Waste Management 2015 Annual Report Download - page 201

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
• Net income was negatively impacted by the recognition of net pre-tax charges aggregating $364
million comprised of (i) $270 million of charges to impair our oil and gas producing properties; (ii) $25
million of charges to write down assets related to waste diversion technology companies; (iii) $20
million of other-than-temporary declines in the value of investments in waste diversion technology
companies accounted for under the cost method; (iv) $10 million of goodwill impairment charges
associated with our recycling operations and (v) other charges to write down the carrying value of
assets to their estimated fair values related to certain of our operations. These items had a negative
impact of $0.49 on our diluted earnings per share.
• Income from operations was negatively impacted by pre-tax restructuring charges of $13 million,
which negatively affected our diluted earnings per share by $0.02.
23. Condensed Consolidating Financial Statements
WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness. WM has fully and
unconditionally guaranteed all of WM Holdings’ senior indebtedness. None of WM’s other subsidiaries have
guaranteed any of WM’s or WM Holdings’ debt. As a result of these guarantee arrangements, we are required to
present the following condensed consolidating financial information (in millions):
CONDENSED CONSOLIDATING BALANCE SHEETS
December 31, 2015
WM WM Holdings Non-Guarantor Subsidiaries Eliminations Consolidated
ASSETS
Current assets:
Cash and cash equivalents .............. $ — $ — $ 39 $ — $ 39
Other current assets ................... 3 6 2,297 — 2,306
3 6 2,336 — 2,345
Property and equipment, net ................. — — 10,665 — 10,665
Investments in and advances to affiliates ....... 18,557 18,911 7,365 (44,833) —
Other assets .............................. 55 29 7,325 — 7,409
Total assets ...................... $18,615 $18,946 $27,691 $(44,833) $20,419
LIABILITIES AND EQUITY
Current liabilities:
Current portion of long-term debt ........ $ 41 $ — $ 212 $ — $ 253
Accounts payable and other current
liabilities .......................... 83 9 2,165 — 2,257
124 9 2,377 — 2,510
Long-term debt, less current portion .......... 5,833 304 2,591 — 8,728
Due to affiliates .......................... 7,289 76 — (7,365) —
Other liabilities ........................... 24 — 3,790 — 3,814
Total liabilities ................... 13,270 389 8,758 (7,365) 15,052
Equity:
Stockholders’ equity ................... 5,345 18,557 18,911 (37,468) 5,345
Noncontrolling interests ................ — — 22 — 22
5,345 18,557 18,933 (37,468) 5,367
Total liabilities and equity .......... $18,615 $18,946 $27,691 $(44,833) $20,419
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