Waste Management 2008 Annual Report Download - page 143
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Please find page 143 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.The following table summarizes the unaudited quarterly results of operations for 2008 and 2007 (in millions,
except per share amounts):
First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
2008
Operating revenues ............................... $3,266 $3,489 $3,525 $3,108
Income from operations ........................... 511 632 632 459
Net income..................................... 241 318 310 218
Basic earnings per common share .................... 0.49 0.65 0.63 0.44
Diluted earnings per common share ................... 0.48 0.64 0.63 0.44
2007
Operating revenues ............................... $3,188 $3,358 $3,403 $3,361
Income from operations ........................... 481 633 565 575
Net income..................................... 238 338 278 309
Basic earnings per common share .................... 0.45 0.65 0.54 0.61
Diluted earnings per common share ................... 0.45 0.64 0.54 0.61
Basic and diluted earnings per common share for each of the quarters presented above is based on the
respective weighted average number of common and dilutive potential common shares outstanding for each quarter
and the sum of the quarters may not necessarily be equal to the full year basic and diluted earnings per common
share amounts.
From time to time, our operating results are significantly affected by unusual or infrequent transactions or
events. The following significant and unusual items have affected the comparison of our operating results during the
periods presented:
First Quarter 2008
• Net income was positively affected by a $6 million reduction in our “Provision for income taxes” recognized
as a result of the settlement of tax audits.
Second Quarter 2008
• Net income was positively affected by (i) a $7 million reduction in our “Provision for income taxes”
recognized as a result of the settlement of tax audits; and (ii) a $10 million net reduction in “Interest
expense,” or $6 million net of tax, for the immediate recognition of fair value adjustments associated with
terminated interest rate swaps related to our $244 million of 8.75% senior notes that were repaid in May
2008, but would have matured in 2018.
Third Quarter 2008
• Income from operations was positively affected by the recognition of a $23 million net credit to “(Income)
expense from divestitures, asset impairments and unusual items” due to $26 million of gains from
divestitures of underperforming collection operations in our Southern Group, offset in part by a $3 million
impairment charge recognized as a result of a decision to close a landfill in our Southern Group. These items
positively affected net income for the period by $14 million, or $0.03 per diluted share.
• Income from operations was negatively affected by $26 million of increased “Operating” expenses due to a
labor disruption associated with the renegotiation of a collective bargaining agreement in Milwaukee,
109
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)