WASTE MANAGEMENT INC [WM] Filings

10-Q 1 wm-20240930x10q.htm 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)



☑	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the Quarterly Period Ended September 30, 2024

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from to

Commission file number 1-12154

Waste Management, Inc.

(Exact name of registrant as specified in its charter)


Delaware	73-1309529
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

800 Capitol Street

Suite 3000

Houston, Texas 77002

(Address of principal executive offices)

(713) 512-6200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of Each Class	Trading Symbol	Name of Each Exchange on Which Registered
Common Stock, $0.01 par value	WM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☑		Accelerated filer ☐
Non-accelerated filer ☐		Smaller reporting company ☐
		Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☑

The number of shares of Common Stock, $0.01 par value, of the registrant outstanding at October 24, 2024 was 401,365,541 (excluding treasury shares of 228,916,920).

PART I.

Item 1. Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In Millions, Except Share and Par Value Amounts)


	September 30,		December 31,
	2024		2023
	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	614	$	458
Accounts receivable, net of allowance for doubtful accounts of $31 and $30, respectively		2,841		2,633
Other receivables, net of allowance for doubtful accounts of $3 and $4, respectively		284		237
Parts and supplies		184		173
Other current assets		336		303
Total current assets		4,259		3,804
Property and equipment, net of accumulated depreciation and depletion of $23,620 and $22,826, respectively		17,931		16,968
Goodwill		9,822		9,254
Other intangible assets, net		742		759
Restricted funds		457		422
Investments in unconsolidated entities		524		606
Other long-term assets		995		1,010
Total assets	$	34,730	$	32,823
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	1,853	$	1,709
Accrued liabilities		1,651		1,605
Deferred revenues		599		578
Current portion of long-term debt		676		334
Total current liabilities		4,779		4,226
Long-term debt, less current portion		15,977		15,895
Deferred income taxes		1,883		1,826
Landfill and environmental remediation liabilities		2,965		2,888
Other long-term liabilities		1,154		1,092
Total liabilities		26,758		25,927
Commitments and contingencies (Note 6)
Equity:
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		5,485		5,351
Retained earnings		15,563		14,334
Accumulated other comprehensive (loss) income		(76)		(37)
Treasury stock at cost, 228,928,455 and 228,827,218 shares, respectively		(12,999)		(12,751)
Total Waste Management, Inc. stockholders’ equity		7,979		6,903
Noncontrolling interests		(7)		(7)
Total equity		7,972		6,896
Total liabilities and equity	$	34,730	$	32,823

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In Millions, Except per Share Amounts)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Operating revenues	$	5,609	$	5,198	$	16,170	$	15,209
Costs and expenses:
Operating		3,399		3,188		9,830		9,460
Selling, general and administrative		525		470		1,517		1,413
Depreciation, depletion and amortization		558		519		1,615		1,545
Restructuring		2		—		2		4
(Gain) loss from divestitures, asset impairments and unusual items, net		6		—		62		(3)
		4,490		4,177		13,026		12,419
Income from operations		1,119		1,021		3,144		2,790
Other income (expense):
Interest expense, net		(131)		(127)		(397)		(372)
Equity in net income (losses) of unconsolidated entities		1		(18)		4		(41)
Other, net		6		(4)		7		—
		(124)		(149)		(386)		(413)
Income before income taxes		995		872		2,758		2,377
Income tax expense		235		210		611		570
Consolidated net income		760		662		2,147		1,807
Less: Net income (loss) attributable to noncontrolling interests		—		(1)		(1)		(4)
Net income attributable to Waste Management, Inc.	$	760	$	663	$	2,148	$	1,811
Basic earnings per common share	$	1.89	$	1.64	$	5.35	$	4.46
Diluted earnings per common share	$	1.88	$	1.63	$	5.33	$	4.44

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Millions)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2024		2023		2024		2023
Consolidated net income	$	760	$	662	$	2,147	$	1,807
Other comprehensive income (loss), net of tax:
Derivative instruments, net		(25)		3		(26)		14
Available-for-sale securities, net		10		(4)		10		1
Foreign currency translation adjustments		12		(25)		(22)		(3)
Post-retirement benefit obligations, net		—		—		(1)		(1)
Other comprehensive income (loss), net of tax		(3)		(26)		(39)		11
Comprehensive income		757		636		2,108		1,818
Less: Comprehensive income (loss) attributable to noncontrolling interests		—		(1)		(1)		(4)
Comprehensive income attributable to Waste Management, Inc.	$	757	$	637	$	2,109	$	1,822

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Millions)

(Unaudited)


	Nine Months Ended
	September 30,
	2024		2023
Cash flows from operating activities:
Consolidated net income	$	2,147	$	1,807
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation, depletion and amortization		1,615		1,545
Deferred income tax expense (benefit)		65		69
Interest accretion on landfill and environmental remediation liabilities		99		97
Provision for bad debts		37		36
Equity-based compensation expense		84		71
Net gain on disposal of assets		(72)		(33)
(Gain) loss from divestitures, asset impairments and other, net		62		(3)
Equity in net (income) losses of unconsolidated entities, net of dividends		(4)		41
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables		(230)		(197)
Other current assets		(38)		(26)
Other assets		93		67
Accounts payable and accrued liabilities		149		63
Deferred revenues and other liabilities		(128)		(200)
Net cash provided by operating activities		3,879		3,337
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired		(782)		(139)
Capital expenditures		(2,116)		(1,853)
Proceeds from divestitures of businesses and other assets, net of cash divested		99		68
Other, net		(40)		(83)
Net cash used in investing activities		(2,839)		(2,007)
Cash flows from financing activities:
New borrowings		10,914		17,319
Debt repayments		(10,619)		(16,991)
Common stock repurchase program		(262)		(990)
Cash dividends		(909)		(855)
Exercise of common stock options		42		29
Tax payments associated with equity-based compensation transactions		(49)		(28)
Other, net		(20)		(9)
Net cash used in financing activities		(903)		(1,525)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents		(2)		—
(Decrease) increase in cash, cash equivalents and restricted cash and cash equivalents		135		(195)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period		552		445
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	687	$	250

Reconciliation of cash, cash equivalents and restricted cash and cash equivalents at end of period:
Cash and cash equivalents	$	614	$	150
Restricted cash and cash equivalents included in other current assets		4		25
Restricted cash and cash equivalents included in restricted funds		69		75
Cash, cash equivalents and restricted cash and cash equivalents at end of period	$	687	$	250

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(In Millions, Except Shares in Thousands)

(Unaudited)


			Waste Management, Inc. Stockholders’ Equity
										Accumulated
						Additional				Other
			Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Noncontrolling
	Total		Shares	Amounts		Capital		Earnings		(Loss) Income		Shares	Amounts		Interests
Three Months Ended September 30:
2024
Balance, June 30, 2024	$	7,451	630,282	$	6	$	5,433	$	15,104	$	(73)	(229,183)	$	(13,013)	$	(6)
Consolidated net income		760	—		—		—		760		—	—		—		—
Other comprehensive income (loss), net of tax		(3)	—		—		—		—		(3)	—		—		—
Cash dividends declared of $0.75 per common share		(301)	—		—		—		(301)		—	—		—		—
Equity-based compensation transactions, net		66	—		—		52		—		—	254		14		—
Other, net		(1)	—		—		—		—		—	1		—		(1)
Balance, September 30, 2024	$	7,972	630,282	$	6	$	5,485	$	15,563	$	(76)	(228,928)	$	(12,999)	$	(7)

2023
Balance, June 30, 2023	$	6,928	630,282	$	6	$	5,341	$	13,744	$	(32)	(225,407)	$	(12,150)	$	19
Consolidated net income		662	—		—		—		663		—	—		—		(1)
Other comprehensive income (loss), net of tax		(26)	—		—		—		—		(26)	—		—		—
Cash dividends declared of $0.70 per common share		(283)	—		—		—		(283)		—	—		—		—
Equity-based compensation transactions, net		60	—		—		44		—		—	297		16		—
Common stock repurchase program		(373)	—		—		—		—		—	(2,347)		(373)		—
Other, net		(2)	—		—		—		—		—	—		—		(2)
Balance, September 30, 2023	$	6,966	630,282	$	6	$	5,385	$	14,124	$	(58)	(227,457)	$	(12,507)	$	16

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ─ (Continued)

(In Millions, Except Shares in Thousands)

(Unaudited)


			Waste Management, Inc. Stockholders’ Equity
										Accumulated
						Additional				Other
			Common Stock			Paid-In		Retained		Comprehensive		Treasury Stock			Noncontrolling
	Total		Shares	Amounts		Capital		Earnings		(Loss) Income		Shares	Amounts		Interests
Nine Months Ended September 30:
2024
Balance, December 31, 2023	$	6,896	630,282	$	6	$	5,351	$	14,334	$	(37)	(228,827)	$	(12,751)	$	(7)
Consolidated net income		2,147	—		—		—		2,148		—	—		—		(1)
Other comprehensive income (loss), net of tax		(39)	—		—		—		—		(39)	—		—		—
Cash dividends declared of $2.25 per common share		(909)	—		—		—		(909)		—	—		—		—
Equity-based compensation transactions, net		148	—		—		69		2		—	1,391		77		—
Common stock repurchase program		(265)	—		—		60		—		—	(1,494)		(325)		—
Adoption of new accounting standard		(12)	—		—		—		(12)		—	—		—		—
Other, net		6	—		—		5		—			2		—		1
Balance, September 30, 2024	$	7,972	630,282	$	6	$	5,485	$	15,563	$	(76)	(228,928)	$	(12,999)	$	(7)

2023
Balance, December 31, 2022	$	6,864	630,282	$	6	$	5,314	$	13,167	$	(69)	(222,396)	$	(11,569)	$	15
Consolidated net income		1,807	—		—		—		1,811		—	—		—		(4)
Other comprehensive income (loss), net of tax		11	—		—		—		—		11	—		—		—
Cash dividends declared of $2.10 per common share		(855)	—		—		—		(855)		—	—		—		—
Equity-based compensation transactions, net		135	—		—		71		1		—	1,220		63		—
Common stock repurchase program		(1,001)	—		—		—		—		—	(6,283)		(1,001)		—
Other, net		5	—		—		—		—		—	2		—		5
Balance, September 30, 2023	$	6,966	630,282	$	6	$	5,385	$	14,124	$	(58)	(227,457)	$	(12,507)	$	16

See Notes to Condensed Consolidated Financial Statements.

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

We are North America’s leading provider of comprehensive environmental solutions, providing services throughout the United States (“U.S.”) and Canada. We partner with our customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, and recycling and resource recovery services. Through our subsidiaries, including our Waste Management Renewable Energy (“WM Renewable Energy”) business, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S. and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet.

Our senior management evaluates, oversees and manages the financial performance of our business through four reportable segments, referred to as (i) Collection and Disposal - East Tier (“East Tier”); (ii) Collection and Disposal - West Tier (“West Tier”); (iii) Recycling Processing and Sales and (iv) WM Renewable Energy. Our East and West Tier, along with certain ancillary services (“Other Ancillary”) not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses. We also provide additional services not managed through our four reportable segments, which are presented as Corporate and Other. Refer to Note 7 for further discussion.

The Condensed Consolidated Financial Statements as of September 30, 2024 and for the three and nine months ended September 30, 2024 and 2023 are unaudited. In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows, and changes in equity for the periods presented. The resul

WASTE MANAGEMENT INC [WM] Filings
10-Q	[2024-10]
10-Q	[2024-07]
10-Q	[2024-04-25]
10-K	[2024-02-13]
10-Q	[2023-10-25]
10-Q	[2023-07-26]
10-Q	[2023-04-27]
10-K	[2023-02-07]
10-Q	[2022-10-26]
10-Q	[2022-07-27]
10-Q	[2022-04-26]
10-K	[2022-02-15]
10-Q	[2021-10-26]
10-Q	[2021-07-27]
10-Q	[2021-04-27]
10-K	[2021-02-22]
10-Q	[2020-11-02]
10-Q	[2020-07-30]
10-Q	[2020-05-06]
10-K	[2020-02-13]
10-Q	[2019-10-23]
10-Q	[2019-07-25]
10-Q	[2019-04-25]
10-K	[2019-02-14]
10-Q	[2018-10-25]
10-Q	[2018-07-25]
10-Q	[2018-04-23]
10-K	[2018-02-15]
10-Q	[2017-10-26]
10-Q	[2017-07-26]
10-Q	[2017-04-26]
10-K	[2017-02-16]
10-Q	[2016-10-26]
10-Q	[2016-07-27]
10-Q	[2016-04-28]
10-K	[2016-02-18]
10-Q	[2015-10-27]
10-Q	[2015-07-23]
10-Q	[2015-04-29]
10-K	[2015-02-17]
10-Q	[2014-10-29]
10-Q	[2014-07-29]
10-Q	[2014-04-24]
10-K	[2014-02-18]
10-Q	[2013-10-29]
10-Q	[2013-07-30]
10-Q	[2013-04-24]
10-K	[2013-02-14]
10-Q	[2012-10-31]
10-Q	[2012-07-26]
10-Q	[2012-04-26]
10-K	[2012-02-16]