01—Abstract
Summary
Summary of the 10-K/A filed March 29, 2022. Cited figures are marked; the original filing is the authoritative source.
Waste Management Inc. (WM) filed an amendment to its 2021 Form 10-K on March 28, 2022, primarily addressing Item 9A, Controls and Procedures, and Item 15, Exhibits.
The core of this amendment reaffirms management's conclusion regarding the effectiveness of the company's disclosure controls and procedures and its internal control over financial reporting as of December 31, 2021. Management, with the participation of principal executive and financial officers, evaluated these controls using the COSO framework and found them to be effective at a reasonable assurance level. This filing assures investors that WM's financial reporting mechanisms are robust and reliable.
The independent registered public accounting firm, Ernst & Young LLP, also audited the effectiveness of the internal control over financial reporting, concurring with management's assessment. Importantly, there were no changes identified in the internal control over financial reporting during the fourth quarter of 2021 that materially impacted or were likely to materially impact these controls. The amendment also lists various exhibits, including CEO and CFO certifications and Inline XBRL filings, which are standard for SEC reporting.
02—Key points
Key Highlights
- Management concluded that WM's disclosure controls and procedures were effective as of December 31, 2021.
- Management assessed WM's internal control over financial reporting using the COSO framework and found it effective as of December 31, 2021.
- Ernst & Young LLP, WM's independent auditor, audited and concurred with management's assessment of internal control over financial reporting.
- No material changes in internal control over financial reporting occurred during the fourth quarter of 2021.
- The filing includes certifications from the CEO and CFO, attesting to the accuracy and effectiveness of financial reporting.
- The amendment includes various exhibits related to XBRL reporting, enhancing data transparency.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2021, Waste Management Inc kept $0.10.
- Revenue$17.93B100.0%
- Cost of revenue−$11.11B62.0%
- Gross profit$6.82B38.0%
- Operating costs−$3.85B21.5%
- Operating income$2.96B16.5%
- Interest, other & tax−$1.15B6.4%
- Net income$1.82B10.1%
Where FY2021 revenue went
$17.93B- Cost of revenue: $11.11B, 62% of revenue
- Net income: $1.82B, 10% of revenue
- SG&A: $1.86B, 10% of revenue
- Other operating costs: $1.99B, 11% of revenue
- Interest, other & tax: $1.15B, 6.4% of revenue
Kept 10% as net incomeNet income $1.82B · 10%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-K/AFY2021filed March 29, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $17.93B$15.22B | +17.8% |
| Cost of Revenue | $11.11B$9.34B | +18.9% |
| Gross Profit | $6.82B$5.88B | +16.0% |
| SG&A Expenses | $1.86B$1.73B | +7.9% |
| Operating Expenses | $14.97B$12.78B | +17.1% |
| Operating Income | $2.96B$2.43B | +21.8% |
| Net Income | $1.82B$1.50B | +21.4% |
| EPS (Basic) | $4.32$3.54 | +22.0% |
| EPS (Diluted) | $4.29$3.52 | +21.9% |
| Shares Outstanding (Basic) | 420.40M423.00M | −0.6% |
| Shares Outstanding (Diluted) | 422.90M425.10M | −0.5% |
05—Questions
Frequently Asked Questions
What is the primary purpose of this 10-K amendment?
The primary purpose of this amendment is to provide updated information regarding Waste Management Inc.'s (WM) internal controls and procedures, specifically Item 9A (Controls and Procedures) and Item 15 (Exhibits), as of December 31, 2021. It confirms the effectiveness of the company's disclosure controls and internal financial reporting controls.
Did management find any issues with Waste Management's internal controls?
No, management concluded that both the disclosure controls and procedures and the internal control over financial reporting were effective as of December 31, 2021. Furthermore, there were no material changes to these controls during the quarter ended December 31, 2021.
Has an external auditor reviewed Waste Management's internal controls?
Yes, Ernst & Young LLP, the independent registered public accounting firm that audited WM's consolidated financial statements, also audited the effectiveness of the company's internal control over financial reporting and concurred with management's assessment of its effectiveness.
What does the inclusion of CEO and CFO certifications signify?
The certifications from the President and CEO (James C. Fish, Jr.) and the Executive Vice President and CFO (Devina A. Rankin) pursuant to SEC rules signify their personal attestations regarding the accuracy and completeness of the financial reports filed with the SEC, including the effectiveness of disclosure controls and procedures.
06—Continue