Waste Management 2011 Annual Report Download - page 117

Refer to Note 6 to the Consolidating Financial Statements for additional information related to goodwill
impairment considerations made during the reported periods.
Deferred Income Taxes
Deferred income taxes are based on the difference between the financial reporting and tax basis of assets
and liabilities. The deferred income tax provision represents the change during the reporting period in the
deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax
assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if, based on available
evidence, it is more 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 for uncertain tax positions 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.
Insured and Self-Insured Claims
We have retained a significant portion of the risks related to our health and welfare, automobile, general
liability and workers’ compensation insurance programs. Our liabilities associated with the exposure for unpaid
claims and associated expenses, including incurred but not reported losses, are based on an actuarial valuation
and internal estimates. The accruals for these liabilities could be revised if future occurrences or loss
development significantly differ from our assumptions used. Estimated recoveries associated with our insured
claims are recorded as assets when we believe that the receipt of such amounts is probable.
Results of Operations
Operating Revenues
We currently manage and evaluate our principal operations through five Groups. Our four geographic
Groups, which are comprised of our Eastern, Midwest, Southern and Western Groups, provide collection,
transfer, disposal (in both solid waste and hazardous waste landfills) and recycling services. Our fifth Group is
the Wheelabrator Group, which provides waste-to-energy services and manages waste-to-energy facilities and
independent power production plants. These five Groups are our reportable segments.
We also provide additional services that are not managed through our five Groups, including the Oakleaf
operations we acquired on July 28, 2011, recycling brokerage services, electronic recycling services, in-plant
services, landfill gas-to-energy services, integrated medical waste services and the impacts of investments that
we are making in expanded service offerings and solutions. Part of our expansion of services includes offering
portable self-storage services and fluorescent bulb and universal waste mail-back through our LampTracker®
program. In addition, we have made investments that involve the acquisition and development of interests in oil
and gas producing properties. These operations are presented as “Other” in the table below. Shown below (in
millions) is the contribution to revenues during each year provided by our five Groups and our Other services:
Years Ended December 31,
2011 2010 2009
Eastern ...................................... $ 3,115 $ 2,943 $ 2,960
Midwest ..................................... 3,213 3,048 2,855
Southern ..................................... 3,390 3,461 3,328
Western ...................................... 3,282 3,173 3,125
Wheelabrator ................................. 877 889 841
Other ........................................ 1,532 963 628
Intercompany ................................. (2,031) (1,962) (1,946)
Total ...................................... $13,378 $12,515 $11,791
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