Waste Management 2008 Annual Report Download - page 129
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Please find page 129 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.12. (Income) Expense from Divestitures, Asset Impairments and Unusual Items
The following table summarizes the major components of “(Income) expense from divestitures, asset
impairments and unusual items” for the year ended December 31 for the respective periods (in millions):
2008 2007 2006
Years Ended
December 31,
(Income) expense from divestitures (including held-for-sale
impairments) ........................................... $(33) $(59) $(26)
Impairments of assets held-for-use ............................. 4 12 24
Other................................................... — — 27
$(29) $(47) $ 25
(Income) expense from divestitures (including held-for-sale impairments) — The net gains from divestitures in
all three years were a result of our fix-or-seek-exit initiative. In 2008, these gains were primarily related to the
divestiture of underperforming collection operations in our Southern Group; in 2007, the gains were related to the
divestiture of underperforming collection, transfer and recycling operations in our Eastern, Western, Southern and
WMRA Groups; and in 2006, the gains were primarily related to the divestiture of underperforming collection
operations in our Western Group. Gains recognized from divestitures in 2006 were partially offset by the
recognition of aggregate impairment charges of $18 million, which were principally recognized by our Eastern
Group, for business operations held for sale as required by SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets.
Impairments of assets held-for-use — During 2008, we recognized a $4 million impairment charge primarily
as a result of a decision to close a landfill in our Southern Group. During 2007, we recognized $12 million in
impairment charges due to impairments recognized for two landfills in our Southern Group. The impairments were
necessary as a result of the re-evaluation of our business alternatives for one landfill and the expiration of a contract
that we had expected would be renewed that had significantly contributed to the volumes for the second landfill. The
$24 million of impairment charges recognized during 2006 was primarily related to the impairment of a landfill in
our Eastern Group as a result of a change in our expectations for future expansions and the impairment of under-
performing operations in our WMRA Group.
Other — In 2006, we recognized a $26 million charge for the impact of an arbitration ruling against us related
to the termination of a joint venture relationship in 2000.
13. Accumulated Other Comprehensive Income
The components of accumulated other comprehensive income were as follows (in millions):
2008 2007 2006
December 31,
Accumulated unrealized loss on derivative instruments, net of taxes of $12
for 2008, $13 for 2007, and $21 for 2006 ......................... $(19) $ (20) $ (33)
Accumulated unrealized gain (loss) on marketable securities, net of taxes of
$1 for 2008, $3 for 2007, and $6 for 2006 ........................ (2) 5 10
Cumulative translation adjustment of foreign currency statements ......... 113 240 151
Underfunded post-retirement benefit obligations, net of taxes of $5 for 2008,
$0 for 2007 and $3 for 2006 .................................. (4) 4 1
$ 88 $229 $129
95
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)