WM — Oct 28, 2024 release

  RECONCILIATION OF CERTAIN NON-GAAP MEASURES (In Millions) (Unaudited)       Three Months Ended       September 30, 2024     September 30, 2023             As a % of           As a % of       Amount     Revenues     Amount     Revenues   Adjusted SG&A Expenses and Adjusted SG&A Expenses Margin                                                                   Operating revenues, as reported   $ 5,609             $ 5,198                                             SG&A expenses, as reported   $ 525       9.4 %   $ 470       9.0 % Adjustments:                                 Stericycle transaction costs     (26 )             —           Collective bargaining agreement costs     —               (1 )         SG&A expenses, as adjusted   $ 499       8.9 %   $ 469       9.0 %   2024 Projected Free Cash Flow Reconciliation (a)   Scenario 1     Scenario 2   Net cash provided by operating activities   $ 5,125     $ 5,300   Capital expenditures to support the business     (2,225 )     (2,275 ) Proceeds from divestitures of businesses and other assets, net of cash divested     125       150   Free cash flow without sustainability growth investments   $ 3,025     $ 3,175   Capital expenditures - sustainability growth investments     (925 )     (975 ) Free cash flow   $ 2,100     $ 2,200       (a) The reconciliation includes two scenarios that illustrate our projected free cash flow range for 2024. The amounts used in the reconciliation are subject to many variables, some of which are not under our control and, therefore, are not necessarily indicative of actual results.         WASTE MANAGEMENT, INC.   SUPPLEMENTAL INFORMATION PROVIDED FOR ILLUSTRATIVE PURPOSES ONLY (In Millions) (Unaudited)   Diversity in the structure of recycling contracts results in different accounting treatment for commodity rebates. In accordance with revenue recognition guidance, our Company records gross recycling revenue and records rebates paid to customers as cost of goods sold. Other contract structures allow for netting of rebates against revenue.   Additionally, there are differences in whether companies adjust for accretion expense in their calculation of EBITDA. Our Company does not adjust for landfill accretion expenses when calculating operating EBITDA, while other companies do adjust it for the calculation of their EBITDA measure.   The table below illustrates the impact that differing contract structures a