Name: Waste Management Inc. (NYSE:WM) | Statement of Comprehensive Income
Creator: Stock Analysis on Net

Statement of Comprehensive Income

Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

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Waste Management Inc., consolidated statement of comprehensive income

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)
Derivative instruments, net	9)	15)	8)	8)	7)
Available-for-sale securities, net	(6)	11)	15)	5)	2)
Foreign currency translation adjustments	(28)	20)	55)	(105)	76)
Post-retirement benefit obligation, net	3)	1)	1)	2)	3)
Other comprehensive income (loss), net of tax	(22)	47)	79)	(90)	88)
Comprehensive income	1,795)	1,543)	1,750)	1,833)	2,037)
Comprehensive (income) loss attributable to noncontrolling interests	(1)	—)	(1)	2)	—)
Comprehensive income attributable to Waste Management, Inc.	1,794)	1,543)	1,749)	1,835)	2,037)

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).

An analysis of the financial performance from 2017 to 2021 reveals a period of contraction in earnings followed by a recovery in the final year of the sequence. Consolidated net income exhibited a downward trend for four consecutive years, falling from 1,949 million US dollars in 2017 to a low of 1,496 million US dollars in 2020, before rebounding to 1,817 million US dollars in 2021.

Net Income and Comprehensive Income Correlation: Comprehensive income attributable to Waste Management, Inc. closely tracked the movement of consolidated net income, though it remained slightly higher in years where other comprehensive income was positive. The total comprehensive income declined from 2,037 million US dollars in 2017 to 1,543 million US dollars in 2020, representing a total decrease of approximately 24% during that period, before recovering to 1,794 million US dollars in 2021.
Other Comprehensive Income (OCI) Volatility: Other comprehensive income, net of tax, demonstrated significant volatility throughout the period. Positive contributions in 2017 (88 million US dollars) shifted to a substantial loss in 2018 (-90 million US dollars), followed by fluctuations in 2019 and 2020, and ending with a loss of 22 million US dollars in 2021. This instability suggests a sensitivity to external market factors rather than core operational performance.
Drivers of Comprehensive Income Adjustments: Foreign currency translation adjustments served as the primary driver of OCI volatility, showing wide swings from a positive 76 million US dollars in 2017 to a negative 105 million US dollars in 2018. Other components, such as derivative instruments and post-retirement benefit obligations, remained relatively stable and had a marginal impact on the overall comprehensive income figures. Available-for-sale securities also contributed modestly, peaking at 15 million US dollars in 2019 before turning negative in 2021.
Noncontrolling Interests: The impact of comprehensive income or loss attributable to noncontrolling interests remained negligible, with values fluctuating between -1 million and 2 million US dollars, indicating that the vast majority of comprehensive income is attributable directly to the parent company.

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