| Segment and Related Information |
7. Segment and Related Information Our senior management evaluates, oversees and manages the financial performance of our business through five reportable segments, referred to as (i) East Tier; (ii) West Tier; (iii) Recycling Processing and Sales; (iv) Renewable Energy and (v) Healthcare Solutions. Our East and West Tiers along with Other Ancillary services that are not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” business. We also provide additional services not managed through our five reportable segments, which are presented as Corporate and Other. Summarized financial information concerning our reportable segments for the three and six months ended June 30 is shown in the following table (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Depreciation, | | | | | | | | | Net | | Intercompany | | Gross | | | | Selling, | | Other | | Depletion, | | Income | | Capital | | | Operating | | Operating | | Operating | | Operating | | General and | | Net | | Amortization | | from | | Expenditures | | | Revenues | | Revenues(a) | | Revenues | | Expenses | | Administrative | | Expenses(b) | | and Accretion | | Operations(c) | | (d) | Three Months Ended June 30: | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | | | | | | | | | | | | | | | | East Tier | | $ | 2,406 | | $ | 663 | | $ | 3,069 | | $ | 1,888 | | $ | 91 | | $ | — | | $ | 306 | | $ | 784 | | $ | 302 | West Tier | | | 2,291 | | | 582 | | | 2,873 | | | 1,769 | | | 91 | | | — | | | 252 | | | 761 | | | 293 | Other Ancillary | | | 782 | | | 58 | | | 840 | | | 800 | | | 28 | | | — | | | 7 | | | 5 | | | 16 | Collection and Disposal(e)(f)(g) | | | 5,479 | | | 1,303 | | | 6,782 | | | 4,457 | | | 210 | | | — | | | 565 | | | 1,550 | | | 611 | Recycling Processing and Sales(e) | | | 403 | | | 88 | | | 491 | | | 385 | | | 14 | | | 2 | | | 54 | | | 36 | | | 64 | Renewable Energy(f) | | | 157 | | | — | | | 157 | | | 81 | | | 5 | | | — | | | 24 | | | 47 | | | 61 | Healthcare Solutions(g)(h) | | | 638 | | | 104 | | | 742 | | | 506 | | | 126 | | | 3 | | | 105 | | | 2 | | | 28 | Corporate and Other(f) | | | 7 | | | 8 | | | 15 | | | 22 | | | 335 | | | 11 | | | 29 | | | (382) | | | (41) | Total | | $ | 6,684 | | $ | 1,503 | | $ | 8,187 | | $ | 5,451 | | $ | 690 | | $ | 16 | | $ | 777 | | $ | 1,253 | | $ | 723 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany Elimination(a) | | | | | | | | | (1,503) | | | (1,496) | | | (7) | | | — | | | — | | | — | | | | Net | | | | | | | | | 6,684 | | | 3,955 | | | 683 | | | 16 | | | 777 | | | 1,253 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Depreciation, | | | | | | | | | Net | | Intercompany | | Gross | | | | Selling, | | Other | | Depletion, | | Income | | Capital | | | Operating | | Operating | | Operating | | Operating | | General and | | Net | | Amortization | | from | | Expenditures | | | Revenues | | Revenues(a) | | Revenues | | Expenses | | Administrative | | Expenses(b) | | and Accretion | | Operations(c) | | (d) | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | | | | | | | | | | | | | | | | East Tier | | $ | 2,292 | | $ | 630 | | $ | 2,922 | | $ | 1,815 | | $ | 88 | | $ | 8 | | $ | 290 | | $ | 721 | | $ | 360 | West Tier | | | 2,251 | | | 554 | | | 2,805 | | | 1,706 | | | 86 | | | 2 | | | 254 | | | 757 | | | 335 | Other Ancillary | | | 738 | | | 51 | | | 789 | | | 753 | | | 31 | | | 16 | | | 6 | | | (17) | | | 12 | Collection and Disposal(e)(f)(g) | | | 5,281 | | | 1,235 | | | 6,516 | | | 4,274 | | | 205 | | | 26 | | | 550 | | | 1,461 | | | 707 | Recycling Processing and Sales(e) | | | 381 | | | 101 | | | 482 | | | 398 | | | 14 | | | 1 | | | 45 | | | 24 | | | 70 | Renewable Energy(f) | | | 115 | | | — | | | 115 | | | 59 | | | 3 | | | — | | | 15 | | | 38 | | | 115 | Healthcare Solutions(g)(h) | | | 646 | | | 114 | | | 760 | | | 519 | | | 150 | | | 9 | | | 105 | | | (23) | | | 46 | Corporate and Other(f) | | | 7 | | | 8 | | | 15 | | | 4 | | | 331 | | | — | | | 29 | | | (349) | | | (123) | Total | | $ | 6,430 | | $ | 1,458 | | $ | 7,888 | | $ | 5,254 | | $ | 703 | | $ | 36 | | $ | 744 | | $ | 1,151 | | $ | 815 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany Elimination(a) | | | | | | | | | (1,458) | | | (1,451) | | | (7) | | | — | | | — | | | — | | | | Net | | | | | | | | | 6,430 | | | 3,803 | | | 696 | | | 36 | | | 744 | | | 1,151 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Depreciation, | | | | | | | | | Net | | Intercompany | | Gross | | | | Selling, | | Other | | Depletion, | | Income | | Capital | | | Operating | | Operating | | Operating | | Operating | | General and | | Net | | Amortization | | from | | Expenditures | | | Revenues | | Revenues(a) | | Revenues | | Expenses | | Administrative | | Expenses(b) | | and Accretion | | Operations(c) | | (d) | Six Months Ended June 30: | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2026 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | | | | | | | | | | | | | | | | East Tier | | $ | 4,605 | | $ | 1,263 | | $ | 5,868 | | $ | 3,589 | | $ | 181 | | $ | - | | $ | 591 | | $ | 1,507 | | $ | 481 | West Tier | | | 4,441 | | | 1,119 | | | 5,560 | | | 3,418 | | | 187 | | | (34) | | | 491 | | | 1,498 | | | 529 | Other Ancillary | | | 1,514 | | | 115 | | | 1,629 | | | 1,553 | | | 57 | | | - | | | 14 | | | 5 | | | 33 | Collection and Disposal(e)(f)(g) | | | 10,560 | | | 2,497 | | | 13,057 | | | 8,560 | | | 425 | | | (34) | | | 1,096 | | | 3,010 | | | 1,043 | Recycling Processing and Sales(e) | | | 771 | | | 175 | | | 946 | | | 753 | | | 29 | | | 4 | | | 105 | | | 55 | | | 94 | Renewable Energy(f) | | | 316 | | | 2 | | | 318 | | | 164 | | | 11 | | | - | | | 48 | | | 95 | | | 104 | Healthcare Solutions(g)(h) | | | 1,252 | | | 211 | | | 1,463 | | | 1,006 | | | 248 | | | 12 | | | 209 | | | (12) | | | 55 | Corporate and Other(f) | | | 12 | | | 16 | | | 28 | | | 54 | | | 690 | | | 12 | | | 54 | | | (782) | | | (35) | Total | | $ | 12,911 | | $ | 2,901 | | $ | 15,812 | | $ | 10,537 | | $ | 1,403 | | $ | (6) | | $ | 1,512 | | $ | 2,366 | | $ | 1,261 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany Elimination(a) | | | | | | | | | (2,901) | | | (2,888) | | | (13) | | | — | | | — | | | — | | | | Net | | | | | | | | | 12,911 | | | 7,649 | | | 1,390 | | | (6) | | | 1,512 | | | 2,366 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Depreciation, | | | | | | | | | Net | | Intercompany | | Gross | | | | Selling, | | Other | | Depletion, | | Income | | Capital | | | Operating | | Operating | | Operating | | Operating | | General and | | Net | | Amortization | | from | | Expenditures | | | Revenues | | Revenues(a) | | Revenues | | Expenses | | Administrative | | Expenses(b) | | and Accretion | | Operations(c) | | (d) | 2025 | | | | | | | | | | | | | | | | | | | | | | | | | | | | Collection and Disposal: | | | | | | | | | | | | | | | | | | | | | | | | | | | | East Tier | | $ | 4,432 | | $ | 1,188 | | $ | 5,620 | | $ | 3,488 | | $ | 176 | | $ | 8 | | $ | 558 | | $ | 1,390 | | $ | 557 | West Tier | | | 4,333 | | | 1,060 | | | 5,393 | | | 3,298 | | | 169 | | | 2 | | | 488 | | | 1,436 | | | 557 | Other Ancillary | | | 1,438 | | | 103 | | | 1,541 | | | 1,471 | | | 61 | | | 16 | | | 13 | | | (20) | | | 29 | Collection and Disposal(e)(f)(g) | | | 10,203 | | | 2,351 | | | 12,554 | | | 8,257 | | | 406 | | | 26 | | | 1,059 | | | 2,806 | | | 1,143 | Recycling Processing and Sales(e) | | | 765 | | | 182 | | | 947 | | | 786 | | | 29 | | | 6 | | | 84 | | | 42 | | | 108 | Renewable Energy(f) | | | 206 | | | 1 | | | 207 | | | 114 | | | 6 | | | - | | | 30 | | | 57 | | | 237 | Healthcare Solutions(g)(h) | | | 1,265 | | | 216 | | | 1,481 | | | 996 | | | 305 | | | 18 | | | 206 | | | (44) | | | 80 | Corporate and Other(f) | | | 9 | | | 16 | | | 25 | | | 16 | | | 649 | | | 1 | | | 56 | | | (697) | | | (112) | Total | | $ | 12,448 | | $ | 2,766 | | $ | 15,214 | | $ | 10,169 | | $ | 1,395 | | $ | 51 | | $ | 1,435 | | $ | 2,164 | | $ | 1,456 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Intercompany Elimination(a) | | | | | | | | | (2,766) | | | (2,754) | | | (12) | | | — | | | — | | | — | | | | Net | | | | | | | | | 12,448 | | | 7,415 | | | 1,383 | | | 51 | | | 1,435 | | | 2,164 | | | |
| (a) | Includes each segment’s intercompany activity, including transactions 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) | Other net expenses include restructuring expenses, (gain) loss from divestitures, and asset impairments and unusual items, net. |
| (c) | 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. |
| (d) | Includes non-cash items. Additionally, our Corporate and Other business recognizes construction work in progress for fleet purchases during the period. Capital expenditures are reported in our reportable segments at the time they are recorded within the segments’ property and equipment balances and, therefore, include timing differences for amounts accrued but not yet paid as well as amounts transferred from Corporate and Other for fleet placed in service. |
| (e) | Certain fees related to the processing of recyclable material we collect are included within our Collection and Disposal business. The amounts in income from operations for the three and six months ended June 30, 2026 are $22 million and $40 million, respectively. The amounts in income from operations for the three and six months ended June 30, 2025 are $20 million and $40 million, respectively. |
| (f) | Renewable Energy pays a 15% intercompany royalty to our Collection and Disposal business and Corporate and Other for landfill gas. The total amount of royalties in gross and intercompany operating revenues for the East Tier, West Tier, and Corporate and Other and in operating expenses for Renewable Energy for the three and six months ended June 30, 2026 are $24 million and $48 million, respectively. The total amount of royalties in gross and intercompany operating revenues for the East Tier, West Tier, and Corporate and Other and in operating expenses for Renewable Energy for the three and six months ended June 30, 2025 are $17 million and $31 million, respectively. |
| (g) | Our Collection and Disposal business records intercompany operating revenue for collection and disposal services provided to Healthcare Solutions. The total amount of intercompany operating revenues reflected in our Collection and Disposal business and in operating expenses for Healthcare Solutions for the three and six months ended June 30, 2026 are $16 million and $36 million, respectively, and for three and six months ended June 30, 2025 are $12 million and $20 million, respectively. |
| (h) | In the third quarter of 2025, as a result of continued integration efforts and to enhance transparency and accountability, the Company began reflecting intra-segment activity within the Healthcare Solutions segment. These charges were designed to measure profitability at more granular levels of the enterprise and to facilitate clearer financial accountability within operating units. Accordingly, adjustments to the three and six months ended June 30, 2025 were made to properly reflect intra-segment activity for each period. Intra-segment operating revenues and operating expenses within Healthcare Solutions for the three and six months ended June 30, 2026 are $101 million and $202 million, respectively. Intra-segment operating revenues and operating expenses within Healthcare Solutions for the three and six months ended June 30, 2025 are $113 million and $207 million, respectively. |
Total assets by reportable segment are presented in the table below as follows (in millions): | | | | | | | | | June 30, | | December 31, | | | 2026 | | 2025 | Collection and Disposal: | | | | | | | East Tier | | $ | 15,906 | | $ | 16,099 | West Tier | | | 12,608 | | | 12,245 | Other Ancillary | | | 818 | | | 801 | Collection and Disposal | | | 29,332 | | | 29,145 | Recycling Processing and Sales | | | 2,841 | | | 2,718 | Renewable Energy | | | 2,032 | | | 1,976 | Healthcare Solutions | | | 8,758 | | | 9,002 | Corporate and Other | | | 4,075 | | | 3,888 | Elimination of intercompany investments and advances | | | (597) | | | (894) | Total assets, per Condensed Consolidated Balance Sheet | | $ | 46,441 | | $ | 45,835 |
The mix of operating revenues from our major lines of business for the three and six months ended June 30 are as follows (in millions): | | | | | | | | | | | | Net | | Intercompany | | Gross | | | Operating | | Operating | | Operating | | | Revenues | | Revenues (a) | | Revenues | Three Months Ended June 30: | | | | | | | | | | 2026 | | | | | | | | | | Commercial | | $ | 1,485 | | $ | 236 | | $ | 1,721 | Industrial | | | 820 | | | 245 | | | 1,065 | Residential | | | 911 | | | 19 | | | 930 | Other collection | | | 849 | | | 74 | | | 923 | Total collection | | | 4,065 | | | 574 | | | 4,639 | Landfill | | | 1,004 | | | 429 | | | 1,433 | Transfer | | | 410 | | | 300 | | | 710 | Total Collection and Disposal | | | 5,479 | | | 1,303 | | | 6,782 | Recycling Processing and Sales | | | 403 | | | 88 | | | 491 | Renewable Energy | | | 157 | | | — | | | 157 | Healthcare Solutions (b) | | | 638 | | | 104 | | | 742 | Corporate and Other | | | 7 | | | 8 | | | 15 | Total | | $ | 6,684 | | $ | 1,503 | | $ | 8,187 | | | | | | | | | | | 2025 | | | | | | | | | | Commercial | | $ | 1,398 | | $ | 220 | | $ | 1,618 | Industrial | | | 790 | | | 223 | | | 1,013 | Residential | | | 872 | | | 22 | | | 894 | Other collection | | | 796 | | | 68 | | | 864 | Total collection | | | 3,856 | | | 533 | | | 4,389 | Landfill | | | 1,036 | | | 410 | | | 1,446 | Transfer | | | 389 | | | 292 | | | 681 | Total Collection and Disposal | | | 5,281 | | | 1,235 | | | 6,516 | Recycling Processing and Sales | | | 381 | | | 101 | | | 482 | Renewable Energy | | | 115 | | | — | | | 115 | Healthcare Solutions (b) | | | 646 | | | 114 | | | 760 | Corporate and Other | | | 7 | | | 8 | | | 15 | Total | | $ | 6,430 | | $ | 1,458 | | $ | 7,888 |
| | | | | | | | | | | | Net | | Intercompany | | Gross | | | Operating | | Operating | | Operating | | | Revenues | | Revenues (a) | | Revenues | Six Months Ended June 30: | | | | | | | | | | 2026 | | | | | | | | | | Commercial | | $ | 2,914 | | $ | 465 | | $ | 3,379 | Industrial | | | 1,578 | | | 467 | | | 2,045 | Residential | | | 1,799 | | | 37 | | | 1,836 | Other collection | | | 1,643 | | | 146 | | | 1,789 | Total collection | | | 7,934 | | | 1,115 | | | 9,049 | Landfill | | | 1,868 | | | 811 | | | 2,679 | Transfer | | | 758 | | | 571 | | | 1,329 | Total Collection and Disposal | | | 10,560 | | | 2,497 | | | 13,057 | Recycling Processing and Sales | | | 771 | | | 175 | | | 946 | Renewable Energy | | | 316 | | | 2 | | | 318 | Healthcare Solutions (b) | | | 1,252 | | | 211 | | | 1,463 | Corporate and Other | | | 12 | | | 16 | | | 28 | Total | | $ | 12,911 | | $ | 2,901 | | $ | 15,812 | | | | | | | | | | | 2025 | | | | | | | | | | Commercial | | $ | 2,778 | | $ | 434 | | $ | 3,212 | Industrial | | | 1,531 | | | 422 | | | 1,953 | Residential | | | 1,744 | | | 44 | | | 1,788 | Other collection | | | 1,549 | | | 140 | | | 1,689 | Total collection | | | 7,602 | | | 1,040 | | | 8,642 | Landfill | | | 1,876 | | | 763 | | | 2,639 | Transfer | | | 725 | | | 548 | | | 1,273 | Total Collection and Disposal | | | 10,203 | | | 2,351 | | | 12,554 | Recycling Processing and Sales | | | 765 | | | 182 | | | 947 | Renewable Energy | | | 206 | | | 1 | | | 207 | Healthcare Solutions (b) | | | 1,265 | | | 216 | | | 1,481 | Corporate and Other | | | 9 | | | 16 | | | 25 | Total | | $ | 12,448 | | $ | 2,766 | | $ | 15,214 |
| (a) | Includes each segment’s intercompany activity, including transactions 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) | In the third quarter of 2025, as a result of continued integration efforts and to enhance transparency and accountability, the Company began reflecting intra-segment activity within the Healthcare Solutions segment. These charges were designed to measure profitability at more granular levels of the enterprise and to facilitate clearer financial accountability within operating units. Accordingly, adjustments to the three and six months ended June 30, 2025 were made to properly reflect intra-segment activity for each period. Intra-segment operating revenues and operating expenses within Healthcare Solutions for the three and six months ended June 30, 2026 are $101 million and $202 million, respectively. Intra-segment operating revenues and operating expenses within Healthcare Solutions for the three and six months ended June 30, 2025 are $113 million and $207 million, respectively. |
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.
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