Waste Management 2014 Annual Report Download - page 215

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Gross
Operating
Revenues
Intercompany
Operating
Revenues(c)
Net
Operating
Revenues
Income
from
Operations
(d),(e)
Depreciation
and
Amortization
Capital
Expenditures
(f)
Total
Assets
(g),(h)
2013
Solid Waste:
Tier 1 ............... $ 3,487 $ (553) $ 2,934 $ 852 $ 277 $ 217 $ 3,682
Tier 2 ............... 6,438 (1,202) 5,236 1,291 522 526 8,572
Tier 3 ............... 3,552 (569) 2,983 291 279 258 5,288
Wheelabrator ............ 845 (112) 733 (517) 61 17 2,037
Other(a) ................. 2,185 (88) 2,097 (171) 122 126 2,177
16,507 (2,524) 13,983 1,746 1,261 1,144 21,756
Corporate and Other(b) ..... — — — (667) 72 123 1,459
Total ................... $16,507 $(2,524) $13,983 $1,079 $1,333 $1,267 $23,215
2012
Solid Waste:
Tier 1 ............... $ 3,370 $ (521) $ 2,849 $ 851 $ 273 $ 242 $ 3,664
Tier 2 ............... 6,273 (1,096) 5,177 1,270 512 511 8,394
Tier 3 ............... 3,413 (523) 2,890 504 259 271 5,088
Wheelabrator ............ 846 (123) 723 113 69 36 2,605
Other(a) ................. 2,106 (96) 2,010 (242) 111 239 2,495
16,008 (2,359) 13,649 2,496 1,224 1,299 22,246
Corporate and Other(b) ..... — — — (645) 73 139 1,551
Total ................... $16,008 $(2,359) $13,649 $1,851 $1,297 $1,438 $23,797
(a) Our “Other” net operating revenues and “Other” income from operations include (i) the effects of those
elements of our landfill gas-to-energy operations and third-party subcontract and administration revenues
managed by our Energy and Environmental Services and Renewable Energy organizations, that are not
included with the operations of our reportable segments; (ii) our recycling brokerage and electronic
recycling services; and (iii) the impacts of investments in expanded service offerings, such as portable self-
storage, fluorescent lamp recycling and oil and gas producing properties. In addition, our “Other” income
from operations reflects the impacts of non-operating entities that provide financial assurance and self-
insurance support for the segments or financing for our Canadian operations.
(b) Corporate operating results reflect the costs incurred for various support services that are not allocated to our
reportable segments. These support services include, among other things, treasury, legal, information technology,
tax, insurance, centralized service center processes, other administrative functions and the maintenance of our
closed landfills. Income from operations for “Corporate and other” also includes costs associated with our long-
term incentive program and any administrative expenses or revisions to our estimated obligations associated with
divested operations.
(c) Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany
sales within a segment and between segments. Transactions within and between segments are generally
made on a basis intended to reflect the market value of the service.
(d) For those items included in the determination of income from operations, the accounting policies of the
segments are the same as those described in Note 3.
(e) The income from operations provided by our Solid Waste business is generally indicative of the margins
provided by our collection, landfill, transfer and recycling businesses. From time to time the operating
results of our reportable segments are significantly affected by certain transactions or events that
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