Waste Management 2011 Annual Report Download - page 118

Our operating revenues generally come from fees charged for our collection, disposal, transfer, recycling
and waste-to-energy services and from sales of commodities by our recycling, waste-to-energy and landfill
gas-to-energy operations. Revenues from our collection operations are influenced by factors such as collection
frequency, type of collection equipment furnished, type and volume or weight of the waste collected, distance to
the disposal facility or MRF and our disposal costs. Revenues from our landfill operations consist of tipping fees,
which are generally based on the type and weight or volume of waste being disposed of at our disposal facilities.
Fees charged at transfer stations are generally based on the weight or volume of waste deposited, taking into
account our cost of loading, transporting and disposing of the solid waste at a disposal site. Recycling revenue
generally consists of tipping fees and the sale of recyclable commodities to third parties. The fees we charge for
our collection, disposal, transfer and recycling services generally include fuel surcharges, which are indexed to
current market costs for fuel. Our waste-to-energy revenues, which are generated by our Wheelabrator Group, are
based on the type and weight or volume of waste received at our waste-to-energy facilities and IPPs and amounts
charged for the sale of energy and steam. Our “Other” lines of business includes Oakleaf, our landfill
gas-to-energy operations, Port-O-Let®services, portable self-storage, fluorescent lamp recycling and oil and gas
producing properties. Intercompany revenues between our operations have been eliminated in the consolidated
financial statements. The mix of operating revenues from our major lines of business is reflected in the table
below (in millions):
Years Ended December 31,
2011 2010 2009
Collection .............................................. $ 8,406 $ 8,247 $ 7,980
Landfill ................................................ 2,611 2,540 2,547
Transfer ............................................... 1,280 1,318 1,383
Wheelabrator ........................................... 877 889 841
Recycling .............................................. 1,580 1,169 741
Other .................................................. 655 314 245
Intercompany ........................................... (2,031) (1,962) (1,946)
Total ................................................ $13,378 $12,515 $11,791
The following table provides details associated with the period-to-period change in revenues (dollars in
millions) along with an explanation of the significant components of the current period changes:
Period-to-Period
Change
2011 vs. 2010
Period-to-Period
Change
2010 vs. 2009
Amount
Asa%of
Total
Company(a) Amount
Asa%of
Total
Company(a)
Average yield(b) ............................. $572 4.6% $ 724 6.1%
Volume .................................... (187) (1.5) (304) (2.6)
Internal revenue growth ....................... 385 3.1 420 3.5
Acquisitions ................................ 449 3.6 240 2.0
Divestitures ................................. (2) — (2) —
Foreign currency translation .................... 31 0.2 66 0.6
$ 863 6.9% $ 724 6.1%
(a) Calculated by dividing the amount of current year increase or decrease by the prior year’s total company
revenue adjusted to exclude the impacts of current year divestitures ($12,513 million and $11,789 million
for 2011 and 2010, respectively).
(b) The amounts reported herein represent the changes in our revenue attributable to average yield for the total
Company. We also analyze the changes in average yield in terms of related-business revenues in order to
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