Waste Management 2008 Annual Report Download - page 144
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Please find page 144 of the 2008 Waste Management annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Wisconsin and the related agreement of the bargaining unit to withdraw from the Central States Pension
Fund. These charges negatively affected net income for the period by $16 million, or $0.03 per diluted share.
Fourth Quarter 2008
• Income from operations was positively affected by (i) a $6 million reduction in landfill amortization
expenses associated with changes in our expectations for the timing and cost of future final capping, closure
and post-closure of fully utilized airspace; and (ii) the recognition of a $5 million net credit to “(Income)
expense from divestitures, asset impairments and unusual items” for the divestiture of operations, principally
in our Midwest Group. These items positively affected net income for the period by $6 million, or $0.01 per
diluted share.
• Income from operations was negatively affected by (i) $24 million of increased “Operating” expenses due to
labor disruptions associated with the renegotiation of various collective bargaining agreements and the
related withdrawal of the bargaining units from multi-employer pension plans; and (ii) a $33 million charge
to “Operating” expenses as a result of a decrease in the risk-free interest rate used to discount our
environmental remediation liabilities. The charge to “Operating” expenses associated with the change in the
discount rate used for our environmental remediation liabilities resulted in a $6 million decrease in minority
interest expense during the period. Collectively, these items negatively affected net income for the period by
$30 million, or $0.06 per diluted share.
• Net income was positively affected by a $13 million reduction in our “Provision for income taxes”
recognized as a result of tax audit settlements.
First Quarter 2007
• Income from operations was improved by $15 million due to the favorable resolution of a disposal tax matter
in our Eastern Group, which was recognized as a reduction to disposal fees and taxes within our “Operating”
expenses. The resolution of this matter also increased “Interest income” for the quarter by $7 million. These
items positively affected net income for the period by $13 million, or $0.02 per diluted share.
• Income from operations was negatively affected by (i) a $21 million charge to “Operating” expenses for the
early termination of a lease agreement in connection with the purchase of one of our independent power
production plants; (ii) a $10 million charge to “(Income) expense from divestitures, asset impairments and
unusual items” for impairment charges associated with two landfills in our Southern Group; and (iii) a
$9 million “Restructuring” charge incurred to support a realignment of certain operations. These charges
negatively affected net income for the period by $24 million, or $0.05 per diluted share.
• Net income was positively affected by a $16 million reduction in our “Provision for income taxes”
recognized as a result of the settlement of tax audits.
Second Quarter 2007
• Income from operations was positively affected by the recognition of a $33 million net credit to “(Income)
expense from divestitures, asset impairments and unusual items” due to gains from divestitures as a result of
our fix-or-seek-exit initiative. These gains positively affected net income for the period by $17 million, or
$0.03 per diluted share.
• Net income was positively affected by a $22 million reduction in our “Provision for income taxes” related to
(i) an $11 million credit recognized for the settlement of tax audits; (ii) an $8 million tax benefit related to the
expected utilization of state net operating loss carryforwards and state tax credits; and (iii) a $3 million tax
benefit related to scheduled tax rate reductions in Canada.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)