What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-04-29 compared with 2025-10-28 · 153 added, 284 removed, 414 unchanged (51% of the section changed)

3 unchanged sentences

(In Millions, Except Share and Par Value Amounts)

September 30,

Current assets:

41 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Operating revenues

1 unchanged sentence

Selling, general and administrative

Depreciation, depletion and amortization

Depreciation, depletion, amortization and accretion

Restructuring

3 unchanged sentences

Interest expense, net

Equity in net income (loss) of unconsolidated entities

Income before income taxes

8 unchanged sentences

Three Months Ended

Nine Months Ended

September 30,

Consolidated net income

12 unchanged sentences

(In Millions)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities:

1 unchanged sentence

Adjustments to reconcile consolidated net income to net cash provided by operating activities:

Depreciation, depletion and amortization

Depreciation, depletion, amortization and accretion

Deferred income tax expense (benefit)

Interest accretion on landfill and environmental remediation liabilities

Provision for bad debts

2 unchanged sentences

(Gain) loss from divestitures, asset impairments and other, net

Equity in net (income) loss of unconsolidated entities, net of dividends

Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

35 unchanged sentences

Income (Loss)

Three Months Ended September 30:

Balance, June 30, 2025

Consolidated net income

Other comprehensive income (loss), net of tax

Cash dividends declared of $ 0.825 per common share

Equity-based compensation transactions, net

Balance, September 30, 2025

Balance, June 30, 2024

Consolidated net income

Other comprehensive income (loss), net of tax

Cash dividends declared of $ 0.75 per common share

Equity-based compensation transactions, net

Balance, September 30, 2024

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY ─ (Continued)

(In Millions, Except Shares in Thousands)

Waste Management, Inc.

Stockholders’ Equity

Comprehensive

Treasury Stock

Noncontrolling

Income (Loss)

Nine Months Ended September 30:

Balance, December 31, 2025

3 unchanged sentences

Equity-based compensation transactions, net

Balance, September 30, 2025

Common stock repurchase program

Balance, March 31, 2026

Balance, December 31, 2024

3 unchanged sentences

Equity-based compensation transactions, net

Common stock repurchase program

Adoption of new accounting standard

Balance, September 30, 2024

Balance, March 31, 2025

See Notes to Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation

10 unchanged sentences

Our solid waste business is operated and managed locally by our subsidiaries that focus on distinct geographic areas and provide collection, transfer, disposal, recycling and resource recovery services.

Through our subsidiaries, including our Waste Management Renewable Energy (“WM Renewable Energy”) segment, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S.

Through our Renewable Energy segment, we are also a leading developer, operator and owner of landfill gas-to-energy facilities in the U.S.

and Canada that produce renewable electricity and renewable natural gas (“RNG”), which is a significant source of fuel that we allocate to our natural gas fleet.

On November 4, 2024, we completed the acquisition of all outstanding shares of Stericycle, Inc.

(“Stericycle”), the operations of which are presented in this report as our new WM Healthcare Solutions segment.

The acquisition expands our offerings in the U.S.

and Canada and adds operations in parts of Western Europe.

This business provides regulated waste and compliance services and secure information destruction services that protect people and brands, promote health and well-being and safeguard the environment.

Refer to Note 8 for further discussion.

Our Healthcare Solutions segment provides regulated waste and compliance services (“RWCS”) and secure information destruction (“SID”) services in the U.S., Canada and Western Europe that protect people and brands, promote health and well-being and safeguard the environment.

Additionally, through our Recycling Processing and Sales segment, we are a leading recycler in the U.S.

and Canada, handling materials that include paper, cardboard, glass, plastic and metal.

Our senior management evaluates, oversees and manages the financial performance of our business through five reportable segments, referred to as (i) Collection and Disposal - East Tier (“East Tier”);

1 unchanged sentence

(iii) Recycling Processing and Sales;

(iv) WM Renewable Energy and (v) WM Healthcare Solutions.

Our East and West Tiers along with certain ancillary services (“Other Ancillary”) that are not managed through our Tier segments, but that support our collection and disposal operations, form our “Collection and Disposal” businesses.

(iv) Renewable Energy and (v) Healthcare Solutions.

We also provide additional services not managed through our five reportable segments, which are presented as Corporate and Other.

Refer to Note 7 for further discussion.

The Condensed Consolidated Financial Statements as of September 30, 2025 and for the three and nine months ended September 30, 2025 and 2024 are unaudited.

The Condensed Consolidated Financial Statements as of March 31, 2026 and for the three months ended March 31, 2026 and 2025 are unaudited.

In the opinion of management, these financial statements include all adjustments, which, unless otherwise disclosed, are of a normal recurring nature, necessary for a fair presentation of the financial position, results of operations, comprehensive income, cash flows and changes in equity for the periods presented.

6 unchanged sentences

Actual results could differ materially from the estimates and assumptions that we use in the preparation of our financial statements.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Revenue Recognition

12 unchanged sentences

Our contract acquisition costs are classified as current or noncurrent based on the timing of when we expect to recognize amortization and are included in other assets in our Condensed Consolidated Balance Sheets.

As of September 30, 2025 and December 31, 2024, we had $ 235 million and $ 218 million, respectively, of deferred contract costs, of which $ 173 million and $ 154 million, respectively, were related to deferred sales incentives.

As of March 31, 2026 and December 31, 2025, we had $ 229 million and $ 237 million, respectively, of deferred contract costs, of which $ 183 million and $ 177 million, respectively, were related to deferred sales incentives.

Amounts for our operating lease right-of-use assets are recorded in other long-term assets and the current and long-term portion of our operating lease liabilities are reflected in accrued liabilities and other long-term liabilities, respectively, in our Condensed Consolidated Balance Sheets.

7 unchanged sentences

Reclassifications

When necessary, reclassifications have been made to our prior period financial information to conform to the current year presentation and are not material to our Condensed Consolidated Financial Statements.

When necessary, reclassifications have been made to our prior period financial information to conform with the current year presentation, including the reclassification of interest accretion on landfill and environmental remediation liabilities from operating expenses to depreciation, depletion, amortization and accretion in our Condensed Consolidated Statements of Operations.

These reclassifications are not material to our Condensed Consolidated Financial Statements.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Adoption of New Accounting Standards in 2026

Improvements to Measurement of Credit Losses for Accounts Receivable and Contract Assets

In July 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2025-05, “Financial Instruments – Credit Losses (Topic 326):

Measurement of Credit Losses for Account Receivable and Contract Assets” (“ASU 2025-05”), which simplifies the estimation of expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Accounting Standards Codification 606, Revenue from Contracts with Customers.

The amendments permit entities to elect a practical expedient to assume the current conditions as of the balance sheet date will remain unchanged for the remaining life of the asset when developing a reasonable and supportable forecast for purposes of estimating expected credit losses.

The Company adopted ASU 2025-05 on a prospective basis and elected the practical expedient during the quarter ended March 31, 2026.

The adoption of the amended guidance did not have a material impact on our Condensed Consolidated Financial Statements.

Landfill and Environmental Remediation Liabilities

Liabilities for landfill and environmental remediation costs are presented in the table below (in millions):

September 30, 2025

March 31, 2026

December 31, 2025

2 unchanged sentences

Current (in accrued liabilities)

The changes to landfill and environmental remediation liabilities for the nine months ended September 30, 2025 are reflected in the table below (in millions):

The changes to landfill and environmental remediation liabilities for the three months ended March 31, 2026 are reflected in the table below (in millions):

Environmental

5 unchanged sentences

Acquisitions, divestitures and other adjustments

September 30, 2025

March 31, 2026

At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds for purposes of settling final capping, closure, post-closure and environmental remediation obligations.

1 unchanged sentence

See Note 12 for additional information related to these trusts.

The following table summarizes the major components of debt at principal amounts as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of September 30, 2025:

September 30,

Commercial paper program (weighted average interest rate of 4.3 % as of September 30, 2025 and 4.7 % as of December 31, 2024)

Senior notes, maturing through 2054, interest rates ranging from 0.75 % to 7.75 % (weighted average interest rate of 4.2 % as of September 30, 2025 and December 31, 2024)

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Commercial paper program (weighted average interest rate of 4.1 % as of March 31, 2026 and December 31, 2025)

Senior notes, maturing through 2054, interest rates ranging from 1.15 % to 7.75 % (weighted average interest rate of 4.3 % as of March 31, 2026 and December 31, 2025)

Canadian senior notes, C$ 500 million maturing September 2026, interest rate of 2.6 %

Tax-exempt bonds, maturing through 2055, fixed and variable interest rates ranging from 0.70 % to 4.60 % (weighted average interest rate of 3.5 % as of September 30, 2025 and December 31, 2024)

Financing leases and other, maturing through 2082 (weighted average interest rate of 4.8 % as of September 30, 2025 and 4.9 % as of December 31, 2024) (a)

Tax-exempt bonds, maturing through 2055, fixed and variable interest rates ranging from 0.70 % to 4.60 % (weighted average interest rate of 3.3 % as of March 31, 2026 and 3.4 % as of December 31, 2025)

Financing leases and other, maturing through 2075 (weighted average interest rate of 4.7 % as of March 31, 2026 and 4.8 % as of December 31, 2025)

Debt issuance costs, discounts and other

1 unchanged sentence

Long-term debt, less current portion

(a) Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059 .

Debt Classification

As of September 30, 2025, we had approximately $ 3.9 billion of debt maturing within the next 12 months, including (i) $ 1.5 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities;

(ii) $ 861 million of short-term borrowings under our commercial paper program (net of related discount on issuance);

(iii) $ 500 million of 0.75 % senior notes that mature in November 2025;

(iv) $ 223 million of 7.1 % senior notes that mature in August 2026;

(v) $ 359 million of 2.6 % Canadian senior notes that mature in September 2026 and (vi) $ 380 million of other debt with scheduled maturities within the next 12 months, including $ 188 million of tax-exempt bonds.

As of September 30, 2025, we have classified $ 3.0 billion of debt maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $ 3.5 billion long-term U.S.

As of March 31, 2026, we had approximately $ 3.7 billion of debt maturing within the next 12 months, including (i) $ 1.8 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities;

(ii) $ 1.1 billion of short-term borrowings under our commercial paper program (net of related discount on issuance);

(iii) $ 223 million of 7.1 % senior notes that mature in August 2026;

(iv) $ 359 million of 2.6 % Canadian senior notes that mature in September 2026 and (v) $ 201 million of other debt with scheduled maturities within the next 12 months.

As of March 31, 2026, we have classified $ 3.1 billion of debt maturing in the next 12 months as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $ 3.5 billion long-term U.S.

and Canadian revolving credit facility (“$3.5 billion revolving credit facility”), as discussed below.

3 unchanged sentences

The interest rates we pay on outstanding U.S.

or Canadian loans are based on the Secured Overnight Financing Rate (“SOFR”) administered by the Federal Reserve Bank of New York or the Canadian Overnight Repo Rate Average (“CORRA”) administered by the Bank of Canada, respectively, plus a spread depending on our senior public debt rating assigned by Moody’s Investors Service, Inc.

or Canadian loans are based on a secured overnight financing rate administered by the Federal Reserve Bank of New York (“SOFR”) or the Canadian Overnight Repo Rate Average (“CORRA”) administered by the Bank of Canada, respectively, plus a spread depending on our senior public debt rating assigned by Moody’s Investors Service, Inc.

and Standard and Poor’s Global Ratings.

1 unchanged sentence

We also pay certain other fees set forth in the $ 3.5 billion revolving credit facility agreement, including a facility fee based on the aggregate commitment, regardless of usage.

As of September 30, 2025, we had no outstanding borrowings under this facility.

We had $ 861 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program and $ 227 million of letters of credit issued, both supported by the facility, leaving unused and available credit capacity of $ 2.4 billion as of September 30, 2025.

WM Holdings, a wholly-owned subsidiary of WMI, guarantees all of the obligations under the $ 3.5 billion revolving credit facility.

As of March 31, 2026, we had no outstanding borrowings under this facility.

We had $ 1.1 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program and $ 226 million of letters of credit issued, both supported by the facility, leaving unused and available credit capacity of $ 2.2 billion as of March 31, 2026.

WM Holdings, Inc.

(“WM Holdings”), a wholly-owned subsidiary of WMI, guarantees all the obligations under the $3.5 billion revolving credit facility.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Commercial Paper Program — We have a commercial paper program that enables us to borrow funds for up to 397 days at competitive interest rates.

1 unchanged sentence

The commercial paper program is fully supported by our $ 3.5 billion revolving credit facility.

As of September 30, 2025, we had $ 861 million of outstanding borrowings (net of related discount on issuance) under our commercial paper program.

Other Letter of Credit Lines — As of September 30, 2025, we had utilized $ 887 million of other uncommitted letter of credit lines with terms maturing through December 2028.

As of March 31, 2026, we had $ 1.1 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program.

Other Letter of Credit Lines — As of March 31, 2026, we had utilized $ 820 million of other uncommitted letter of credit lines, with terms maturing through December 2029.

Debt Borrowings and Repayments

Commercial Paper Program — During the nine months ended September 30, 2025, we made cash repayments of $ 15.1 billion, which were partially offset by $ 14.7 billion of cash borrowings (net of related discount on issuance).

Senior Notes — We repaid $ 422 million of 3.125 % senior notes upon maturity in March 2025.

Senior Notes Exchange Offer — On June 25, 2025, we completed an exchange offer pursuant to which we issued approximately $ 483 million in new notes (the “Registered Notes”) registered under the Securities Act of 1933, as amended, in exchange for a like amount of our outstanding unregistered 3.875 % Senior Notes due 2029 (the “Restricted Notes”).

This amount represented approximately 99 % of the $ 485 million aggregate principal amount of Restricted Notes that were originally issued on November 8, 2024, in a private offer in exchange for notes of Stericycle.

The terms of the Registered Notes are substantially identical in all material respects to the terms of the Restricted Notes, except that the Registered Notes are not subject to restrictions on transfer.

The debt exchange is accounted for as a modification of debt, as the

financial terms of the Registered Notes do not differ from the Restricted Notes, and there is no substantial difference between the present value of cash flows under each respective set of notes.

Tax-Exempt Bonds — We issued $ 252 million of tax-exempt bonds in the nine months ended September 30, 2025.

The proceeds from the issuance of these bonds were deposited directly into a restricted trust fund to be used for the specific purpose for which the money was raised, which is generally to finance expenditures for solid waste disposal and recycling facility construction and development.

In 2025, we also repaid $ 110 million of our tax-exempt bonds at their respective scheduled maturities with available cash on hand.

Financing Leases and Other — The increase in our financing leases and other debt obligations during the nine months ended September 30, 2025 is due to an increase of $ 208 million primarily related to non-cash financing leases, partially offset by $ 107 million of cash repayments of other debt at maturity.

Our effective income tax rate was 22.2 % and 21.0 % for the three and nine months ended September 30, 2025, respectively, compared to 23.6 % and 22.2 % for the three and nine months ended September 30, 2024, respectively.

The decrease in our effective income tax rate when comparing the three and nine months ended September 30, 2025 and 2024 was primarily driven by an increase in federal tax credits partially offset by unfavorable adjustments to accruals and related deferred taxes.

Commercial Paper Program — During the three months ended March 31, 2026, we made cash repayments of $ 6.1 billion, which were partially offset by $ 6.0 billion of cash borrowings (net of related discount on issuance) used for general corporate purposes.

Financing Leases and Other — The increase in our financing leases and other debt obligations in 2026 is due to new, non-cash, finance lease activity of $ 52 million, partially offset by $ 49 million of cash repayments of debt at maturity.

Our effective income tax rate was 18.9 % and 19.2 % for the three months ended March 31, 2026 and 2025, respectively.

The decrease in our effective income tax rate when comparing the three months ended March 31, 2026 and 2025 was primarily driven by an increase in federal tax credits, largely attributable to the recognition of Section 45Z clean fuel production tax credits, partially offset by lower investment tax credits at our RNG facilities.

We evaluate our effective income tax rate at each interim period and adjust it as facts and circumstances warrant.

Investments Qualifying for Federal Tax Credits

Renewable Natural Gas — Through our subsidiaries, including our WM Renewable Energy segment, we have invested in building landfill gas-to-energy facilities in the U.S.

Renewable Natural Gas — Through our Renewable Energy segment, we have invested in building landfill gas-to-energy facilities in the U.S.

and Canada that produce renewable electricity and RNG.

We expect our new RNG facilities to qualify for federal tax credits and to realize those credits through 2026 under Section 48 of the Internal Revenue Code.

During the three and nine months ended September 30, 2025, we recognized a reduction in our income tax expense of $ 49 million and $ 138 million, respectively, due to federal tax credits expected to be realized from our RNG investments compared to $ 37 million and $ 111 million, respectively, for the comparable prior year periods.

Our RNG facilities qualify for investment tax credits and clean fuel production tax credits, which we expect to realize through 2027 and 2029, respectively.

During the three months ended March 31, 2026 and 2025, we recognized a reduction in our income tax expense of $ 24 million and $ 46 million, respectively due to Section 48 investment tax credits from our RNG investments.

During the three months ended March 31, 2026, we recognized a reduction in our income tax expense of $ 35 million related to clean fuel production tax credits from our RNG production and sales activity, with $ 8 million attributable to production and sales during the first quarter of 2026 and $ 27 million attributable to 2025 operations.

The timing of the recognition of these production tax credits resulted from the issuance of proposed Treasury regulations during the first quarter of 2026, that clarified the qualification of our RNG sales for the credit.

Low-Income Housing — We have significant financial interests in entities established to invest in and manage low-income housing properties.

We support the operations of these entities in exchange for a pro-rata share of the tax credits they generate.

The low-income housing investments qualify for federal tax credits that we expect to realize through 2036 under Section 42 and Section 45D of the Internal Revenue Code.

Under the proportional amortization method, the equity investment is amortized in proportion to the income tax credits and other income tax benefits received.

The amortization expense and the income tax credits are required to be presented on a net basis in income tax expense on the Condensed Consolidated Statements of Operations.

During the three and nine months ended September 30, 2025, we recognized income tax expense of $ 26 million and $ 71 million, respectively, related to amortization under the proportional amortization method and a reduction in our income tax expense of $ 37 million and $ 99 million, respectively, primarily due to federal tax credits realized from these investments.

In addition, during the three and nine months ended September 30, 2025, we recognized interest expense of $ 8 million and $ 25 million, respectively, associated with our investments in low-income housing properties.

During the three and nine months ended September 30, 2024, we recognized income tax expense of $ 19 million and $ 56 million related to amortization under the proportional amortization method and a reduction in our income tax expense of $ 26 million and $ 76 million, respectively, primarily due to federal tax credits realized from these investments.

In addition, during the three and nine months ended September 30, 2024, we recognized interest expense of $ 5 million and

$ 16 million, respectively, associated with our investments in low-income housing properties.

The low-income housing investments qualify for federal tax credits that we expect to realize through 2038 under Sections 42 and 45D of the Internal Revenue Code.

During the three months ended March 31, 2026 and 2025, we recognized income tax expense of $ 22 million and $ 20 million, respectively, related to amortization under ASU 2023-02 and a reduction in our income tax expense of $ 30 million and $ 27 million, respectively, primarily due to federal tax credits realized from these investments.

In addition, during the

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

three months ended March 31, 2026 and 2025, we recognized interest expense of $ 8 million and $ 9 million, respectively, associated with our investments in low-income housing properties.

See Note 12 for additional information related to these unconsolidated variable interest entities.

Adjustments to Accruals and Related Deferred Taxes — During the three and nine months ended September 30, 2025, we recognized income tax expense of $ 22 million due to certain adjustments to accruals and related deferred taxes primarily related to a change from our initial expectations of the federal tax credits expected to be realized from our RNG investments.

During the three and nine months ended September 30, 2024, there were immaterial adjustments to accruals and related deferred taxes.

Tax Legislation — On July 4, 2025, President Trump signed the One Big Beautiful Bill Act into law.

We are currently evaluating several business tax provisions in the legislation, none of which are expected to have a material impact on our effective tax rate.

However, we expect a beneficial impact to cash taxes related to bonus depreciation.

Earnings Per Share

Basic and diluted earnings per share for the three and nine months ended September 30 were computed using the following common share data (shares in millions):

Three Months Ended

Nine Months Ended

September 30,

Basic and diluted earnings per share for the three months ended March 31 were computed using the following common share data (shares in millions):

Number of common shares outstanding at end of period

16 unchanged sentences

Insurance — We carry insurance coverage for protection of our assets and operations from certain risks including general liability, automobile liability, workers’ compensation, real and personal property, directors’ and officers’ liability, pollution legal liability, cyber incident liability and other coverages we believe are customary to the industry.

Our exposure to loss for insurance claims is generally limited to the per-incident deductible under the related insurance policy and any

amounts that exceed our insured limits.

Our exposure to loss for insurance claims is generally limited to the per-incident deductible under the related insurance policy and any amounts that exceed our insured limits.

Our exposure could increase if our insurers are unable to meet their commitments on a timely basis.

1 unchanged sentence

“General liability” refers to the self-insured portion of specific third-party claims made against us that may be covered under our commercial general liability insurance policy.

For our self-insured portions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is based on an actuarial valuation or internal estimates.

For our self-insured portions, the exposure for unpaid claims and associated expenses, including incurred but not reported losses, is

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

based on an actuarial valuation or internal estimates.

The accruals for these liabilities could be revised if future occurrences or loss development significantly differ from such valuations and estimates.

4 unchanged sentences

No additional liabilities have been recorded for these intercompany guarantees because all of the underlying obligations are reflected in our Condensed Consolidated Balance Sheets.

As of September 30, 2025, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover the difference, if any, between the sale value and the guaranteed market or contractually-determined value of certain homeowner’s properties that are adjacent to or near 18 of our landfills.

As of March 31, 2026, we have guaranteed the obligations and certain performance requirements of third parties in connection with both consolidated and unconsolidated entities, including guarantees to cover the difference, if any, between the sale value and the guaranteed market or contractually-determined value of certain homeowner’s properties that are adjacent to or near 18 of our landfills.

We have also agreed to indemnify certain third-party purchasers against liabilities associated with divested operations prior to such sale.

11 unchanged sentences

If no amount within a range appears to be a better estimate than any other, we use the amount that is the low end of such range.

If we used the high ends of such ranges (where estimable), our aggregate potential liability would be approximately $ 10 million higher than the $ 215 million recorded in the Condensed Consolidated Balance Sheet as of September 30, 2025.

If we used the high ends of such ranges (where estimable), our aggregate potential liability would be approximately $ 13 million higher than the $ 227 million recorded in the Condensed Consolidated Balance Sheet as of March 31, 2026.

Our ultimate responsibility may differ materially from current estimates.

2 unchanged sentences

These adjustments could be material in any given period.

As of September 30, 2025, we had been notified by the government that we are a PRP in connection with 74 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List, or NPL.

Of the 74 sites at

which claims have been made against us, 14 are sites we own.

As of March 31, 2026, we had been notified by the government that we are a PRP in connection with 75 locations listed on the Environmental Protection Agency’s (“EPA’s”) Superfund National Priorities List, or NPL.

Of the 75 sites at which claims have been made against us, 14 are sites we own.

Each of the NPL sites we own was initially developed by others as a landfill disposal facility.

At each of these facilities, we are working in conjunction with the government to characterize or remediate identified site problems, and we have either agreed with other legally liable parties on an arrangement for sharing the costs of remediation or are working toward a cost-sharing agreement.

We generally expect to receive any amounts due from other participating parties at or near the time that we make the remedial expenditures.

We generally expect to

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

receive any amounts due from other participating parties at or near the time that we make the remedial expenditures.

The other 61 NPL sites, which we do not own, are at various procedural stages under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, known as CERCLA or Superfund.

7 unchanged sentences

In November 2024, MIMC and IPC publicly issued a proposed revised full remedial design that was approved by the EPA in September 2025.

The recorded liability as of September 30, 2025, and December 31, 2024, was approximately $ 101 million and $ 97 million, respectively.

It is expected that the EPA will issue a Unilateral Administrative Order for the site cleanup in 2026.

The recorded liability as of March 31, 2026, and December 31, 2025, was approximately $ 100 million.

MIMC’s ultimate liability could be materially different from current estimates, including potential increases resulting from MIMC’s continued engagement with the EPA regarding the newly-approved remedial design for the site.

1 unchanged sentence

In accordance with this SEC regulation, the Company uses a threshold of $ 1 million for purposes of determining whether disclosure of any such environmental proceedings is required.

We are not aware of any matters in the third quarter of 2025 that are required to be disclosed pursuant to this standard.

We are not aware of any matters in the first quarter of 2026 that are required to be disclosed pursuant to this standard.

From time to time, we are also named as defendants in personal injury and property damage lawsuits, including purported class actions, on the basis of having owned, operated or transported waste to a disposal facility that is alleged to have contaminated the environment or, in certain cases, on the basis of having conducted environmental remediation activities at sites.

6 unchanged sentences

Actions that have been filed against us, and that may be filed against us in the future, include personal injury, property damage, commercial, customer, and employment-related claims, including purported state and national class action lawsuits related

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

alleged environmental contamination, including releases of hazardous material and odors;

4 unchanged sentences

We currently do not believe that the eventual outcome of any such actions will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

On November 4, 2024, the Company acquired Stericycle.

At the time of the acquisition, Stericycle was subject to the following legal matter, which is now a legal matter of our wholly-owned subsidiary.

On February 11, 2020, Stericycle received an administrative subpoena from the U.S.

On February 11, 2020, Stericycle, Inc.

(“Stericycle”), a now wholly-owned subsidiary, received an administrative subpoena from the U.S.

Drug Enforcement Administration (“DEA”), which executed a search warrant at a facility in Rancho Cordova, California and an administrative inspection warrant at a facility in Indianapolis, Indiana for materials related to Stericycle’s now-divested Domestic Environmental Solutions business of collecting, transporting, and destroying controlled substances from retail customers (the “ESOL Retail Controlled Substances Business”).

5 unchanged sentences

While the ultimate disposition of this matter remains uncertain, we do not currently believe that it will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

In June 2022, we and certain of our officers were named as defendants in a complaint alleging violation of the federal securities laws and seeking certification as a class action in the U.S.

District Court for the Southern District of New York.

A lead plaintiff was appointed and an amended complaint was filed in January 2023.

The amended complaint sought damages on behalf of a putative class of secondary market purchasers of our senior notes with a special mandatory redemption feature issued in May 2019, asserting claims under the Securities Exchange Act of 1934, as amended, based on alleged misrepresentations and omissions concerning the anticipated time for completion of our acquisition of Advanced Disposal.

In August 2025, the court granted preliminary approval of a settlement that will be covered by insurance, with a final approval hearing scheduled for December 2025.

We do not believe that the eventual outcome of this matter will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows.

WMI’s charter and bylaws provide that WMI shall indemnify against all liabilities and expenses, and upon request shall advance expenses to any person, who is subject to a pending or threatened proceeding because such person is or was a director or officer of the Company.

7 unchanged sentences

In connection with our ongoing renegotiation of various collective bargaining agreements, we may discuss and negotiate for the complete or partial withdrawal from one or more of these Multiemployer Pension Plans.

A complete or partial withdrawal from a

Multiemployer Pension Plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them.

A complete or partial withdrawal from a Multiemployer Pension Plan may also occur if employees covered by a collective bargaining agreement vote to decertify a union from continuing to represent them.

Any other circumstance resulting in a decline in Company contributions to a Multiemployer Pension Plan through a reduction in the labor force, whether through attrition over time or through a business event (such as the discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or discontinuance of certain operations) may also trigger a complete or partial withdrawal from one or more of these pension plans.

We do not believe that any future liability relating to our past or current participation in, or withdrawals from, the Multiemployer Pension Plans to which we contribute will have a material adverse effect on our business, financial condition or liquidity.

However, liability for future withdrawals could have a material adverse effect on our results of operations or cash flows for a particular reporting period, depending on the number of employees withdrawn and the financial condition of the Multiemployer Pension Plan(s) at the time of such withdrawal(s).

However, liability for future withdrawals could have a material adverse effect on our results of

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

operations or cash flows for a particular reporting period, depending on the number of employees withdrawn and the financial condition of the Multiemployer Pension Plan(s) at the time of such withdrawal(s).

Tax Matters — We maintain a liability for uncertain tax positions, the balance of which management believes is adequate.

6 unchanged sentences

We expect to litigate any denial of the claim for refund.

As of September 30, 2025 and December 31, 2024, the IRS deposit, net of reserve for uncertain tax positions, was classified as a component of other long-term assets in the Company’s Condensed Consolidated Balance Sheets.

As of March 31, 2026 and December 31, 2025, the IRS deposit, net of reserve for uncertain tax positions, was classified as a component of other long-term assets in the Company’s Condensed Consolidated Balance Sheets.

Segment and Related Information

2 unchanged sentences

(iii) Recycling Processing and Sales;

(iv) WM Renewable Energy and (v) WM 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” businesses.

(iv) Renewable Energy and (v) Healthcare Solutions.

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 nine months ended September 30 is shown in the following table (in millions):

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Summarized financial information concerning our reportable segments for the three months ended March 31 is shown in the following table (in millions):

Depreciation,

Depletion and

Administrative

and Accretion

Operations(c)

Three Months Ended September 30:

Collection and Disposal:

2 unchanged sentences

Recycling Processing and Sales(e)

WM Renewable Energy(f)

WM Healthcare Solutions(g)(h)

Corporate and Other(f)

Intercompany Elimination(a)

Depreciation,

Depletion and

Administrative

Operations(c)

Collection and Disposal:

Other Ancillary

Collection and Disposal(e)(f)

Recycling Processing and Sales(e)

WM Renewable Energy(f)

Renewable Energy(f)

Healthcare Solutions(g)(h)

Corporate and Other(f)

1 unchanged sentence

Depreciation,

Depletion and

Administrative

and Accretion

Operations(c)

Nine Months Ended September 30:

Collection and Disposal:

2 unchanged sentences

Recycling Processing and Sales(e)

WM Renewable Energy(f)

WM Healthcare Solutions(g)(h)

Corporate and Other(f)

Intercompany Elimination(a)

Depreciation,

Depletion and

Administrative

Operations(c)

Collection and Disposal:

Other Ancillary

Collection and Disposal(e)(f)

Recycling Processing and Sales(e)

WM Renewable Energy(f)

Renewable Energy(f)

Healthcare Solutions(g)(h)

Corporate and Other(f)

7 unchanged sentences

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 businesses.

The amounts in income from operations for the three and nine months ended September 30, 2025 are $ 19 million and $ 59 million, respectively.

The amounts in income from operations for three and nine months ended September 30, 2024, are $ 29 million and $ 77 million, respectively.

(f) WM Renewable Energy pays a 15 % intercompany royalty to our Collection and Disposal and Corporate and Other businesses 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 WM Renewable Energy for the three and nine months ended September 30, 2025 are $ 17 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 WM Renewable Energy for the three and nine months ended September 30, 2024 are $ 13 million and $ 34 million, respectively.

Prior to the fourth quarter of 2024, amounts related to intercompany royalty payments were adjusted through income from operations.

Prior periods have been recast to conform to current year presentation.

(g) Our Collection and Disposal business records intercompany operating revenue for collection and disposal services provided to WM Healthcare Solutions.

The total amount of intercompany operating revenues reflected in our Collection and Disposal businesses and in operating expenses for WM Healthcare Solutions for the three and nine months ended September 30, 2025 are $ 16 million and $ 36 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 WM Healthcare Solutions segment.

(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 months ended March 31, 2026 and 2025 are $ 18 million and $ 20 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

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Tier, and Corporate and Other and in operating expenses for Renewable Energy for the three months ended March 31, 2026 and 2025 are $ 24 million and $ 14 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 months ended March 31, 2026 and 2025, are $ 20 million and $ 8 million, respectively.

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 nine months ended September 30, 2025 were made to properly reflect the year to date intra-segment activity.

Intra-segment operating revenues and operating expenses within WM Healthcare Solutions for the three and nine months ended September 30, 2025 are $ 108 million and $ 315 million, respectively.

Accordingly, adjustments to the three months ended March 31, 2025 were made to properly reflect intra-segment activity for the period.

Intra-segment operating revenues and operating expenses within Healthcare Solutions for the three months ended March 31, 2026 and 2025 are $ 101 million and $ 94 million, respectively.

Total assets by reportable segment are presented in the table below as follows (in millions):

September 30,

Collection and Disposal:

2 unchanged sentences

Recycling Processing and Sales

WM Renewable Energy

WM Healthcare Solutions

Renewable Energy

Healthcare Solutions

Corporate and Other

1 unchanged sentence

Total assets, per Condensed Consolidated Balance Sheet

The mix of operating revenues from our major lines of business for the three and nine months ended September 30 are as follows (in millions):

Revenues (a)(b)

Three Months Ended September 30:

Other collection

Total collection

Total Collection and Disposal

Recycling Processing and Sales

WM Renewable Energy

WM Healthcare Solutions

Corporate and Other

Other collection

Total collection

Total Collection and Disposal

Recycling Processing and Sales

WM Renewable Energy

Corporate and Other

Revenues (a)(b)

Nine Months Ended September 30:

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The mix of operating revenues from our major lines of business for the three months ended March 31 are as follows (in millions):

Other collection

2 unchanged sentences

Recycling Processing and Sales

WM Renewable Energy

WM Healthcare Solutions

Renewable Energy

Healthcare Solutions

Corporate and Other

3 unchanged sentences

Recycling Processing and Sales

WM Renewable Energy

Renewable Energy

Healthcare Solutions

Corporate and Other

1 unchanged sentence

Transactions within and between segments are generally made on a basis intended to reflect the market value of the service.

(b) Beginning with the 2024 Form 10-K, the Company adjusted gross and intercompany operating revenues to reflect the 15 % royalty paid by WM Renewable Energy to our Collection and Disposal and Corporate and Other businesses for the purchase of landfill gas.

There was no change to net operating revenues.

Prior periods have been recast to conform to current presentation.

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.

2 unchanged sentences

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.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Conversely, certain destructive weather and climate conditions, such as wildfires in the Western U.S.

1 unchanged sentence

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.

Acquisitions and Divestitures

Stericycle Acquisition

On June 3, 2024, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) to acquire all outstanding shares of Stericycle for $ 62.00 per share in cash, representing a total enterprise value of approximately $ 7.2 billion (net of cash acquired) when including the assumption of $ 0.5 billion of debt and the repayment of approximately $ 0.8 billion of net debt.

The acquisition expands our offerings in the U.S., Canada and parts of Western Europe by providing regulated waste and compliance services and secure information destruction services that protect people and brands, promote health and well-being and safeguard the environment.

The transaction closed on November 4, 2024 and was funded using borrowings under a term credit agreement, commercial paper program and available cash on hand.

Shortly thereafter, we repaid all outstanding borrowings under the term credit agreement with net proceeds from our November 2024 issuance of $ 5.2 billion of senior notes.

Our Condensed Consolidated Financial Statements have not been retroactively restated to include Stericycle’s historical financial position or results of operations.

The acquisition is accounted for as a business combination.

In accordance with the purchase method of accounting, the purchase price paid has been allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired recorded as goodwill.

Our estimates and assumptions are subject to change during the measurement period, not to exceed one year from the acquisition date.

The areas of acquisition accounting that are not yet finalized primarily relate to (i) finalizing the review and valuation of trade names, permits, customer relationships and certain property plant and equipment and other intangibles (including the models, key assumptions, estimates and inputs used) and assignment of remaining useful lives associated with the depreciable and amortizable assets and (ii) finalizing the review and valuation of accrued expenses, contingent liabilities, deferred taxes and goodwill (including key assumptions, inputs and estimates).

Goodwill of $ 3.8 billion was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized and from synergies of the combination.

In the first quarter of 2025, we finalized the determination of our reporting units related to the Stericycle acquisition and allocated the goodwill balance to two reporting units within our WM Healthcare Solutions segment using a relative fair value allocation method.

Substantially all of the goodwill is not deductible for income tax purposes.

The following table shows the preliminary purchase price allocation as of the date acquired and adjustments to September 30, 2025 (in millions):

November 4, 2024

September 30, 2025

Cash and cash equivalents

Accounts and other receivables

Parts and supplies

Other current assets

Assets held for sale (a)

Property and equipment

Other intangible assets

Accounts payable

Accrued liabilities

Deferred revenues

Current portion of long-term debt

Liabilities held for sale (a)

Long-term debt, less current portion

Deferred income taxes

Other liabilities

Total purchase price

(a) Represents Stericycle’s Spain and Portugal subsidiaries.

See “Divestitures” below for additional information.

The preliminary allocation of $ 3,482 million for other intangible assets includes (i) $ 2,296 million for customer relationships with a weighted average amortization period of 15 years ;

(ii) $ 610 million for indefinite lived trade names;

(iii) $ 319 million for indefinite lived permits;

(iv) $ 114 million for finite lived trade names with a weighted average amortization period of 2.9 years;

(v) $ 138 million for enterprise resource planning software with a weighted average amortization period of 4.7 years and (vi) $ 5 million for developed technology with an amortization period of 17 years .

2025 Acquisitions

During the nine months ended September 30, 2025, we completed solid waste and recycling acquisitions with total consideration of $ 442 million, which included $ 399 million in net cash paid and $ 43 million of other consideration, specifically purchase price holdbacks.

In addition, we paid $ 8 million of holdbacks related to prior year acquisitions.

Total consideration for our 2025 acquisitions was primarily allocated to $ 91 million of property and equipment, $ 45 million of other intangible assets, primarily customer relationships, and $ 322 million of goodwill.

The goodwill was primarily a result of expected synergies from combining the acquired businesses with our existing operations and substantially all was tax deductible.

We remain in the measurement period for most of our 2025 acquisitions, and adjustments to our preliminary purchase price allocation may occur.

On January 2, 2025, we completed the sale of our WM Healthcare Solutions’ Spain and Portugal subsidiaries.

As the fair value of consideration transferred was equal to the carrying value of the divested subsidiaries, no gain or loss was recognized.

Restructuring

During the three and nine months ended September 30, 2025, we recognized $ 14 million and $ 39 million of pre-tax restructuring charges, primarily related to employee costs associated with the integration of Stericycle as well as employee retention and severance costs incurred to support automation at our recycling facilities and in certain back-office functions.

(Gain) Loss from Divestitures, Asset Impairments and Unusual Items, Net

(Gain) loss from divestitures, asset impairments and unusual items, net for the three months ended September 30, 2025 includes (i) a $ 152 million impairment charge related to the decision to temporarily suspend the operations of a business engaged in accelerating plastic film and wrap recycling capabilities within our Recycling Processing and Sales segment resulting from significant deterioration of market pricing and demand for post-consumer plastics;

(ii) a $ 45 million impairment charge related to the decision to accelerate the closure of a landfill within our East Tier and (iii) an $ 11 million negotiated payment for early termination of a contract in our WM Renewable Energy segment.

The nine months ended September 30, 2025 also includes a $ 16 million goodwill impairment charge related to a business engaged in oil recovery and sludge processing services.

This charge is reflected in Other Ancillary within our Collection and Disposal businesses.

(Gain) loss from divestitures, asset impairments and unusual items, net for the three months ended September 30, 2024 primarily relates to a $ 14 million loss associated with the divestiture of a minority investment in a medical waste company within Corporate and Other, in connection with our November 2024 acquisition of Stericycle.

The nine months ended September 30, 2024 included a $ 54 million charge required to increase the estimated fair value of a liability associated with the expected disposition of an investment the Company holds in a waste diversion technology business.

This charge is reflected in our Corporate and Other measures within our segment reporting.

Proceeds from divestitures of businesses and other assets, net of cash divested, were $ 69 million and $ 98 million for the three months ended March 31, 2026 and 2025, respectively.

Proceeds in 2026 primarily related to a business divestiture in our West Tier, which resulted in a gain of $ 34 million recognized in (gain) loss from divestitures, asset impairments and unusual items, net in our Condensed Consolidated Statements of Operations.

Proceeds in 2025 primarily related to the January 2025 sale of our Healthcare Solutions segment’s Spain and Portugal subsidiaries.

As the fair value of consideration transferred was equal to the carrying value of the divested Spain and Portugal subsidiaries, no gain or loss was recognized.

Accumulated Other Comprehensive Income (Loss)

5 unchanged sentences

Net current period other comprehensive income (loss)

Balance, September 30, 2025

Balance, March 31, 2026

Common Stock Repurchase Program

The Company may repurchase shares of its common stock as part of capital allocation programs authorized by our Board of Directors.

There were no common stock repurchases during the nine months ended September 30, 2025.

As a result of the incremental debt incurred to fund the Stericycle acquisition, the Company has temporarily suspended share repurchases.

We expect to resume share repurchases once the Company’s leverage returns to targeted levels.

The Company repurchases shares of its common stock as part of capital allocation programs authorized by our Board of Directors.

During the three months ended March 31, 2026, we repurchased 1.5 million shares of our common stock in open market transactions in compliance with Rule 10b5-1 and Rule 10b-18 of the Exchange Act for $ 354 million, inclusive of per-share commissions and taxes, for a weighted average price per share of $ 235.78 .

These repurchases were made under the $ 3.0 billion Board of Directors authorization announced in December 2025.

As of March 31, 2026, the Company has authorization for $ 2.7 billion of future share repurchases.

Any future share repurchases pursuant to this authorization of our Board of Directors will be made at the discretion of management and will depend on factors similar to those considered by the Board of Directors in making dividend declarations, including our leverage level, net earnings, financial condition and cash required for future business plans, growth and acquisitions.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Fair Value Measurements

1 unchanged sentence

Our assets and liabilities that are measured at fair value on a recurring basis include the following (in millions):

September 30,

Quoted prices in active markets (Level 1):

6 unchanged sentences

Fair Value of Debt

As of September 30, 2025 and December 31, 2024, the carrying value of our debt was $ 23.4 billion and $ 23.9 billion, respectively.

The estimated fair value of our debt was approximately $ 23.0 billion and $ 22.9 billion as of September 30, 2025 and December 31, 2024, respectively.

As of March 31, 2026 and December 31, 2025, the carrying value of our debt was $ 22.9 billion.

The estimated fair value of our debt was approximately $ 22.3 billion and $ 22.5 billion as of March 31, 2026 and December 31, 2025, respectively.

Although we have determined the estimated fair value amounts using available market information and commonly accepted valuation methodologies, considerable judgment is required in interpreting market data to develop the estimates of fair value.

1 unchanged sentence

The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values.

The fair value estimates are based on Level 2 inputs of the fair value hierarchy available as of September 30, 2025 and December 31, 2024.

The fair value estimates are based on Level 2 inputs of the fair value hierarchy available as of March 31, 2026 and December 31, 2025.

These amounts have not been revalued since those dates and current estimates of fair value could differ significantly from the amounts presented.

See Note 8 for information related to the nonrecurring fair value measurement of assets and liabilities acquired in connection with our acquisition of Stericycle.

See Note 10 for information related to our nonrecurring Level 3 fair value measurements.

Variable Interest Entities

2 unchanged sentences

We do not consolidate our investments in entities established to manage low-income housing properties because we are not the primary beneficiary of these entities as we do not have the power to individually direct the activities of these entities.

Our aggregate investment balance in these entities was $ 636 million and $ 707 million as of September 30, 2025 and December 31, 2024, respectively.

The debt balance related to our investments in low-income housing properties was $ 635 million and $ 670 million as of September 30, 2025 and December 31, 2024, respectively.

Our aggregate investment balance in these entities was $ 602 million and $ 624 million as of March 31, 2026 and December 31, 2025, respectively.

The debt balance related to our investments in low-income housing properties was $ 591 million and $ 616 million as of March 31, 2026 and December 31, 2025, respectively.

Additional information related to these investments is discussed in Note 4.

Trust Funds for Final Capping, Closure, Post-Closure or Environmental Remediation Obligations

Unconsolidated Variable Interest Entities — Trust funds that are established for both the benefit of the Company and the host community in which we operate are not consolidated because we are not the primary beneficiary of these entities as (i) we do not have the power to direct the significant activities of the trusts or (ii) power over the trusts’ significant activities is shared.

WASTE MANAGEMENT, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

activities is shared.

Our interests in these trusts are accounted for as investments in unconsolidated entities and receivables.

These amounts are recorded in other receivables, investments in unconsolidated entities and other long-term assets in our

Condensed Consolidated Balance Sheets, as appropriate.

These amounts are recorded in other receivables, investments in unconsolidated entities and other long-term assets in our Condensed Consolidated Balance Sheets, as appropriate.

We also reflect our share of the unrealized gains and losses on available-for-sale securities held by these trusts as a component of our accumulated other comprehensive income (loss).

Our investments and receivables related to these trusts had an aggregate carrying value of $ 121 million and $ 111 million as of September 30, 2025 and December 31, 2024, respectively.

Our investments and receivables related to these trusts had an aggregate carrying value of $ 125 million and $ 127 million as of March 31, 2026 and December 31, 2025, respectively.

Consolidated Variable Interest Entities — Trust funds for which we are the sole beneficiary are consolidated because we are the primary beneficiary.

1 unchanged sentence

Unrealized gains and losses on available-for-sale securities held by these trusts are recorded as a component of accumulated other comprehensive income (loss).

These trusts had a fair value of $ 138 million and $ 128 million as of September 30, 2025 and December 31, 2024, respectively.

These trusts had a fair value of $ 141 million and $ 140 million as of March 31, 2026 and December 31, 2025, respectively.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements