Waste Management 2015 Annual Report Download - page 114

See Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations —
Critical Accounting Estimates and Assumptions — Asset Impairments for additional information related to the
accounting policy and analysis involved in identifying and calculating impairments.
In addition to the impairments discussed above, we are continuing to evaluate opportunities associated with
the sale or discontinued use of assets that may no longer meet our strategic objectives or are underperforming.
Accordingly, it is possible that additional charges may be recorded as assets are sold or become held-for-sale.
Income from Operations
The following table summarizes income from operations for the years ended December 31 (dollars in
millions):
2015 Period-to- Period Change 2014 Period-to- Period Change 2013
Solid Waste:
Tier 1 ............................ $1,290 $ (11) (0.8)% $1,301 $ 55 4.4% $1,246
Tier 2 ............................ 629 (82) (11.5) 711 257 56.6 454
Tier 3 ............................ 808 21 2.7 787 53 7.2 734
Solid Waste ................... 2,727 (72) (2.6) 2,799 365 15.0 2,434
Wheelabrator ......................... — (669) * 669 1,186 * (517)
Other ................................ (160) 240 (60.0) (400) (229) * (171)
Corporate and other .................... (522) 247 (32.1) (769) (102) 15.3 (667)
Total ........................ $2,045 $(254) (11.0) $2,299 $1,220 * $1,079
*Percentage change does not provide a meaningful comparison.
All information presented has been updated to reflect our realigned segments which are discussed further in
Note 21 to the Consolidated Financial Statements.
Solid Waste — The most significant items affecting the results of operations of our Solid Waste business
during the three years ended December 31, 2015 are summarized below:
• Our traditional Solid Waste business benefited from internal revenue growth and the impact of lower
fuel prices.
• Our recycling business has been negatively affected by lower market prices for recycling commodities
and lower volumes. In 2014, these unfavorable drivers were offset by (i) increased efforts to reduce
controllable recycling rebates paid to customers; (ii) better alignment of rebate structures to commodity
prices for new recycling contracts and (iii) ongoing business improvement efforts around inbound
quality control. In 2015, these benefits offset, in part, the impact of lower market prices, lower
volumes, and impairment charges related to various recycling assets due to continued declines in
commodity prices.
In addition, the following items affected comparability of 2015 to 2014 within specific segments:
• We recognized $51 million of net charges associated with the withdrawal from certain underfunded
multiemployer pension plans in 2015 impacting all three tiers;
• The unfavorable impact of foreign currency translation on the results of our Canadian operations in
Tiers 1 and 2;
• The unfavorable impact on our oilfield services business, primarily in Tier 2, of reduced drilling and
auxiliary activities as a result of declining oil and gas prices; and
• The transfer of certain sales employees from our Corporate and Other segment in 2014.
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