Waste Management 2007 Annual Report Download - page 64

Results of Operations
Operating Revenues
Our operating revenues in 2007 were $13.3 billion, compared with $13.4 billion in 2006 and $13.1 billion in
2005. We manage and evaluate our operations primarily through our Eastern, Midwest, Southern, Western,
Wheelabrator and WMRA Groups. These six operating Groups are our reportable segments. Shown below (in
millions) is the contribution to revenues during each year provided by our six operating Groups and our Other waste
services:
2007 2006 2005
Years Ended December 31,
Eastern ............................................. $ 3,281 $ 3,614 $ 3,632
Midwest ............................................ 2,983 3,003 2,922
Southern ............................................ 3,681 3,759 3,590
Western ............................................. 3,508 3,511 3,416
Wheelabrator ......................................... 868 902 879
WMRA............................................. 953 740 805
Other............................................... 307 283 296
Intercompany. ........................................ (2,271) (2,449) (2,466)
Total ............................................. $13,310 $13,363 $13,074
Our operating revenues generally come from fees charged for our collection, disposal, transfer, Wheelabrator
and recycling services. Revenues from our disposal operations consist of tipping fees, which are generally based on
the weight, volume and type of waste being disposed of at our disposal facilities. Fees charged at transfer stations
are generally based on the volume of waste deposited, taking into account our cost of loading, transporting and
disposing of the solid waste at a disposal site. Our Wheelabrator revenues are based on the type and volume of waste
received at our waste-to-energy facilities and IPPs and fees charged for the sale of energy and steam. Recycling
revenue, which is generated by our WMRA Group as well as recycling operations embedded in the operations of our
four geographic operating Groups, generally consists of the sale of recyclable commodities to third parties and
tipping fees. Our “other” revenues include our in-plant services, methane gas operations, Port-O-Let»services and
street and parking lot sweeping services. Intercompany revenues between our operations have been eliminated in
the consolidated financial statements. The mix of operating revenues from our different services is reflected in the
table below (in millions):
2007 2006 2005
Years Ended December 31,
Collection ........................................... $ 8,714 $ 8,837 $ 8,633
Landfill ............................................. 3,047 3,197 3,089
Transfer............................................. 1,654 1,802 1,756
Wheelabrator ......................................... 868 902 879
Recycling and other .................................... 1,298 1,074 1,183
Intercompany. ........................................ (2,271) (2,449) (2,466)
Total ............................................. $13,310 $13,363 $13,074
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