Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Waste Management Inc., consolidated cash flow statement

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Consolidated net income	1,817)	1,496)	1,671)	1,923)	1,949)
Depreciation and amortization	1,999)	1,671)	1,574)	1,477)	1,376)
Deferred income tax expense (benefit)	(77)	165)	100)	25)	(251)
Interest accretion on landfill and environmental remediation liabilities	111)	103)	98)	95)	92)
Provision for bad debts	37)	54)	39)	54)	43)
Equity-based compensation expense	108)	94)	86)	89)	101)
Net gain on disposal of assets	(25)	(9)	(27)	(47)	(20)
(Gain) loss from divestitures, asset impairments and other, net	(16)	43)	113)	(58)	43)
Equity in net losses of unconsolidated entities, net of dividends	38)	60)	55)	41)	39)
Loss on early extinguishment of debt, net	220)	53)	85)	—)	6)
Receivables	28)	(179)	(53)	(16)	(271)
Other current assets	(39)	10)	(23)	(16)	(20)
Other assets	34)	53)	10)	(14)	4)
Accounts payable and accrued liabilities	206)	(37)	243)	203)	126)
Deferred revenues and other liabilities	(103)	(174)	(97)	(186)	(37)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	126)	(327)	80)	(29)	(198)
Adjustments to reconcile consolidated net income to net cash provided by operating activities	2,521)	1,907)	2,203)	1,647)	1,231)
Net cash provided by operating activities	4,338)	3,403)	3,874)	3,570)	3,180)
Acquisitions of businesses, net of cash acquired	(75)	(4,085)	(521)	(460)	(200)
Capital expenditures	(1,904)	(1,632)	(1,818)	(1,694)	(1,509)
Proceeds from divestitures of businesses and other assets, net of cash divested	96)	885)	49)	208)	99)
Net receipts from restricted trust and escrow accounts	—)	—)	—)	—)	243)
Other, net	(11)	(15)	(86)	(223)	(12)
Net cash used in investing activities	(1,894)	(4,847)	(2,376)	(2,169)	(1,379)
New borrowings	7,948)	9,420)	13,237)	812)	1,540)
Debt repayments	(8,404)	(9,629)	(10,088)	(499)	(1,907)
Premiums and other paid on early extinguishment of debt	(211)	(30)	(84)	—)	(8)
Common stock repurchase program	(1,350)	(402)	(248)	(1,004)	(750)
Cash dividends	(970)	(927)	(876)	(802)	(750)
Exercise of common stock options	66)	63)	67)	52)	95)
Tax payments associated with equity-based compensation transactions	(28)	(34)	(33)	(29)	(47)
Other, net	49)	(20)	(11)	(38)	16)
Net cash provided by (used in) financing activities	(2,900)	(1,559)	1,964)	(1,508)	(1,811)
Effect of exchange rate changes on cash, cash equivalents and restricted cash and cash equivalents	2)	4)	2)	(3)	—)
Increase (decrease) in cash, cash equivalents and restricted cash and cash equivalents	(454)	(2,999)	3,464)	(110)	(10)
Cash, cash equivalents and restricted cash and cash equivalents at beginning of period	648)	3,647)	183)	293)	32)
Cash, cash equivalents and restricted cash and cash equivalents at end of period	194)	648)	3,647)	183)	22)

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Consolidated Net Income: The net income demonstrated a declining trend from 2017 to 2020, decreasing from $1,949 million to $1,496 million. However, in 2021, there was a notable recovery, with net income rising to $1,817 million.
Depreciation and Amortization: Depreciation and amortization expenses showed a consistent upward trajectory throughout the period, increasing from $1,376 million in 2017 to $1,999 million in 2021.
Deferred Income Tax Expense (Benefit): The deferred tax expense fluctuated considerably, beginning with a benefit of $251 million in 2017, followed by expenses in subsequent years that peaked at $165 million in 2020, then returning to a benefit of $77 million in 2021.
Interest Accretion on Landfill and Environmental Remediation Liabilities: This expense exhibited a steady increase from $92 million in 2017 to $111 million in 2021, reflecting growing environmental remediation obligations.
Provision for Bad Debts: The provision for bad debts showed variability without a clear trend, peaking at $54 million in 2018 and 2020 but declining to $37 million in 2021.
Equity-Based Compensation Expense: Equity-based compensation costs fluctuated moderately, decreasing from $101 million in 2017 to $86 million in 2019, then rising again to $108 million in 2021.
Net Gain on Disposal of Assets: Net gains on asset disposals were consistently negative, with losses varying between $9 million and $47 million, suggesting recurring asset disposal losses.
Gain (Loss) from Divestitures, Asset Impairments, and Other, Net: This item was volatile, showing gains and losses such as a significant gain of $113 million in 2019 and losses such as $58 million in 2018 and $16 million in 2021, indicating inconsistent one-time impacts on financials.
Equity in Net Losses of Unconsolidated Entities, Net of Dividends: Losses increased from $39 million in 2017 to a peak of $60 million in 2020 before declining to $38 million in 2021, reflecting variability in investee performance.
Loss on Early Extinguishment of Debt, Net: Losses were minimal in 2017, absent in 2018, but increased significantly in 2019 and 2021, reaching $220 million in the latter year, suggesting substantial debt refinancing or restructuring costs.
Changes in Working Capital: Operating assets and liabilities showed mixed movements, with receivables and other current assets generally improving or stabilizing in 2021, while accounts payable and accrued liabilities fluctuated significantly, indicating variable operational cash flow impacts.
Net Cash Provided by Operating Activities: Operating cash flow increased steadily from $3,180 million in 2017 to $4,338 million in 2021, despite some year-over-year fluctuations, illustrating robust cash generation capabilities.
Net Cash Used in Investing Activities: Investing activities were predominantly cash-consuming, with expenditures peaking at $4,847 million in 2020 due to large acquisitions offset somewhat in 2021 by reduced acquisition cash outflows of $75 million.
Net Cash Provided by (Used in) Financing Activities: Financing cash flows were negative in four out of five years, with a notable positive inflow only in 2019 of $1,964 million, largely driven by timing differences in borrowings and repayments. The company engaged consistently in debt repayments, stock repurchases, and dividend payments.
Borrowings and Debt Repayments: New borrowings peaked dramatically in 2019 at $13,237 million, followed by large repayments in subsequent years, indicating significant refinancing activities.
Capital Expenditures: Capital spending showed an upward trend, rising from $1,509 million in 2017 to $1,904 million in 2021, signifying increased investments in fixed assets.
Cash Position: Cash and cash equivalents exhibited volatility, with a large increase in 2019 to $3,647 million, followed by sharp decreases in 2020 and 2021, ending at $194 million, reflecting substantial swings possibly associated with major financing and investing activities.

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Waste Management Inc. (NYSE:WM)

Cash Flow Statement