Waste Management (WM) Financial History

We also carry a broad range of other insurance coverages that are customary for a company our size.

If economic conditions or other risks and uncertainties cause a significant reduction in our cash flows from operations, we may reduce or suspend capital expenditures, growth and acquisition activity, implementation o…

At the time of our acquisition of Stericycle, it was, and had been, involved in certain government investigations, enforcement proceedings, lawsuits and other disputes alleging noncompliance with applicable regulation…

It is critical that we maintain an effective system of internal control over financial reporting.

We continue to assess the physical risks, such as sea-level rise, catastrophic storms and other extreme weather conditions and long-term shifts in climate patterns, and transition risks, such as regulatory, market, po…

Recent Developments and Focus Areas in Policy and Regulation – Renewable Energy for additional information.

The legislative and regulatory framework for security, privacy and data protection issues worldwide is rapidly evolving and is likely to remain uncertain for the foreseeable future.

The Company is also expanding and improving its information technologies, resulting in a larger technological presence, utilization of cloud computing services, and corresponding exposure to cybersecurity risk.

Substantially all aspects of our business operations rely on digital technology.

Our Company, our customers, and the economy in general are increasingly dependent on continuous information technology systems and digital tools to conduct operations.

Our existing and proposed service offerings to customers require that we invest in, develop, license, and protect new technologies.

Technology, Intellectual Property and Information Security Risks

The price and supply of diesel fuel can fluctuate significantly based on international, political and economic circumstances, as well as other factors outside our control, such as actions by oil and gas producers, reg…

Through our Healthcare Solutions segment, we provide compliance-based services that rely on the generation of medical waste, controlled substances waste and personal and confidential information by our customers.

We provide service to a number of governmental entities, municipalities, and large national accounts.

Our business is directly affected by changes in consumer trends and economic factors that are outside of our control, including consumer preferences and priorities, consumer confidence, inflation, interest rates and a…

General economic conditions and consumer trends can directly and adversely affect revenues for our services, our income from operations margins and our overall financial results.

Fluctuation in energy-related prices also affects our business, including recycling of plastics manufactured from petroleum products.

Regulations affecting, and in some cases restricting, the international flow of certain recyclables have led, and could in the future lead, to a reduction in export activity for such recyclables, as well as higher qua…

Prices and demand for recyclables fluctuate and are particularly susceptible to volatility based on macroeconomic conditions and regulations.

We encounter intense competition from governmental, quasi-governmental and private sources in all aspects of our operations and when expanding to new lines of business or new markets.

Accelerated and pronounced economic pressures, such as rising interest rates and inflationary cost pressures, have in the past and may in the future impact our cost structure and capital expenditures.

Market disruption resulting from labor shortages, external labor disputes and strikes, supply chain and transportation constraints, major external events, including pandemic conditions, and macroeconomic pressures hav…

Our industry faces challenges to implement these rapidly developing disclosure requirements, as well as the risk of enforcement actions by governmental and regulatory agencies for noncompliance.

The nature, scope, and complexity of matters that our Company must assess, quantify and disclose are expanding due to current, proposed, and recently enacted governmental reporting requirements pertaining to sustainab…

We have also forecasted or projected certain operational and financial information with respect to our sustainability investments and initiatives.

In addition, we have made significant investments in our Recycling Processing and Sales and Renewable Energy segments.

challenges including, but not limited to, unforeseen costs or delays, changes in how GHG emissions are calculated or otherwise reported, supply chain disruptions, regulatory impacts, integration of acquired assets or…

We may not be able to achieve our sustainability-related goals, including reduction of our greenhouse gas ("GHG") emissions, or achieve the results and benefits anticipated from our sustainability-related investments…

Our financial and operating results may fluctuate for many reasons.

the introduction of new technology and other initiatives, which can result in increased operating expenses and lower net income.

Increases in our labor costs as a result of unions organizing, Multiemployer Pension Plan withdrawals, changes in regulations related to labor unions or increases in minimum wages, could adversely affect our future re…

Our operations require us to attract, hire, develop and retain a high-quality workforce; this includes key individuals in leadership and specialty roles, as well as a very large number of skilled drivers, technicians…

If we are unable to attract, hire, develop and retain key team members and a high-quality workforce, and comply with applicable employment regulations, it could result in business and strategic disruption and increase…

Our ability to meet our financial and operating objectives depends in part on our ability to obtain and maintain the permits, authorizations, approvals, certificates, and other governmental permissions necessary to op…

Any of these risks could potentially result in injury, illness or death of employees and others.

Regulations establishing extended producer responsibility (“EPR”) are being considered or implemented in many places around the world, including in certain states in the U.S.

Regulations affecting the siting, design and closure of landfills require us, at times, to undertake investigatory or remedial activities, curtail operations or close landfills temporarily or permanently.

Stringent government regulations at the federal, state, provincial and local level in the U.S.

The benefits that are expected to result from our acquisition of Stericycle also depend, in part, on our ability to realize anticipated cost synergies.

The acquired Stericycle business, which is now presented as our Healthcare Solutions segment, is subject to numerous risks and uncertainties such as decreases in the volume of medical waste and controlled substances w…

We may not realize the strategic benefits, revenue and earnings growth, or cost synergies anticipated from the Stericycle acquisition.

In addition to the risks set forth above, implementation of our business strategy could be affected by other factors beyond our control, such as increased competition, legal developments, government regulation, global…

Integration of acquisitions and/or new services offerings or lines of business, such as our Healthcare Solutions segment, and additional expansion outside of North America, results in our business being subject to new…

Acquisitions, investments and/or new service offerings or lines of business may not increase our earnings to the extent or in the timeframe anticipated, or at all, due to complexities or difficulties operating in new…

Execution of our growth strategy, including acquisitions and expansion of operations, has caused, and may in the future cause, us to incur substantial additional indebtedness, which may divert capital away from our tr…

We may not be able to maintain cost savings achieved, including through our automation and optimization or acquisition integration efforts, due to inflationary cost pressures or otherwise.

A key element of our strategy is yield management through focus on price leadership, which has presented challenges to keep existing business and win new business at reasonable returns.

Our business, financial condition and results of operations are subject to numerous risks and uncertainties, some of which are not presently known or not currently believed to be material.

We could face significant liabilities for withdrawal from Multiemployer Pension Plans.

Stericycle is, and has been, involved in government investigations, enforcement proceedings, private lawsuits and other disputes alleging noncompliance with applicable regulations, including alleged noncompliance with…

Under previously reported settlements with governmental authorities relating to Stericycle’s compliance with the FCPA and other anti-corruption laws with respect to now-divested operations in Latin America, Stericycle…

We could be subject to significant fines and penalties, and our reputation could be adversely affected, if we or third parties with whom we have a relationship fail to comply with U.S.

Establishing, testing and maintaining an effective system of internal control over financial reporting requires significant resources and time commitments on the part of our management and our finance staff, and the t…

It is critical that we maintain an effective system of internal control over financial reporting.

We continue to assess the physical risks, such as sea-level rise, catastrophic storms and other extreme weather conditions and long-term shifts in climate patterns, and transition risks, such as regulatory, market, po…

RINs prices generally respond to regulations enacted by the EPA, as well as fluctuations in supply and demand.

The primary drivers of renewable fuel development at our landfills are tax policies, such as the federal tax credits for RNG production and renewable electricity generation under the IRA, and federal and state incenti…

Our sustainability growth strategy includes significant planned and ongoing investments in our WM Renewable Energy segment; changes to federal and state renewable fuel policies could affect our financial performance,…

Further, we often enter into agreements with landowners imposing obligations on us to meet certain regulatory or contractual conditions upon site closure or upon termination of the agreements.

new and emerging laws and regulations and/ or expanded or novel interpretations of existing laws.

These laws and regulations are inconsistent across jurisdictions and are subject to evolving interpretations.

Additionally, we cannot assure that any security measures that our third-party service providers have implemented will be effective against current or future security threats.

increase the risk and likelihood of cyber incidents.

Challenges in implementing new systems can also affect our ability to realize projected cost savings or other benefits.

Our existing and proposed service offerings to customers require that we invest in, develop, license, and protect new technologies.

Our industry has recognized the value of the traditional waste stream as a potential resource.

Developments in technology could trigger a fundamental change in our industry, as waste streams are increasingly viewed as a resource, which may adversely impact volumes at our landfills and our profitability.

Major external events, including pandemic conditions that result in large-scale disruption of social and commercial activity, such as business closures and social restrictions, could adversely impact our volumes, cost…

Large-scale disruption of social and commercial activity and financial markets may have a material adverse impact on our business, financial condition, results of operations and cash flows.

term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities.

In addition, the financial difficulties of municipalities could result in a decline in investors’ demand for municipal bonds and a correlating increase in interest rates.

Purchasers of our recycling commodities can be particularly vulnerable to financial difficulties in times of commodity price volatility.

Weakness in the economy may expose us to credit risk of governmental entities and municipalities and other major customers, which could negatively impact our financial results.

them.

alleging that certain sustainability-related statements, goals or standards were misleading, false or otherwise deceptive.

Some or all of the expected benefits of our sustainability-related investments and initiatives may not occur within the anticipated time periods or may cost more to achieve than anticipated.

We believe we have developed a reputation for high-quality service, reliability and social and environmental responsibility, and we believe our brand symbolizes these attributes.

Damage to our reputation and the value of our brand would negatively impact our business.

work for a limited time, due to significant start-up costs and other factors, such revenue can generate earnings at comparatively lower margins.

Labor unions continually attempt to organize our employees, and these efforts will likely continue in the future.

to receive permits is also impacted by land scarcity, particularly in densely populated areas.

Reduction of regulation may have a favorable impact on our operating costs, but the extensive environmental regulation applicable to our industry is also a barrier to rapid entry that benefits our Company.

The new U.S.

limitations or restrictions on the recycling, processing or transformation of waste, recycling and other streams.

mandates regarding the management of solid waste, organics, medical waste, controlled substances waste and other materials, including requirements to recycle, divert, destroy, or otherwise process certain waste, recyc…

limitations, bans, taxes or charges on the disposal, destruction or transportation of out-of-state waste or certain categories of waste;

limitations, regulations or levies on collection and disposal prices, rates and volumes;

limitations on siting and constructing new waste disposal, destruction, transfer, recycling or processing facilities or on expanding existing facilities;

data privacy and security, and other related and similar subjects.

We continue to seek to divest underperforming and non-strategic assets and operations if we cannot improve their profitability.

Supply chain, regulatory or permitting disruptions or delays could detrimentally impact the execution timeline for our planned and ongoing expansions of our Recycling Processing and Sales and WM Renewable Energy busin…

Strategic decisions with respect to our asset portfolio may result in impairments to our assets.

We may not be able to hire or retain the personnel necessary to manage our strategy effectively.

The amount of insurance we are required to maintain for environmental liability is governed by statutory requirements.

The primary drivers of value for renewable fuel produced at our landfills are tax policies, such as the federal tax credits for investments in RNG production under the IRA and OBBBA, and federal and state incentive pr…

Changes to federal and state renewable fuel policies could affect the financial performance of our Renewable Energy segment.

continued emphasis on personal privacy and information security may result in customers requesting that we implement additional safeguards or controls.

We believe we have developed a reputation for high-quality service, reliability and social and environmental responsibility, and we believe our brand symbolizes these attributes.

due to higher diesel fuel prices will decrease our income from operations margins.