Waste Management 2014 Annual Report Download - page 122

market-driven price changes in commodities. The following table summarizes changes in revenues from
average yield on a related-business basis (dollars in millions):
Period-to-Period
Change
2014 vs. 2013
Period-to-Period
Change
2013 vs. 2012
Amount
Asa%of
Related
Business(i) Amount
Asa%of
Related
Business(i)
Average yield:
Collection, landfill and transfer ................ $263 2.4% $241 2.2%
Waste-to-energy disposal(ii) .................. (1) (0.2) (6) (1.4)
Collection and disposal(ii) ........................ 262 2.3 235 2.1
Recycling commodities .......................... (53) (3.7) (79) (5.8)
Electricity(ii) .................................. 21 7.9 18 6.8
Fuel surcharges and mandated fees ................. (2) (0.3) 32 4.9
Total ................................. $228 1.6 $206 1.5
(i) Calculated by dividing the increase or decrease for the current year by the prior year’s related business
revenue, adjusted to exclude the impacts of divestitures for the current year. The table below summarizes
the related business revenues for each year, adjusted to exclude the impacts of divestitures (in millions):
Denominator
2014 2013
Related-business revenues:
Collection, landfill and transfer ................... $11,103 $10,939
Waste-to-energy disposal ....................... 409 431
Collection and disposal ............................. 11,512 11,370
Recycling commodities ............................. 1,431 1,357
Electricity ....................................... 266 266
Fuel surcharges and mandated fees .................... 684 650
Total Company ........................... $13,893 $13,643
(ii) Average revenue growth for yield for “Collection and disposal” excludes all electricity-related revenues
generated by our Wheelabrator business and our landfill gas-to-energy operations, which are reported as
“Electricity” revenues.
Our revenues increased $13 million, or 0.1%, for the year ended December 31, 2014. Our revenue
fluctuation in the current period has been driven by (i) revenue growth from yield on our collection and disposal
operations; (ii) revenue from acquired operations, particularly the RCI operations acquired in July 2013, which
contributed approximately $77 million to the revenue growth for the year ended December 31, 2014; and
(iii) fluctuations in electricity prices at Wheelabrator’s merchant waste-to-energy facilities that favorably affected
revenues. Offsetting these revenue increases were (i) revenue declines due to lower volumes; (ii) divestitures,
primarily our Puerto Rico divestiture in the second quarter of 2014, certain landfill and collection operations in
our Eastern Canada Area in the third quarter of 2014, and our Wheelabrator business in December 2014;
(iii) foreign currency translation, which affects revenues from our Canadian operations; and (iv) revenue declines
resulting from lower recyclable commodity prices.
Our revenues increased $334 million, or 2.4%, for the year ended December 31, 2013. Our revenue
fluctuation in the prior period was driven by (i) revenue from acquired operations, particularly Greenstar
acquired in January 2013 and RCI, which increased revenues by $138 million and $80 million, respectively;
(ii) increased revenue growth from our collection and disposal average yield; (iii) higher revenues provided by
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