Waste Management 2006 Annual Report Download - page 131

result of the divestiture of operations. With the exception of our divestiture of the Ontario, Canada landfill, our
divestitures during 2005 were direct results of the execution of our plan to review under-performing or non-strategic
operations and to either improve their performance or dispose of the operations.
Total proceeds from divestitures completed during the year ended December 31, 2005 were $172 million, of
which $140 million was received in cash, $23 million was in the form of a note receivable and $9 million was in the
form of non-monetary assets.
Other — In the first quarter of 2005, we recognized a charge of approximately $16 million for the impact of a
litigation settlement reached with a group of stockholders that opted not to participate in the settlement of the
securities class action lawsuit against us related to 1998 and 1999 activity. During the third quarter of 2005, we
settled our ongoing defense costs and possible indemnity obligations for four former officers of WM Holdings
related to legacy litigation brought against them by the SEC. As a result, we recorded a $26.8 million charge for the
funding of the court-ordered distribution of $27.5 million to our shareholders in settlement of the legacy litigation
against the former officers. These charges were partially offset by the recognition of a $12 million net benefit
recorded during the year ended December 31, 2005, which was primarily for adjustments to our receivables and
estimated obligations for non-solid waste operations divested in 1999 and 2000.
Year Ended December 31, 2004
For 2004, the significant items included within “(Income) expense from divestitures, asset impairments and
unusual items” were (i) $17 million in impairment losses primarily due to the impairment of certain landfill assets
and software development costs; (ii) $12 million in (income) expense from divestitures that primarily related to
certain Port-O-Let»operations; and (iii) $18 million in miscellaneous net gains, which were primarily for
adjustments to our estimated obligations associated with non-solid waste services, which were divested in
1999 and 2000.
13. Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income were as follows (in millions):
2006 2005 2004
December 31,
Accumulated unrealized loss on derivative instruments, net of a tax benefit
of $21 for 2006, $17 for 2005 and $32 for 2004 .................... $(33) $ (27) $ (49)
Accumulated unrealized gain on marketable securities, net of taxes of $6 for
2006, $3 for 2005 and $2 for 2004 .............................. 10 5 3
Cumulative translation adjustment of foreign currency statements ......... 151 148 115
Underfunded post-retirement benefit obligations, net of taxes of $3 for
2006 .................................................... 1 — —
$129 $126 $ 69
14. Capital Stock, Share Repurchases and Dividends
Capital stock
As of December 31, 2006, we have 533.7 million shares of common stock issued and outstanding. We have
1.5 billion shares of authorized common stock with a par value of $0.01 per common share. The Board of Directors
is authorized to issue preferred stock in series, and with respect to each series, to fix its designation, relative rights
(including voting, dividend, conversion, sinking fund, and redemption rights), preferences (including dividends and
liquidation) and limitations. We have ten million shares of authorized preferred stock, $0.01 par value, none of
which is currently outstanding.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)