Waste Management 2015 Annual Report Download - page 68

We have expanded certain of our operations through acquisitions, which are discussed further in Note 19 to
the Consolidated Financial Statements. In March 2015, we acquired Deffenbaugh Disposal, Inc.,
(“Deffenbaugh”), one of the largest privately owned collection and disposal firms in the Midwest with assets
including five collection operations, seven transfer stations, two recycling facilities, one subtitle-D landfill, and
one construction and demolition landfill. In January 2013, we acquired Greenstar, LLC (“Greenstar”), an
operator of recycling and resource recovery facilities. This acquisition provides the Company’s customers with
greater access to recycling solutions, having supplemented the Company’s extensive nationwide recycling
network with the operations of one of the nation’s largest private recyclers. In July 2013, we acquired
substantially all of the assets of RCI Environnement, Inc. (“RCI”), the largest waste management company in
Quebec, and certain related entities. RCI provides collection, transfer, recycling and disposal operations
throughout the Greater Montreal area. The acquired RCI operations complement and expand the Company’s
existing assets and operations in Quebec.
The services we currently provide include collection, landfill (solid and hazardous waste landfills), transfer,
recycling and resource recovery and other services, as described below. The following table shows revenues (in
millions) contributed by these services for each of the three years presented:
Years Ended December 31,
2015 2014 2013
Collection ...................................... $ 8,439 $ 8,507 $ 8,513
Landfill ........................................ 2,919 2,849 2,790
Transfer ....................................... 1,377 1,353 1,329
Wheelabrator ................................... — 817 845
Recycling ...................................... 1,163 1,370 1,447
Other .......................................... 1,452 1,561 1,583
Intercompany ................................... (2,389) (2,461) (2,524)
Total ...................................... $12,961 $13,996 $13,983
Collection. Our commitment to customers begins with a vast waste collection network. Collection involves
picking up and transporting waste and recyclable materials from where it was generated to a transfer station,
material recovery facility (“MRF”) or disposal site. We generally provide collection services under one of two
types of arrangements:
• For commercial and industrial collection services, typically we have a three-year service agreement.
The fees under the agreements are influenced by factors such as collection frequency, type of collection
equipment we furnish, type and volume or weight of the waste collected, distance to the disposal
facility, labor costs, cost of disposal and general market factors. As part of the service, we provide steel
containers to most customers to store their solid waste between pick-up dates. Containers vary in size
and type according to the needs of our customers and the restrictions of their communities. Many are
designed to be lifted mechanically and either emptied into a truck’s compaction hopper or directly into
a disposal site. By using these containers, we can service most of our commercial and industrial
customers with trucks operated by only one employee.
• For most residential collection services, we have a contract with, or a franchise granted by, a
municipality, homeowners’ association or some other regional authority that gives us the exclusive
right to service all or a portion of the homes in an area. These contracts or franchises are typically for
periods of three to six years. We also provide services under individual monthly subscriptions directly
to households. The fees for residential collection are either paid by the municipality or authority from
their tax revenues or service charges, or are paid directly by the residents receiving the service.
Landfill. Landfills are the main depositories for solid waste in North America. At December 31, 2015, we
owned or operated 244 solid waste landfills and five secure hazardous waste landfills, which represents the
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