Waste Management 2008 Annual Report Download - page 109
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Please find page 109 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.likely than not that some portion or all of the deferred tax assets will not be realized. Significant judgment is
required in assessing the timing and amounts of deductible and taxable items. We establish reserves when, despite
our belief that our tax return positions are fully supportable, we believe that certain positions may be challenged and
potentially disallowed. When facts and circumstances change, we adjust these reserves through our provision for
income taxes.
To the extent interest and penalties may be assessed by taxing authorities on any underpayment of income tax,
such amounts have been accrued and are classified as a component of income tax expense in our Consolidated
Statements of Operations. We elected this accounting policy, which is a continuation of our historical policy, in
connection with our adoption of FIN 48.
Contingent liabilities
We estimate the amount of potential exposure we may have with respect to claims, assessments and litigation
in accordance with SFAS No. 5. We are party to pending or threatened legal proceedings covering a wide range of
matters in various jurisdictions. It is not always possible to predict the outcome of litigation, as it is subject to many
uncertainties. Additionally, it is not always possible for management to make a meaningful estimate of the potential
loss or range of loss associated with such litigation.
Supplemental cash flow information
2008 2007 2006
Years Ended
December 31,
Cash paid during the year (in millions) for:
Interest, net of capitalized interest and periodic settlements from interest
rate swap agreements ...................................... $478 $543 $548
Income taxes .............................................. 603 416 475
Non-cash investing and financing activities are excluded from the Consolidated Statements of Cash Flows. For
the years ended December 31, 2008, 2007 and 2006, non-cash activities included proceeds from tax-exempt
borrowings, net of principal payments made directly from trust funds, of $169 million, $144 million and
$157 million, respectively.
4. Landfill and Environmental Remediation Liabilities
Liabilities for landfill and environmental remediation costs are presented in the table below (in millions):
Landfill
Environmental
Remediation Total Landfill
Environmental
Remediation Total
December 31, 2008 December 31, 2007
Current (in accrued liabilities) .... $ 108 $ 49 $ 157 $ 106 $ 44 $ 150
Long-term .................. 1,110 250 1,360 1,072 240 1,312
$1,218 $299 $1,517 $1,178 $284 $1,462
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)