Waste Management 2007 Annual Report Download - page 138

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Our third quarter 2005 reorganization, as discussed in Note 11, also resulted in the centralization of certain
Group office functions. The administrative costs associated with these functions were included in the measurement
of income from operations for our reportable segments through August 2005, when the integration of these
functions with our existing centralized processes was complete. Beginning in September 2005, these administrative
costs have been included in income from operations of “Corporate and other.” The reallocation of these costs has not
significantly affected the operating results of our reportable segments for the periods presented.
Effective January 1, 2007, we realigned our Eastern, Midwest and Western Group organizations to facilitate
improved business execution. We reassigned responsibility for the management of certain Eastern Group market
areas representing $799 million in assets, including $163 million in goodwill, to the Midwest Group; and we
reassigned responsibility for the management of certain Midwest Group market areas representing $435 million in
assets, including $231 million in goodwill, to the Western Group. In addition, in early 2007 we moved certain of our
WMRA operations to our Western Group to more closely align their recycling operations with the related
collection, transfer and disposal operations. The prior period segment information provided in the following table
has been reclassified to reflect the impact of these realignments to provide financial information that consistently
reflects our current approach to managing our operations.
103
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)