Waste Management 2006 Annual Report Download - page 65

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The following table presents, for the periods indicated, the percentage relationship that the respective
Consolidated Statement of Operations line items has to operating revenues:
2006 2005 2004
Years Ended December 31,
Operating revenues .......................................... 100.0% 100.0% 100.0%
Costs and expenses:
Operating ............................................... 64.3 66.0 65.7
Selling, general and administrative ............................ 10.4 9.8 10.1
Depreciation and amortization ................................ 10.0 10.4 10.7
Restructuring ............................................ — 0.2 —
(Income) expense from divestitures, asset impairments and unusual
items ................................................ 0.1 0.5 (0.1)
84.8 86.9 86.4
Income from operations ...................................... 15.2 13.1 13.6
Other income (expense):
Interest expense, net ....................................... (3.6) (3.6) (3.1)
Equity in net losses of unconsolidated entities .................... (0.3) (0.8) (0.8)
Minority interest .......................................... (0.3) (0.4) (0.3)
Other, net ............................................... — — —
(4.2) (4.8) (4.2)
Income before income taxes and cumulative effect of change in accounting
principle ................................................ 11.0 8.3 9.4
Provision for (benefit from) income taxes ......................... 2.4 (0.7) 2.0
Income before cumulative effect of change in accounting principle ...... 8.6% 9.0% 7.4%
Operating Revenues
Our operating revenues in 2006 were $13.4 billion, compared with $13.1 billion in 2005 and $12.5 billion in
2004. We manage and evaluate our operations primarily through our Eastern, Midwest, Southern, Western,
Wheelabrator (which includes our waste-to-energy facilities and independent power production plants, or IPPs) and
Recycling 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:
2006 2005 2004
Years Ended December 31,
Eastern ............................................. $ 3,830 $ 3,809 $ 3,744
Midwest ............................................ 3,112 3,054 2,971
Southern ............................................ 3,759 3,590 3,480
Western ............................................. 3,160 3,079 2,884
Wheelabrator ......................................... 902 879 835
Recycling ........................................... 766 833 745
Other............................................... 283 296 261
Intercompany. ........................................ (2,449) (2,466) (2,404)
Total ............................................. $13,363 $13,074 $12,516
Our operating revenues generally come from fees charged for our collection, disposal, transfer, Wheelabrator
and recycling services. Some of the fees we charge to our customers for collection services are billed in advance; a
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