View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 27, 2020
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2020
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 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		422,461,187
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0000823768
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 2,663	$ 3,561
Accounts receivable, net of allowance for doubtful accounts of $46 and $28, respectively	1,888	1,949
Other receivables, net of allowance for doubtful accounts of $2 and $1, respectively	219	370
Parts and supplies	118	106
Other assets	218	223
Total current assets	5,106	6,209
Property and equipment, net of accumulated depreciation and amortization of $19,031 and $18,657, respectively	12,917	12,893
Goodwill	6,512	6,532
Other intangible assets, net	472	521
Restricted trust and escrow accounts	382	313
Investments in unconsolidated entities	439	483
Other assets	791	792
Total assets	26,619	27,743
Current liabilities:
Accounts payable	904	1,065
Accrued liabilities	1,184	1,327
Deferred revenues	494	534
Current portion of long-term debt	3,190	218
Total current liabilities	5,772	3,144
Long-term debt, less current portion	9,598	13,280
Deferred income taxes	1,367	1,407
Landfill and environmental remediation liabilities	2,030	1,930
Other liabilities	959	912
Total liabilities	19,726	20,673
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	5,040	5,049
Retained earnings	10,795	10,592
Accumulated other comprehensive income (loss)	(41)	(8)
Treasury stock at cost, 208,118,292 and 205,956,366 shares, respectively	(8,909)	(8,571)
Total Waste Management, Inc. stockholders' equity	6,891	7,068
Noncontrolling interests	2	2
Total equity	6,893	7,070
Total liabilities and equity	$ 26,619	$ 27,743

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
CONDENSED CONSOLIDATED BALANCE SHEETS
Allowance for doubtful accounts	$ 46	$ 28
Allowance for other receivables	2	1
Accumulated depreciation and amortization	$ 19,031	$ 18,657
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	208,118,292	205,956,366

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Operating revenues	$ 3,561	$ 3,946	$ 7,290	$ 7,642
Costs and expenses:
Operating	2,180	2,443	4,509	4,741
Selling, general and administrative	377	391	802	800
Depreciation and amortization	414	409	816	775
Restructuring	2		2	2
(Gain) loss from divestitures, asset impairments and unusual items, net	61	7	61	7
Total costs and expenses	3,034	3,250	6,190	6,325
Income from operations	527	696	1,100	1,317
Other income (expense):
Interest expense, net	(119)	(100)	(231)	(196)
Loss on early extinguishment of debt		(84)		(84)
Equity in net losses of unconsolidated entities	(14)	(16)	(40)	(25)
Other, net	1	1	1	(53)
Total other income (expense)	(132)	(199)	(270)	(358)
Income before income taxes	395	497	830	959
Income tax expense	88	115	162	230
Consolidated net income	307	382	668	729
Less: Net income (loss) attributable to noncontrolling interests		1		1
Net income attributable to Waste Management, Inc.	$ 307	$ 381	$ 668	$ 728
Basic earnings per common share	$ 0.73	$ 0.90	$ 1.58	$ 1.71
Diluted earnings per common share	$ 0.72	$ 0.89	$ 1.57	$ 1.70

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Consolidated net income	$ 307	$ 382	$ 668	$ 729
Other comprehensive income (loss), net of tax:
Derivative instruments, net	3	2	5	4
Available-for-sale securities, net	14	4	5	9
Foreign currency translation adjustments	34	25	(42)	53
Post-retirement benefit obligation, net	(1)		(1)	(1)
Other comprehensive income (loss), net of tax	50	31	(33)	65
Comprehensive income	357	413	635	794
Less: Comprehensive loss attributable to noncontrolling interests		1		1
Comprehensive income attributable to Waste Management, Inc.	$ 357	$ 412	$ 635	$ 793

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Consolidated net income	$ 668	$ 729
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	816	775
Deferred income tax benefit	(35)	(12)
Interest accretion on landfill liabilities	49	47
Provision for bad debts	36	19
Equity-based compensation expense	23	43
Net gain on disposal of assets	(7)	(5)
(Gain) loss from divestitures, asset impairments and other, net	68	78
Equity in net losses of unconsolidated entities, net of dividends	33	25
Loss on early extinguishment of debt		84
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	185	19
Other current assets	(1)	(5)
Other assets	14	4
Accounts payable and accrued liabilities	(171)	127
Deferred revenues and other liabilities	(57)	(28)
Net cash provided by operating activities	1,621	1,900
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	(1)	(440)
Capital expenditures	(895)	(1,049)
Proceeds from divestitures of businesses and other assets (net of cash divested)	15	20
Other, net	(37)	(96)
Net cash used in investing activities	(918)	(1,565)
Cash flows from financing activities:
New borrowings		3,971
Debt repayments	(705)	(385)
Premiums paid on early extinguishment of debt		(84)
Net commercial paper borrowings (repayments)		(1,001)
Common stock repurchase program	(402)	(248)
Cash dividends	(466)	(440)
Exercise of common stock options	42	45
Tax payments associated with equity-based compensation transactions	(34)	(30)
Other, net	(10)	(6)
Net cash provided by (used in) financing activities	(1,575)	1,822
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	(3)	2
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	(875)	2,159
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	3,647	183
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 2,772	$ 2,342

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019
Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:
Cash and cash equivalents	$ 2,663	$ 2,250
Restricted cash and cash equivalents included in other current assets	41	18
Restricted cash and cash equivalents included in restricted trust and escrow accounts	68	74
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$ 2,772	$ 2,342

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ 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, 2018	$ 6	$ 4,993	$ 9,797	$ (87)	$ (8,434)	$ 1	$ 6,276
Beginning balance, shares at Dec. 31, 2018	630,282				(206,299)
Equity roll forward
Consolidated net income			728			1	729
Other comprehensive income (loss), net of tax				65			65
Cash dividends declared			(440)				(440)
Equity-based compensation transactions, net		5	3		$ 74		82
Equity-based compensation transaction, shares					1,808
Common stock repurchase program		(36)			$ (208)		(244)
Common stock repurchase program, shares					(1,993)
Other, net						(1)	(1)
Other, net, shares					2
Ending balance at Jun. 30, 2019	$ 6	4,962	10,088	(22)	$ (8,568)	1	6,467
Ending balance, shares at Jun. 30, 2019	630,282				(206,482)
Beginning balance at Mar. 31, 2019	$ 6	4,978	9,924	(53)	$ (8,440)	2	6,417
Beginning balance, shares at Mar. 31, 2019	630,282				(205,556)
Equity roll forward
Consolidated net income			381			1	382
Other comprehensive income (loss), net of tax				31			31
Cash dividends declared			(217)				(217)
Equity-based compensation transactions, net		20			$ 16		36
Equity-based compensation transaction, shares					387
Common stock repurchase program		(36)			$ (144)		(180)
Common stock repurchase program, shares					(1,314)
Other, net						(2)	(2)
Other, net, shares					1
Ending balance at Jun. 30, 2019	$ 6	4,962	10,088	(22)	$ (8,568)	1	6,467
Ending balance, shares at Jun. 30, 2019	630,282				(206,482)
Beginning balance at Dec. 31, 2019	$ 6	5,049	10,592	(8)	$ (8,571)	2	7,070
Beginning balance, shares at Dec. 31, 2019	630,282				(205,956)
Ending balance at Mar. 31, 2020	$ 6	5,026	10,718	(91)	$ (8,916)	2	6,745
Ending balance, shares at Mar. 31, 2020	630,282				(208,287)
Beginning balance at Dec. 31, 2019	$ 6	5,049	10,592	(8)	$ (8,571)	2	7,070
Beginning balance, shares at Dec. 31, 2019	630,282				(205,956)
Equity roll forward
Consolidated net income			668				668
Other comprehensive income (loss), net of tax				(33)			(33)
Cash dividends declared			(466)				(466)
Equity-based compensation transactions, net		(9)	3		$ 64		58
Equity-based compensation transaction, shares					1,523
Common stock repurchase program					$ (402)		(402)
Common stock repurchase program, shares					(3,687)
Adoption of new accounting standard			(2)				(2)
Other, net, shares					2
Ending balance at Jun. 30, 2020	$ 6	5,040	10,795	(41)	$ (8,909)	2	6,893
Ending balance, shares at Jun. 30, 2020	630,282				(208,118)
Beginning balance at Mar. 31, 2020	$ 6	5,026	10,718	(91)	$ (8,916)	2	6,745
Beginning balance, shares at Mar. 31, 2020	630,282				(208,287)
Equity roll forward
Consolidated net income			307				307
Other comprehensive income (loss), net of tax				50			50
Cash dividends declared			(230)				(230)
Equity-based compensation transactions, net		14			$ 7		21
Equity-based compensation transaction, shares					169
Ending balance at Jun. 30, 2020	$ 6	$ 5,040	$ 10,795	$ (41)	$ (8,909)	$ 2	$ 6,893
Ending balance, shares at Jun. 30, 2020	630,282				(208,118)

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Cash dividends declared per common share	$ 0.545	$ 0.5125	$ 1.09	$ 1.025

Basis of Presentation

6 Months Ended

Jun. 30, 2020

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; its wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management, Inc. or its subsidiaries are the primary beneficiaries as described in Note 13. Waste Management, Inc. is a holding company and all operations are conducted by its subsidiaries. When the terms “the Company,” “we,” “us” or “our” are used in this document, those terms refer to Waste Management, Inc., 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 7.

The Condensed Consolidated Financial Statements as of June 30, 2020 and for the three and six months ended June 30, 2020 and 2019 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. The results for interim periods are not necessarily indicative of results for the entire year. The financial statements presented herein should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2019.

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. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.

Revenue Recognition

We generally recognize revenue as services are performed or products are delivered. For example, revenue typically is recognized as waste is collected, tons are received at our landfills or transfer stations, or recycling 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. 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 Condensed Consolidated Balance Sheet.

As of June 30, 2020 and December 31, 2019, we had $159 million and $153 million, respectively, of deferred contract costs, of which $117 million at each date was related to deferred sales incentives. During the three and six months ended June 30, 2020, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $3 million and $5 million of other contract acquisition costs as a reduction in revenue, respectively. During the three and six months ended June 30, 2019, we amortized $6 million and $11 million of sales incentives to selling, general and administrative expense, and $5 million and $11 million of other contract acquisition costs as a reduction in revenue, respectively.

Leases

Amounts for our operating lease right-of-use assets are recorded in long-term other assets in our Condensed Consolidated Balance Sheets. The current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets. Amounts for our financing leases are recorded in property and equipment, net of accumulated depreciation, and current or long-term debt in our Condensed Consolidated Balance Sheets, as appropriate.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within 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.

Adoption of New Accounting Standards

Financial Instruments-Credit Losses — In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13 associated with the measurement of credit losses on financial instruments. On January 1, 2020, we adopted this ASU using the modified retrospective transition method. The amended guidance replaced the previous 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 generally results in earlier recognition of an allowance for losses. We recognized a net $2 million after tax decrease to retained earnings as of January 1, 2020 for the cumulative impact of adopting the amended guidance.

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. 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.

For trade receivables the Company relies upon, among other factors, historical loss trends, the age of outstanding receivables, and existing as well as expected economic conditions. Due to the adoption of ASU 2016-13, we recognized a $1 million pre-tax decrease to our allowance for doubtful accounts on trade receivables. We determined that all of our trade receivables share similar risk characteristics. We monitor our credit exposure on an ongoing basis and assess whether assets in the pool continue to display similar risk characteristics.

In January 2020, a novel strain of coronavirus (“COVID-19”) was declared a Public Health Emergency of International Concern and subsequently declared a global pandemic in March 2020. Throughout the COVID-19 pandemic, the Company has proactively taken steps to put our employees’ and customers’ needs first and we continue to work with the appropriate regulatory agencies to ensure we can provide our essential waste services safely and efficiently. With this in mind, we have extended payment terms and postponed discontinuing service for customers who have been negatively impacted by the COVID-19 pandemic which has contributed to an increase in the aging of outstanding balances.

As of June 30, 2020, we had $1,888 million of trade receivables, net of allowance of $46 million. The allowance for doubtful accounts has increased by $18 million during 2020, largely due to the COVID-19 pandemic. Based on an aging analysis as of June 30, 2020, approximately 85% of our trade receivables were outstanding less than 60 days.

The following table reflects the activity in our allowance for doubtful accounts of trade receivables for the six months ended June 30 (in millions):


	2020		2019
Balance as of January 1,	$	28	$	29
Adoption of new accounting standard		(1)		—
Additions charged to expense		36		19
Accounts written-off, net of recoveries		(16)		(23)
Acquisitions, divestitures and other, net		(1)		3
Balance as of June 30,	$	46	$	28

For other receivables as well as loans and other instruments, the Company relies primarily on credit ratings and associated default rates based on the maturity of the instrument. All receivables, as well as other instruments, are adjusted for our expectation of future market conditions and trends. Due to the adoption of ASU 2016-13, we recognized a $4 million pre-tax increase to our allowance for doubtful accounts on notes and other receivables. As of June 30, 2020, we had $386 million of notes and other receivables, net of allowance of $4 million. Based on an aging analysis as of June 30, 2020, approximately 55% of our other receivables were due within 12 months or less.

Implementation Costs Incurred in a Cloud Computing Arrangement — In August 2018, the FASB issued ASU 2018-15 associated with a 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 as prepayments 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 Company adopted this amended guidance on January 1, 2020 prospectively, and it did not have a material impact on our consolidated financial statements.

Guarantor Financial Information — In March 2020, the SEC adopted final rules that simplify the disclosure requirements related to certain registered securities under SEC Regulation S-X, Rules 3-10 and 3-16, permitting registrants to provide certain alternative financial disclosures and non-financial disclosures in lieu of separate consolidating financial statements for subsidiary issuers and guarantors of registered debt securities (which we previously included within the notes to our financial statements included in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q) if certain conditions are met. The disclosure requirements, as amended, are now located in newly-created Rules 13-01 and 13-02 of Regulation S-X and are generally effective for filings on or after January 4, 2021, with early adoption permitted. We early adopted the new disclosure requirements effective as of April 1, 2020 and are providing the summarized financial information and related disclosures in Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations in this Form 10-Q.

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.

Landfill and Environmental Remediation Liabilities

6 Months Ended

Jun. 30, 2020

Landfill and Environmental Remediation Liabilities

Landfill and Environmental Remediation Liabilities

2. Landfill and Environmental Remediation Liabilities

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


	June 30, 2020						December 31, 2019
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	108	$	26	$	134	$	138	$	27	$	165
Long-term		1,814		216		2,030		1,717		213		1,930
	$	1,922	$	242	$	2,164	$	1,855	$	240	$	2,095

The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2020 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2019	$	1,855	$	240
Obligations incurred and capitalized		40		—
Obligations settled		(47)		(11)
Interest accretion		49		1
Revisions in estimates and interest rate assumptions (a) (b)		27		12
Acquisitions, divestitures and other adjustments		(2)		—
June 30, 2020	$	1,922	$	242

(a)

The amount reported for our landfill liabilities includes (i) a $10 million increase in estimated construction costs for capping at certain landfills and (ii) an increase of $8 million due to a business decision to close one of our landfills, which resulted in the acceleration of the expected timing of capping, closure and post-closure activities. This business decision also resulted in an impairment that is discussed in Note 9.

(b)	The amount reported for our environmental remediation liabilities includes an increase of $12 million due to a decrease in the risk-free discount rate used to measure our liabilities from 1.75% at December 31, 2019 to 0.75% at June 30, 2020.

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 Note 13 for additional information related to these trusts.

Debt and Interest Rate Derivatives

6 Months Ended

Jun. 30, 2020

Debt and Interest Rate Derivatives

Debt and Interest Rate Derivatives

3. Debt and Interest Rate Derivatives

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 June 30, 2020:


	June 30,		December 31,
	2020		2019
Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of June 30, 2020 and December 31, 2019)	$	9,365	$	9,965
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		368		385
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.1% to 4.3% (weighted average interest rate of 2.1% as of June 30, 2020 and 2.3% as of December 31, 2019)		2,471		2,523
Financing leases and other, maturing through 2071, weighted average interest rate of 4.75%		664		710
Debt issuance costs, discounts and other		(80)		(85)
		12,788		13,498
Current portion of long-term debt		3,190		218
	$	9,598	$	13,280

Debt Classification

May 2019 Senior Notes — As of June 30, 2020, we had $3.0 billion of senior notes due 2024, 2026, 2029 and 2039 with a special mandatory redemption feature (the “SMR Notes”). The SMR Notes were issued in May 2019 with the intention of paying a portion of the consideration related to our pending acquisition of Advanced Disposal Services, Inc. (“Advanced Disposal”), which is discussed further in Note 8. Pursuant to the terms of the SMR Notes, we were required to redeem all of such outstanding notes equal to 101% of the aggregate principal amounts of such notes, plus accrued but unpaid interest, as a result of the acquisition not being completed by July 14, 2020. Accordingly, on July 15, 2020, the Company provided notice of the special mandatory redemption, and the redemption was completed on July 20, 2020. As of June 30, 2020, we classified the SMR Notes, net of $22 million of related unamortized discounts and deferred issuance costs, as current obligations.

Other Debt — As of June 30, 2020, in addition to the SMR Notes, net of $22 million of related unamortized discounts and deferred issuance costs, discussed above, we had $1.3 billion of debt maturing within the next 12 months, including (i) $400 million of 4.60% senior notes that mature in March 2021; (ii) $734 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) $212 million of other debt with scheduled maturities within the next 12 months, including $106 million of tax-exempt bonds. As of June 30, 2020, we have classified $1.1 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 $212 million is classified as current obligations.

As of June 30, 2020, we also had $108 million of variable-rate tax-exempt bonds with long-term scheduled maturities supported by letters of credit under our $3.5 billion revolving credit facility. 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 the $108 million of variable-rate tax-exempt bonds with maturities of more than one year as long-term in our Condensed Consolidated Balance Sheet as of June 30, 2020.

Access to and Utilization of Credit Facilities and Commercial Paper Program

$3.5 Billion Revolving Credit Facility — Our $3.5 billion revolving credit facility provides us with credit capacity to be used for cash borrowings, to support letters of credit and to support our commercial paper program. The 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. As of June 30, 2020, we had no outstanding borrowings under this facility. We had $362 million of letters of credit issued which were supported by this facility, leaving unused and available credit capacity of $3.1 billion as of June 30, 2020. WM Holdings, a wholly-owned subsidiary of WM, guarantees all of the obligations under the $3.5 billion revolving credit facility.

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. As of June 30, 2020, we had no outstanding borrowings under our commercial paper program.

Other Letter of Credit Facilities — As of June 30, 2020, we utilized $528 million of other letter of credit facilities, which are both committed and uncommitted, with terms maturing through June 2021.

Debt Borrowings and Repayments

Senior Notes — During the six months ended June 30, 2020, we repaid $600 million of 4.75% senior notes that matured in June 2020 with available cash.

Canadian Senior Notes — The $17 million decrease during the six months ended June 30, 2020 is due to decreases in the Canadian currency translation rate.

Tax-Exempt Bonds — During the six months ended June 30, 2020, we repaid $52 million of our tax-exempt bonds with available cash.

Financing Leases and Other — The decrease during the six months ended June 30, 2020 is due to $53 million of cash repayments primarily related to our federal low-income housing investments, financing leases and other obligations, partially offset by an increase of $7 million associated with non-cash financing arrangements.

Interest Rate Derivatives

During the first half of 2020, we entered into treasury rate locks with a total notional value of $400 million to secure an underlying interest rate in anticipation of a debt issuance previously anticipated in the second quarter of 2020. We designated our treasury locks as cash flow hedges. In June 2020, we terminated these treasury rate locks and upon termination received $1 million in cash. We are now evaluating a potential debt issuance to occur during the second half of the year, subject to market conditions and other considerations. As we currently believe that a debt issuance in 2020 is still probable to occur, the gain associated with these treasury rate locks has been deferred as a component of “Accumulated other comprehensive income” and will be amortized to interest expense over the debt term once the issuance occurs.

All financial statement impacts associated with these financial hedges were immaterial as of and for the three and six months ended June 30, 2020. There was no significant ineffectiveness associated with our cash flow hedges during the

three or six months ended June 30, 2020. Refer to Note 10 for information regarding the impacts of our cash flow derivatives on our comprehensive income and results of operations.

Income Taxes

6 Months Ended

Jun. 30, 2020

Income Taxes

Income Taxes

4. Income Taxes

Our effective income tax rate was 22.2% and 19.5% for the three and six months ended June 30, 2020, respectively, compared with 23.3% and 24.0% for the three and six months ended June 30, 2019, respectively. The decrease in our effective income tax rate when comparing the current and prior year periods was primarily driven by (i) a decrease in pre-tax income in 2020, which increased the effective tax rate impact of our federal tax credits, and to a lesser extent; (ii) $52 million non-cash impairment charge recognized in 2019 that was not deductible for tax purposes and (iii) excess tax benefits associated with equity-based compensation, which were slightly higher in 2020 than in the prior year. These items are discussed further below. We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant.

Investments Qualifying for Federal Tax Credits — We have significant financial interests in entities established to invest in and manage low-income housing properties. 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 qualify for federal tax credits that we expect to realize through 2030 under Section 42 or Section 45D of the Internal Revenue Code. We also held a residual financial interest in an entity that owns a refined coal facility that qualified for federal tax credits under Section 45 of the Internal Revenue Code through 2019. The entity sold the majority of its assets in the first quarter of 2020, which resulted in a $7 million non-cash impairment of our investment at that time. We account for our investments in these entities using the equity method of accounting, recognizing our share of each entity’s results of operations and other reductions in the value of our investments in equity in net losses of unconsolidated entities within our Condensed Consolidated Statements of Operations.

During the three and six months ended June 30, 2020, we recognized $17 million and $43 million (including the $7 million impairment of the refined coal facility noted above for the six-month period) of net losses and a reduction in our income tax expense of $17 million and $41 million, respectively, primarily due to tax credits realized from these investments. In addition, during the three and six months ended June 30, 2020, we recognized interest expense of $3 million and $6 million, respectively, associated with our investments in low-income housing properties.

During the three and six months ended June 30, 2019, we recognized $12 million and $21 million of net losses and a reduction in our income tax expense of $18 million and $33 million, respectively, primarily due to tax credits realized from these investments. In addition, during the three and six months ended June 30, 2019, we recognized interest expense of $2 million and $4 million, respectively, associated with our investments in low-income housing properties.

See Note 13 for additional information related to these unconsolidated variable interest entities.

Equity-Based Compensation — During the three and six months ended June 30, 2020, we recognized a reduction in income tax expense of $2 million and $23 million, respectively, for excess tax benefits related to the vesting or exercise of equity-based compensation awards compared with $5 million and $17 million, respectively, for the comparable prior year periods.

Tax Implications of Impairments — We recognized a $52 million non-cash impairment charge in the first quarter of 2019 which was not deductible for tax purposes. The non-cash impairment charges recognized during the three and six months ended June 30, 2020 are deductible for tax purposes. See Note 9 for additional information related to the impairments.

Recent Legislation — On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted in response to the COVID-19 pandemic. The CARES Act contains numerous income tax provisions,

none of which directly affected our income tax expense for the three and six months ended June 30, 2020 or are expected to have a material impact on our income tax expense in future reporting periods. The Company is evaluating the impact of the CARES Act and expects to benefit from the deferral of certain payroll taxes through the end of calendar year 2020.

Earnings Per Share

6 Months Ended

Jun. 30, 2020

Earnings Per Share

Earnings Per Share

5. Earnings Per Share

Basic and diluted earnings per share were computed using the following common share data (shares in millions):


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Number of common shares outstanding at end of period	422.2	423.8	422.2	423.8
Effect of using weighted average common shares outstanding	0.1	1.0	1.0	0.8
Weighted average basic common shares outstanding	422.3	424.8	423.2	424.6
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.7	1.9	2.6
Weighted average diluted common shares outstanding	423.9	427.5	425.1	427.2
Potentially issuable shares	6.5	7.2	6.5	7.2
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	2.1	1.1	2.1	1.9

Commitments and Contingencies

6 Months Ended

Jun. 30, 2020

Commitments and Contingencies.

Commitments and Contingencies

6. 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 3. 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 as a result of COVID-19 or other economic factors. 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.

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

Guarantees — In the ordinary course of our business, WM and WM Holdings enter into guarantee agreements associated with their subsidiaries’ operations. Additionally, WM and WM Holdings have each guaranteed all of the senior debt of the other entity. No additional liabilities have been recorded for these intercompany guarantees because all of the underlying obligations are reflected in our Condensed Consolidated Balance Sheets.

As of June 30, 2020, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover certain market value losses for certain properties adjacent to or near 18 of our landfills. Additionally, in connection with the divestiture of our Wheelabrator business in 2014, we agreed to continue providing guarantees of certain of its operational and financial performance obligations. During the second quarter of 2020, we were released from the last outstanding guarantee and all outstanding guarantees have now been returned, replaced or expired by their terms. We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale. 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 believe that these contingent obligations will have a material adverse effect on the Company’s financial condition, results of operations or cash flows, and we do not expect the financial impact of operational and financial performance guarantees to materially exceed the recorded fair value.

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 potentially responsible party (“PRP”) investigations. The costs associated with these liabilities can include settlements, certain legal and consultant fees, as well as incremental internal and external costs directly associated with site investigation and clean-up.

Estimating our degree of responsibility for remediation is inherently difficult. We recognize and accrue for an estimated remediation liability when we determine that such liability is both probable and reasonably estimable. Determining the method and ultimate cost of remediation requires that a number of assumptions be made. There can sometimes be a range of reasonable estimates of the costs associated with the likely site remediation alternatives identified in the environmental impact investigation. In these cases, we use the amount within the range that is our best estimate. If no amount within a range appears to be a better estimate than any other, we use the amount that is the low end of such range. If we used the high ends of such ranges, our aggregate potential liability would be approximately $145 million higher than the $242 million recorded in the Condensed Consolidated Balance Sheet as of June 30, 2020. Our ultimate responsibility may differ materially from current estimates. It is possible that technological, regulatory or enforcement developments, the results of environmental studies, the inability to identify other PRPs, the inability of other PRPs to contribute to the settlements of such liabilities, or other factors could require us to record additional liabilities. Our ongoing review of our remediation liabilities, in light of relevant internal and external facts and circumstances, could result in revisions to our accruals that could cause upward or downward adjustments to our balance sheet and income from operations. These adjustments could be material in any given period.

As of June 30, 2020, 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 June 30, 2020 and December 31, 2019, the recorded liability for MIMC’s estimated potential share of the EPA’s proposed remedy and related costs was $56 million. 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 matters are disclosed in accordance with that requirement:

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 and 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 have agreed to resolve this matter through payment of a penalty, implementation of additional monitoring activities and revisions to waste acceptance protocols at the facility. The related Consent Decree is expected to become final in the third quarter of 2020. The outcome of this matter will not be material to the Company’s business, financial condition, results of operations or cash flows.

On November 25, 2019, the Georgia Department of Natural Resources, Environmental Protection Division, issued an NOV to Waste Management of Metro Atlanta, Inc., an indirect wholly-owned subsidiary of WM. The NOV alleges violations of Georgia environmental statutes and the related permits for Pine Bluff Landfill resulting from slope stability concerns at the landfill that are being remediated. On June 11, 2020, the parties resolved the matter through a Consent Order requiring payment of a penalty and the implementation of additional corrective actions, monitoring and reporting at the landfill. The outcome of this matter is not material to the Company’s business, financial condition, results of operations or cash flows.

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 trustee-managed multiemployer defined benefit pension plans (“Multiemployer Pension Plans”) for the covered employees. 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. During the first quarter of 2020, we recognized a $3 million charge to operating expenses for the withdrawal from an underfunded Multiemployer Pension Plan.

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 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 2020 tax years and expect these audits to be completed within the next 21 months. We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2014. We maintain a liability for uncertain tax positions, the balance of which management believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a material adverse effect on our financial condition, results of operations or cash flows.

Segment and Related Information

6 Months Ended

Jun. 30, 2020

Segment and Related Information

Segment and Related Information

7. 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 the fourth quarter of 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, divestitures, 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 condensed 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 the Southern California Area and the Florida Area, and also includes the New England Area and the tri-state Area of Michigan, Indiana and Ohio. Tier 2 includes California, Canada, and the Wisconsin and Minnesota Area. Tier 3 encompasses all the remaining operations including the Pacific Northwest, the Mid-Atlantic region of the U.S., the Florida Area, and the Illinois and Missouri Valley Area.

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 is shown in the following table (in millions):


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Three Months Ended June 30:
2020
Solid Waste:
Tier 1	$	1,418	$	(271)	$	1,147	$	316
Tier 2		897		(190)		707		182
Tier 3		1,453		(275)		1,178		222
Solid Waste		3,768		(736)		3,032		720
Other (a)		554		(25)		529		(10)
		4,322		(761)		3,561		710
Corporate and Other (b)		—		—		—		(183)
Total	$	4,322	$	(761)	$	3,561	$	527

2019
Solid Waste:
Tier 1	$	1,573	$	(293)	$	1,280	$	434
Tier 2		995		(199)		796		230
Tier 3		1,631		(311)		1,320		282
Solid Waste		4,199		(803)		3,396		946
Other (a)		580		(30)		550		(49)
		4,779		(833)		3,946		897
Corporate and Other (b)		—		—		—		(201)
Total	$	4,779	$	(833)	$	3,946	$	696


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Six Months Ended June 30:
2020
Solid Waste:
Tier 1	$	2,921	$	(551)	$	2,370	$	709
Tier 2		1,829		(388)		1,441		370
Tier 3		2,994		(569)		2,425		486
Solid Waste		7,744		(1,508)		6,236		1,565
Other (a)		1,108		(54)		1,054		(35)
		8,852		(1,562)		7,290		1,530
Corporate and Other (b)		—		—		—		(430)
Total	$	8,852	$	(1,562)	$	7,290	$	1,100

2019
Solid Waste:
Tier 1	$	3,026	$	(558)	$	2,468	$	832
Tier 2		1,899		(381)		1,518		430
Tier 3		3,139		(590)		2,549		552
Solid Waste		8,064		(1,529)		6,535		1,814
Other (a)		1,168		(61)		1,107		(67)
		9,232		(1,590)		7,642		1,747
Corporate and Other (b)		—		—		—		(430)
Total	$	9,232	$	(1,590)	$	7,642	$	1,317

(a)

“Other” includes (i) our Strategic Business Solutions (“WMSBS”) organization; (ii) those elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues managed by our Energy and Environmental Services (“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)

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. In 2020, we revised allocations between our segments including (i) the discontinuation of certain allocations from Corporate and Other to Solid Waste and (ii) allocating certain insurance costs from Other to Solid Waste. Reclassifications have been made to our prior period information for comparability purposes.

In the second quarter of 2020, we recognized $61 million of non-cash impairment charges, including $41 million related to our energy services assets in our Tier 1 segment. Refer to Note 9 for additional information. Our 2020 operating results were also negatively impacted by revenue declines in our landfill, industrial and commercial collection businesses beginning in March 2020 as a result of the COVID-19 pandemic.

The mix of operating revenues from our major lines of business are as follows (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Commercial	$	928	$	1,052	$	1,991	$	2,078
Residential		657		655		1,307		1,295
Industrial		625		744		1,318		1,424
Other collection		115		122		227		231
Total collection		2,325		2,573		4,843		5,028
Landfill		874		1,023		1,761		1,887
Transfer		439		474		880		886
Recycling		275		264		529		555
Other (a)		409		445		839		876
Intercompany (b)		(761)		(833)		(1,562)		(1,590)
Total	$	3,561	$	3,946	$	7,290	$	7,642

(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 for our Solid Waste business, net of intercompany activity. Activity related to collection, landfill, transfer and recycling within “Other” has been reclassified to the appropriate line of business for purposes of the presentation in this table.

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

Fluctuations in our operating results may be caused by many factors, including period-to-period changes in the relative contribution of revenue by each line of business, changes in commodity prices and general economic conditions. Typically, our revenues and income from operations reflect seasonal patterns. Our operating revenues tend to be somewhat higher in summer months, primarily due to the 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 2020 operating results were negatively impacted by COVID-19, as volumes declined beginning in March 2020 and continued through the second quarter in our landfill, industrial and commercial collection businesses, due to steps taken by national and local governments to slow the spread of the virus, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing. For customers negatively impacted by the COVID-19 pandemic, we have proactively waived and suspended certain ancillary service charges, deferred certain annual price increases, extended payment terms and adjusted customer service levels. Additionally, for qualifying small and medium businesses, we have provided customers with one-month of free service upon re-opening. While the customer-centric steps have also contributed to this revenue decline, these impacts have been relatively immaterial.

Service disruptions caused by severe storms, extended periods of inclement weather or climate extremes resulting from climate change can significantly affect the operating results of the Areas affected. On the other hand, certain destructive weather and climate conditions, such as wildfires in the Western U.S. and hurricanes that most often impact

our operations in the Southern and Eastern U.S. during the second half of the year, can increase our revenues in the Areas affected as a result of the waste volumes generated by these events. While weather-related and other event driven special projects can boost revenues through additional work for a limited time, as a result of significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins.

Acquisitions

6 Months Ended

Jun. 30, 2020

Acquisitions

Acquisitions

8. Acquisitions

Pending Acquisition

Advanced Disposal — 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 at the time of $4.9 billion when including approximately $1.9 billion of Advanced Disposal’s net debt. On June 24, 2020, we entered into an amendment to the Agreement and Plan of Merger (as amended, the “Merger Agreement”), pursuant to which a subsidiary of WM will acquire all outstanding shares of Advanced Disposal for $30.30 per share in cash, representing a total enterprise value of $4.6 billion when including approximately $1.8 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. We currently expect the acquisition to close by the end of the third quarter of 2020. The Merger Agreement provides that the Company and Advanced Disposal will have a mutual right to terminate the Merger Agreement after September 30, 2020 if the closing has not occurred, and that date will automatically extend to November 30, 2020 under certain circumstances.

On June 24, 2020, we also announced that we and Advanced Disposal have entered into an agreement, whereby GFL Environmental will acquire a combination of assets from us and Advanced Disposal for $835 million to address substantially all of the divestitures expected to be required by the U.S. Department of Justice in connection with the Advanced Disposal acquisition. As with the Advanced Disposal acquisition, the sale of assets to GFL Environmental remains subject to clearance from the U.S. Department of Justice and is also conditioned on the closing of our acquisition of Advanced Disposal.

2019 Acquisition

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 was funded with borrowings under our commercial paper program and the acquisition accounting for this transaction was finalized in 2019. The operating results of the acquired business did not have a material impact to our consolidated financial statements for the periods presented herein. Given the significant change in energy market dynamics from the time of the acquisition, we have seen a decline in the fair value of certain of these assets from the time of acquisition. The impairment recognized during the three months ended June 30, 2020 is discussed further in Note 9.

Asset Impairments and Unusual Items

6 Months Ended

Jun. 30, 2020

Asset Impairments and Unusual Items

Asset Impairments and Unusual Items

9. Asset Impairments and Unusual Items

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

During the second quarter of 2020, we recognized non-cash impairment charges of $61 million primarily related to the following:

Energy Services Asset Impairments— During the second quarter of 2020, the Company tested the recoverability of certain energy services assets in our Tier 1 segment. Indicators of impairment included (i) the sharp downturn in oil demand that has led to a significant decline in oil prices and production activities, which we project will have long-term impacts on the utilization of our assets and (ii) significant shifts in our business, including increases in competition and customers choosing to bury waste on site versus in a landfill, reducing our revenue outlook. The Company determined that the carrying amount of the asset group was not fully recoverable. As a result, we recognized $41 million of non-cash impairment charges primarily related to two landfills and an oil field waste injection facility in our Tier 1 segment. We wrote down the net book value of these assets to their estimated fair value using an income approach based on estimated future cash flow projections (Level 3). The aggregate fair value of the impaired asset group was $8 million as of June 30, 2020. The Company tested the recoverability of an additional $239 million in energy services assets and determined that the carrying amount was recoverable as of June 30, 2020.

Other Impairments — In addition to the energy services impairments noted above, we recognized a $20 million non-cash impairment charge in our Tier 3 segment due to management’s decision to close a landfill once its constructed airspace is filled and abandon any remaining permitted airspace, which was considered an impairment indicator. As the carrying value was not recoverable, we wrote off the entire net book value of the asset using an income approach based on estimated future cash flow projections (Level 3). The impairment charge was comprised of $12 million related to the carrying value of the asset and $8 million related to the acceleration of the expected timing of capping, closure and post-closure activities, which is discussed further in Note 2.

Equity in Net Losses of Unconsolidated Entities

During the first quarter of 2020, we recorded a non-cash impairment charge of $7 million related to our investment in a refined coal facility which is discussed further in Notes 4 and 13. The fair value of our investment was not readily determinable; thus, we determined the fair value using management assumptions pertaining to investment value (Level 3).

Other, Net

During the first quarter of 2019, we recognized a $52 million non-cash 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 a third-party investor’s transactions in these securities. 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).

Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2020

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

10. 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 Waste Management, Inc. stockholders’ equity, are as follows (in millions, with amounts in parentheses representing decreases to accumulated other comprehensive income):


					Foreign		Post-
			Available-		Currency		Retirement
	Derivative		for-Sale		Translation		Benefit
	Instruments		Securities		Adjustments(a)		Obligations		Total
December 31, 2019	$	(24)	$	38	$	(21)	$	(1)	$	(8)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $0, respectively		1		5		(42)		—		(36)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $1, $0, $0 and $0, respectively		4		—		—		(1)		3
Net current period other comprehensive income (loss)		5		5		(42)		(1)		(33)
June 30, 2020	$	(19)	$	43	$	(63)	$	(2)	$	(41)

(a)	Foreign currency translation adjustments were impacted by a decrease in the Canadian/U.S. dollar exchange rate from 0.7698 at December 31, 2019 to 0.7366 at June 30, 2020.

We had interest rate derivatives outstanding during the first half of 2020, which were classified as a cash flow hedges and are discussed further in Note 3. In June 2020, we terminated these treasury rate locks and received $1 million in cash. We are now evaluating a potential debt issuance to occur during the second half of the year, subject to market conditions and other considerations. As we currently believe that a debt issuance in 2020 is still probable to occur, the gain associated with these treasury rate locks has been deferred as a component of “Accumulated other comprehensive income” and will be amortized to interest expense over the debt term once the issuance occurs. We had no active derivatives outstanding during 2019. Amounts reclassified out of accumulated other comprehensive income (loss) associated with our previously terminated cash flow hedges were not material for the periods presented.

Common Stock Repurchase Program

6 Months Ended

Jun. 30, 2020

Capital Stock, Dividends and Common Stock Repurchase Program

Common Stock Repurchase Program

11. Common Stock Repurchase Program

The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors. In February 2020, we entered into an accelerated share repurchase (“ASR”) agreement to repurchase $313 million of our common stock. At the beginning of the repurchase period, we delivered $313 million cash and received 2.0 million shares based on a stock price of $125.75. The ASR agreement completed in March 2020, at which time we received 0.8 million additional shares based on a final weighted average price of $111.78.

During the first quarter of 2020, we also began repurchasing shares of our common stock in open market transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act. This repurchase program ended on March 27, 2020 and we repurchased 0.9 million shares. Cash paid for these share repurchases was $89 million, inclusive of per-share commissions, which represents a weighted average price per share of $99.96.

As of June 30, 2020, the Company has authorization for $918 million of future share repurchases. To enhance our liquidity position in response to COVID-19, we elected to temporarily suspend additional share repurchases for the foreseeable future. Any future share repurchases pursuant to this authorization of our Board of Directors 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.

Fair Value Measurements

6 Months Ended

Jun. 30, 2020

Fair Value Measurements

Fair Value Measurements

12. Fair Value Measurements

Assets and Liabilities Accounted for at Fair Value

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):


	June 30,		December 31,
	2020		2019
Fair Value Measurements Using:
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	2,616	$	3,527
Significant other observable inputs (Level 2):
Available-for-sale securities (a)		397		350
Significant unobservable inputs (Level 3):
Redeemable preferred stock (b)		49		49
Total Assets	$	3,062	$	3,926

(a)	Our available-for-sale securities generally mature over the next nine years.

(b)

When available, Level 3 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.

See Note 9 for information related to our nonrecurring fair value measurements and the impact of impairments.

Fair Value of Debt

As of June 30, 2020 and December 31, 2019, the carrying value of our debt was $12.8 billion and $13.5 billion, respectively. The estimated fair value of our debt was approximately $13.9 billion and $14.5 billion as of June 30, 2020 and December 31, 2019, respectively.

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. Furthermore, the fair value of debt instruments measured as of June 30, 2020 is particularly susceptible to variability from future measurements of fair value given elevated volatility in key market factors due to the impact the COVID-19 pandemic is having on financial markets. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. The fair value estimates are based on Level 2 inputs of the fair value hierarchy available as of June 30, 2020 and December 31, 2019. 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

Variable Interest Entities

6 Months Ended

Jun. 30, 2020

Variable Interest Entities

Variable Interest Entities

13. 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 $260 million and $309 million as of June 30, 2020 and December 31, 2019, respectively. The debt balance related to our investments in low-income housing properties was $240 million and $269 million as of June 30, 2020 and December 31, 2019, respectively. During the first quarter of 2020, the entity which holds the investment in the refined coal facility sold the majority of its assets, which resulted in a $7 million non-cash impairment of our investment. Additional information related to these investments is discussed in Note 4.

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

Unconsolidated Variable Interest Entities — 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 Condensed 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 $99 million and $101 million as of June 30, 2020 and December 31, 2019, 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 Condensed 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 $110 million and $109 million as of June 30, 2020 and December 31, 2019, respectively.

Subsequent Event

6 Months Ended

Jun. 30, 2020

Subsequent Event

Subsequent Event

14. Subsequent Events

On July 20, 2020, we fulfilled our redemption obligations with respect to the SMR Notes using available cash on hand and, to a lesser extent, commercial paper borrowings. The cash paid includes the $3.0 billion principal amount of debt redeemed, $30 million of related premiums and $8 million of accrued interest. As of June 30, 2020, we had approximately $22 million of unamortized discounts and deferred issuance costs related to the SMR Notes. The $30 million of premiums paid and $22 million of unamortized discounts and deferred issuance costs will be included in the calculation of our expected loss on early extinguishment of debt in our Consolidated Statement of Operations in the third quarter of 2020.

On July 28, 2020, we entered into a supplemental 364-day, $3.0 billion U.S. revolving credit facility maturing July 27, 2021, which will be used for general corporate purposes, including funding a portion of the Advanced Disposal acquisition and refinancing of indebtedness, and to provide working capital. The facility provides the Company the option to convert outstanding balances into a term loan maturing no later than the first anniversary of the maturity date, subject to the payment of a fee and notifying the administrative agent at least 15 days prior to the original maturity date. WM Holdings, a wholly-owned subsidiary of WM, guarantees all the obligations under the $3.0 billion revolving credit facility. The rates we pay for outstanding loans are generally based on LIBOR, 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 ranges from 1.0% to 1.3%. Based on our current ratings, the rate which we expect to pay will be LIBOR plus 1.225%.

Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2020

Basis of Presentation

Basis of Presentation

Revenue Recognition

Contract Acquisition Costs

Leases

Concentrations of Credit Risk

Adoption of New Accounting Standards and New Accounting Standard Pending Adoption

Adoption of New Accounting Standards

The following table reflects the activity in our allowance for doubtful accounts of trade receivables for the six months ended June 30 (in millions):


	2020		2019
Balance as of January 1,	$	28	$	29
Adoption of new accounting standard		(1)		—
Additions charged to expense		36		19
Accounts written-off, net of recoveries		(16)		(23)
Acquisitions, divestitures and other, net		(1)		3
Balance as of June 30,	$	46	$	28

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.

Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2020

Basis of Presentation

Summary of allowance for doubtful accounts


	2020		2019
Balance as of January 1,	$	28	$	29
Adoption of new accounting standard		(1)		—
Additions charged to expense		36		19
Accounts written-off, net of recoveries		(16)		(23)
Acquisitions, divestitures and other, net		(1)		3
Balance as of June 30,	$	46	$	28

Landfill and Environmental Remediation Liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Landfill and Environmental Remediation Liabilities

Liabilities for Landfill and Environmental Remediation Costs

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


	June 30, 2020						December 31, 2019
			Environmental						Environmental
	Landfill		Remediation		Total		Landfill		Remediation		Total
Current (in accrued liabilities)	$	108	$	26	$	134	$	138	$	27	$	165
Long-term		1,814		216		2,030		1,717		213		1,930
	$	1,922	$	242	$	2,164	$	1,855	$	240	$	2,095

Changes to Landfill and Environmental Remediation Liabilities

The changes to landfill and environmental remediation liabilities for the six months ended June 30, 2020 are reflected in the table below (in millions):


			Environmental
	Landfill		Remediation
December 31, 2019	$	1,855	$	240
Obligations incurred and capitalized		40		—
Obligations settled		(47)		(11)
Interest accretion		49		1
Revisions in estimates and interest rate assumptions (a) (b)		27		12
Acquisitions, divestitures and other adjustments		(2)		—
June 30, 2020	$	1,922	$	242

(a)

(b)	The amount reported for our environmental remediation liabilities includes an increase of $12 million due to a decrease in the risk-free discount rate used to measure our liabilities from 1.75% at December 31, 2019 to 0.75% at June 30, 2020.

Debt and Interest Rate Derivatives (Tables)

6 Months Ended

Jun. 30, 2020

Debt and Interest Rate Derivatives

Components of Debt


	June 30,		December 31,
	2020		2019
Senior notes, maturing through 2049, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 3.9% as of June 30, 2020 and December 31, 2019)	$	9,365	$	9,965
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6%		368		385
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.1% to 4.3% (weighted average interest rate of 2.1% as of June 30, 2020 and 2.3% as of December 31, 2019)		2,471		2,523
Financing leases and other, maturing through 2071, weighted average interest rate of 4.75%		664		710
Debt issuance costs, discounts and other		(80)		(85)
		12,788		13,498
Current portion of long-term debt		3,190		218
	$	9,598	$	13,280

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2020

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 (shares in millions):


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2020	2019	2020	2019
Number of common shares outstanding at end of period	422.2	423.8	422.2	423.8
Effect of using weighted average common shares outstanding	0.1	1.0	1.0	0.8
Weighted average basic common shares outstanding	422.3	424.8	423.2	424.6
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.7	1.9	2.6
Weighted average diluted common shares outstanding	423.9	427.5	425.1	427.2
Potentially issuable shares	6.5	7.2	6.5	7.2
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	2.1	1.1	2.1	1.9

Segment and Related Information (Tables)

6 Months Ended

Jun. 30, 2020

Segment and Related Information

Reportable Segments


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Three Months Ended June 30:
2020
Solid Waste:
Tier 1	$	1,418	$	(271)	$	1,147	$	316
Tier 2		897		(190)		707		182
Tier 3		1,453		(275)		1,178		222
Solid Waste		3,768		(736)		3,032		720
Other (a)		554		(25)		529		(10)
		4,322		(761)		3,561		710
Corporate and Other (b)		—		—		—		(183)
Total	$	4,322	$	(761)	$	3,561	$	527

2019
Solid Waste:
Tier 1	$	1,573	$	(293)	$	1,280	$	434
Tier 2		995		(199)		796		230
Tier 3		1,631		(311)		1,320		282
Solid Waste		4,199		(803)		3,396		946
Other (a)		580		(30)		550		(49)
		4,779		(833)		3,946		897
Corporate and Other (b)		—		—		—		(201)
Total	$	4,779	$	(833)	$	3,946	$	696


	Gross		Intercompany		Net		Income
	Operating		Operating		Operating		from
	Revenues		Revenues(c)		Revenues		Operations(d)
Six Months Ended June 30:
2020
Solid Waste:
Tier 1	$	2,921	$	(551)	$	2,370	$	709
Tier 2		1,829		(388)		1,441		370
Tier 3		2,994		(569)		2,425		486
Solid Waste		7,744		(1,508)		6,236		1,565
Other (a)		1,108		(54)		1,054		(35)
		8,852		(1,562)		7,290		1,530
Corporate and Other (b)		—		—		—		(430)
Total	$	8,852	$	(1,562)	$	7,290	$	1,100

2019
Solid Waste:
Tier 1	$	3,026	$	(558)	$	2,468	$	832
Tier 2		1,899		(381)		1,518		430
Tier 3		3,139		(590)		2,549		552
Solid Waste		8,064		(1,529)		6,535		1,814
Other (a)		1,168		(61)		1,107		(67)
		9,232		(1,590)		7,642		1,747
Corporate and Other (b)		—		—		—		(430)
Total	$	9,232	$	(1,590)	$	7,642	$	1,317

(a)

(b)

(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)

Summary of operating revenues mix

The mix of operating revenues from our major lines of business are as follows (in millions):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Commercial	$	928	$	1,052	$	1,991	$	2,078
Residential		657		655		1,307		1,295
Industrial		625		744		1,318		1,424
Other collection		115		122		227		231
Total collection		2,325		2,573		4,843		5,028
Landfill		874		1,023		1,761		1,887
Transfer		439		474		880		886
Recycling		275		264		529		555
Other (a)		409		445		839		876
Intercompany (b)		(761)		(833)		(1,562)		(1,590)
Total	$	3,561	$	3,946	$	7,290	$	7,642

(a)

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

Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2020

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(a)		Obligations		Total
December 31, 2019	$	(24)	$	38	$	(21)	$	(1)	$	(8)
Other comprehensive income (loss) before reclassifications, net of tax expense (benefit) of $0, $2, $0 and $0, respectively		1		5		(42)		—		(36)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax (expense) benefit of $1, $0, $0 and $0, respectively		4		—		—		(1)		3
Net current period other comprehensive income (loss)		5		5		(42)		(1)		(33)
June 30, 2020	$	(19)	$	43	$	(63)	$	(2)	$	(41)

(a)	Foreign currency translation adjustments were impacted by a decrease in the Canadian/U.S. dollar exchange rate from 0.7698 at December 31, 2019 to 0.7366 at June 30, 2020.

Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Measurements

Fair Value of Assets and Liabilities Measured on Recurring Basis

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):


	June 30,		December 31,
	2020		2019
Fair Value Measurements Using:
Quoted prices in active markets (Level 1):
Cash equivalents and money market funds	$	2,616	$	3,527
Significant other observable inputs (Level 2):
Available-for-sale securities (a)		397		350
Significant unobservable inputs (Level 3):
Redeemable preferred stock (b)		49		49
Total Assets	$	3,062	$	3,926

(a)	Our available-for-sale securities generally mature over the next nine years.

(b)

Basis of Presentation (Detail)	6 Months Ended
Basis of Presentation (Detail)	Jun. 30, 2020 segment
Solid Waste [Member]
Segment Reporting Information [Line Items]
Number of areas	17

Basis of Presentation - Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Contract Acquisition Costs
Deferred contract costs	$ 159		$ 159		$ 153
Minimum [Member]
Contract Acquisition Costs
Deferred revenue recognition period			1 month
Contract amortization period	5 years		5 years
Maximum [Member]
Contract Acquisition Costs
Deferred revenue recognition period			3 months
Contract amortization period	13 years		13 years
Selling, General and Administrative Expenses [Member]
Contract Acquisition Costs
Deferred contract costs amortization	$ 6	$ 6	$ 11	$ 11
Reduction to Sales [Member]
Contract Acquisition Costs
Deferred contract costs amortization	3	$ 5	5	$ 11
Deferred Sales Incentives [Member]
Contract Acquisition Costs
Deferred contract costs	$ 117		$ 117

Basis of Presentation - Credit loss adoption (Detail) - USD ($) $ in Millions		6 Months Ended
	Jan. 01, 2020	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Adoption of new accounting standard		$ (2)
Allowance for doubtful accounts		46	$ 28	$ 28	$ 29
Accounting Standards Update 2016-13 [Member] \| Adjustment [Member]
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Adoption of new accounting standard	$ (2)
Allowance for doubtful accounts	$ (1)	$ (1)

Basis of Presentation - Credit loss (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jan. 01, 2020	Dec. 31, 2019
Revenue, Initial Application Period Cumulative Effect Transition [Line Items]
Accounts receivable, net of allowance	$ 1,888			$ 1,949
Total allowance increase (decrease)	$ 18
Receivables outstanding less than 60 days (as a percent)	85.00%
Threshold period to measure receivables	60 days
Allowance activity
Allowance for doubtful accounts, beginning balance	$ 28	$ 29
Additions charged to expense	36	19
Accounts written-off, net of recoveries	(16)	(23)
Acquisitions, divestitures and other, net	(1)	3
Allowance for doubtful accounts, ending balance	46	$ 28
Notes and other receivables, current and noncurrent	386
Allowance for notes and other receivables, current and noncurrent	$ 4
Receivables classified as current (as a percent)	55.00%
Accounting Standards Update 2016-13 [Member] \| Adjustment [Member]
Allowance activity
Allowance for doubtful accounts, ending balance	$ (1)
Allowance for notes and other receivables, current and noncurrent			$ 4

Landfill and Environmental Remediation Liabilities - Summary (Detail) - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Landfill and environmental remediation liabilities
Total, Environmental Remediation	$ 242
Current (in accrued liabilities)	134	$ 165
Long-term	2,030	1,930
Total	2,164	2,095
Landfill [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Landfill	108	138
Long-term, Landfill	1,814	1,717
Total, Landfill	1,922	1,855
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Current (in accrued liabilities), Environmental Remediation	26	27
Long-term, Environmental Remediation	216	213
Total, Environmental Remediation	$ 242	$ 240

Landfill and Environmental Remediation Liabilities - Changes (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Landfill and environmental remediation liabilities
Interest accretion	$ 49	$ 47
Ending balance, environmental remediation	242
Landfill [Member]
Landfill and environmental remediation liabilities
Beginning balance, landfill	1,855
Obligations incurred and capitalized	40
Obligations settled	(47)
Interest accretion	49
Revisions in estimates and interest rate assumptions	27
Acquisitions, divestitures and other adjustments	(2)
Ending balance, landfill	1,922
Asset retirement obligation revision of estimate increase (decrease) related to estimated capping activities	10
Asset retirement obligation, increase (decrease) related to landfill closure	8
Environmental Remediation Liabilities [Member]
Landfill and environmental remediation liabilities
Beginning balance, environmental remediation	240
Obligations settled	(11)
Interest accretion	1
Revisions in estimates and interest rate assumptions	12
Ending balance, environmental remediation	242
Increase (decrease) operating expenses due to change in discount rate	$ 12
Risk-free discount rate of the obligations	0.75%		1.75%

Debt and Interest Rate Derivatives - Components of Debt (Detail) $ in Millions, $ in Millions	Jun. 30, 2020 USD ($)	Jun. 30, 2020 CAD ($)	Dec. 31, 2019 USD ($)
Debt
Debt	$ 12,788		$ 13,498
Debt issuance costs, discounts and other	(80)		(85)
Current portion of long-term debt	3,190		218
Long-term debt, less current portion	9,598		13,280
Senior Notes, Aggregate [Member]
Debt
Debt	$ 9,365		$ 9,965
Weighted average interest rate	3.90%	3.90%	3.90%
Canadian Senior Notes [Member]
Debt
Debt	$ 368	$ 500	$ 385
Interest rate (as a percent)	2.60%	2.60%
Tax Exempt Bonds [Member]
Debt
Debt	$ 2,471		$ 2,523
Current portion of long-term debt	$ 106
Weighted average interest rate	2.10%	2.10%	2.30%
Financing leases and other [Member]
Debt
Debt	$ 664		$ 710
Current portion of long-term debt	$ 212
Weighted average interest rate	4.75%	4.75%
Minimum [Member] \| Senior Notes, Aggregate [Member]
Debt
Interest rate (as a percent)	2.40%	2.40%
Minimum [Member] \| Tax Exempt Bonds [Member]
Debt
Interest rate (as a percent)	0.10%	0.10%
Maximum [Member] \| Senior Notes, Aggregate [Member]
Debt
Interest rate (as a percent)	7.75%	7.75%
Maximum [Member] \| Tax Exempt Bonds [Member]
Debt
Interest rate (as a percent)	4.30%	4.30%

Debt and Interest Rate Derivatives - Debt classification and Utilization (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Debt
Debt issuance costs, discounts and other	$ 80	$ 85
Debt maturing or subject to remarketing within twelve months	1,300
Current portion of long-term debt	3,190	$ 218
Senior Notes, Mandatory Redemption Feature [Member]
Debt
Debt instrument face amount	$ 3,000
Redemption price percentage	101.00%
Debt issuance costs, discounts and other	$ 22
4.60% senior notes due March 2021 [Member]
Debt
Debt instrument face amount	$ 400
Interest rate (as a percent)	4.60%
Tax Exempt Bonds [Member]
Debt
Debt with interest rate periods that expire in the next 12 months	$ 734
Current portion of long-term debt	106
Debt maturing or subject to remarketing within twelve months classified as long-term	1,100
Variable-rate tax-exempt bonds	108
Variable-rate tax-exempt bonds, non-current	$ 108
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.10%
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	$ 212
$3.5 billion revolving credit facility [Member]
Debt
Outstanding borrowings under credit facility	0
Letters of credit outstanding	362
Maximum capacity	3,500
Unused and available credit capacity	3,100
Commercial Paper Program [Member]
Debt
Commercial paper, borrowings	$ 0
Debt term	397 days
Other Letter Of Credit Facilities [Member]
Debt
Letters of credit outstanding	$ 528

Debt and Interest Rate Derivatives - Borrowings and Repayments (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Debt
Debt repayments	$ 705	$ 385
New borrowings		$ 3,971
4.75% senior notes due June 2020 [Member]
Debt
Debt repayments	$ 600
Interest rate (as a percent)	4.75%
Canadian Senior Notes [Member]
Debt
Interest rate (as a percent)	2.60%
Foreign currency transaction gain (loss)	$ (17)
Tax Exempt Bonds [Member]
Debt
Debt repayments	$ 52
Tax Exempt Bonds [Member] \| Minimum [Member]
Debt
Interest rate (as a percent)	0.10%
Tax Exempt Bonds [Member] \| Maximum [Member]
Debt
Interest rate (as a percent)	4.30%
Financing leases and other [Member]
Debt
Debt repayments	$ 53
Non-cash financing lease incurred	$ 7

Debt and Interest Rate Derivatives - Interest rate derivative (Details) - Treasury rate lock [Member] $ in Millions	1 Months Ended
	Jun. 30, 2020 USD ($)
Debt Instrument [Line Items]
Interest rate liability derivative notional amount	$ 400
Cash received on derivative	$ 1

Income Taxes - Quarter information (Detail) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Taxes
Effective tax rate of income (loss) before income taxes	22.20%		23.30%		19.50%	24.00%
Equity in net losses of unconsolidated entities	$ 14		$ 16		$ 40	$ 25
Excess tax benefits associated with equity-based compensation	2		5		23	17
Investment impairment				$ 52
Asset impairments	61
Landfill [Member]
Income Taxes
Asset impairments	20
Investments Qualifying for Federal Tax Credits [Member]
Income Taxes
Equity in net losses of unconsolidated entities	17		12		43	21
Income tax (expense) benefit, including tax credits, from equity method investment	17		18		41	33
Interest expense	$ 3		$ 2		6	$ 4
Refined Coal Facility [Member]
Income Taxes
Equity method investments impairment charges		$ 7			$ 7

Earnings Per Share (Detail) - shares shares in Millions	3 Months Ended		6 Months Ended
Earnings Per Share (Detail) - shares shares in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share
Number of common shares outstanding at end of period	422.2	423.8	422.2	423.8
Effect of using weighted average common shares outstanding	0.1	1.0		0.8
Net reduction, Effect of using weighted average common shares outstanding			1.0
Weighted average basic common shares outstanding	422.3	424.8	423.2	424.6
Dilutive effect of equity-based compensation awards and other contingently issuable shares	1.6	2.7	1.9	2.6
Weighted average diluted common shares outstanding	423.9	427.5	425.1	427.2
Potentially issuable shares	6.5	7.2	6.5	7.2
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding	2.1	1.1	2.1	1.9

Commitments and Contingencies - Quarter (Details)	3 Months Ended	6 Months Ended
Commitments and Contingencies - Quarter (Details)	Mar. 31, 2020 USD ($)	Jun. 30, 2020 USD ($) item site	Dec. 31, 2019 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		$ 145,000,000
Environmental remediation liabilities		$ 242,000,000
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		21 months
San Jacinto Waste Pits [Member]
Commitments And Contingencies [Line Items]
Environmental remediation liabilities			$ 56,000,000
Withdrawal from Multiemployer Pension Plans [Member]
Commitments And Contingencies [Line Items]
Charge to "Operating" expenses	$ 3,000,000
$3.5 billion revolving credit facility [Member]
Commitments And Contingencies [Line Items]
Credit Facility, aggregate capacity		$ 3,500,000,000

Segment and Related Information - Information (Detail) - Solid Waste [Member]	6 Months Ended
	Jun. 30, 2020 segment
Segment Reporting Information [Line Items]
Number of areas	17
Number of reportable segments	3

Segment and Related Information - Summary (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Operating revenues	$ 3,561	$ 3,946	$ 7,290	$ 7,642
Income from operations	527	696	1,100	1,317
Asset impairments	61
Landfills and Oil Field Waste Injection Facility [Member]
Segment Reporting Information [Line Items]
Asset impairments	41
Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	3,561	3,946	7,290	7,642
Income from operations	710	897	1,530	1,747
Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	3,032	3,396	6,236	6,535
Income from operations	720	946	1,565	1,814
Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,147	1,280	2,370	2,468
Income from operations	316	434	709	832
Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	707	796	1,441	1,518
Income from operations	182	230	370	430
Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,178	1,320	2,425	2,549
Income from operations	222	282	486	552
Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	529	550	1,054	1,107
Income from operations	(10)	(49)	(35)	(67)
Operating Segments [Member]
Segment Reporting Information [Line Items]
Operating revenues	4,322	4,779	8,852	9,232
Operating Segments [Member] \| Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	4,322	4,779	8,852	9,232
Operating Segments [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	3,768	4,199	7,744	8,064
Operating Segments [Member] \| Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,418	1,573	2,921	3,026
Operating Segments [Member] \| Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	897	995	1,829	1,899
Operating Segments [Member] \| Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	1,453	1,631	2,994	3,139
Operating Segments [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	554	580	1,108	1,168
Intercompany Operating Revenues [Member]
Segment Reporting Information [Line Items]
Operating revenues	(761)	(833)	(1,562)	(1,590)
Intercompany Operating Revenues [Member] \| Operating Group Total [Member]
Segment Reporting Information [Line Items]
Operating revenues	(761)	(833)	(1,562)	(1,590)
Intercompany Operating Revenues [Member] \| Solid Waste [Member]
Segment Reporting Information [Line Items]
Operating revenues	(736)	(803)	(1,508)	(1,529)
Intercompany Operating Revenues [Member] \| Tier 1 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(271)	(293)	(551)	(558)
Intercompany Operating Revenues [Member] \| Tier 2 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(190)	(199)	(388)	(381)
Intercompany Operating Revenues [Member] \| Tier 3 [Member]
Segment Reporting Information [Line Items]
Operating revenues	(275)	(311)	(569)	(590)
Intercompany Operating Revenues [Member] \| Other [Member]
Segment Reporting Information [Line Items]
Operating revenues	(25)	(30)	(54)	(61)
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Income from operations	$ (183)	$ (201)	$ (430)	$ (430)

Segment and Related Information - Revenues mix (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue from External Customer [Line Items]
Operating revenues	$ 3,561	$ 3,946	$ 7,290	$ 7,642
Operating Segments [Member]
Revenue from External Customer [Line Items]
Operating revenues	4,322	4,779	8,852	9,232
Operating Segments [Member] \| Collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	2,325	2,573	4,843	5,028
Operating Segments [Member] \| Commercial [Member]
Revenue from External Customer [Line Items]
Operating revenues	928	1,052	1,991	2,078
Operating Segments [Member] \| Residential [Member]
Revenue from External Customer [Line Items]
Operating revenues	657	655	1,307	1,295
Operating Segments [Member] \| Industrial [Member]
Revenue from External Customer [Line Items]
Operating revenues	625	744	1,318	1,424
Operating Segments [Member] \| Other collection [Member]
Revenue from External Customer [Line Items]
Operating revenues	115	122	227	231
Operating Segments [Member] \| Landfill [Member]
Revenue from External Customer [Line Items]
Operating revenues	874	1,023	1,761	1,887
Operating Segments [Member] \| Transfer [Member]
Revenue from External Customer [Line Items]
Operating revenues	439	474	880	886
Operating Segments [Member] \| Recycling [Member]
Revenue from External Customer [Line Items]
Operating revenues	275	264	529	555
Operating Segments [Member] \| Other Revenue [Member]
Revenue from External Customer [Line Items]
Operating revenues	409	445	839	876
Intercompany Operating Revenues [Member]
Revenue from External Customer [Line Items]
Operating revenues	$ (761)	$ (833)	$ (1,562)	$ (1,590)

Acquisitions (Detail) $ / shares in Units, $ in Billions	Jun. 24, 2020 USD ($) $ / shares	Apr. 14, 2019 USD ($) item $ / shares	Mar. 08, 2019 item
Advanced Disposal Services [Member]
Business Acquisition [Line Items]
Price per share \| $ / shares	$ 30.30	$ 33.15
Total enterprise value \| $	$ 4.6	$ 4.9
Advanced Disposal's net debt \| $	$ 1.8	$ 1.9
Number of collection operations		95
Number of transfer stations		73
Number of landfills		41
Number of owned or operated recycling facilities		22
Petro Waste Environmental [Member]
Business Acquisition [Line Items]
Number of landfills			7

Acquisitions - Divestitures (Detail) $ in Millions	Jun. 24, 2020 USD ($)
Disposed of by Sale, Not Discontinued Operations [Member]
Divestitures
Divestiture consideration	$ 835

Asset Impairments and Unusual Items - Quarter (Detail) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2020
Asset Impairments and Unusual Items
Asset impairments	$ 61
Investment impairment			$ 52
Refined Coal Facility [Member]
Asset Impairments and Unusual Items
Equity method investments impairment charges		$ 7		$ 7
Landfills and Oil Field Waste Injection Facility [Member]
Asset Impairments and Unusual Items
Asset impairments	41
Asset fair value	8			8
Energy Services Assets [Member]
Asset Impairments and Unusual Items
Asset fair value	239			$ 239
Landfill [Member]
Asset Impairments and Unusual Items
Asset impairments	20
Landfill [Member] \| Carrying Value [Member]
Asset Impairments and Unusual Items
Asset impairments	12
Landfill [Member] \| Expected Timing [Member]
Asset Impairments and Unusual Items
Asset impairments	$ 8

Accumulated Other Comprehensive Loss - Changes (Detail) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($) $ / $	Jun. 30, 2019 USD ($)	Jun. 30, 2020 USD ($) $ / $	Jun. 30, 2019 USD ($)	Dec. 31, 2019 $ / $
AOCI roll forward
Beginning balance	$ 6,745	$ 6,417	$ 7,070	$ 6,276
Other comprehensive income (loss), net of tax	50	31	(33)	65
Ending balance	$ 6,893	6,467	$ 6,893	6,467
Dollar exchange rate \| $ / $	0.7366		0.7366		0.7698
Accumulated Other Comprehensive Loss [Member]
AOCI roll forward
Beginning balance	$ (91)	(53)	$ (8)	(87)
Other comprehensive income (loss) before reclassifications, net of tax			(36)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax			3
Other comprehensive income (loss), net of tax	50	31	(33)	65
Ending balance	(41)	$ (22)	(41)	$ (22)
Derivative Instruments [Member]
AOCI roll forward
Beginning balance			(24)
Other comprehensive income (loss) before reclassifications, net of tax			1
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax			4
Other comprehensive income (loss), net of tax			5
Ending balance	(19)		(19)
Available for sale Securities [Member]
AOCI roll forward
Beginning balance			38
Other comprehensive income (loss) before reclassifications, net of tax			5
Other comprehensive income (loss), net of tax			5
Ending balance	43		43
Foreign Currency Translation Adjustments [Member]
AOCI roll forward
Beginning balance			(21)
Other comprehensive income (loss) before reclassifications, net of tax			(42)
Other comprehensive income (loss), net of tax			(42)
Ending balance	(63)		(63)
Post - Retirement Benefit Obligation [Member]
AOCI roll forward
Beginning balance			(1)
Amounts reclassified from accumulated other comprehensive (income) loss, net of tax			(1)
Other comprehensive income (loss), net of tax			(1)
Ending balance	$ (2)		$ (2)

Accumulated Other Comprehensive Loss - Tax Impact (Detail) $ in Millions	1 Months Ended	6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Outstanding derivatives	$ 0	$ 0
Treasury rate lock [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Cash received on derivative	$ 1
Derivative Instruments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax		0
Amounts reclassified from accumulated other comprehensive (income) loss, tax		1
Available for sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax		2
Amounts reclassified from accumulated other comprehensive (income) loss, tax		0
Foreign Currency Translation Adjustments [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax		0
Amounts reclassified from accumulated other comprehensive (income) loss, tax		0
Post - Retirement Benefit Obligation [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other comprehensive income (loss) before reclassifications, tax		0
Amounts reclassified from accumulated other comprehensive (income) loss, tax		$ 0

Common Stock Repurchase Program (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended		3 Months Ended	6 Months Ended
	Mar. 31, 2020	Feb. 29, 2020	Mar. 31, 2020	Jun. 30, 2020	Jun. 30, 2019
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock				$ 402	$ 248
Authorized share repurchases				$ 918
Accelerated Share Repurchase Agreement (ASR) [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock		$ 313
Shares repurchased (in shares)	0.8	2.0
Weighted average per share purchase price	$ 111.78	$ 125.75
10b5-1 Plan [Member]
Accelerated Share Repurchases [Line Items]
Cash paid for repurchase of common stock			$ 89
Shares repurchased (in shares)			0.9
Weighted average per share purchase price			$ 99.96

Fair Value Measurements - Recurring (Detail) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Available-for-sale Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment maturity	9 years
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total assets	$ 3,062	$ 3,926
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]
Cash equivalents and money market funds	2,616	3,527
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	397	350
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	$ 49

Fair Value Measurements - Debt (Detail) - USD ($) $ in Billions	Jun. 30, 2020	Dec. 31, 2019
Reported Value Measurement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of Debt	$ 12.8	$ 13.5
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	$ 13.9	$ 14.5

Variable Interest Entities (Detail) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
Variable Interest Entities (Detail) - USD ($) $ in Millions	Mar. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Variable Interest Entity [Line Items]
Assets		$ 26,619	$ 27,743
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Assets		110	109
Refined Coal Facility [Member]
Variable Interest Entity [Line Items]
Equity method investments impairment charges	$ 7	7
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Aggregate investment balance		99	101
Variable Interest Entity, Not Primary Beneficiary [Member] \| Investments Qualifying for Federal Tax Credits [Member]
Variable Interest Entity [Line Items]
Aggregate investment balance		260	309
Variable Interest Entity, Not Primary Beneficiary [Member] \| Investment In Low Income Housing Properties [Member]
Variable Interest Entity [Line Items]
Equity method investments debt balance		$ 240	$ 269

Subsequent Event (Detail) - USD ($) $ in Millions			6 Months Ended
Subsequent Event (Detail) - USD ($) $ in Millions	Jul. 28, 2020	Jul. 20, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Subsequent Event [Line Items]
Debt repayments			$ 705	$ 385
Premiums paid on early extinguishment of debt				$ 84
Debt issuance costs, discounts and other			80		$ 85
Senior Notes, Mandatory Redemption Feature [Member]
Subsequent Event [Line Items]
Debt issuance costs, discounts and other			$ 22
Subsequent Event [Member] \| Senior Notes, Mandatory Redemption Feature [Member]
Subsequent Event [Line Items]
Debt repayments		$ 3,000
Premiums paid on early extinguishment of debt		30
Accrued interest		8
Debt issuance costs, discounts and other		$ 22
Subsequent Event [Member] \| Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Debt term	364 days
Maximum capacity	$ 3,000
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate [Member]
Subsequent Event [Line Items]
Spread rate	1.225%
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate [Member] \| Minimum [Member]
Subsequent Event [Line Items]
Spread rate	1.00%
Subsequent Event [Member] \| Revolving Credit Facility [Member] \| London Interbank Offered Rate [Member] \| Maximum [Member]
Subsequent Event [Line Items]
Spread rate	1.30%