Waste Management 2007 Annual Report Download - page 142

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(a) In addition to the revenue generated by WMRA, we have included recycling revenues generated within our four
geographic operating Groups, in-plant services, methane gas operations, Port-O-Let»services and street and
parking lot sweeping services in the “Recycling and other” line-of-business.
(b) Intercompany revenues between lines of business are eliminated within the Consolidated Financial Statements
included herein.
Net operating revenues relating to operations in the United States and Puerto Rico, as well as Canada are as
follows (in millions):
2007 2006 2005
Years Ended December 31,
United States and Puerto Rico ............................ $12,566 $12,674 $12,430
Canada ............................................. 744 689 644
Total ............................................. $13,310 $13,363 $13,074
Property and equipment (net) relating to operations in the United States and Puerto Rico, as well as Canada are
as follows (in millions):
2007 2006 2005
December 31,
United States and Puerto Rico ............................ $10,122 $10,163 $10,229
Canada ............................................. 1,229 1,016 992
Total ............................................. $11,351 $11,179 $11,221
21. Quarterly Financial Data (Unaudited)
Fluctuations in our operating results between quarters may be caused by many factors, including period-to-
period changes in the relative contribution of revenue by each line of business and operating segment and general
economic conditions. Our revenues and income from operations typically reflect seasonal patterns.
Our operating revenues tend to be somewhat higher in the summer months, primarily due to the higher volume
of construction and demolition waste. The volumes of industrial and residential waste in certain regions where we
operate also tend to increase during the summer months. Our second and third quarter revenues and results of
operations typically reflect these seasonal trends. Additionally, certain destructive weather conditions that tend to
occur during the second half of the year, such as the hurricanes experienced during 2004 and 2005, actually increase
our revenues in the areas affected. However, for several reasons, including significant start-up costs, such revenue
often generates comparatively lower margins. Certain weather conditions may result in the temporary suspension of
our operations, which can significantly affect the operating results of the affected regions. The operating results of
our first quarter also often reflect higher repair and maintenance expenses because we rely on the slower winter
months, when waste flows are generally lower, to perform scheduled maintenance at our waste-to-energy facilities.
107
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)