Waste Management 2007 Annual Report Download - page 108

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To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax,
such amounts have been accrued and are classified as a component of income tax expense in our Consolidated
Statements of Operations. We elected this accounting policy, which is a continuation of our historical policy, in
connection with our adoption of FIN 48.
Contingent liabilities
We estimate the amount of potential exposure we may have with respect to claims, assessments and litigation
in accordance with SFAS No. 5. We are party to pending or threatened legal proceedings covering a wide range of
matters in various jurisdictions. It is not always possible to predict the outcome of litigation, as it is subject to many
uncertainties. Additionally, it is not always possible for management to make a meaningful estimate of the potential
loss or range of loss associated with such litigation.
Supplemental cash flow information
Non-cash investing and financing activities are excluded from the Consolidated Statements of Cash Flows. For
the years ended December 31, 2007, 2006 and 2005, non-cash activities included proceeds from tax-exempt
borrowings, net of principal payments made directly from trust funds, of $144 million, $157 million and
$201 million, respectively.
On December 15, 2005, we declared our first quarterly cash dividend for 2006. The first quarter 2006 dividend
was $0.22 per common share and was paid on March 24, 2006 to stockholders of record on March 6, 2006. As of
December 31, 2005, $122 million had been accrued for this dividend declaration. As the dividend payments did not
occur until March 2006 they were excluded from our “Net cash used in financing activities” in our Consolidated
Statement of Cash Flows for the year ended December 31, 2005. This dividend payment was reflected as “Cash
dividends” in our Consolidated Statement of Cash Flows for the year ended December 31, 2006.
4. Landfill and Environmental Remediation Liabilities
Liabilities for landfill and environmental remediation costs are presented in the table below (in millions):
Landfill
Environmental
Remediation Total Landfill
Environmental
Remediation Total
December 31, 2007 December 31, 2006
Current (in accrued liabilities) .... $ 106 $ 44 $ 150 $ 111 $ 44 $ 155
Long-term .................. 1,072 240 1,312 1,010 224 1,234
$1,178 $284 $1,462 $1,121 $268 $1,389
73
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)