									13,260	12,622	12,167
Solid Waste [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									16,387	15,537	14,832
Income from operations									3,672	3,395	3,289
Depreciation and amortization									1,463	1,356	1,228
Capital Expenditures									1,290	1,399	1,383
Total Assets	21,320				19,838				21,320	19,838	19,004
Solid Waste [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(3,127)	(2,915)	(2,665)
Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues									4,995	4,685	4,454
Tier 1 [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									6,136	5,730	5,441
Income from operations									1,682	1,619	1,506
Depreciation and amortization									551	493	438
Capital Expenditures									508	584	588
Total Assets	7,519				6,736				7,519	6,736	6,305
Tier 1 [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(1,141)	(1,045)	(987)
Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues									3,088	2,951	2,945
Tier 2 [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									3,865	3,675	3,599
Income from operations									854	784	777
Depreciation and amortization									327	317	274
Capital Expenditures									329	322	308
Total Assets	5,558				5,224				5,558	5,224	5,214
Tier 2 [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(777)	(724)	(654)
Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues									5,177	4,986	4,768
Tier 3 [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									6,386	6,132	5,792
Income from operations									1,136	992	1,006
Depreciation and amortization									585	546	516
Capital Expenditures									453	493	487
Total Assets	8,243				7,878				8,243	7,878	7,485
Tier 3 [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									(1,209)	(1,146)	(1,024)
Other [Member]
Segment Reporting Information [Line Items]
Operating revenues									2,195	2,292	2,318
Other [Member] \| Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues									2,317	2,487	2,538
Income from operations									(203)	(66)	(68)
Depreciation and amortization									75	91	103
Capital Expenditures									118	72	93
Total Assets	$ 1,648				$ 1,571				1,648	1,571	1,785
Other [Member] \| Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues									$ (122)	$ (195)	$ (220)

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

3. Summary of Significant Accounting Policies

Principles of Consolidation

Estimates and Assumptions

of these items is discussed in additional detail below. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.

Cash and Cash Equivalents

Concentrations of Credit Risk

Accounts and Other Receivables

Parts and Supplies

Landfill Accounting

Final Capping, Closure and Post-Closure Costs — Following is a description of our asset retirement activities and our related accounting:

●

We apply the following guidelines in determining a landfill’s remaining permitted and expansion airspace:

●

Personnel are actively working on the expansion of an existing landfill, including efforts to obtain land use and local, state or provincial approvals;

●

We have a legal right to use or obtain land to be included in the expansion plan;

●

There are no significant known technical, legal, community, business, or political restrictions or similar issues that could negatively affect the success of such expansion; and

●

Financial analysis has been completed based on conceptual design, and the results demonstrate that the expansion meets Company criteria for investment.

Environmental Remediation Liabilities

●

Management’s judgment and experience in remediating our own and unrelated parties’ sites;

●

Information available from regulatory agencies as to costs of remediation;

●

The number, financial resources and relative degree of responsibility of other PRPs who may be liable for remediation of a specific site; and

●

The typical allocation of costs among PRPs, unless the actual allocation has been determined.

environmental remediation liabilities and recovery assets for the years ended December 31 (in millions) and the risk-free discount rate applied as of December 31:


	2019			2018			2017
Increase (decrease) in operating expenses	$	9		$	(2)		$	—
Risk-free discount rate applied to environmental remediation liabilities and recovery assets		1.75	%		2.75	%		2.5	%

Property and Equipment (exclusive of landfills, discussed above)

The estimated useful lives for significant property and equipment categories are as follows (in years):


		Useful Lives
Vehicles — excluding rail haul cars		3 to 10
Vehicles — rail haul cars		10 to 30
Machinery and equipment — including containers		3 to 30
Buildings and improvements		5 to 40
Furniture, fixtures and office equipment		3 to 10

Leases

Acquisitions

We generally recognize assets acquired and liabilities assumed in business combinations, including contingent assets and liabilities, based on fair value estimates as of the date of acquisition.

Goodwill and Other Intangible Assets

Long-Lived Asset Impairments

Refer to Notes 6 and 12 for information related to impairments recognized during the reported periods.

Insured and Self-Insured Claims

Restricted Trust and Escrow Accounts

See Note 19 for additional discussion related to restricted trust and escrow accounts for final capping, closure, post-closure or environmental remediation obligations.

Investments in Unconsolidated Entities


	2019		2018
Equity method investments	$	377	$	257
Investments without readily determinable fair values		57		83
Redeemable preferred stock		49		66
Investments in unconsolidated entities	$	483	$	406

Refer to Notes 12 and 17 for information related to impairments and other adjustments recognized during the reported periods.

Foreign Currency

Revenue Recognition

See Note 20 for additional information related to revenue by reportable segment and major lines of business.

Deferred Revenues

Contract Acquisition Costs

Long-Term Contracts

customer for services completed to date and all future variable consideration is allocated to wholly unsatisfied performance obligations.

Capitalized Interest

Income Taxes

See Note 9 for discussion of our income taxes.

Contingent Liabilities

Supplemental Cash Flow Information

The following table shows supplemental cash flow information for the years ended December 31 (in millions):


	2019		2018		2017
Interest, net of capitalized interest	$	397	$	339	$	380
Income taxes		292		349		562

significant non-cash investing and financing activities. Non-cash investing and financing activities are generally excluded from the Consolidated Statements of Cash Flows.

Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2019

Accumulated Other Comprehensive Income (Loss)

Components of Accumulated Other Comprehensive Income (Loss), net of tax


					Foreign		Post-
			Available-		Currency		Retirement
	Derivative		for-Sale		Translation		Benefit
	Instruments		Securities		Adjustments		Obligations		Total
Balance, December 31, 2016	$	(40)	$	13	$	(47)	$	(6)	$	(80)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $1, respectively		—		3		76		3		82
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $5, $(1), $0 and $0, respectively		7		(1)		—		—		6
Net current period other comprehensive income (loss)		7		2		76		3		88
Balance, December 31, 2017	$	(33)	$	15	$	29	$	(3)	$	8
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $1, respectively		—		5		(105)		2		(98)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		—		—		8
Net current period other comprehensive income (loss)		8		5		(105)		2		(90)
Adoption of new accounting standard (a)		(7)		3		—		(1)		(5)
Balance, December 31, 2018	$	(32)	$	23	$	(76)	$	(2)	$	(87)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $5, $0 and $1, respectively		—		15		55		2		72
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $3, $0, $0 and $0, respectively		8		—		—		(1)		7
Net current period other comprehensive income (loss)		8		15		55		1		79
Balance, December 31, 2019	$	(24)	$	38	$	(21)	$	(1)	$	(8)

(a)	As of January 1, 2018, we adopted ASU 2018-02 and reclassified stranded tax effects to retained earnings.

Asset Impairments and Unusual Items - Details (Details) - USD ($) $ in Millions	3 Months Ended						12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Asset impairments		$ 16		$ 8			$ 42	$ 38	$ 41
Goodwill impairment charges	$ 27						27	6	34
Solid waste operations impairment	10	$ 7					15
(Gain) loss from divestitures, asset impairments and unusual items, net							42	(58)	(16)
Gain (loss) on sale of assets						$ 40		96	38
Increase (decrease) in contingent consideration							(6)
Investment impairment			$ 52				52
San Jacinto Waste Pits [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Revisions in estimate									11
Waste Diversion Technology Company [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Equity method investments impairment charges									29
Cost method investment impairment									11
Oil and Gas Well [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Gains from sale of oil and gas properties									31
Energy and Environmental Services [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Increase (decrease) in contingent consideration									(30)
Renewable Energy Assets [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Asset impairments									$ 7
Energy and Environmental Services [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Goodwill impairment charges	17						17
Lamp Tracker Reporting Unit [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Goodwill impairment charges	$ 10						10
Landfill [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Asset impairments					$ 29			30
Tier 1 [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Gain (loss) on sale of assets				$ 52				52
Other [Member]
Income Expense From Divestitures Asset Impairments And Unusual Items [Line Items]
Goodwill impairment charges							$ 27	6
Gain (loss) on sale of assets								$ 44

Leases - Maturities (Detail) - USD ($) $ in Millions	12 Months Ended
Leases - Maturities (Detail) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Leases
Operating lease cost	$ 132	$ 129	$ 134
Finance lease cost	48
Operating
2020	63
2021	58
2022	57
2023	51
2024	40
Thereafter	359
Total lease payments	628
Less: interest	(183)
Discounted lease liabilities	445
Operating leases not yet commenced	$ 26
Operating leases not yet commenced term	15 years
Financing
2020	$ 47
2021	45
2022	45
2023	44
2024	41
Thereafter	256
Total lease payments	478
Less: interest	(119)
Discounted lease liabilities	$ 359

Commitments and Contingencies - Obligations (Detail) $ in Millions	Dec. 31, 2019 USD ($)
Commitments and Contingencies.
Estimated minimum purchase obligation in 2020	$ 156
Estimated minimum purchase obligation in 2021	143
Estimated minimum purchase obligation in 2022	65
Estimated minimum purchase obligation in 2023	57
Estimated minimum purchase obligation in 2024	47
Estimated minimum purchase obligation in thereafter	$ 379

Quarterly Financial Data (Unaudited) - Information (Detail) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended							12 Months Ended
	May 31, 2019	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Information
Loss on investment					$ 3
Positive (negative) impact on earnings per share		$ (0.07)	$ (0.02)	$ (0.06)	$ (0.13)	$ 0.07	$ (0.05)	$ 0.07
Loss on early extinguishment of debt									$ (85)		$ (6)
Net pre-tax (gains) losses		$ 37		$ 32			$ 32
Gain (loss) on sale of assets								$ 40		$ 96	38
Impairment charges				16		$ 8			42	38	41
Business acquisition costs			$ 8	9
Solid waste operations impairment		10		$ 7					15
Goodwill impairment charges		27							27	6	34
Reduction in provision for income taxes due to tax audit settlements								$ (33)	(2)	(40)	$ (2)
Senior Notes, Aggregate [Member]
Quarterly Financial Information
Positive (negative) impact on earnings per share				$ (0.15)
Loss on early extinguishment of debt	$ 84			$ (84)
Early extinguishment of high-coupon senior notes	$ 257			$ 257
Energy and Environmental Services [Member]
Quarterly Financial Information
Goodwill impairment charges		17							17
Lamp Tracker Reporting Unit [Member]
Quarterly Financial Information
Goodwill impairment charges		$ 10							10
Landfill [Member]
Quarterly Financial Information
Impairment charges							$ 29			30
Advanced Disposal Services [Member]
Quarterly Financial Information
Positive (negative) impact on earnings per share		$ (0.07)
Net pre-tax (gains) losses		$ 38
Tax Implications [Member]
Quarterly Financial Information
Positive (negative) impact on earnings per share						$ 0.04	$ 0.06
Net reduction in income tax expense due to Tax Cuts and Jobs Act							$ (27)
Deferred tax adjustment						$ (17)
Tier 1 [Member]
Quarterly Financial Information
Gain (loss) on sale of assets						$ 52				52
Other [Member]
Quarterly Financial Information
Gain (loss) on sale of assets										44
Goodwill impairment charges									$ 27	$ 6

Debt - Covenants (Detail) - Revolving Credit Facility [Member] $ in Millions	12 Months Ended
	Dec. 31, 2019 USD ($)
Debt
Threshold aggregate consideration on acquisition	$ 200
Increased leverage ratio on achievement of acquisition	4.25
Maximum [Member]
Debt
Debt to EBITDA ratio	3.75