Waste Management 2015 Annual Report Download - page 94

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
This section includes a discussion of our results of operations for the three years ended December 31, 2015. This
discussion may contain forward-looking statements that anticipate results based on management’s plans that are
subject to uncertainty. We discuss in more detail various factors that could cause actual results to differ materially from
expectations in Item 1A. Risk Factors. The following discussion should be read in light of that disclosure and together
with the Consolidated Financial Statements and the notes to the Consolidated Financial Statements.
Overview
Our Company’s goals are targeted at serving our customers, our employees, the environment, the
communities in which we work and our stockholders, and achievement of our goals is intended to meet the needs
of a changing industry. Our Company and others have recognized the value of the traditional waste stream as a
potential resource. Increasingly, customers want more of their waste materials recovered, while waste streams are
becoming more complex, and our aim is to address, and anticipate, the current, expanding and evolving needs of
our customers. Accomplishment of our goals will grow our Company and allow us to meet the needs of our
customers and communities as they, too, Think Green®.
We believe we are uniquely equipped to meet the challenges of the changing waste industry and our
customers’ waste management needs, both today and as we work together to envision and create a more
sustainable future. As the waste industry leader, we have the expertise necessary to collect and handle our
customers’ waste efficiently and responsibly by delivering environmental performance — maximizing resource
value, while minimizing environmental impact — so that both our economy and our environment can thrive.
Drawing on our resources and experience, we also pursue projects and initiatives that benefit the waste industry,
the customers and communities we serve and the environment.
We remain dedicated to providing long-term value to our stockholders by successfully executing our
strategy: to know and service our customers better than anyone in our industry, to extract more value from the
materials we manage, and to innovate and optimize our business. We plan to accomplish our strategic goals
through competitive advantages derived from operational improvements and focused differentiation in our
industry, driven by capitalizing on our extensive, well-placed network of assets. While we will continue to
monitor emerging diversion technologies that may generate additional value, our current attention will be on
improving existing diversion technologies, such as our recycling operations.
In pursuit of these long-term goals, we recognize that we must grow the business, and do so as efficiently
and cost effectively as possible. Accordingly, we are focusing on the following five key company priorities:
• Customers: provide the best possible service to our customers;
• Traditional Waste Business: continuously improve our operational performance;
• Growth: take advantage of opportunities in our current business, as well as considering attractive
acquisition opportunities;
• Yield Management: remain focused on price leadership while considering competitive dynamics; and
• Costs: minimize both operating costs and selling, general and administrative expenses.
We believe that execution of our strategy through these key priorities will drive continued financial
performance and leadership in a dynamic industry.
Notable items of our 2015 financial results include:
• Revenues of $12,961 million in 2015 compared with $13,996 million in 2014, a decrease of $1,035
million. This decrease in revenues is primarily attributable to (i) divestitures, which lowered revenues
by $762 million, primarily the sale of our Wheelabrator business in December 2014; (ii) lower
volumes, which decreased our revenues by $215 million; (iii) lower fuel surcharges and mandated fees
of $171 million, primarily due to lower year-over-year average fuel prices; (iv) year-over-year
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