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1、UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,D.C.20549Form 10-Q(Mark One)QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Quarterly Period Ended March 31,2024orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT O

2、F 1934For the transition period from toCommission file number 1-12154Waste Management,Inc.(Exact name of registrant as specified in its charter)Delaware73-1309529(State or other jurisdiction of(I.R.S.Employerincorporation or organization)Identification No.)800 Capitol StreetSuite 3000Houston,Texas 7

3、7002(Address of principal executive offices)(713)512-6200(Registrants telephone number,including area code)Securities registered pursuant to Section 12(b)of the Act:Title of Each Class Trading Symbol Name of Each Exchange on Which RegisteredCommon Stock,$0.01 par valueWMNew York Stock ExchangeIndica

4、te by check mark whether the registrant(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter periodthat the registrant was required to file such reports),and(2)has been subject to such filing requ

5、irements for the past 90 days.Yes No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months(or for suchshorter period that the registrant was required to sub

6、mit such files).Yes No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,smaller reporting company or an emerging growth company.See the definitions of“largeaccelerated filer,”“accelerated filer,”“smaller reporting company”and“eme

7、rging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company Emerging growth company If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for co

8、mplying with any new or revised financial accounting standards provided pursuantto Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No The number of shares of Common Stock,$0.01 par value,of the registrant outs

9、tanding as of April 22,2024 was 401,083,098(excluding treasury shares of 229,199,363).2PART I.Item 1.Financial Statements.WASTE MANAGEMENT,INC.CONDENSED CONSOLIDATED BALANCE SHEETS(In Millions,Except Share and Par Value Amounts)March 31,December 31,2024 2023(Unaudited)ASSETSCurrent assets:Cash and c

10、ash equivalents$322$458Accounts receivable,net of allowance for doubtful accounts of$27 and$30,respectively 2,530 2,633Other receivables,net of allowance for doubtful accounts of$5 and$4,respectively 155 237Parts and supplies 189 173Other assets 333 303Total current assets 3,529 3,804Property and eq

11、uipment,net of accumulated depreciation and depletion of$23,144 and$22,826,respectively 17,044 16,968Goodwill 9,246 9,254Other intangible assets,net 728 759Restricted funds 524 422Investments in unconsolidated entities 589 606Other assets 1,006 1,010Total assets$32,666$32,823LIABILITIES AND EQUITYCu

12、rrent liabilities:Accounts payable$1,617$1,709Accrued liabilities 1,410 1,605Deferred revenues 586 578Current portion of long-term debt 336 334Total current liabilities 3,949 4,226Long-term debt,less current portion 15,762 15,895Deferred income taxes 1,880 1,826Landfill and environmental remediation

13、 liabilities 2,912 2,888Other liabilities 1,085 1,092Total liabilities 25,588 25,927Commitments and contingencies(Note 6)Equity:Waste Management,Inc.stockholders equity:Common stock,$0.01 par value;1,500,000,000 shares authorized;630,282,461 shares issued 6 6Additional paid-in capital 5,352 5,351Ret

14、ained earnings 14,738 14,334Accumulated other comprehensive(loss)income(60)(37)Treasury stock at cost 228,979,512 and 228,827,218 shares,respectively(12,954)(12,751)Total Waste Management,Inc.stockholders equity 7,082 6,903Noncontrolling interests(4)(7)Total equity 7,078 6,896Total liabilities and e

15、quity$32,666$32,823See Notes to Condensed Consolidated Financial Statements.3WASTE MANAGEMENT,INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In Millions,Except per Share Amounts)(Unaudited)Three Months EndedMarch 31,2024 2023Operating revenues$5,159$4,892Costs and expenses:Operating 3,140 3,086

16、Selling,general and administrative 491 476Depreciation,depletion and amortization 514 505Restructuring3(Gain)loss from divestitures,asset impairments and unusual items,net(2)(3)4,143 4,067Income from operations 1,016 825Other income(expense):Interest expense,net(130)(120)Equity in net losses of unco

17、nsolidated entities(19)(11)Other,net 2 2(147)(129)Income before income taxes 869 696Income tax expense 162 164Consolidated net income 707 532Less:Net income(loss)attributable to noncontrolling interests(1)(1)Net income attributable to Waste Management,Inc.$708$533Basic earnings per common share$1.76

18、$1.31Diluted earnings per common share$1.75$1.30CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(In Millions)(Unaudited)Three Months EndedMarch 31,2024 2023Consolidated net income$707$532Other comprehensive income(loss),net of tax:Derivative instruments,net 5Available-for-sale securities,ne

19、t 1 5Foreign currency translation adjustments(24)2Post-retirement benefit obligations,net Other comprehensive income(loss),net of tax(23)12Comprehensive income 684 544Less:Comprehensive income(loss)attributable to noncontrolling interests(1)(1)Comprehensive income attributable to Waste Management,In

20、c.$685$545See Notes to Condensed Consolidated Financial Statements.4WASTE MANAGEMENT,INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In Millions)(Unaudited)Three Months EndedMarch 31,2024 2023Cash flows from operating activities:Consolidated net income$707$532Adjustments to reconcile consolidate

21、d net income to net cash provided by operating activities:Depreciation,depletion and amortization 514 505Deferred income tax expense(benefit)57 42Interest accretion on landfill and environmental remediation liabilities 33 32Provision for bad debts 10 9Equity-based compensation expense 30 26Net gain

22、on disposal of assets(10)(10)(Gain)loss from divestitures,asset impairments and other,net(2)(3)Equity in net losses of unconsolidated entities,net of dividends 19 11Change in operating assets and liabilities,net of effects of acquisitions and divestitures:Receivables 176 138Other current assets(45)(

23、51)Other assets(4)22Accounts payable and accrued liabilities(102)(145)Deferred revenues and other liabilities(16)(64)Net cash provided by operating activities 1,367 1,044Cash flows from investing activities:Acquisitions of businesses,net of cash acquired(11)(34)Capital expenditures(668)(660)Proceeds

24、 from divestitures of businesses and other assets,net of cash divested 15 11Other,net(91)(95)Net cash used in investing activities(755)(778)Cash flows from financing activities:New borrowings 4,412 6,885Debt repayments(4,570)(6,548)Common stock repurchase program(250)(350)Cash dividends(307)(289)Exe

25、rcise of common stock options 32 12Tax payments associated with equity-based compensation transactions(48)(28)Other,net(6)(1)Net cash used in financing activities(737)(319)Effect of exchange rate changes on cash,cash equivalents and restricted cash and cash equivalents(2)(Decrease)increase in cash,c

26、ash equivalents and restricted cash and cash equivalents(127)(53)Cash,cash equivalents and restricted cash and cash equivalents at beginning of period 552 445Cash,cash equivalents and restricted cash and cash equivalents at end of period$425$392Reconciliation of cash,cash equivalents and restricted

27、cash and cash equivalents at end of period:Cash and cash equivalents$322$257Restricted cash and cash equivalents included in other current assets3462Restricted cash and cash equivalents included in restricted funds6973Cash,cash equivalents and restricted cash and cash equivalents at end of period$42

28、5$392See Notes to Condensed Consolidated Financial Statements.5WASTE MANAGEMENT,INC.CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY(In Millions,Except Shares in Thousands)(Unaudited)Waste Management,Inc.Stockholders EquityAccumulatedAdditionalOtherCommon StockPaid-InRetainedComprehensiveTreas

29、ury StockNoncontrolling Total Shares Amounts Capital Earnings (Loss)Income Shares Amounts Interests2024Balance,December 31,2023$6,896630,282$6$5,351$14,334$(37)(228,827)$(12,751)$(7)Consolidated net income 707 708 (1)Other comprehensive income(loss),net of tax(23)(23)Cash dividends declared of$0.75

30、per common share(307)(307)Equity-based compensation transactions,net 51 (12)3 1,075 60 Common stock repurchase program(253)10 (1,228)(263)Other,net 7 3 4Balance,March 31,2024$7,078630,282$6$5,352$14,738$(60)(228,980)$(12,954)$(4)2023Balance,December 31,2022$6,864630,282$6$5,314$13,167$(69)(222,396)$

31、(11,569)$15Consolidated net income 532 533 (1)Other comprehensive income(loss),net of tax 12 12 Cash dividends declared of$0.70 per common share(289)(289)Equity-based compensation transactions,net 42 3 766 39 Common stock repurchase program(353)(70)(1,862)(283)Other,net 1 Balance,March 31,2023$6,808

32、630,282$6$5,244$13,414$(57)(223,491)$(11,813)$14See Notes to Condensed Consolidated Financial Statements.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS(Unaudited)61.Basis of PresentationThe financial statements presented in this report represent the consolidation of Waste

33、Management,Inc.,a Delaware corporation;its wholly-owned and majority-owned subsidiaries;and certain variable interest entities for which Waste Management,Inc.or its subsidiaries are the primary beneficiaries as described in Note 11.Waste Management,Inc.is a holdingcompany and all operations are cond

34、ucted by its subsidiaries.When the terms“the Company,”“we,”“us”or“our”are used in this document,those terms refer to WasteManagement,Inc.,together with its consolidated subsidiaries and consolidated variable interest entities.When we use the term“WMI,”we are referring only to Waste Management,Inc.,t

35、he parent holding company.We are North Americas leading provider of comprehensive environmental solutions,providing services throughout the United States(“U.S.”)and Canada.We partner with ourcustomers and the communities we serve to manage and reduce waste at each stage from collection to disposal,w

36、hile recovering valuable resources and creating clean,renewable energy.Our business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection,transfer,disposal,and recycling and resource recoveryservices.Through our subsidiaries including Wast

37、e Management Renewable Energy(“WM Renewable Energy”)business,we are also a leading developer,operator and owner of landfillgas-to-energy facilities in the U.S.and Canada that produce renewable electricity and renewable natural gas(“RNG”),which is a significant source of fuel that we allocate to our

38、naturalgas fleet.Our senior management evaluates,oversees and manages the financial performance of our business through four reportable segments,referred to as(i)Collection and Disposal-EastTier(“East Tier”);(ii)Collection and Disposal-West Tier(“West Tier”);(iii)Recycling Processing and Sales and(i

39、v)WM Renewable Energy.Our East and West Tier,along with certainancillary services(“Other Ancillary”)not managed through our Tier segments,but that support our collection and disposal operations,form our“Collection and Disposal”businesses.Wealso provide additional services not managed through our fou

40、r reportable segments,which are presented as Corporate and Other.Refer to Note 7 for further discussion.The Condensed Consolidated Financial Statements as of March 31,2024 and for the three months ended March 31,2024 and 2023 are unaudited.In the opinion of management,these financial statements incl

41、ude all adjustments,which,unless otherwise disclosed,are of a normal recurring nature,necessary for a fair presentation of the financial position,results ofoperations,comprehensive income,cash flows,and changes in equity for the periods presented.The results for interim periods are not necessarily i

42、ndicative of results for the entire year.The financial statements presented herein should be read in conjunction with the financial statements included in our Annual Report on Form 10-K for the year ended December 31,2023.In preparing our financial statements,we make numerous estimates and assumptio

43、ns that affect the accounting for and recognition and disclosure of assets,liabilities,equity,revenues and expenses.We must make these estimates and assumptions because certain information that we use is dependent on future events,cannot be calculated with precision fromavailable data or simply cann

44、ot be calculated.In some cases,these estimates are difficult to determine,and we must exercise significant judgment.In preparing our financial statements,the most difficult,subjective and complex estimates and the assumptions that present the greatest amount of uncertainty relate to our accounting f

45、or landfills,environmental remediationliabilities,long-lived asset impairments,intangible asset impairments and the fair value of assets and liabilities acquired in business combinations.Actual results could differ materiallyfrom the estimates and assumptions that we use in the preparation of our fi

46、nancial statements.Revenue RecognitionWe generally recognize revenue as services are performed or products are delivered.For example,revenue typically is recognized as waste is collected,tons are received at ourlandfills or transfer stations,or recycling and other commodities,WASTE MANAGEMENT,INC.NO

47、TES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)7such as RNG,electricity and capacity,Renewable Identification Numbers(“RINs”)and Renewable Energy Credits(“RECs”),are sold.We also bill for certain services prior to performance.Such services include,among others,certain commercial and r

48、esidential contracts,and equipment rentals.These advancedbillings are included in deferred revenues and recognized as revenue in the period service is provided.Substantially all our deferred revenues during the reported periods are realized asrevenues within one to three months,when the related serv

49、ices are performed.Contract Acquisition CostsOur incremental direct costs of obtaining a contract,which consist primarily of sales incentives,are generally deferred and amortized to selling,general and administrative expenseover the estimated life of the relevant customer relationship,ranging from f

50、ive to 13 years.Contract acquisition costs that are paid to the customer are deferred and amortized as areduction in revenue over the contract life.Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and areincluded i

51、n other assets in our Condensed Consolidated Balance Sheets.As of March 31,2024 and December 31,2023,we had$209 million and$207 million,respectively,of deferredcontract costs,of which$150 million and$148 million,respectively,were related to deferred sales incentives.LeasesAmounts for our operating l

52、ease right-of-use assets are recorded in long-term other assets and the current and long-term portion of our operating lease liabilities are reflected inaccrued liabilities and other long-term liabilities,respectively,in our Condensed Consolidated Balance Sheets.Amounts for our financing leases are

53、recorded in property and equipment,net of accumulated depreciation and depletion,and current or long-term debt in our Condensed Consolidated Balance Sheets,as appropriate.Concentrations of Credit RiskFinancial instruments that potentially subject us to concentrations of credit risk consist primarily

54、 of cash and cash equivalents,investments held within restricted funds,and accountsreceivable.We make efforts to control our exposure to credit risk associated with these instruments by(i)placing our assets and other financial interests with a diverse group of credit-worthy financial institutions;(i

55、i)holding high-quality financial instruments while limiting investments in any one instrument and(iii)maintaining strict policies over credit extension thatinclude credit evaluations,credit limits and monitoring procedures,although generally we do not have collateral requirements for credit extensio

56、ns.We also control our exposureassociated with trade receivables by discontinuing service,to the extent allowable,to non-paying customers.However,our overall credit risk associated with trade receivables is limiteddue to the large number and diversity of customers we serve.ReclassificationsWhen nece

57、ssary,reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our consolidatedfinancial statements.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)82.Landfill and Environmental

58、 Remediation LiabilitiesLiabilities for landfill and environmental remediation costs are presented in the table below(in millions):March 31,2024December 31,2023EnvironmentalEnvironmental Landfill Remediation Total Landfill Remediation TotalCurrent(in accrued liabilities)$142$32$174$143$31$174Long-te

59、rm 2,733 179 2,912 2,710 178 2,888$2,875$211$3,086$2,853$209$3,062The changes to landfill and environmental remediation liabilities for the three months ended March 31,2024 are reflected in the table below(in millions):Environmental Landfill RemediationDecember 31,2023$2,853$209Obligations incurred

60、and capitalized 20 Obligations settled(20)(6)Interest accretion 33 Revisions in estimates(10)8Acquisitions,divestitures and other adjustments(1)March 31,2024$2,875$211At several of our landfills,we provide financial assurance by depositing cash into restricted trust funds for purposes of settling fi

61、nal capping,closure,post-closure and environmentalremediation obligations.Generally,these trust funds are established to comply with statutory requirements and operating agreements.See Note 11 for additional information related tothese trusts.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINA

62、NCIAL STATEMENTS (Continued)93.DebtThe following table summarizes the major components of debt at principal amounts as of each balance sheet date(in millions)and provides the maturities and interest rate ranges ofeach major category as of March 31,2024:March 31,December 31,2024 2023Commercial paper

63、program(weighted average interest rate of 5.5%as of March 31,2024 and 5.6%as of December 31,2023)$750$860Senior notes,maturing through 2050,interest rates ranging from 0.75%to 7.75%(weighted average interest rate of 3.7%as ofMarch 31,2024 and 3.7%as of December 31,2023)11,37611,376Canadian senior no

64、tes,C$500 million maturing September 2026,interest rate of 2.6%369 378Tax-exempt bonds,maturing through 2053,fixed and variable interest rates ranging from 0.55%to 5.0%(weighted average interest rate of3.2%as of March 31,2024 and 3.3%as of December 31,2023)2,883 2,883Financing leases and other,matur

65、ing through 2082(weighted average interest rate of 4.9%as of March 31,2024 and 5.0%as of December31,2023)(a)838 855Debt issuance costs,discounts and other(118)(123)16,098 16,229Current portion of long-term debt 336 334Long-term debt,less current portion$15,762$15,895(a)Excluding our landfill financi

66、ng leases,the maturities of our financing leases and other debt obligations extend through 2059.Debt ClassificationAs of March 31,2024,we had approximately$3.1 billion of debt maturing within the next 12 months,including(i)$750 million of short-term borrowings under our commercialpaper program(net o

67、f related discount on issuance);(ii)$1.6 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months,which is prior to theirscheduled maturities;(iii)$156 million of 3.5%senior notes that mature in May 2024;(iv)$422 million of 3.125%senior notes that mature in M

68、arch 2025 and(v)$180 million of otherdebt with scheduled maturities within the next 12 months,including$60 million of tax-exempt bonds.As of March 31,2024,we have classified$2.8 billion of debt maturing in the next12 months as long-term because we have the intent and ability to refinance these borro

69、wings on a long-term basis as supported by the forecasted available capacity under our$3.5 billionlong-term U.S.and Canadian revolving credit facility(“$3.5 billion revolving credit facility”),as discussed below.The remaining$336 million of debt maturing in the next 12 months isclassified as current

70、 obligations.Access to and Utilization of Credit Facilities and Commercial Paper Program$3.5 Billion Revolving Credit Facility Our$3.5 billion revolving credit facility,maturing May 2027,provides us with credit capacity to be used for cash borrowings,to supportletters of credit and to support our co

71、mmercial paper program.The interest rates we pay on outstanding U.S.or Canadian loans are based on the Secured Overnight Financing Rate(“SOFR”)administered by the Federal Reserve Bank of New York or the Canadian Dollar Offered Rate(“CDOR”),respectively,plus a spread depending on WMIs senior public d

72、ebtrating assigned by Moodys Investors Service,Inc.and Standard and Poors Global Ratings.As of March 31,2024,we had no outstanding borrowings under this facility.We had$181million of letters of credit issued and$750 million of outstanding borrowings(net of related discount on issuance)under our comm

73、ercial paper program,both supported by the facility,leaving unused and available credit capacity of$2.6 billion as of March 31,2024.WM Holdings,a wholly-owned subsidiary of WMI,guarantees all of the obligations under the$3.5 billion revolving credit facility.WASTE MANAGEMENT,INC.NOTES TO CONDENSED C

74、ONSOLIDATED FINANCIAL STATEMENTS (Continued)10Commercial Paper Program We have a commercial paper program that enables us to borrow funds for up to 397 days at competitive interest rates.The rates we pay foroutstanding borrowings are based on the term of the notes.The commercial paper program is ful

75、ly supported by our$3.5 billion revolving credit facility.As of March 31,2024,we had$750 million of outstanding borrowings(net of related discount on issuance)under our commercial paper program.Other Letter of Credit Lines As of March 31,2024,we had utilized$846 million of other uncommitted letter o

76、f credit lines,with terms maturing through December 2027.Debt Borrowings and RepaymentsCommercial Paper Program During the three months ended March 31,2024,we made cash repayments of$4.5 billion,which were partially offset by$4.4 billion of cashborrowings(net of related discount on issuance).Financi

77、ng Leases and Other The decrease in our financing leases and other debt obligations during the three months ended March 31,2024 is due to$42 million of cashrepayments at debt maturity,partially offset by an increase of$25 million primarily related to non-cash financing leases.4.Income TaxesOur effec

78、tive income tax rate was 18.6%and 23.6%for the three months ended March 31,2024 and 2023,respectively.The decrease in our effective income tax rate whencomparing the three months ended March 31,2024 and 2023 was primarily driven by(i)an increase in federal tax credits and(ii)an increase in the exces

79、s tax benefits associated withequity-based compensation;partially offset by an increase in pre-tax income in the current period.We evaluate our effective income tax rate at each interim period and adjust it as factsand circumstances warrant.Investments Qualifying for Federal Tax Credits Renewable Na

80、tural Gas Through our subsidiaries including our WM Renewable Energy segment,we have invested in building landfill gas-to-energy facilities in the U.S.andCanada that produce renewable electricity and RNG.We expect our new RNG facilities to qualify for federal tax credits and to realize those credits

81、 through 2027 under Sections 48 and45Z of the Internal Revenue Code.During the three months ended March 31,2024 and 2023,we recognized a reduction in our income tax expense of$37 million and$2 million,respectively due to federal tax creditsexpected to be realized from our RNG investments.Low-Income

82、Housing We have significant financial interests in entities established to invest in and manage low-income housing properties.We support the operations of theseentities in exchange for a pro-rata share of the tax credits they generate.The low-income housing investments qualify for federal tax credit

83、s that we expect to realize through 2033 underSection 42 or Section 45D of the Internal Revenue Code.We account for our investments in these entities using the equity method of accounting,recognizing our share of each entitys results of operations and other reductions in the valueof our investments

84、in equity in net losses of unconsolidated entities,within our Condensed Consolidated Statements of Operations.During the three months ended March 31,2024 and 2023,we recognized$20 million and$13 million of net losses,respectively,and a reduction in our income tax expense of$28million and$22 million,

85、respectively,primarily due to federal tax credits realized from these investments as well as the tax benefits from the pre-tax losses realized.In addition,duringthe three months ended March 31,2024 and 2023,we recognized interest expense of$6 million and$4 million,respectively,associated with our in

86、vestments in low-income housingproperties.See Note 11 for additional information related to these unconsolidated variable interest entities.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)11Equity-Based Compensation During the three months ended March 31,2024 and

87、 2023,we recognized a reduction in our income tax expense of$21 million and$7 million,respectively,for excess tax benefits related to the vesting or exercise of equity-based compensation awards.5.Earnings Per ShareBasic and diluted earnings per share for the three months ended March 31 were computed

88、 using the following common share data(shares in millions):2024 2023Number of common shares outstanding at end of period 401.3 406.8Effect of using weighted average common shares outstanding 0.4 0.6Weighted average basic common shares outstanding 401.7 407.4Dilutive effect of equity-based compensati

89、on awards and other contingently issuable shares 1.8 1.6Weighted average diluted common shares outstanding 403.5 409.0Potentially issuable shares 4.9 5.6Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 1.6 1.8Refer to the Condensed Consolidated Stat

90、ements of Operations for net income attributable to Waste Management,Inc.6.Commitments and ContingenciesFinancial Instruments We have obtained letters of credit,surety bonds and insurance policies and have established trust funds and issued financial guarantees to support tax-exempt bonds,contracts,

91、performance of landfill final capping,closure and post-closure requirements,environmental remediation and other obligations.Letters of credit generally aresupported by our$3.5 billion revolving credit facility and other credit lines established for that purpose.These facilities are discussed further

92、 in Note 3.Surety bonds and insurancepolicies are supported by(i)a diverse group of third-party surety and insurance companies;(ii)an entity in which we have a noncontrolling financial interest or(iii)a wholly-ownedinsurance captive,the sole business of which is to issue surety bonds and/or insuranc

93、e policies on our behalf.Management does not expect that any claims against or draws on these instruments would have a material adverse effect on our financial condition,results of operations or cashflows.We have not experienced any unmanageable difficulty in obtaining the required financial assuran

94、ce instruments for our current operations.In an ongoing effort to mitigate risks offuture cost increases and reductions in available capacity,we continue to evaluate various options to access cost-effective sources of financial assurance.Insurance We carry insurance coverage for protection of our as

95、sets and operations from certain risks including general liability,automobile liability,workers compensation,realand personal property,directors and officers liability,pollution legal liability,cyber incident liability and other coverages we believe are customary to the industry.Our exposure to loss

96、for insurance claims is generally limited to the per-incident deductible under the related insurance policy and any amounts that exceed our insured limits.Our exposure could increase ifour insurers are unable to meet their commitments on a timely basis.We have retained a significant portion of the r

97、isks related to our health and welfare,general liability,automobile liability and workers compensation claims programs.“Generalliability”refers to the self-insured portion of specific third-party claims made against us that may be covered under our commercial general liability insurance policy.For o

98、ur self-insured portions,the exposure for unpaid claims and associated expenses,including incurred but not reported losses,is based on an actuarial valuation or internal estimates.The accrualsfor these liabilities could be revised if futureWASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCI

99、AL STATEMENTS (Continued)12occurrences or loss development significantly differ from such valuations and estimates.We use a wholly-owned insurance captive to insure the deductibles for our general liability,automobile liability and workers compensation claims programs.We do not expect the impact of

100、any known casualty,property,environmental or other contingency to have a material impact on our financial condition,results of operations or cashflows.Guarantees In the ordinary course of our business,WMI and WM Holdings enter into guarantee agreements associated with their subsidiaries operations.A

101、dditionally,WMI andWM Holdings have each guaranteed all of the senior debt of the other entity.No additional liabilities have been recorded for these intercompany guarantees because all of the underlyingobligations are reflected in our Condensed Consolidated Balance Sheets.As of March 31,2024,we hav

102、e guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities,including guarantees to cover the difference,if any,between the sale value and the guaranteed market or contractually-determined value of certain homeow

103、ners properties that areadjacent to or near 19 of our landfills.We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale.We do notbelieve that the remaining contingent obligations will have a material adverse effect on

104、 the Companys business,financial condition,results of operations or cash flows.Environmental Matters A significant portion of our operating costs and capital expenditures could be characterized as costs of environmental protection.The nature of ouroperations,particularly with respect to the construc

105、tion,operation and maintenance of our landfills,subjects us to an array of laws and regulations relating to the protection of theenvironment.Under current laws and regulations,we may have liabilities for environmental damage caused by our operations,or for damage caused by conditions that existed be

106、fore weacquired a site.In addition to remediation activity required by state or local authorities,such liabilities include potentially responsible party(“PRP”)investigations.The costs associatedwith these liabilities can include settlements,certain legal and consultant fees,as well as incremental in

107、ternal and external costs directly associated with site investigation and clean-up.Estimating our degree of responsibility for remediation is inherently difficult.We recognize and accrue for an estimated remediation liability when we determine that such liability isboth probable and reasonably estim

108、able.Determining the method and ultimate cost of remediation requires that a number of assumptions be made.There can sometimes be a range ofreasonable estimates of the costs associated with the likely site remediation alternatives identified in the environmental impact investigation.In these cases,w

109、e use the amount within therange that is our best estimate.If no amount within a range appears to be a better estimate than any other,we use the amount that is the low end of such range.If we used the high ends ofsuch ranges(where estimable),our aggregate potential liability would be approximately$1

110、8 million higher than the$211 million recorded in the Condensed Consolidated Balance Sheetas of March 31,2024.Our ultimate responsibility may differ materially from current estimates.It is possible that technological,regulatory or enforcement developments,the results ofenvironmental studies,the inab

111、ility to identify other PRPs,the inability of other PRPs to contribute to the settlements of such liabilities,or other factors could require us to recordadditional liabilities.Our ongoing review of our remediation liabilities,in light of relevant internal and external facts and circumstances,could r

112、esult in revisions to our accruals thatcould cause upward or downward adjustments to our balance sheet and income from operations.These adjustments could be material in any given period.As of March 31,2024,we had been notified by the government that we are a PRP in connection with 73 locations liste

113、d on the Environmental Protection Agencys(“EPAs”)Superfund National Priorities List,or NPL.Of the 73 sites at which claims have been made against us,14 are sites we own.Each of the NPL sites we own were initially developed byothers as a landfill disposal facility.At each of these facilities,we are w

114、orking in conjunction with the government to characterize or remediate identified site problems,and we haveeither agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement.We generally expect to receive anyamounts d

115、ue from other participating parties at or near the time that we make the remedial expenditures.TheWASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)13other 59 NPL sites,which we do not own,are at various procedural stages under the Comprehensive Environmental Respo

116、nse,Compensation and Liability Act of 1980,as amended,known as CERCLA or Superfund.The majority of proceedings involving NPL sites that we do not own are based on allegations that certain of our subsidiaries(or their predecessors)transported hazardous substancesto the sites,often prior to our acquis

117、ition of these subsidiaries.CERCLA generally provides for liability for those parties owning,operating,transporting to or disposing at the sites.Proceedings arising under Superfund typically involve numerous waste generators and other waste transportation and disposal companies and seek to allocate

118、or recover costs associatedwith site investigation and remediation,which costs could be substantial and could have a material adverse effect on our consolidated financial statements.At some of the sites at whichwe have been identified as a PRP,our liability is well defined as a consequence of a gove

119、rnmental decision and an agreement among liable parties as to the share each will pay forimplementing that remedy.At other sites,where no remedy has been selected or the liable parties have been unable to agree on an appropriate allocation,our future costs are uncertain.In 2018,both of McGinnes Indu

120、strial Maintenance Corporation(“MIMC”),a subsidiary of Waste Management of Texas,Inc.,and International Paper Company(“IPC”)entered intoan Administrative Order on Consent with the EPA as PRPs to develop a remedial design for the San Jacinto River Waste Pits Superfund Site in Harris County,Texas.We r

121、ecorded aliability for MIMCs estimated potential share of the EPAs proposed remedy and related costs,although allocation of responsibility among the PRPs for the proposed remedy has notbeen established.MIMC and IPC have continued to work on a remedial design to support the EPAs proposed remedy;howev

122、er,in the first quarter of 2024,the EPA publicly issued aletter alleging that the remedial design has serious deficiencies.MIMC and IPC have engaged with the EPA and provided responses to the EPA letter.Due to increases in the estimatedcost of the remedy,we recorded an additional$17 million liabilit

123、y for MIMCs estimated potential share of such costs in 2023.As of March 31,2024 and December 31,2023,therecorded liability was$85 million.MIMCs ultimate liability could be materially different from current estimates,including potential increases resulting from MIMCs continuedengagement with the EPA

124、regarding a final remedial design for the site.Item 103 of the SECs Regulation S-K requires disclosure of certain environmental matters when a governmental authority is a party to the proceedings,or such proceedings areknown to be contemplated,unless we reasonably believe that the matter will result

125、 in no monetary sanctions,or in monetary sanctions,exclusive of interest and costs,below a statedthreshold.In accordance with this SEC regulation,the Company uses a threshold of$1 million for purposes of determining whether disclosure of any such environmental proceedings isrequired.As of the date o

126、f this filing,we are not aware of any matters that are required to be disclosed pursuant to this standard.From time to time,we are also named as defendants in personal injury and property damage lawsuits,including purported class actions,on the basis of having owned,operated ortransported waste to a

127、 disposal facility that is alleged to have contaminated the environment or,in certain cases,on the basis of having conducted environmental remediation activities atsites.Some of the lawsuits may seek to have us pay the costs of monitoring of allegedly affected sites and health care examinations of a

128、llegedly affected persons for a substantial periodof time even where no actual damage is proven.While we believe we have meritorious defenses to these lawsuits,the ultimate resolution is often substantially uncertain due to thedifficulty of determining the cause,extent and impact of alleged contamin

129、ation(which may have occurred over a long period of time),the potential for successive groups of complainantsto emerge,the diversity of the individual plaintiffs circumstances,and the potential contribution or indemnification obligations of co-defendants or other third parties,among otherfactors.Add

130、itionally,we often enter into agreements with landowners imposing obligations on us to meet certain regulatory or contractual conditions upon site closure or upontermination of the agreements.Compliance with these agreements inherently involves subjective determinations and may result in disputes,in

131、cluding litigation.Litigation We are subject to various proceedings,lawsuits,disputes and claims arising in the ordinary course of our business.Many of these actions raise complex factual and legalissues and are subject to uncertainties.Actions that have been filed against us,and that may be filed a

132、gainst us in the future,include personal injury,property damage,WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)14commercial,customer,and employment-related claims,including purported state and national class action lawsuits related to:alleged environmental conta

133、mination,including releases ofhazardous material and odors;sales and marketing practices,customer service agreements and prices and fees;and federal and state wage and hour and other laws.The plaintiffs in someactions seek unspecified damages or injunctive relief,or both.These actions are in various

134、 procedural stages,and some are covered,in part,by insurance.We currently do not believe thatthe eventual outcome of any such actions will have a material adverse effect on the Companys business,financial condition,results of operations or cash flows.In June 2022,we and certain of our officers were

135、named as defendants in a complaint alleging violation of the federal securities laws and seeking certification as a class action in theU.S.District Court for the Southern District of New York.A lead plaintiff has been appointed and an amended complaint was filed in January 2023.The amended complaint

136、 seeksdamages on behalf of a putative class of secondary market purchasers of our senior notes with a special mandatory redemption feature issued in May 2019,asserting claims under theSecurities Exchange Act based on alleged misrepresentations and omissions concerning the time for completion of our

137、acquisition of Advanced Disposal.On March 27,2024,the Courtdenied our motion to dismiss except as to one of our officers,and the case will proceed to discovery.We intend to vigorously defend against this pending suit.We believe any potentialrecovery by the plaintiffs,in excess of applicable deductib

138、les,will be covered by insurance,and we do not believe that the eventual outcome of this suit will have a material adverse effecton the Companys business,financial condition,results of operations or cash flows.WMIs charter and bylaws provide that WMI shall indemnify against all liabilities and expen

139、ses,and upon request shall advance expenses to any person,who is subject to a pendingor threatened proceeding because such person is or was a director or officer of the Company.Such indemnification is required to the maximum extent permitted under Delaware law.Accordingly,the director or officer mus

140、t execute an undertaking to reimburse the Company for any fees advanced if it is later determined that the director or officer was not permitted tohave such fees advanced under Delaware law.Additionally,the Company has direct contractual obligations to provide indemnification to each of the members

141、of WMIs Board ofDirectors and each of WMIs executive officers.The Company may incur substantial expenses in connection with the fulfillment of its advancement of costs and indemnificationobligations in connection with actions or proceedings that may be brought against its former or current officers,

142、directors and employees.Multiemployer Defined Benefit Pension Plans About 20%of our workforce is covered by collective bargaining agreements with various local unions across the U.S.and Canada.As a result of some of these agreements,certain of our subsidiaries are participating employers in a number

143、 of trustee-managed multiemployer defined benefit pension plans(“Multiemployer Pension Plans”)for the covered employees.A complete or partial withdrawal from a Multiemployer Pension Plan may also occur if employees covered by a collectivebargaining agreement vote to decertify a union from continuing

144、 to represent them.Any other circumstance resulting in a decline in Company contributions to a Multiemployer PensionPlan through a reduction in the labor force,whether through attrition over time or through a business event(such as the discontinuation or nonrenewal of a customer contract,thedecertif

145、ication of a union,or relocation,reduction or discontinuance of certain operations)may also trigger a complete or partial withdrawal from one or more of these pension plans.We do not believe that any future liability relating to our past or current participation in,or withdrawals from,the Multiemplo

146、yer Pension Plans to which we contribute will have amaterial adverse effect on our business,financial condition or liquidity.However,liability for future withdrawals could have a material adverse effect on our results of operations or cashflows for a particular reporting period,depending on the numb

147、er of employees withdrawn and the financial condition of the Multiemployer Pension Plan(s)at the time of suchwithdrawal(s).Tax Matters We maintain a liability for uncertain tax positions,the balance of which management believes is adequate.Results of audit assessments by taxing authorities are notcu

148、rrently expected to have a material adverse effect on our financial condition,results of operations or cash flows.We participate in the IRSs Compliance Assurance Process,whichmeans we work with the IRS throughout the year towards resolving any material issues prior to the filing of ourWASTE MANAGEME

149、NT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)15annual tax return.Any unresolved issues as of the tax return filing date are subject to routine examination procedures.In the fourth quarter of 2022,the Company received a notice of taxdue for the 2017 tax year related to a rem

150、aining disagreement with the IRS.In response to the notice,the Company made a deposit of approximately$103 million with the IRS.TheCompany expects to seek a refund of the entire amount deposited with the IRS and litigate any denial of the claim for refund.As of March 31,2024 and December 31,2023,the

151、 IRSdeposit,net of reserve for uncertain tax positions,is classified as a component of other long-term assets in the Companys Condensed Consolidated Balance Sheets.7.Segment and Related InformationOur senior management evaluates,oversees and manages the financial performance of our business through

152、four reportable segments,referred to as(i)East Tier;(ii)West Tier;(iii)Recycling Processing and Sales and(iv)WM Renewable Energy.Our East Tier and West Tier,combined with certain“Other Ancillary”services that are not managed through theTier segments,but that support our collection and disposal opera

153、tions,form our Collection and Disposal businesses.We also provide additional services not managed through our fourreportable segments,which are presented as Corporate and Other.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)16Summarized financial information con

154、cerning our reportable segments for the three months ended March 31 is shown in the following table(in millions):GrossIntercompanyNetIncomeOperatingOperatingOperatingfrom Revenues Revenues(a)Revenues Operations(b)2024 Collection and Disposal:East Tier$2,616$(535)$2,081$654West Tier2,497(504)1,993627

155、Other Ancillary 686(44)642(2)Collection and Disposal 5,799(1,083)4,716 1,279Recycling Processing and Sales 436(68)368 19WM Renewable Energy70(1)6921Corporate and Other 12(6)6(303)Total$6,317$(1,158)$5,159$1,0162023 Collection and Disposal:East Tier$2,561$(516)$2,045$531West Tier2,392(495)1,897531Oth

156、er Ancillary 625(44)581 2Collection and Disposal 5,578(1,055)4,523 1,064Recycling Processing and Sales 374(80)294 13WM Renewable Energy 70(1)6920Corporate and Other 12(6)6(272)Total$6,034$(1,142)$4,892$825(a)Intercompany operating revenues reflect each segments total intercompany sales,including int

157、ercompany sales within a segment and between segments.Transactions within andbetween segments are generally made on a basis intended to reflect the market value of the service.(b)For those items included in the determination of income from operations,the accounting policies of the segments are the s

158、ame as those described in Note 1.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)17The mix of operating revenues from our major lines of business for the three months ended March 31 are as follows(in millions):GrossIntercompanyNet OperatingOperatingOperatingReven

159、ues Revenues Revenues 2024 Commercial$1,501$(185)$1,316Industrial 934(187)747Residential876(22)854Other collection 751(53)698Total collection 4,062(447)3,615Landfill1,177(385)792Transfer560(251)309Total Collection and Disposal 5,799(1,083)4,716Recycling Processing and Sales 436(68)368WM Renewable En

160、ergy 70(1)69Corporate and Other12(6)6Total$6,317$(1,158)$5,1592023Commercial$1,412$(161)$1,251Industrial 933(177)756Residential854(25)829Other collection 689(50)639Total collection 3,888(413)3,475Landfill1,150(391)759Transfer540(251)289Total Collection and Disposal 5,578(1,055)4,523Recycling Process

161、ing and Sales 374(80)294WM Renewable Energy 70(1)69Corporate and Other12(6)6Total$6,034$(1,142)$4,892Our financial and operating results may fluctuate for many reasons,including period-to-period changes in the relative contribution of revenue by each line of business,changes incommodity prices and g

162、eneral economic conditions.Our operating revenues and volumes typically experience seasonal increases in the summer months that are reflected in second andthird quarter revenues and results of operations.Service or operational disruptions caused by severe storms,extended periods of inclement weather

163、 or climate events can significantly affect the operating results of the geographicareas affected.Extreme weather events may also lead to supply chain disruption and delayed project development,or disruption of our customers businesses,reducing the amount ofwaste generated by their operations.Conver

164、sely,certain destructive weather and climate conditions,such as wildfires in the Western U.S.and hurricanes that most often impact our operations in the Southern andEastern U.S.during the second half of the year,can increase our revenues in the geographic areas affected as a result of the waste volu

165、mes generated by these events.While weather-related and other event-driven special projects can boost revenues through additional work for a limited time,due to significant start-up costs and other factors,such revenue can generateearnings at comparatively lower margins.WASTE MANAGEMENT,INC.NOTES TO

166、 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)188.Accumulated Other Comprehensive(Loss)IncomeThe changes in the balances of each component of accumulated other comprehensive(loss)income,net of tax,which is included as a component of Waste Management,Inc.stockholders equity,are as follows(i

167、n millions,with amounts in parentheses representing decreases to accumulated other comprehensive income):ForeignPost-Available-CurrencyRetirementDerivativefor-SaleTranslationBenefit Instruments Securities Adjustments Obligations TotalBalance,December 31,2023$17$8$(68)$6$(37)Other comprehensive incom

168、e(loss)before reclassifications,net of tax expense(benefit)of$0,$0,$0 and$0,respectively (24)(24)Amounts reclassified from accumulated other comprehensive(income)loss,net of tax(expense)benefit of$0,$0,$0 and$0,respectively 1 1Net current period other comprehensive income(loss)1(24)(23)Balance,March

169、 31,2024$17$9$(92)$6$(60)9.Common Stock Repurchase ProgramThe Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors.In February 2024,we entered into an accelerated share repurchase(“ASR”)agreement to repurchase$250 million of our c

170、ommon stock.At the beginning of the repurchase period,we delivered$250 million cash and initially received 1.0 million shares based on a stock price of$199.16,exclusive of the applicable 1%excise tax.The ASR agreement completed inApril 2024 and we received 0.2 million additional shares based on a fi

171、nal weighted average price of$206.23.As of March 31,2024,the Company has authorization for$1.25 billion of future share repurchases.Any future share repurchases pursuant to this authorization of our Board ofDirectors will be made at the discretion of management and will depend on factors similar to

172、those considered by the Board of Directors in making dividend declarations,including ournet earnings,financial condition and cash required for future business plans,growth and acquisitions.10.Fair Value MeasurementsAssets and Liabilities Accounted for at Fair ValueOur assets and liabilities that are

173、 measured at fair value on a recurring basis include the following(in millions):March 31,December 31,2024 2023Quoted prices in active markets(Level 1):Cash equivalents and money market funds$221$327Equity securities6761Significant other observable inputs(Level 2):Available-for-sale securities(a)525

174、431Total Assets$813$819(a)Our available-for-sale securities primarily relate to debt securities with maturities over the next ten years.WASTE MANAGEMENT,INC.NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)19Fair Value of DebtAs of March 31,2024 and December 31,2023,the carrying value

175、 of our debt was$16.1 billion and$16.2 billion,respectively.The estimated fair value of our debt wasapproximately$15.1 billion and$15.6 billion as of March 31,2024 and December 31,2023,respectively.Although we have determined the estimated fair value amounts using available market information and co

176、mmonly accepted valuation methodologies,considerable judgment isrequired in interpreting market data to develop the estimates of fair value.Accordingly,our estimates are not necessarily indicative of the amounts that we,or holders of the instruments,could realize in a current market exchange.The use

177、 of different assumptions or estimation methodologies could have a material effect on the estimated fair values.The fair valueestimates are based on Level 2 inputs of the fair value hierarchy available as of March 31,2024 and December 31,2023.These amounts have not been revalued since those dates,an

178、dcurrent estimates of fair value could differ significantly from the amounts presented.11.Variable Interest EntitiesThe following is a description of our financial interests in unconsolidated and consolidated variable interest entities that we consider significant:Low-Income Housing PropertiesWe do

179、not consolidate our investments in entities established to manage low-income housing properties because we are not the primary beneficiary of these entities as we do not havethe power to individually direct the activities of these entities.Accordingly,we account for these investments under the equit

180、y method of accounting.Our aggregate investment balance inthese entities was$438 million and$458 million as of March 31,2024 and December 31,2023,respectively.The debt balance related to our investments in low-income housingproperties was$395 million and$408 million as of March 31,2024 and December

181、31,2023,respectively.Additional information related to these investments is discussed in Note 4.Trust Funds for Final Capping,Closure,Post-Closure or Environmental Remediation ObligationsUnconsolidated Variable Interest Entities Trust funds that are established for both the benefit of the Company an

182、d the host community in which we operate are not consolidatedbecause we are not the primary beneficiary of these entities as(i)we do not have the power to direct the significant activities of the trusts or(ii)power over the trusts significantactivities is shared.Our interests in these trusts are acc

183、ounted for as investments in unconsolidated entities and receivables.These amounts are recorded in other receivables,investmentsin unconsolidated entities and long-term other assets in our Condensed Consolidated Balance Sheets,as appropriate.We also reflect our share of the unrealized gains and loss

184、es onavailable-for-sale securities held by these trusts as a component of our accumulated other comprehensive income(loss).Our investments and receivables related to these trusts had anaggregate carrying value of$107 million and$104 million as of March 31,2024 and December 31,2023,respectively.Conso

185、lidated Variable Interest Entities Trust funds for which we are the sole beneficiary are consolidated because we are the primary beneficiary.These trust funds are recorded inrestricted funds in our Condensed Consolidated Balance Sheets.Unrealized gains and losses on available-for-sale securities hel

186、d by these trusts are recorded as a component ofaccumulated other comprehensive income(loss).These trusts had a fair value of$120 million and$119 million as of March 31,2024 and December 31,2023,respectively.20Item 2.Managements Discussion and Analysis of Financial Condition and Results of Operation

187、s.The following discussion should be read in conjunction with the Condensed Consolidated Financial Statements and notes thereto included under Item 1 and our ConsolidatedFinancial Statements and notes thereto and related Managements Discussion and Analysis of Financial Condition and Results of Opera

188、tions included in our Annual Report on Form 10-Kfor the year ended December 31,2023.This Quarterly Report on Form 10-Q contains certain forward-looking statements that are made subject to the safe harbor protections provided by the Private Securities LitigationReform Act of 1995.Forward-looking stat

189、ements are often identified by the words,“will,”“may,”“should,”“continue,”“anticipate,”“believe,”“expect,”“plan,”“forecast,”“project,”“estimate,”“intend,”and words of a similar nature and include estimates or projections of financial and other data;comments on expectations relating to future periods

190、;plans orobjectives for the future;and statements of opinion,view or belief about current and future events,circumstances or performance.You should view these statements with caution.Theyare based on the facts and circumstances known to us as of the date the statements are made.These forward-looking

191、 statements are subject to risks and uncertainties that could causeactual results to be materially different from those set forth in such forward-looking statements,including but not limited to failure to implement our optimization,automation,growth,and cost savings initiatives and overall business

192、strategy;failure to obtain the results anticipated from strategic initiatives,investments,acquisitions or new lines of business;failure toidentify acquisition targets,consummate and integrate acquisitions;environmental and other regulations,including developments related to emerging contaminants,gas

193、 emissions,renewable energy,extended producer responsibility and our natural gas fleet;significant environmental,safety or other incidents resulting in liabilities or brand damage;failure to obtainand maintain necessary permits due to land scarcity,public opposition or otherwise;diminishing landfill

194、 capacity,resulting in increased costs and the need for disposal alternatives;failure to attract,hire and retain key team members and a high quality workforce;increases in labor costs due to union organizing activities or changes in wage and labor relatedregulations;disruption and costs resulting fr

195、om severe weather and destructive climate events;failure to achieve our sustainability goals or execute on our sustainability-related strategyand initiatives,including within planned timelines or anticipated budgets due to disruptions,delays,cost increases or changes in environmental or tax regulati

196、ons;focus on,and regulationof,environmental and sustainability-related disclosures,which could lead to increased costs,risk of non-compliance,brand damage and litigation risk related to our sustainability efforts;macroeconomic conditions,geopolitical conflict and large-scale market disruption result

197、ing in labor,supply chain and transportation constraints,inflationary cost pressures andfluctuations in commodity prices,fuel and other energy costs;increased competition;pricing actions;impacts from international trade restrictions;competitive disposal alternatives,diversion of waste from landfills

198、 and declining waste volumes;weakness in general economic conditions and capital markets,including potential for an economic recession;instability offinancial institutions;adoption of new tax legislation;fuel shortages;failure to develop and protect new technology;failure of technology to perform as

199、 expected;failure to prevent,detectand address cybersecurity incidents or comply with privacy regulations;inability to adapt and manage the benefits and risks of artificial intelligence;negative outcomes of litigation orgovernmental proceedings;and decisions or developments that result in impairment

200、 charges and other risks discussed in our filings with the SEC,including Part I,Item 1A of our AnnualReport on Form 10-K for the year ended December 31,2023.We assume no obligation to update any forward-looking statement,including financial estimates and forecasts,whether as aresult of future events

201、,circumstances or developments or otherwise.OverviewWe are North Americas leading provider of comprehensive environmental solutions,providing services throughout the United States(“U.S.”)and Canada.We partner with ourcustomers and the communities we serve to manage and reduce waste at each stage fro

202、m collection to disposal,while recovering valuable resources and creating clean,renewable energy.We own or operate the largest network of landfills throughout the U.S.and Canada.In order to make disposal more practical for larger urban markets,where the distance to landfills istypically farther,we m

203、anage transfer stations that consolidate,compact and transport waste efficiently and economically.Our business is operated and managed locally by our subsidiariesthat focus on distinct geographic areas and provide collection,transfer,disposal,recycling and resource recovery services.Through our subs

204、idiaries,including our Waste ManagementRenewable Energy(“WM Renewable Energy”)business,we are also a leading developer,operator and owner of landfill gas-to-energy facilities in the U.S.and Canada that producerenewable electricity and renewable natural gas(“RNG”),which is a significant source of fue

205、l that21we allocate to our natural gas fleet.Additionally,we are a leading recycler in the U.S.and Canada,handling materials that include paper,cardboard,glass,plastic and metal.Our senior management evaluates,oversees and manages the financial performance of our business through four reportable seg

206、ments,referred to as(i)Collection and Disposal-EastTier(“East Tier”);(ii)Collection and Disposal-West Tier(“West Tier”);(iii)Recycling Processing and Sales and(iv)WM Renewable Energy.Our East and West Tiers,along withcertain ancillary services(“Other Ancillary”)not managed through our Tier segments,

207、but that support our collection and disposal operations,form our“Collection and Disposal”businesses.StrategyOur fundamental strategy has not changed;we remain dedicated to providing long-term value to our stockholders by successfully executing our core strategy of focuseddifferentiation and continuo

208、us improvement.We have enabled a people-first,technology-led focus to drive our mission to maximize resource value,while minimizing environmentalimpact,and sustainability and environmental stewardship is embedded in all that we do.Our strategy leverages and sustains the strongest asset network in th

209、e industry to drive best-in-class customer experience and growth.Our strategic planning processes appropriately consider that the future of our business and the industry can be influenced by changes in economicconditions,the competitive landscape,the regulatory environment,asset and resource availab

210、ility and technology.We believe that focused differentiation,which is driven by capitalizingon our unique and extensive network of assets,will deliver profitable growth and position us to leverage competitive advantages.Simultaneously,we believe that investing in automationto improve processes and d

211、rive operational efficiency combined with a focus on the cost to serve our customer will yield an attractive profit margin and enhanced service quality.We arefurthering our strategy of focused differentiation and continuous improvement beyond our traditional waste operations through our sustainabili

212、ty growth strategy that includes significantplanned investments in our WM Renewable Energy and Recycling Processing and Sales segments,while increasing automation and reducing labor dependency.We are also evaluatingand pursuing emerging diversion technologies that may generate additional value.Busin

213、ess EnvironmentThe waste industry is a comparatively mature and stable industry.However,customers increasingly expect more of their waste materials to be recovered and those waste streams arebecoming more complex.In addition,many state and local governments mandate diversion,recycling and waste redu

214、ction at the source and prohibit the disposal of certain types of wasteat landfills.We monitor these developments to adapt our service offerings.As companies,individuals and communities look for ways to be more sustainable,we promote ourcomprehensive services that go beyond our core business of coll

215、ecting and disposing of waste in order to meet their needs.This includes expanding traditional recycling services,increasing organics collection and processing,and expanding our renewable energy projects to meet the evolving needs of our diverse customer base.As North Americas leadingprovider of com

216、prehensive environmental solutions,we are taking big,bold steps to catalyze positive change change that will impact our Company as well as the communities weserve.Consistent with our Companys long-standing commitment to sustainability and environmental stewardship,we have published our 2023 Sustaina

217、bility Report providing details onour sustainability-related performance and outlining progress towards our 2030 sustainability goals.The Sustainability Report conveys the strong linkage between the Companyssustainability goals and our growth strategy,inclusive of the planned and ongoing expansion o

218、f the Companys Recycling Processing and Sales and WM Renewable Energy segments.The information in this report can be found at https:/ but it does not constitute a part of,and is not incorporated by reference into,this Quarterly Report on Form10-Q.We encounter intense competition from governmental,qu

219、asi-governmental and private service providers based on pricing,and to a much lesser extent,the nature of service offerings,particularly in the residential line of business.Our industry is directly affected by changes in general economic factors,including increases and decreases in consumer spending

220、,businessexpansions and construction activity.These factors generally correlate to volumes of waste generated and impact our revenue.Negative economic conditions and other macroeconomictrends can and have caused customers to reduce their service needs.Such negative economic conditions,in addition to

221、 competitor actions,can impact our strategy to negotiate,renew,orexpand service contracts and grow our business.We also encounter competition for acquisitions22and growth opportunities.General economic factors and the market for consumer goods,in addition to regulatory developments,can also signific

222、antly impact commodity prices for therecyclable materials we sell.Significant components of our operating expenses vary directly as we experience changes in revenue due to volume and inflation.Volume changes canfluctuate significantly by line of business and volume changes in higher margin businesse

223、s can impact key financial metrics.We must dynamically manage our cost structure in responseto volume changes and cost inflation.We believe the Companys industry-leading asset network and strategic focus on investing in our people and our digital platform will give the Company the necessary tools to

224、 addressthe evolving challenges impacting the Company and our industry.In line with our commitment to continuous improvement and a differentiated customer experience,we remain focusedon our automation and optimization investments to enhance our operational efficiency and change the way we interact w

225、ith our customers.Advancements made through these initiativesare intended to seamlessly and digitally connect all enterprise functions required to service customers and provide the best experience.Macroeconomic pressures continue,including sustained inflationary pressures and high interest rates,wit

226、h geopolitical events causing further market disruptions.Inflationmoderately improved from the high levels observed during the first half of 2023;however,inflation remained above typical levels during the first quarter of 2024.While supply chainactivity has begun to normalize,risks persist related t

227、o higher operating costs,ongoing supply shortages,labor and transportation challenges and impacts from global events.We continue to experience margin pressures from our commodity-driven businesses,specifically within our Recycling Processing and Sales and WM Renewable Energy segments.While still bel

228、ow prices seen at the beginning of 2022,recycling commodity prices began to improve in the fourth quarter of 2023 and continued to improve in the first quarter of 2024.While there may be short term fluctuations in our commodity-driven businesses as prices change,we continue to take proactive steps t

229、o adjust our business models to protect against thedown-side risk of changes in commodity prices.The extent and duration of the impact of labor,supply chain,transportation and commodity price challenges are subject to numerous external factors beyond our control,includingbroader macroeconomic condit

230、ions;recessionary fears and/or an economic recession;size,location,and qualifications of the labor pool;wage and price structures;adoption of new orrevised regulations;geopolitical conflicts and responses and supply and demand for commodities.As we experience inflationary cost pressures,we focus on

231、our pricing efforts,as well asoperating efficiencies and cost controls,to maintain our earnings and cash flow and facilitate growth.With these macroeconomic pressures,we remain committed to putting our peoplefirst to ensure that they are well positioned to execute our daily operations diligently and

232、 safely.We remain focused on delivering outstanding customer service,managing our variablecosts with changing volumes and investing in technology that will enhance our customers experience and provide operating efficiencies intended to reduce our cost to serve.Current Quarter Financial ResultsDuring

233、 the first quarter of 2024,we continued to focus on our priorities to advance our strategyenhancing employee engagement,permanently reducing our cost to serve throughthe use of technology and automation,and investing in growth through our Recycling Processing and Sales and WM Renewable Energy segmen

234、ts.This strategic focus,combined withstrong operational execution resulted in increased revenue,income from operations and income from operations margin.We remain diligent in offering a competitively profitable servicethat meets the needs of our customers,and we are focused on driving operating effi

235、ciencies and reducing discretionary spend.We continue to invest in our people through paying acompetitive market wage,investments in our digital platform and training for our team members.We also continue to make investments in automation and optimization to enhance ouroperational efficiency and imp

236、rove labor productivity for all lines of business.During the first quarter of 2024,we allocated$668 million of available cash to capital expenditures and$557 million to our shareholders through dividends and common stock repurchases.Key elements of our financial results for the first quarter include

237、:Revenues of$5,159 million,compared with$4,892 million in the prior year period,an increase of$267 million,or 5.5%.The increase is primarily attributable to higher yield inour Collection and Disposal businesses and23Recycling Processing and Sales segment,partially offset by,(i)decreased revenue from

238、 our energy surcharge program due to a decline in the price of fuel,particularly diesel,and(ii)lower industrial and residential collection volumes;Operating expenses of$3,140 million,or 60.9%of revenues,compared with$3,086 million,or 63.1%of revenues,in the prior year period.The$54 million increase

239、is primarilyattributable to(i)commodity-driven business impacts from higher recycling rebates;(ii)an increase in volumes in our Strategic Business Solutions(“WMSBS”)business and(iii)inflationary pressures.These increases were offset in part by(i)lower fuel prices and(ii)improved operating efficiency

240、,reduced repair and maintenance costs due toimproved truck deliveries and cost control;Selling,general and administrative expenses were$491 million,or 9.5%of revenues,compared with$476 million,or 9.7%of revenues,in the prior year period.The$15 million increase is primarily attributable to(i)increase

241、d labor costs from higher annual incentive compensation costs and annual wage increases and(ii)increasedtechnology spend;Income from operations was$1,016 million,or 19.7%of revenues,compared with$825 million,or 16.9%of revenues,in the prior year period.The increase in the current yearearnings was pr

242、imarily driven by revenue growth in our Collection and Disposal businesses partially offset by higher annual incentive compensation;Net income attributable to Waste Management,Inc.was$708 million,or$1.75 per diluted share,compared with$533 million,or$1.30 per diluted share,in the prior yearperiod.Th

243、e primary drivers of the increase in net income are the increase in income from operations,discussed above and,to a lesser extent,a reduction in income tax expenseof$37 million,or$0.09 per diluted share,associated with federal tax credits expected to be realized from our RNG investments.These increa

244、ses were partially offset by higherinterest expense and an increase in net losses of our unconsolidated entities.Net cash provided by operating activities was$1,367 million compared with$1,044 million in the prior year period,with the increase driven by(i)higher earnings in ourCollection and Disposa

245、l businesses and Recycling Processing and Sales segment,(ii)favorable changes in working capital,net of effects of acquisitions and divestitures,and(iii)lower incentive compensation payments.This increase was partially offset by higher cash interest payments;andFree cash flow was$714 million compare

246、d with$395 million in the prior year period.The increase in free cash flow is attributable to the increase in net cash provided byoperating activities discussed above.Free cash flow is a non-GAAP measure of liquidity.Refer to Free Cash Flow below for our definition of free cash flow,additionalinform

247、ation about our use of this measure,and a reconciliation to net cash provided by operating activities,which is the most comparable GAAP measure.24Results of OperationsOperating RevenuesThe mix of operating revenues for the three months ended March 31 are as follows(in millions):GrossIntercompanyNet

248、OperatingOperatingOperatingRevenues Revenues(a)Revenues 2024 Commercial$1,501$(185)$1,316Industrial 934(187)747Residential 876(22)854Other collection 751 (53)698Total collection 4,062 (447)3,615Landfill 1,177(385)792Transfer 560(251)309Total Collection and Disposal 5,799 (1,083)4,716Recycling Proces

249、sing and Sales 436 (68)368WM Renewable Energy 70 (1)69Corporate and Other 12(6)6Total$6,317$(1,158)$5,1592023Commercial$1,412$(161)$1,251Industrial 933(177)756Residential 854(25)829Other collection 689 (50)639Total collection 3,888 (413)3,475Landfill 1,150(391)759Transfer 540(251)289Total Collection

250、 and Disposal 5,578 (1,055)4,523Recycling Processing and Sales 374 (80)294WM Renewable Energy 70 (1)69Corporate and Other 12(6)6Total$6,034$(1,142)$4,892(a)Intercompany operating revenues reflect each segments total intercompany sales,including intercompany sales within a segment and between segment

251、s.Transactions within andbetween segments are generally made on a basis intended to reflect the market value of the service.25The following table provides details associated with the period-to-period change in revenues and average yield(dollars in millions):Period-to-Period Change for theThree Month

252、s EndedMarch 31,2024 vs.2023 As a%of As a%of Related Total Amount Business(a)Amount Company(b)Collection and Disposal$2185.1%Recycling Processing and Sales and WM Renewable Energy(c)6015.7 Energy surcharge and mandated fees(d)(28)(11.3)Total average yield(e)$2505.1%Volume(f)(1)Internal revenue growt

253、h 2495.1Acquisitions 190.4Divestitures(1)Foreign currency translation Total$2675.5%(a)Calculated by dividing the increase or decrease for the current year period by the prior year periods related business revenue adjusted to exclude the impacts of divestitures for thecurrent year period.(b)Calculate

254、d by dividing the increase or decrease for the current year period by the prior year periods total Company revenue adjusted to exclude the impacts of divestitures for thecurrent year period.(c)Includes combined impact of commodity price variability in both our Recycling Processing and Sales and WM R

255、enewable Energy segments,as well as changes in certain recyclingfees charged by our collection and disposal operations.(d)Our energy surcharge was revised in the second quarter of 2023 to incorporate market prices for both diesel and compressed natural gas(“CNG”).(e)The amounts reported herein repre

256、sent the changes in our revenue attributable to average yield for the total Company.(f)Includes activities from our Corporate and Other businesses.The following provides further details about our period-to-period change in revenues:Average YieldCollection and Disposal Average Yield This measure refl

257、ects the effect on our revenue from the pricing activities of our collection,transfer and landfill operations,exclusive ofvolume changes.Revenue growth from Collection and Disposal average yield includes not only base rate changes and environmental and service fee fluctuations,but also(i)certainaver

258、age price changes related to the overall mix of services,which are due to the types of services provided;(ii)changes in average price from new and lost business and(iii)pricedecreases to retain customers.26The details of our revenue growth from Collection and Disposal average yield are as follows(do

259、llars in millions):Period-to-Period Change for the Three Months EndedMarch 31,2024 vs.2023As a%ofRelated Amount Business Commercial$866.8%Industrial 495.8Residential 516.4Total collection 1866.1Landfill 172.4Transfer 155.5Total Collection and Disposal$2185.1%Our overall pricing efforts are focused o

260、n keeping pace with the increasing costs and capital needs of our business.We are also continuing to focus on price increases in our disposalbusiness with our municipal solid waste business experiencing average yield of 4.6%for the first quarter of 2024.Recycling Processing and Sales and WM Renewabl

261、e Energy Recycling Processing and Sales revenues attributable to yield increased$58 million in the first quarter of 2024 ascompared with prior year period.During the first quarter of 2024,average market prices for single-stream recycled commodities were up 57%as compared with the prior year period.Y

262、ield from the WM Renewable Energy segment was essentially flat with increases in Renewable Identification Numbers(“RINs”)values largely offset by a decrease in market prices forpower.While there may be short-term fluctuations in our commodity-driven businesses as prices change,we continue to take pr

263、oactive steps to adjust our business models to protectagainst the downside risk of changes in commodity prices.Energy Surcharge and Mandated Fees These fees,which include our energy surcharge program and other mandated fees,decreased$28 million for the first quarter of 2024,ascompared with the prior

264、 year period.Beginning in the second quarter of 2023,our energy surcharge was revised to incorporate market prices for both diesel and CNG.The decrease inenergy surcharge revenues in the first quarter of 2024 is primarily due to a decline of approximately 10%in market prices for diesel fuel as compa

265、red to the prior year period.Themandated fees are primarily related to fees and taxes assessed by various state,county and municipal government agencies at our landfills and transfer stations.These amounts have notsignificantly impacted the change in revenue for the first quarter of 2024,as compared

266、 with the prior year period.VolumeOur revenues from volume(excluding volumes from acquisitions and divestitures)decreased$1 million for the first quarter of 2024 as compared with the prior year period.Specialwaste volumes at our landfills continue to be strong primarily due to higher contributions f

267、rom event-driven projects.In addition,our WMSBS business volumes grew as a result of ourcontinued focus on a differentiated service model for national accounts customers.However,these increases have been offset by a decline in our industrial collection volumes primarilydue to lower contributions fro

268、m temporary business as well as our intentional shedding of low-margin residential collection volumes.Furthermore,our construction and demolitionlandfill volumes have declined on a year-over-year basis due to the impact of clean-up efforts in our East Tier from Hurricane Ian in the prior year.27Oper

269、ating ExpensesThe following table summarizes the major components of our operating expenses for the three months ended March 31(in millions of dollars and as a percentage of revenues):2024 2023Labor and related benefits$893 17.3%$914 18.7%Transfer and disposal costs 315 6.1 307 6.3Maintenance and re

270、pairs 489 9.5 491 10.0Subcontractor costs 536 10.4 509 10.4Cost of goods sold 228 4.4 185 3.8Fuel 112 2.2 139 2.8Disposal and franchise fees and taxes 172 3.3 170 3.5Landfill operating costs 129 2.5 117 2.4Risk management 77 1.5 73 1.5Other 189 3.7 181 3.7$3,140 60.9%$3,086 63.1%Our operating expens

271、es for the first quarter of 2024 increased,as compared with the first quarter of 2023,primarily due to(i)commodity-driven business impacts from higherrecycling rebates reflected in costs of goods sold;(ii)an increase in volumes in our WMSBS business,which relies more extensively on subcontracted hau

272、ling and services than ourCollection and Disposal businesses and(iii)inflationary pressures which have moderately declined from the high levels observed during the first half of 2023.These increases wereoffset,in part,by(i)commodity-driven business impacts from lower fuel prices and(ii)improved oper

273、ating efficiency and cost control initiatives in our Collection and Disposalbusinesses,as reflected in lower labor and benefits and maintenance and repairs costs as compared with the first quarter of 2023.Although our operating expenses increased overall,efficiency gains,improved turnover,and moment

274、um in truck deliveries combined with the benefit of price increases positioned us to significantly reduce our operating expenses as apercentage of revenue when compared with prior period.Significant items affecting the comparison of operating expenses for the reported periods include:Labor and Relat

275、ed Benefits The decrease in labor and related benefits costs was largely driven by efficiency improvements in the Collection and Disposal businesses asdemonstrated by(i)lower headcount;(ii)decreased overtime and(iii)a significant reduction in training hours.Improved driver retention was an important

276、 contributing factor toaccomplish this result.The efficiency and turnover driven decreases in costs were offset,in part,by annual employee wage increases.Transfer and Disposal Costs The increase in transfer and disposal costs was primarily due to inflationary cost increases,which includes increased

277、disposal fees at third-party sitesand higher rates from our third-party haulers offset,in part,by decreases in industrial and residential collection volumes.Maintenance and Repairs The slight decrease in maintenance and repairs costs was largely driven by an improvement in new truck deliveries,which

278、 lowered average fleet ageand reduced demand for third-party services,parts and supplies.Subcontractor Costs The increase in subcontractor costs was primarily due to(i)an increase in volumes in our WMSBS business,which relies more extensively on subcontractedhauling and services than our Collection

279、and Disposal businesses and(ii)continued inflationary cost increases,particularly labor costs from third-party haulers.These increases wereoffset,in part,by the impact of lower fuel prices on third-party subcontracted hauling and services as compared with the first quarter of 2023.Cost of Goods Sold

280、 The increase in cost of goods sold was primarily driven by a 57%increase in recycling commodity prices compared to the prior year period.28Fuel The decrease in fuel costs was primarily due to a decrease of approximately 10%in market prices for diesel fuel.Disposal and Franchise Fees and Taxes The s

281、light increase in disposal and franchise fees and taxes was primarily driven by higher franchise and host community fees paid tocertain municipalities where we operate.Landfill Operating Costs The increase in landfill operating costs was primarily due to(i)certain adjustments to our environmental re

282、mediation reserve during the first quarter of2024,and(ii)higher costs across our landfills for leachate collection and treatment.Risk Management Risk management costs increased during the first quarter of 2024 as compared with the first quarter of 2023 primarily due to expected increases in premiums

283、 forproperty coverage.Other Other operating cost increases were primarily due to a favorable litigation settlement during the first quarter of 2023,which reduced our expense,and an increase inproperty taxes.These increases were offset,in part,by(i)lower equipment rental costs attributable,in part,to

284、 improved truck deliveries in late 2023 and early 2024 and(ii)security costsduring the first quarter of 2023 attributable to a labor dispute which did not recur in 2024.Selling,General and Administrative ExpensesThe following table summarizes the major components of our selling,general and administr

285、ative expenses for the three months ended March 31(in millions of dollars and as apercentage of revenues):2024 2023Labor and related benefits$321 6.2%$312 6.4%Professional fees 47 0.9 50 1.0Provision for bad debts 10 0.2 9 0.2Other 113 2.2 105 2.1$491 9.5%$476 9.7%Selling,general and administrative

286、expenses have increased primarily due to(i)increased labor costs from higher annual incentive compensation costs and annual wage increases and(ii)increased technology spend.Although our costs increased,the significant revenue increases positioned us to reduce our overall selling,general and administ

287、rative expenses as apercentage of revenue when compared with the prior period.Significant items affecting the comparison of our selling,general and administrative expenses for the reported periods include:Labor and Related Benefits The increase in labor and related benefits costs was primarily relat

288、ed to(i)higher annual incentive compensation costs and(ii)annual employee wageincreases.These increases were partially offset by a reduction in the hourly workforce as we have leveraged automation and technology to address attrition,particularly in our customerexperience function.Professional Fees T

289、he decrease in professional fees was primarily attributable to reduced expenses in connection with investments in our digital platform,as certain strategicprojects have now been implemented.Other The increase in other expenses was primarily related to increased spend across multiple cost categories

290、such as computers,travel,and other support costs.29Depreciation,Depletion and Amortization ExpensesThe following table summarizes the components of our depreciation,depletion and amortization expenses for the three months ended March 31(in millions of dollars and as apercentage of revenues):2024 202

291、3Depreciation of tangible property and equipment$308 6.0%$293 6.0%Depletion of landfill airspace 176 3.4 178 3.6Amortization of intangible assets 30 0.6 34 0.7$514 10.0%$505 10.3%The increase in depreciation of tangible property and equipment during the first quarter of 2024,as compared with the fir

292、st quarter of 2023,was primarily driven by additionaldepreciation due to investments in capital assets to service our customers,such as trucks,machinery and equipment,and containers.The decrease in depletion of landfill airspace duringthe first quarter of 2024,as compared with the first quarter of 2

293、023,was driven by the closure of a previously reopened landfill in our East Tier.The decrease in amortization of intangibleassets during the first quarter of 2024,as compared with the first quarter of 2023,was primarily driven by the amortization of acquired intangible assets.Income from OperationsT

294、he following table summarizes income from operations for our reportable segments for the three months ended March 31(dollars in millions):Period-to-Period 2024 2023Change Collection and Disposal:East Tier$654$531$123 23.2%West Tier 627 531 96 18.1Other Ancillary (2)2 (4)*Collection and Disposal 1,27

295、9 1,064 215 20.2Recycling Processing and Sales 19 13 646.2WM Renewable Energy 21 20 15.0Corporate and Other(303)(272)(31)11.4Total(a)$1,016$825$191 23.2%Percentage of revenues19.7%16.9%*Percentage change does not provide a meaningful comparison.(a)From time to time,the operating results of our repor

296、table segments are significantly affected by certain transactions or events that management believes are not indicative orrepresentative of our results.The significant items affecting income from operations for our segments during the first quarter of 2024,as compared with the prior year period,are

297、summarized below:Collection and Disposal Income from operations in our Collection and Disposal businesses increased primarily due to intentional efforts to improve the efficiency and operatingcosts incurred to serve our customers.Revenue growth from price increases,which translate into increased yie

298、ld or average unit price,also contributed to the increase in income fromoperations.These increases were partially offset by(i)increased subcontractor costs within our WMSBS business which relies more extensively on subcontracted hauling and servicesthan other parts of our Collection and Disposal30bu

299、sinesses and(ii)a decline in industrial collection volumes primarily due to lower contributions from temporary businesses as well as our intentional efforts to reduce unprofitableresidential collection volumes.Recycling Processing and Sales The increase in income from operations in Recycling Process

300、ing and Sales was primarily driven by an increase in the price for recycledcommodities compared to the prior year.WM Renewable Energy The increase in income from operations in WM Renewable Energy was primarily driven by(i)increased revenue due to higher RINs pricing and(ii)areduction in professional

301、 fees.Corporate and Other The decrease in income from operations was primarily driven by(i)higher annual incentive compensation and(ii)certain adjustments to our environmentalremediation reserve during the first quarter of 2024.The decrease was partially offset by a decrease in health and welfare co

302、sts attributable to a headcount driven decline in planparticipants.Interest Expense,NetOur interest expense,net was$130 million and$120 million during the three months ended March 31,2024 and 2023,respectively.The increase is primarily related to an increase inour weighted average borrowing rate of

303、approximately 15 basis points.Equity in Net Losses of Unconsolidated EntitiesWe recognized equity in net losses of unconsolidated entities of$19 million and$11 million during the three months ended March 31,2024 and 2023,respectively.The losses foreach period were primarily related to our noncontrol

304、ling interests in entities established to invest in and manage low-income housing properties.We generate tax benefits,including taxcredits,from the losses incurred from these investments which are discussed further in Note 4 to the Condensed Consolidated Financial Statements.Income Tax ExpenseOur in

305、come tax expense and effective income tax rates were$162 million,or 18.6%,and$164 million,or 23.6%,for the three months ended March 31,2024 and 2023,respectively.See Note 4 to the Condensed Consolidated Financial Statements for more information related to income taxes.Tax Legislation The Inflation R

306、eduction Act of 2022(“IRA”)was signed into law by President Biden on August 16,2022 and contains several tax-related provisions,includingwith respect to(i)alternative fuel tax credits;(ii)tax incentives for investments in renewable energy production,carbon capture,and other climate actions and(iii)t

307、he overallmeasurement of corporate income taxes.Given the complexity and uncertainty around the applicability of the legislation to our specific facts and circumstances,we continue to analyzethe IRA provisions to identify and quantify potential opportunities and applicable benefits included in the l

308、egislation.The provisions of the IRA related to alternative fuel tax creditssecure approximately$55 million of annual pre-tax benefit(recorded as a reduction in our operating expense)for tax credits in 2022,2023 and 2024.With respect to the investment tax credit,as expanded by the IRA,we expect the

309、cumulative benefit to be between$250 million and$350 million,a large portion of which isanticipated to be realized in 2024 through 2026.The Company projects a full year investment tax credit benefit of approximately$145 million,which is derived from the projectedcompletion of five new RNG facilities

310、 by the end of 2024.The amount of the projected investment tax credit benefit for 2024 is based on a number of estimates and assumptions,including the timing of project completion and interpretation of the IRA.Recently,however,the IRS issued proposed regulations applicable to the investment tax cred

311、its that could call into question our ability to realize some,or all,of this tax benefit,which would negatively impact financial expectations in connection with our significant planned and ongoing investments in sustainability growth projects in our WM Renewable31Energy segment.The proposed regulati

312、ons provide a public comment period to allow taxpayers to provide input prior to the issuance of final regulations.In coordination with othermembers of the RNG industry,we are actively using this public comment period to work with external advisors,the U.S.Congress,the current federal administration

313、,and other biogassector stakeholders to encourage the Treasury Department to further refine its analysis prior to publication of final regulations that more accurately reflect the express language andlegislative intent of the statute with respect to the investment tax credit.However,there is no guar

314、antee that such efforts will be successful.We expect that the production tax creditincentives for investments in renewable energy and carbon capture,as expanded by the IRA,will likely result in an incremental benefit to the Company,although at this time,theanticipated amount of such benefit has not

315、been quantified.Liquidity and Capital ResourcesThe Company consistently generates cash flow from operations that meets and exceeds our working capital needs,allows for payment of our dividends,investment in the businessthrough capital expenditures and tuck-in acquisitions,and funding of strategic su

316、stainability growth investments.We continually monitor our actual and forecasted cash flows,ourliquidity and our capital resources,enabling us to plan for our present needs and fund unbudgeted business requirements that may arise during the year.The Company believes that itsinvestment grade credit r

317、atings,diverse investor base,large value of unencumbered assets and modest leverage enable it to obtain adequate financing,and refinance upcoming maturities,as necessary to meet its ongoing capital,operating,strategic and other liquidity requirements.We also have the additional ability to manage liq

318、uidity during periods of significantfinancial market disruption through temporary modification of our capital expenditure and share repurchase plans.Summary of Cash and Cash Equivalents,Restricted Funds and Debt ObligationsThe following is a summary of our cash and cash equivalents,restricted funds

319、and debt balances(in millions):March 31,December 31,2024 2023Cash and cash equivalents$322$458Restricted funds:Insurance reserves$492$376Final capping,closure,post-closure and environmental remediation funds 120 119Other 2 17Total restricted funds(a)$614$512Debt:Current portion$336$334Long-term port

320、ion 15,762 15,895Total debt$16,098$16,229(a)As of March 31,2024 and December 31,2023,$90 million of these account balances were included in other current assets in our Condensed Consolidated Balance Sheets.As of March 31,2024,we had approximately$3.1 billion of debt maturing within the next 12 month

321、s,including(i)$750 million of short-term borrowings under our commercialpaper program(net of related discount on issuance);(ii)$1.6 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months,which is prior to theirscheduled maturities;(iii)$156 million of 3.5%s

322、enior notes that mature in May 2024;(iv)$422 million of 3.125%senior notes that mature in March 2025 and(v)$180 million of otherdebt with scheduled maturities within the next 12 months,including$60 million of tax-exempt bonds.As of March 31,2024,we have classified$2.8 billion of debt maturing in the

323、 next12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our$3.5 billionlong-term U.S.and Canadian revolving credit facility(“$3.5 billion revolving credit facility”),as discussed bel

324、ow.The remaining$336 million of debt maturing in the next 12 months isclassified as current obligations.32Guarantor Financial InformationWM Holdings has fully and unconditionally guaranteed all of WMIs senior indebtedness.WMI has fully and unconditionally guaranteed all of WM Holdings senior indebte

325、dness.None of WMIs other subsidiaries have guaranteed any of WMIs or WM Holdings debt.In lieu of providing separate financial statements for the subsidiary issuer and guarantor(WMIand WM Holdings),we have presented the accompanying supplemental summarized combined balance sheet and income statement

326、information for WMI and WM Holdings on acombined basis after elimination of intercompany transactions between WMI and WM Holdings and amounts related to investments in any subsidiary that is a non-guarantor(inmillions):March 31,2024 December 31,2023Balance Sheet Information:Current assets$162$276Non

327、current assets 12 25Current liabilities 300 336Noncurrent liabilities:Advances due to affiliates 21,847 21,228Other noncurrent liabilities 13,694 13,798 Three Months EndedMarch 31,2024Income Statement Information:Revenue$Operating income(134)Net loss(99)Summary of Cash Flow ActivityThe following is

328、a summary of our cash flows for the three months ended March 31(in millions):2024 2023Net cash provided by operating activities$1,367$1,044Net cash used in investing activities$(755)$(778)Net cash used in financing activities$(737)$(319)Net Cash Provided by Operating Activities Our operating cash fl

329、ows increased by$323 million for the three months ended March 31,2024,as compared with the prior yearperiod,driven by(i)higher earnings in our Collection and Disposal businesses and Recycling Processing and Sales segment,(ii)favorable changes in working capital,net of effects ofacquisitions and dive

330、stitures,and(iii)lower annual incentive compensation payments.This increase was partially offset by higher cash interest payments.Net Cash Used in Investing Activities The most significant items included in our investing cash flows for the three months ended March 31,2024 and 2023 are summarized bel

331、ow:Capital Expenditures We used$668 million and$660 million for capital expenditures during the three months ended March 31,2024 and 2023,respectively.The increase incapital spending is primarily driven by our planned and ongoing investments in our Recycling Processing and Sales and WM Renewable Ene

332、rgy segments.Other,Net The year-over-year changes in other investing activities were primarily driven by changes in our investment portfolio associated with a wholly-owned insurancecaptive.During the three months ended March 31,2024 and 2023,we used$90 million and$85 million,respectively,of cash fro

333、m restricted cash and cash equivalents to investin available-for-sale securities.33Net Cash Used in Financing Activities The most significant items affecting the comparison of our financing cash flows for the three months ended March 31,2024 and 2023 aresummarized below:Debt Borrowings and Repayments The following summarizes our cash borrowings and repayments of debt for the three months ended Mar