2013 Q4 Form 10-K Financial Statement

#000119312514056656 Filed on February 18, 2014

View on sec.gov

Income Statement

Concept 2013 Q4 2013 Q3 2013
Revenue $3.500B $3.621B $13.98B
YoY Change 1.92% 4.62% 2.45%
Cost Of Revenue $1.983B $2.325B $9.112B
YoY Change 2.06% 4.31% 2.62%
Gross Profit $1.517B $1.296B $4.871B
YoY Change 1.74% 5.19% 2.12%
Gross Profit Margin 43.34% 35.79% 34.84%
Selling, General & Admin $660.0M $349.0M $1.468B
YoY Change 3.61% 4.18% -0.27%
% of Gross Profit 43.51% 26.93% 30.14%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $327.0M $344.0M $1.333B
YoY Change 0.31% 3.93% 2.78%
% of Gross Profit 21.56% 26.54% 27.37%
Operating Expenses $987.0M $349.0M $1.468B
YoY Change 2.49% 4.18% -0.27%
Operating Profit -$410.0M $577.0M $1.079B
YoY Change -184.71% 15.4% -41.71%
Interest Expense -$131.0M -$119.0M $500.0M
YoY Change 5.65% -1.65% -1.77%
% of Operating Profit -20.62% 46.34%
Other Income/Expense, Net -$62.00M -$3.000M -$74.00M
YoY Change 463.64% -78.57% 311.11%
Pretax Income -$603.0M $452.0M $494.0M
YoY Change -272.78% 29.89% -62.09%
Income Tax -$4.000M $155.0M $364.0M
% Of Pretax Income 34.29% 73.68%
Net Earnings -$605.0M $291.0M $98.00M
YoY Change -370.09% 35.98% -88.0%
Net Earnings / Revenue -17.29% 8.04% 0.7%
Basic Earnings Per Share -$1.29 $0.62 $0.21
Diluted Earnings Per Share -$1.29 $0.62 $0.21
COMMON SHARES
Basic Shares Outstanding 469.2M shares 469.3M shares 467.7M shares
Diluted Shares Outstanding 471.2M shares 469.8M shares

Balance Sheet

Concept 2013 Q4 2013 Q3 2013
SHORT-TERM ASSETS
Cash & Short-Term Investments $235.0M $157.0M $235.0M
YoY Change 21.13% -60.55% 21.13%
Cash & Equivalents $58.00M $157.0M $58.00M
Short-Term Investments $177.0M $177.0M
Other Short-Term Assets $163.0M $138.0M $276.0M
YoY Change 16.43% -13.21% 27.78%
Inventory $178.0M $178.0M $178.0M
Prepaid Expenses
Receivables $1.699B $1.751B $1.699B
Other Receivables $111.0M $109.0M $111.0M
Total Short-Term Assets $2.499B $2.417B $2.499B
YoY Change 3.14% -9.1% 3.14%
LONG-TERM ASSETS
Property, Plant & Equipment $12.34B $12.62B $12.34B
YoY Change -2.43% 0.82% -2.43%
Goodwill $6.070B $6.593B
YoY Change -3.51% 5.34%
Intangibles $529.0M $569.0M
YoY Change 33.25% 40.49%
Long-Term Investments $437.0M $656.0M $414.0M
YoY Change -1.35% 0.61% -37.93%
Other Assets $747.0M $757.0M $747.0M
YoY Change 11.83% 30.52% 11.83%
Total Long-Term Assets $19.99B $21.20B $20.10B
YoY Change -3.3% 3.83% -2.76%
TOTAL ASSETS
Total Short-Term Assets $2.499B $2.417B $2.499B
Total Long-Term Assets $19.99B $21.20B $20.10B
Total Assets $22.49B $23.61B $22.60B
YoY Change -2.63% 2.34% -2.14%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $744.0M $763.0M $744.0M
YoY Change -11.64% -3.05% -11.64%
Accrued Expenses $1.069B $1.059B $1.038B
YoY Change 8.42% -5.02% 5.27%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change -100.0%
Long-Term Debt Due $726.0M $568.0M $726.0M
YoY Change -2.29% -31.23% -2.29%
Total Short-Term Liabilities $3.014B $2.862B $3.014B
YoY Change -0.72% -10.2% -0.72%
LONG-TERM LIABILITIES
Long-Term Debt $9.500B $9.491B $9.500B
YoY Change 3.56% 3.55% 3.56%
Other Long-Term Liabilities $727.0M $744.0M $2.245B
YoY Change -9.91% -1.98% -0.93%
Total Long-Term Liabilities $727.0M $744.0M $11.75B
YoY Change -9.91% -1.98% 2.68%
TOTAL LIABILITIES
Total Short-Term Liabilities $3.014B $2.862B $3.014B
Total Long-Term Liabilities $727.0M $744.0M $11.75B
Total Liabilities $16.60B $16.60B $16.90B
YoY Change 1.09% 0.83% 0.91%
SHAREHOLDERS EQUITY
Retained Earnings $6.289B $7.066B
YoY Change -8.58% 3.61%
Common Stock $4.602B $4.588B
YoY Change 1.03% 0.79%
Preferred Stock
YoY Change
Treasury Stock (at cost) $5.338B $5.115B
YoY Change 1.23% -3.2%
Treasury Stock Shares 166.0M shares 161.1M shares
Shareholders Equity $5.707B $6.708B $5.707B
YoY Change
Total Liabilities & Shareholders Equity $22.60B $23.61B $22.60B
YoY Change -2.14% 2.34% -2.14%

Cashflow Statement

Concept 2013 Q4 2013 Q3 2013
OPERATING ACTIVITIES
Net Income -$605.0M $291.0M $98.00M
YoY Change -370.09% 35.98% -88.0%
Depreciation, Depletion And Amortization $327.0M $344.0M $1.333B
YoY Change 0.31% 3.93% 2.78%
Cash From Operating Activities $597.0M $736.0M $2.455B
YoY Change 3.47% 28.22% 6.97%
INVESTING ACTIVITIES
Capital Expenditures -$447.0M -$323.0M $1.267B
YoY Change 18.25% -19.65% -183.91%
Acquisitions $724.0M
YoY Change 189.6%
Other Investing Activities -$21.00M -$416.0M $81.00M
YoY Change -76.92% 642.86% 58.82%
Cash From Investing Activities -$468.0M -$739.0M -$1.900B
YoY Change -0.21% 61.35% 3.83%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $239.0M
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -228.0M 6.000M -687.0M
YoY Change -26.69% -86.05% 29.62%
NET CHANGE
Cash From Operating Activities 597.0M 736.0M 2.455B
Cash From Investing Activities -468.0M -739.0M -1.900B
Cash From Financing Activities -228.0M 6.000M -687.0M
Net Change In Cash -99.00M 3.000M -132.0M
YoY Change -51.23% -98.11% 103.08%
FREE CASH FLOW
Cash From Operating Activities $597.0M $736.0M $2.455B
Capital Expenditures -$447.0M -$323.0M $1.267B
Free Cash Flow $1.044B $1.059B $1.188B
YoY Change 9.32% 8.5% -68.78%

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CY2013 dei Trading Symbol
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WM
CY2013 dei Entity Registrant Name
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WASTE MANAGEMENT INC
CY2013 dei Entity Current Reporting Status
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CY2013 dei Amendment Flag
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false
CY2013 dei Entity Filer Category
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Large Accelerated Filer
CY2013 dei Document Fiscal Year Focus
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2013
CY2013 dei Document Type
DocumentType
10-K
CY2013 dei Document Period End Date
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2013-12-31
CY2013 dei Entity Central Index Key
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0000823768
CY2013 dei Entity Well Known Seasoned Issuer
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Yes
CY2013 dei Current Fiscal Year End Date
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CY2013 dei Document Fiscal Period Focus
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FY
CY2013 dei Entity Voluntary Filers
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No
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CY2013 us-gaap Revenue Recognition Multiple Element Arrangements
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CY2013 us-gaap Multiemployer Plans Underfunded Status Description
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CY2013 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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CY2013 us-gaap Asset Retirement Obligations Description
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CY2013 us-gaap Earnings Per Share Basic
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CY2013 us-gaap Nature Of Operations
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<div> <p style="margin-top:12px;margin-bottom:0px"><font style="font-family:Times New Roman" size="2"><b>1.&#xA0;&#xA0;&#xA0;&#xA0;Business</b></font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">The financial statements presented in this report represent the consolidation of Waste Management, Inc., a Delaware corporation; Waste Management&#x2019;s wholly-owned and majority-owned subsidiaries; and certain variable interest entities for which Waste Management or its subsidiaries are the primary beneficiaries as described in Note 20. Waste Management is a holding company and all operations are conducted by its subsidiaries. When the terms &#x201C;the Company,&#x201D; &#x201C;we,&#x201D; &#x201C;us&#x201D; or &#x201C;our&#x201D; are used in this document, those terms refer to Waste Management, Inc., its consolidated subsidiaries and consolidated variable interest entities. When we use the term &#x201C;WM,&#x201D; we are referring only to Waste Management, Inc., the parent holding company.</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">We are North America&#x2019;s leading provider of comprehensive waste management environmental services. We partner with our residential, commercial, industrial and municipal customers and the communities we serve to manage and reduce waste at each stage from collection to disposal, while recovering valuable resources and creating clean, renewable energy. Our &#x201C;Solid Waste&#x201D; business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provides collection, transfer, recycling and resource recovery, and disposal services. Through our subsidiaries, we are also a leading developer, operator and owner of waste-to-energy and landfill gas-to-energy facilities in the United States.</font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">We evaluate, oversee and manage the financial performance of our Solid Waste business subsidiaries through our 17 geographic Areas. Our Wheelabrator business provides waste-to-energy services and manages waste-to-energy facilities and independent power production plants. We also provide additional services that are not managed through our Solid Waste or Wheelabrator businesses, which are presented in this report as &#x201C;Other.&#x201D; Additional information related to our segments can be found in Note 21.</font></p> </div>
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CY2013 us-gaap Concentration Risk Credit Risk
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%; MARGIN-TOP: 6px"> <font style="FONT-FAMILY: Times New Roman" size="2"><b><i>Concentrations of Credit Risk</i></b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments held within our trust funds and escrow accounts, accounts receivable and derivative instruments. We make efforts to control our exposure to credit risk associated with these instruments by (i)&#xA0;placing our assets and other financial interests with a diverse group of credit-worthy financial institutions; (ii)&#xA0;holding high-quality financial instruments while limiting investments in any one instrument and (iii)&#xA0;maintaining strict policies over credit extension that include credit evaluations, credit limits and monitoring procedures, although generally we do not have collateral requirements for credit extensions. We also control our exposure associated with trade receivables by discontinuing service, to the extent allowable, to non-paying customers. However, our overall credit risk associated with trade receivables is limited due to the large number of diverse customers we service. At December&#xA0;31, 2013 and 2012, no single customer represented greater than 5% of total accounts receivable.</font></p> </div>
CY2013 us-gaap Prior Period Reclassification Adjustment Description
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<div> <p style="margin-top:6px;margin-bottom:0px; margin-left:2%"> <font style="font-family:Times New Roman" size="2"><b><i>Reclassifications</i></b></font></p> <p style="margin-top:6px;margin-bottom:0px; text-indent:4%"> <font style="font-family:Times New Roman" size="2">When necessary, reclassifications have been made to our prior period consolidated financial information in order to conform to the current year presentation.</font></p> </div>
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CY2013 us-gaap Common Stock Dividends Per Share Cash Paid
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CY2013 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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CY2013 us-gaap Use Of Estimates
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<div> <p style="MARGIN-BOTTOM: 0px; MARGIN-LEFT: 2%; MARGIN-TOP: 6px"> <font style="FONT-FAMILY: Times New Roman" size="2"><b><i>Estimates and Assumptions</i></b></font></p> <p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 6px; TEXT-INDENT: 4%"> <font style="FONT-FAMILY: Times New Roman" size="2">In preparing our financial statements, we make numerous estimates and assumptions 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 from available data or simply cannot 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 for landfills, environmental remediation liabilities, asset impairments, deferred income taxes and reserves associated with our insured and self-insured claims. Each of these items is discussed in additional detail below. Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.</font></p> </div>
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CY2013 us-gaap Interest Paid Net
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