Common use of SEGMENT AND RELATED INFORMATION Clause in Contracts

SEGMENT AND RELATED INFORMATION. The Company's North American solid waste management operations is the Company's principal reportable segment and is comprised of six geographical operating Areas with similar economic characteristics. This segment provides integrated waste management services consisting of collection, transfer, disposal (solid waste landfill, hazardous waste landfill and waste-to-energy facilities), recycling, and other miscellaneous services to commercial, industrial, municipal and residential customers in North America, including the United States and Puerto Rico, Mexico and Canada. Similar operations in international markets outside of North America are disclosed as a separate segment under WM International. As discussed in Notes 4 and 20, pursuant to the Company's strategic plan, the Company has divested or is actively marketing to sell its remaining WM International operations and considers them to be held-for-sale. The remaining operations outside of North America included certain operations in Sweden and operations in Argentina and Israel. The Company's other reportable segment consists of non-solid waste management services, aggregated as a single segment for this reporting presentation. The non-solid waste management segment includes other hazardous waste services such as chemical waste management services, the Company's independent power projects, and other non-solid waste management services to commercial, industrial and government customers. As discussed in Notes 4 and 20, the Company's non-solid waste management segment includes business lines that have been divested or are being actively marketed and considered to be held-for-sale. Summarized financial information concerning the Company's reportable segments for the respective years ended December 31, is shown in the following table. Prior period information has been restated to conform to the segments described above, which are based on the structure and internal organization of the Company as of December 31, 2000. NORTH AMERICAN WM NON-SOLID CORPORATE SOLID WASTE INTERNATIONAL WASTE FUNCTIONS(A) TOTAL -------------- ------------- --------- ------------ ------- Net operating revenues(b).......... $11,218 $ 809 $ 465 $ -- $12,492 Earnings before interest and taxes (EBIT)(c),(d).................... 2,166 151 77 (607) 1,787 Depreciation and amortization...... 1,352 20 16 41 1,429 Capital expenditures............... 1,163 74 6 70 1,313 Total assets(d).................... 16,587 80 97 1,801 18,565 1999 Net operating revenues(b).......... $10,685 $1,651 $ 791 $ -- $13,127 Earnings before interest and taxes (EBIT)(c),(d).................... 1,633 212 38 (559) 1,324 Depreciation and amortization...... 1,364 148 23 79 1,614 Capital expenditures............... 1,086 206 17 18 1,327 Total assets(d).................... 1998 17,178 2,915 971 1,617 22,681 Net operating revenues(b).......... $10,144 $1,534 $ 948 $ -- $12,626 (EBIT)(c),(d).................... 2,000 000 000 (244) 2,511 Depreciation and amortization...... 1,215 168 44 72 1,499 Capital expenditures............... 1,438 166 35 12 1,651 Total assets(d).................... 17,005 2,956 1,000 1,921 22,882 2000 Earnings before interest and taxes 61 64 WASTE MANAGEMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------------

SEGMENT AND RELATED INFORMATION. The Company's North American solid waste management operations business ("NASW") is the Company's principal reportable segment and is comprised of six geographical operating Areas with similar economic characteristicspresented below as a subtotal that includes the "NASW (excluding WTI)" and "WTI" columns. This The NASW segment provides integrated waste management services consisting of collection, transfer, disposal (solid waste landfill, hazardous waste landfill and waste-to-energy facilities), recycling, independent power production plants ("IPPs"), and other miscellaneous services to commercial, industrial, municipal and residential customers in North America, including throughout the United States and States, Puerto Rico, Mexico Rico and Canada. Similar The Company's five geographically organized NASW operating segments and its national recycling operations have been aggregated as NASW (excluding WTI) below due to their economic and operational similarities. The WTI operating segment consists of the Company's waste-to-energy and independent power production facilities. Though also economically similar to its other NASW operations, the Company has elected to present WTI as a separate segment. The Company's other operating units consisted of waste management services in international markets outside of North America are disclosed as a separate segment under WM International. As discussed in Notes 4 and 20, pursuant to the Company's strategic plan, the Company has divested or is actively marketing to sell its remaining WM International operations and considers them to be held-for-sale. The remaining operations outside of North America included certain operations in Sweden and operations in Argentina and Israel. The Company's other reportable segment consists of non-solid waste management services, aggregated as a single segment for this reporting presentationall of which were divested by March 31, 2002. The non-solid waste management segment includes other hazardous waste services such as chemical waste management servicesWASTE MANAGEMENT, the Company's independent power projects, and other non-solid waste management services to commercial, industrial and government customersINC. As discussed in Notes 4 and 20, the Company's non-solid waste management segment includes business lines that have been divested or are being actively marketed and considered to be held-for-sale. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) Summarized financial information concerning the Company's reportable segments for the respective years ended December 31, is shown in the following table. Prior period information has been restated to conform to the segments described above, which are based on the structure and internal organization of the Company as of December 31, 2000current year presentation. NORTH AMERICAN WM NON-SOLID NASW NASW CORPORATE SOLID WASTE INTERNATIONAL WASTE (EXCLUDING WTI) >WTI TOTAL OTHER FUNCTIONS(A) TOTAL -------------- ------------- --------- ------------ ------- Three Months Ended: March 31, 2002 Net operating revenues(b).......... .............. $11,218 2,434 $167 $2,601 $ 809 $ 465 8 $ -- $12,492 Earnings before interest and taxes 2,609 EBIT(c),(d)................ 389 35 424 (EBIT)(c),(d).................... 2,166 151 77 2) (60790) 1,787 Depreciation and amortization...... 1,352 20 16 41 1,429 Capital expenditures............... 1,163 74 6 70 1,313 Total assets(d).................... 16,587 80 97 1,801 18,565 1999 332 March 31, 2001 Net operating revenues(b).......... .............. $10,685 2,505 $1,651 180 $2,685 $ 791 34 $ -- $13,127 Earnings before interest and taxes 2,719 EBIT(c),(d)................ --------------- 464 29 493 (EBIT)(c),(d).................... 1,633 212 38 16) (559133) 1,324 Depreciation and amortization...... 1,364 148 23 79 1,614 Capital expenditures............... 1,086 206 17 18 1,327 Total assets(d).................... 1998 17,178 2,915 971 1,617 22,681 Net operating revenues(b).......... $10,144 $1,534 $ 948 $ -- $12,626 (EBIT)(c),(d).................... 2,000 000 000 (244) 2,511 Depreciation and amortization...... 1,215 168 44 72 1,499 Capital expenditures............... 1,438 166 35 12 1,651 Total assets(d).................... 17,005 2,956 1,000 1,921 22,882 2000 Earnings before interest and taxes 61 64 WASTE MANAGEMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------------344

SEGMENT AND RELATED INFORMATION. The Company's North American solid waste management NASW operations is the Company's principal reportable segment and is comprised of six geographical operating Areas with similar economic characteristicssegment. This segment provides integrated waste management services consisting of collection, transfer, disposal (solid waste landfill, hazardous waste landfill and waste-to-energy facilities), recycling, and other miscellaneous services to commercial, industrial, municipal and residential customers in North America, including the United States and States, Puerto Rico, Mexico and Canada. Similar operations in international markets outside of North America are disclosed as a separate segment under WM International. As discussed , which includes operations in Notes 4 and 20, pursuant to the Company's strategic planEurope, the Company has divested or is actively marketing to sell its remaining WM International operations and considers them to be held-for-sale. The remaining operations outside of North Pacific Rim, South America included certain operations in Sweden and operations in Argentina and Israel. The Company's other reportable segment consists of non-solid waste management services, aggregated as a single segment for this reporting presentation. The non-solid waste management segment includes other hazardous waste services such as chemical waste management services and low-level and other radioactive waste management services, the Company's independent power projects, and other non-solid waste management services to commercial, industrial and government customers. As discussed in Notes 4 , and 20, the Company's non-solid waste management segment includes business lines that have been divested or are being actively marketed and considered to be held-for-held for sale. Summarized financial information concerning the Company's reportable segments for the respective years ended December 31, is shown in the following table. Prior period information has been restated to conform to the segments described above, which are based on the structure and internal organization of the Company as of December 31, 2000. NORTH AMERICAN WM NON-SOLID CORPORATE SOLID WASTE WM INTERNATIONAL WASTE FUNCTIONS(A) TOTAL -------------- ------------- ---------------- --------- ------------ ------- ---------- THREE MONTHS ENDED: March 31, 2000 ---------------------------- Net operating revenues(b).......... ............ $11,218 $ 809 $ 465 2,707,983 $401,484 $107,842 $ -- $12,492 3,217,309 Earnings before interest and taxes (EBIT)(c),(d).................... 2,166 151 77 .......... 529,606 70,055 12,173 (607194,661) 1,787 Depreciation and amortization...... 1,352 20 16 41 1,429 Capital expenditures............... 1,163 74 6 70 1,313 Total assets(d).................... 16,587 80 97 1,801 18,565 417,173 March 31, 1999 ---------------------------- Net operating revenues(b).......... ............ $10,685 2,511,533 $1,651 $ 791 371,091 $188,011 $ -- $13,127 3,070,635 Earnings before interest and taxes (EBIT)(c),(d).................... 1,633 212 38 (559) 1,324 Depreciation and amortization...... 1,364 148 23 79 1,614 Capital expenditures............... 1,086 206 .......... 673,515 34,991 24,363 44,713 777,582 17 18 1,327 Total assets(d).................... 1998 17,178 2,915 971 1,617 22,681 Net operating revenues(b).......... $10,144 $1,534 $ 948 $ -- $12,626 (EBIT)(c),(d).................... 2,000 000 000 (244) 2,511 Depreciation and amortization...... 1,215 168 44 72 1,499 Capital expenditures............... 1,438 166 35 12 1,651 Total assets(d).................... 17,005 2,956 1,000 1,921 22,882 2000 Earnings before interest and taxes 61 64 19 WASTE MANAGEMENT, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------------

SEGMENT AND RELATED INFORMATION. The Company's one reportable segment consists of its North American America solid waste management ("NASW") operations. The NASW operations is the Company's principal reportable segment and is comprised of six geographical operating Areas with similar economic characteristics. This segment provides provide integrated waste management services consisting of collection, transfer, disposal (solid waste landfill, hazardous waste landfill and waste-to-energy facilities), recycling, independent power production plants ("IPPs"), and other miscellaneous services to commercial, industrial, municipal and residential customers in North America, including throughout the United States and States, Puerto Rico, Mexico Rico and Canada. Similar operations WASTE MANAGEMENT, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) The Company has broken out its one reportable segment in the table shown below into "NASW (excluding WTI)" and "WTI," to provide more detailed information. NASW (excluding WTI) includes the Company's Eastern, Midwest, Western, Southern and CWS Groups plus its national recycling operations. WTI is the Company's sixth Group and consists of the Company's waste-to-energy facilities and its IPPs. The Company's previously reported segment that consisted of waste management services in international markets outside of North America are disclosed as a separate segment under WM International. As discussed in Notes 4 and 20, pursuant to the Company's strategic plan, the Company has divested or is actively marketing to sell its remaining WM International operations and considers them to be held-for-sale. The remaining operations outside of North America included certain operations in Sweden and operations in Argentina and Israel. The Company's other reportable segment consists of non-solid waste management services, aggregated all of which were divested by March 31, 2002, is shown in the table below as a single segment for this reporting presentation. The non-solid waste management segment includes other hazardous waste services such as chemical waste management services, the Company's independent power projects, and other non-solid waste management services to commercial, industrial and government customers. As discussed in Notes 4 and 20, the Company's non-solid waste management segment includes business lines that have been divested or are being actively marketed and considered to be held-for-sale. "Other." Summarized financial information concerning the Company's reportable segments for the respective years ended December 31, is shown in the following tabletable (in millions). Prior period information has been restated to conform to the segments described above, which are based on the structure and internal organization of the Company as of December 31, 2000current year presentation. NORTH AMERICAN WM NON-SOLID NASW ------------------------------- NASW (EXCLUDING WTI) WTI TOTAL OTHER CORPORATE SOLID WASTE INTERNATIONAL WASTE FUNCTIONS(A) TOTAL -------------- ------------- --------- --------------- ---- ------ ----- ------------ ------- ------ Three Months Ended: September 30, 2002 Net operating revenues(brevenues(b),(c).......... ...... $11,218 2,710 $186 $2,896 $ 809 $ 465 -- $ -- $12,492 Earnings before interest and taxes 2,896 Income from operations(d).......... 485 73 558 -- (EBIT)(c),(d).................... 2,166 151 77 (60793) 1,787 Depreciation and amortization...... 1,352 20 16 41 1,429 Capital expenditures............... 1,163 74 6 70 1,313 Total assets(d).................... 16,587 80 97 1,801 18,565 1999 465 September 30, 2001 Net operating revenues(brevenues(b),(c).......... ...... $10,685 2,670 $1,651 182 $2,852 $ 791 45 $ -- $13,127 Earnings before interest and taxes (EBIT)(c),(d).................... 1,633 212 38 (559) 1,324 Depreciation and amortization...... 1,364 148 23 79 1,614 Capital expenditures............... 1,086 206 17 18 1,327 Total assets(d).................... 1998 17,178 2,915 971 1,617 22,681 Net operating revenues(b).......... $10,144 $1,534 $ 948 $ -- $12,626 (EBIT)(c),(d).................... 2,000 000 000 (244) 2,511 Depreciation and amortization...... 1,215 168 44 72 1,499 Capital expenditures............... 1,438 166 35 12 1,651 Total assets(d).................... 17,005 2,956 1,000 1,921 22,882 2000 Earnings before interest and taxes 61 64 WASTE MANAGEMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------------2,897

SEGMENT AND RELATED INFORMATION. The Company's North American solid waste management operations is the Company's principal one reportable segment and is comprised consists of six geographical operating Areas with similar economic characteristicsits NASW operations. This segment provides The NASW operations provide integrated waste management services consisting of collection, transfer, disposal (solid waste landfill, hazardous waste landfill and waste-to-energy facilities), recycling, independent power production plants ("IPPs"), and other miscellaneous services to commercial, industrial, municipal and residential customers in North America, including throughout the United States and States, Puerto Rico, Mexico Rico and Canada. Similar operations The Company has broken out its one reportable segment in the table shown below into "NASW (excluding WTI)" and "WTI," to provide more detailed information. NASW (excluding WTI) includes the Company's Eastern, Midwest, Western, Southern and CWS Groups plus its national recycling operations. WTI is the Company's sixth Group and consists of the Company's waste-to-energy and independent power production facilities. The Company's previously reported segment that consisted of waste management services in international markets outside of North America are disclosed as a separate segment under WM International. As discussed in Notes 4 and 20, pursuant to the Company's strategic plan, the Company has divested or is actively marketing to sell its remaining WM International operations and considers them to be held-for-sale. The remaining operations outside of North America included certain operations in Sweden and operations in Argentina and Israel. The Company's other reportable segment consists of non-solid waste management services, aggregated as a single segment for this reporting presentation. The non-solid waste management segment includes other hazardous waste services such as chemical waste management servicesall of which were divested by March 31, the Company's independent power projects, and other non-solid waste management services to commercial, industrial and government customers. As discussed in Notes 4 and 20, the Company's non-solid waste management segment includes business lines that have been divested or are being actively marketed and considered to be held-for-sale. Summarized financial information concerning the Company's reportable segments for the respective years ended December 312002, is shown in the following table. Prior period information has been restated to conform to the segments described above, which are based on the structure and internal organization of the Company table below as of December 31, 2000. NORTH AMERICAN WM NON-SOLID CORPORATE SOLID WASTE INTERNATIONAL WASTE FUNCTIONS(A) TOTAL -------------- ------------- --------- ------------ ------- Net operating revenues(b).......... $11,218 $ 809 $ 465 $ -- $12,492 Earnings before interest and taxes (EBIT)(c),(d).................... 2,166 151 77 (607) 1,787 Depreciation and amortization...... 1,352 20 "Other." 16 41 1,429 Capital expenditures............... 1,163 74 6 70 1,313 Total assets(d).................... 16,587 80 97 1,801 18,565 1999 Net operating revenues(b).......... $10,685 $1,651 $ 791 $ -- $13,127 Earnings before interest and taxes (EBIT)(c),(d).................... 1,633 212 38 (559) 1,324 Depreciation and amortization...... 1,364 148 23 79 1,614 Capital expenditures............... 1,086 206 17 18 1,327 Total assets(d).................... 1998 17,178 2,915 971 1,617 22,681 Net operating revenues(b).......... $10,144 $1,534 $ 948 $ -- $12,626 (EBIT)(c),(d).................... 2,000 000 000 (244) 2,511 Depreciation and amortization...... 1,215 168 44 72 1,499 Capital expenditures............... 1,438 166 35 12 1,651 Total assets(d).................... 17,005 2,956 1,000 1,921 22,882 2000 Earnings before interest and taxes 61 64 WASTE MANAGEMENT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) ---------------Summarized financial information concerning the Company's reportable segments is shown in the following table (in millions). Prior period information has been restated to conform to the current year presentation. NASW ------------------------------- NASW (EXCLUDING WTI) WTI TOTAL OTHER CORPORATE FUNCTIONS(A) TOTAL --------------- ---- ------ ----- ------------ ------ Three Months Ended: June 30, 2002 Net operating revenues(b),(c)...... $2,646 $179 $2,825 $ -- $ -- $2,825 EBIT(d),(e)........................ 490 62 552 -- (88) 464 June 30, 2001 Net operating revenues(b),(c)...... $2,667 $200 $2,867 $ 48 $ -- $2,915