| Segment and Related Information |
7. Segment and Related Information Our senior management evaluates, oversees and manages the financial performance of our business through four reportable segments, referred to as (i) East Tier; (ii) West Tier; (iii) Recycling Processing and Sales and (iv) WM Renewable Energy. Our East and West Tier, along with Other Ancillary services not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses. We also provide additional services not managed through our four reportable segments, which are presented as Corporate and Other. Summarized financial information concerning our reportable segments is shown in the following table (in millions): | | | | | | | | | | | | | | | Gross | | Intercompany | | Net | | Income | | | Operating | | Operating | | Operating | | from | | | Revenues | | Revenues(a) | | Revenues | | Operations(b) | Three Months Ended June 30: | | | | | | | | | | | | | 2024 | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | East Tier | | $ | 2,751 | | $ | (573) | | $ | 2,178 | | $ | 692 | West Tier | | | 2,616 | | | (540) | | | 2,076 | | | 674 | Other Ancillary | | | 713 | | | (45) | | | 668 | | | (7) | Collection and Disposal | | | 6,080 | | | (1,158) | | | 4,922 | | | 1,359 | Recycling Processing and Sales | | | 475 | | | (70) | | | 405 | | | 29 | WM Renewable Energy | | | 70 | | | (1) | | | 69 | | | 18 | Corporate and Other | | | 12 | | | (6) | | | 6 | | | (397) | Total | | $ | 6,637 | | $ | (1,235) | | $ | 5,402 | | $ | 1,009 | | | | | | | | | | | | | | 2023 | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | East Tier | | $ | 2,673 | | $ | (550) | | $ | 2,123 | | $ | 599 | West Tier | | | 2,512 | | | (524) | | | 1,988 | | | 576 | Other Ancillary | | | 672 | | | (49) | | | 623 | | | (2) | Collection and Disposal | | | 5,857 | | | (1,123) | | | 4,734 | | | 1,173 | Recycling Processing and Sales | | | 394 | | | (78) | | | 316 | | | 24 | WM Renewable Energy | | | 63 | | | (1) | | | 62 | | | 14 | Corporate and Other | | | 14 | | | (7) | | | 7 | | | (267) | Total | | $ | 6,328 | | $ | (1,209) | | $ | 5,119 | | $ | 944 |
| | | | | | | | | | | | | | | Gross | | Intercompany | | Net | | Income | | | Operating | | Operating | | Operating | | from | | | Revenues | | Revenues(a) | | Revenues | | Operations(b) | Six Months Ended June 30: | | | | | | | | | | | | | 2024 | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | East Tier | | $ | 5,367 | | $ | (1,108) | | $ | 4,259 | | $ | 1,346 | West Tier | | | 5,113 | | | (1,044) | | | 4,069 | | | 1,301 | Other Ancillary | | | 1,399 | | | (89) | | | 1,310 | | | (9) | Collection and Disposal | | | 11,879 | | | (2,241) | | | 9,638 | | | 2,638 | Recycling Processing and Sales | | | 911 | | | (138) | | | 773 | | | 48 | WM Renewable Energy | | | 140 | | | (2) | | | 138 | | | 39 | Corporate and Other | | | 24 | | | (12) | | | 12 | | | (700) | Total | | $ | 12,954 | | $ | (2,393) | | $ | 10,561 | | $ | 2,025 | | | | | | | | | | | | | | 2023 | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | East Tier | | $ | 5,234 | | $ | (1,066) | | $ | 4,168 | | $ | 1,130 | West Tier | | | 4,904 | | | (1,019) | | | 3,885 | | | 1,107 | Other Ancillary | | | 1,297 | | | (93) | | | 1,204 | | | — | Collection and Disposal | | | 11,435 | | | (2,178) | | | 9,257 | | | 2,237 | Recycling Processing and Sales | | | 768 | | | (158) | | | 610 | | | 37 | WM Renewable Energy | | | 133 | | | (2) | | | 131 | | | 34 | Corporate and Other | | | 26 | | | (13) | | | 13 | | | (539) | Total | | $ | 12,362 | | $ | (2,351) | | $ | 10,011 | | $ | 1,769 |
| (a) | Intercompany operating revenues reflect each segment’s total intercompany sales, including intercompany sales within a segment and between segments. Transactions within and between 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 same as those described in Note 1. |
The mix of operating revenues from our major lines of business are as follows (in millions): | | | | | | | | | | | | Gross | | Intercompany | | Net | | | Operating | | Operating | | Operating | | | Revenues | | Revenues (a) | | Revenues | Three Months Ended June 30: | | | | | | | | | | 2024 | | | | | | | | | | Commercial | | $ | 1,526 | | $ | (196) | | $ | 1,330 | Industrial | | | 978 | | | (199) | | | 779 | Residential | | | 886 | | | (23) | | | 863 | Other collection | | | 781 | | | (52) | | | 729 | Total collection | | | 4,171 | | | (470) | | | 3,701 | Landfill | | | 1,291 | | | (418) | | | 873 | Transfer | | | 618 | | | (270) | | | 348 | Total Collection and Disposal | | | 6,080 | | | (1,158) | | | 4,922 | Recycling Processing and Sales | | | 475 | | | (70) | | | 405 | WM Renewable Energy | | | 70 | | | (1) | | | 69 | Corporate and Other | | | 12 | | | (6) | | | 6 | Total | | $ | 6,637 | | $ | (1,235) | | $ | 5,402 | | | | | | | | | | | 2023 | | | | | | | | | | Commercial | | $ | 1,424 | | $ | (168) | | $ | 1,256 | Industrial | | | 974 | | | (192) | | | 782 | Residential | | | 866 | | | (25) | | | 841 | Other collection | | | 745 | | | (56) | | | 689 | Total collection | | | 4,009 | | | (441) | | | 3,568 | Landfill | | | 1,263 | | | (417) | | | 846 | Transfer | | | 585 | | | (265) | | | 320 | Total Collection and Disposal | | | 5,857 | | | (1,123) | | | 4,734 | Recycling Processing and Sales | | | 394 | | | (78) | | | 316 | WM Renewable Energy | | | 63 | | | (1) | | | 62 | Corporate and Other | | | 14 | | | (7) | | | 7 | Total | | $ | 6,328 | | $ | (1,209) | | $ | 5,119 |
| | | | | | | | | | | | Gross | | Intercompany | | Net | | | Operating | | Operating | | Operating | | | Revenues | | Revenues | | Revenues | Six Months Ended June 30: | | | | | | | | | | 2024 | | | | | | | | | | Commercial | | $ | 3,027 | | $ | (381) | | $ | 2,646 | Industrial | | | 1,912 | | | (386) | | | 1,526 | Residential | | | 1,762 | | | (45) | | | 1,717 | Other collection | | | 1,532 | | | (105) | | | 1,427 | Total collection | | | 8,233 | | | (917) | | | 7,316 | Landfill | | | 2,468 | | | (803) | | | 1,665 | Transfer | | | 1,178 | | | (521) | | | 657 | Total Collection and Disposal | | | 11,879 | | | (2,241) | | | 9,638 | Recycling Processing and Sales | | | 911 | | | (138) | | | 773 | WM Renewable Energy | | | 140 | | | (2) | | | 138 | Corporate and Other | | | 24 | | | (12) | | | 12 | Total | | $ | 12,954 | | $ | (2,393) | | $ | 10,561 | | | | | | | | | | | 2023 | | | | | | | | | | Commercial | | $ | 2,836 | | $ | (329) | | $ | 2,507 | Industrial | | | 1,907 | | | (369) | | | 1,538 | Residential | | | 1,720 | | | (50) | | | 1,670 | Other collection | | | 1,434 | | | (106) | | | 1,328 | Total collection | | | 7,897 | | | (854) | | | 7,043 | Landfill | | | 2,413 | | | (808) | | | 1,605 | Transfer | | | 1,125 | | | (516) | | | 609 | Total Collection and Disposal | | | 11,435 | | | (2,178) | | | 9,257 | Recycling Processing and Sales | | | 768 | | | (158) | | | 610 | WM Renewable Energy | | | 133 | | | (2) | | | 131 | Corporate and Other | | | 26 | | | (13) | | | 13 | Total | | $ | 12,362 | | $ | (2,351) | | $ | 10,011 |
Our 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 in commodity prices and general economic conditions. Our operating revenues and volumes typically experience seasonal increases in the summer months that are reflected in second and third quarter revenues and results of operations. Service or operational disruptions caused by severe storms, extended periods of inclement weather or climate events can significantly affect the operating results of the geographic areas affected. Extreme weather events may also lead to supply chain disruption and delayed project development, or disruption of our customers’ businesses, reducing the amount of waste generated by their operations. Conversely, 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 and Eastern U.S. during the second half of the year, can increase our revenues in the geographic areas affected as a result of the waste volumes 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 generate earnings at comparatively lower margins.
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