Waste Management 2008 Annual Report Download - page 151
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Please find page 151 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.23. New Accounting Pronouncements (Unaudited)
SFAS No. 157 — Fair Value Measurements
In February 2008, the FASB issued Staff Position FAS 157-2, Effective Date of FASB Statement No. 157, which
delayed the effective date of SFAS No. 157 for all non-financial assets and non-financial liabilities, except those that
are measured at fair value on a recurring basis. Accordingly, as of December 31, 2008, we have not applied the
provisions of SFAS No. 157 to our asset retirement obligations, which are accounted for under the provisions of
SFAS No. 143. FSP FAS 157-2 establishes January 1, 2009 as the effective date of SFAS No. 157 with respect to
these fair value measurements for the Company. We do not currently expect the application of the fair value
framework established by SFAS No. 157 to non-financial assets and liabilities measured on a non-recurring basis to
have a material impact on our consolidated financial statements. However, we will continue to assess the potential
effects of SFAS No. 157 as additional guidance becomes available.
SFAS No. 141(R) — Business Combinations
In December 2007, the FASB issued SFAS No. 141 (revised 2007), Business Combinations, which establishes
principles for how the acquirer recognizes and measures in the financial statements the identifiable assets acquired, the
liabilities assumed, and any non-controlling interest in the acquiree. This statement also provides guidance for
recognizing and measuring the goodwill acquired in the business combination and determines what information to
disclose to enable users of the financial statements to evaluate the nature and financial effects of the business
combination. SFAS No. 141(R) is effective for the Company beginning January 1, 2009. The portions of the statement
that relate to business combinations completed before the effective date will not have a material impact on our
consolidated financial statements. However, our adoption of SFAS No. 141(R) will significantly impact our accounting
and reporting for future acquisitions, principally as a result of (i) expanded requirements to value acquired assets,
liabilities and contingencies at their fair values; and (ii) the requirement that acquisition-related transaction and
restructuring costs be expensed as incurred rather than capitalized as a part of the cost of the acquisition.
SFAS No. 160 — Noncontrolling Interests in Consolidated Financial Statements — an amendment of
ARB No. 51
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial
Statements — an amendment of ARB No. 51, which establishes accounting and reporting standards for the
noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. It states that a noncontrolling
interest in a subsidiary is an ownership interest in the consolidated entity that should be reported as equity in the
consolidated financial statements. SFAS No. 160 will be effective for the Company beginning January 1, 2009 and
must be applied prospectively, except for the presentation and disclosure requirements, which must be applied
retrospectively for all periods presented. The adoption of SFAS No. 160 will not have a material impact on our
consolidated financial statements. However, it could impact our accounting for future transactions.
24. Subsequent Event (Unaudited)
In February 2009, we announced that we were taking steps to further streamline our organization by
consolidating many of our Market Areas. As a result of our restructuring, the 45 separate Market Areas that
we previously operated have been consolidated into 25 Areas. We have found that our larger Market Areas generally
were able to achieve efficiencies through economies of scale that were not present in our smaller Market Areas, and
believe that this reorganization will allow us to lower costs and continue to standardize processes and improve
productivity. It is also a proactive measure to ensure that we will continue to have the ability to operate efficiently
and effectively in difficult economic times.
We currently estimate that this restructuring will eliminate over 1,000 employee positions throughout the
Company and result in a restructuring charge of between $40 million and $50 million, principally for employee
severance and benefit costs. We expect to recognize the majority of this charge during the first quarter of 2009.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)