Waste Management 2008 Annual Report Download - page 145
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Please find page 145 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.Third Quarter 2007
• Income from operations was negatively affected by $26 million, principally for increased “Operating”
expenses, due to a labor dispute in Oakland, California and, to a much lesser extent, the management of labor
disputes and collective bargaining agreements in other parts of California. Costs incurred were largely
related to security efforts and the deployment and lodging costs incurred for replacement workers who were
brought to Oakland from across the organization. These costs negatively affected net income for the period
by $16 million, or $0.03 per diluted share.
Fourth Quarter 2007
• Income from operations was positively affected by (i) the recognition of a $14 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; and (ii) a $18 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. These items positively affected net income for the period by $19 million, or
$0.04 per diluted share.
• Income from operations was negatively affected by $8 million, principally for increased “Operating”
expenses, due to labor disruptions in California. These costs negatively affected net income for the period by
$5 million, or $0.01 per diluted share.
• Net income was positively affected by a $38 million reduction in our “Provision for income taxes” related to
(i) a $10 million credit recognized for the settlement of tax audits; (ii) a $27 million tax benefit related to
scheduled tax rate reductions in Canada; and (iii) a $1 million tax benefit related to the expected utilization
of state net operating loss carryforwards and state tax credits.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)