Waste Management 2010 Annual Report Download - page 190

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present value of our environmental remediation obligations. This reduction to “Operating” expenses resulted
in a corresponding increase in “Net income attributable to noncontrolling interests” of $2 million. The
discount rate adjustment increased the quarter’s “Net income attributable to Waste Management, Inc.” by
$5 million, or $0.01 per diluted share.
• Income from operations was negatively affected by a non-cash charge of $49 million related to the
abandonment of revenue management software, which reduced “Net income attributable to Waste Man-
agement, Inc.” by $30 million, or $0.06 per diluted share. Additionally, we recognized $38 million of
charges related to our January 2009 restructuring, which reduced “Net income attributable to Waste
Management, Inc.” by $23 million, or $0.05 per diluted share.
Second Quarter 2009
• Income from operations was positively affected by the recognition of a $22 million favorable adjustment to
“Operating” expenses due to an increase from 2.75% to 3.50% in the discount rate used to estimate the
present value of our environmental remediation obligations and recovery assets. This reduction to “Oper-
ating” expenses resulted in a corresponding increase in “Net income attributable to noncontrolling interests”
of $6 million. Additionally, our “Selling, general and administrative” expenses were reduced by $8 million
as a result of the reversal of all compensation costs previously recognized for our 2008 performance share
units based on a determination that it is no longer probable that the targets established for that award will be
met. These items increased the quarter’s “Net income attributable to Waste Management, Inc.” by
$15 million, or $0.03 per diluted share.
• Income from operations was negatively affected by (i) a $9 million charge to “Operating” expenses for a
withdrawal of bargaining unit employees from an underfunded, multiemployer pension fund; (ii) $5 million
of charges related to our January 2009 restructuring; and (iii) a $2 million impairment charge recognized by
our Southern Group due to a change in expectations for the operating life of a landfill. These items decreased
the quarter’s “Net income attributable to Waste Management, Inc.” by $10 million, or $0.02 per diluted
share.
Third Quarter 2009
• Income from operations was negatively affected by $3 million of charges related to our January 2009
restructuring. This charge negatively affected “Net income attributable to Waste Management, Inc.” for the
quarter by $2 million.
• Our “Provision for income taxes” for the quarter was reduced by $19 million primarily as a result of the
finalization of our 2008 tax returns and tax audit settlements, which positively affected “Diluted earnings per
common share” by $0.04.
Fourth Quarter 2009
• Income from operations was positively affected by (i) an $18 million increase in the revenues of our Eastern
Group for payments received under an oil and gas lease at one of our landfills; and (ii) a $22 million decrease
to “Depreciation and amortization” expense for adjustments associated with changes in our expectations for
the timing and cost of future capping, closure and post-closure of fully utilized airspace. These items
increased the quarter’s “Net income attributable to Waste Management, Inc.” by $24 million, or $0.05 per
diluted share.
• Income from operations was negatively affected by (i) a $27 million impairment charge recognized by our
Western Group as a result in a change in expectations for the future operations of an inactive landfill in
California; (ii) a $12 million increase to “Selling, general and administrative” expenses for several legal
matters; (iii) a $4 million impairment charge required to write-down certain of our investments in portable
self-storage operations to their fair value as a result of our acquisition of a controlling financial interest in
those operations; (iv) $4 million of charges related to our January 2009 restructuring; and (v) a $2 million
123
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)