Waste Management 2007 Annual Report Download - page 128

incurred by our Midwest Group and $1 million was incurred by our Western Group. These charges included
approximately $8 million for employee severance and benefit costs and approximately $2 million related to
operating lease agreements.
Through December 31, 2007, we had paid approximately $6 million of the employee severance and benefit
costs incurred as a result of this restructuring. The length of time we are obligated to make severance payments
varies, with the longest obligation continuing through the first quarter of 2009.
2005 Restructuring and Workforce Reduction — During the third quarter of 2005, we reorganized and
simplified our management structure by reducing our Group and corporate office staffing levels. This reorgani-
zation increased the accountability and responsibility of our Market Areas and allowed us to streamline business
decisions and to reduce costs at the Group and Corporate offices. Additionally, as part of our restructuring, the
responsibility for the management of our Canadian operations was assumed by our Eastern, Midwest and Western
Groups, thus eliminating the Canadian Group. See discussion at Note 20.
The reorganization eliminated about 600 employee positions throughout the Company. In 2005, we recorded
$28 million for costs associated with the implementation of the new structure. These charges included $25 million
for employee severance and benefit costs, $1 million related to abandoned operating lease agreements and
$2 million related to consulting fees incurred to align our sales strategy to our changes in both resources and
leadership that resulted from the reorganization.
Through December 31, 2007, all employee severance and benefit costs incurred as a result of this restructuring
have been paid. Approximately $1 million, $6 million and $18 million of these payments were made during 2007,
2006 and 2005, respectively. The length of time we were obligated to make severance payments varied, with the
longest obligation ending in the third quarter of 2007.
The following table summarizes the total costs recorded for this restructuring by our current reportable
segments (in millions):
Eastern.................................................................. $ 3
Midwest ................................................................. 3
Southern ................................................................ 3
Western ................................................................. 5
Wheelabrator ............................................................. —
WMRA ................................................................. 3
Corporate ................................................................ 11
Total . .................................................................. $28
12. (Income) Expense from Divestitures, Asset Impairments and Unusual Items
The following table summarizes the major components of “(Income) expense from divestitures, asset
impairments and unusual items” for the year ended December 31 for the respective periods (in millions):
2007 2006 2005
Years Ended
December 31,
(Income) expense from divestitures (including held-for-sale impairments).... $(59) $(26) $ (79)
Impairments of assets held-for-use ................................ 12 24 116
Other ...................................................... — 27 31
$(47) $ 25 $ 68
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)