Waste Management 2007 Annual Report Download - page 52

of matters is often uncertain. Additionally, the possible outcomes or resolutions to these matters could include
adverse judgments or settlements, either of which could require substantial payments, adversely affecting our
liquidity.
We are increasingly dependent on technology in our operations and if our technology fails, our business
could be adversely affected.
We may experience problems with either the operation of our current information technology systems or the
development and deployment of new information technology systems that could adversely affect, or even
temporarily disrupt, all or a portion of our operations until resolved. We encountered problems with the new
revenue management application that we had been piloting throughout 2007, resulting in the termination of the pilot
while we determine how to proceed on an enterprise-wide basis. The termination of the pilot may lead to additional
costs and expenses, which could be material. Additionally, the delay in implementing a new, enterprise-wide
revenue management system may negatively affect our ability to improve our operating margins. Finally, there can
be no assurances that our issues related to the licensed application will not ultimately result in an impairment
charge, which could be material.
Additionally, any systems failures could impede our ability to timely collect and report financial results in
accordance with applicable law and regulations.
We may experience adverse impacts on our reported results of operations as a result of adopting new
accounting standards or interpretations.
Our implementation of and compliance with changes in accounting rules, including new accounting rules and
interpretations, could adversely affect our reported operating results or cause unanticipated fluctuations in our
reported operating results in future periods.
Unforeseen circumstances could result in a need for additional capital.
We currently expect to meet our anticipated cash needs for capital expenditures, acquisitions and other cash
expenditures with our cash flows from operations and, to the extent necessary, additional financings. However,
materially adverse events could reduce our cash flows from operations. Our Board of Directors has approved a
capital allocation program that provides for up to $1.4 billion in aggregate dividend payments and share repurchases
during 2008 and recently announced that it expects future quarterly dividend payments, when declared by the Board
of Directors, to be $0.27 per share. If our cash flows from operations were negatively affected, we could be forced to
reduce capital expenditures, acquisition activity, share repurchase activity or dividend declarations. In these
circumstances we instead may elect to incur more indebtedness. If we made such an election, there can be no
assurances that we would be able to obtain additional financings on acceptable terms. In these circumstances, we
would likely use our revolving credit facility to meet our cash needs.
In the event of a default under our credit facility, we could be required to immediately repay all outstanding
borrowings and make cash deposits as collateral for all obligations the facility supports, which we may not be able
to do. Additionally, any such default could cause a default under many of our other credit agreements and debt
instruments. Any such default would have a material adverse effect on our ability to operate.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Our principal executive offices are in Houston, Texas, where we lease approximately 390,000 square feet
under leases expiring at various times through 2010. Our operating Group offices are in Pennsylvania, Illinois,
Georgia, Arizona, New Hampshire and Texas. We also have field-based administrative offices in Arizona, Illinois
and Canada. We own or lease real property in most locations where we have operations. We have operations in each
of the fifty states other than Montana and Wyoming. We also have operations in the District of Columbia, Puerto
Rico and throughout Canada.
Our principal property and equipment consist of land (primarily landfills and other disposal facilities, transfer
stations and bases for collection operations), buildings, vehicles and equipment. We believe that our vehicles,
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