Waste Management 2011 Annual Report Download - page 193

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
12. Restructuring
2011 Restructuring — Beginning in July 2011, we took steps to streamline our organization as part of our
cost savings programs. This reorganization eliminated over 700 employee positions throughout the Company,
including approximately 300 open positions. Additionally, subsequent to our acquisition of Oakleaf, we incurred
charges in connection with restructuring that organization. During the year ended December 31, 2011, we
recognized a total of $19 million of pre-tax restructuring charges, of which $18 million were related to employee
severance and benefit costs associated with this reorganization. The remaining charges were primarily related to
operating lease obligations for property that will no longer be utilized. The following table summarizes the
employee severance and benefit costs and other charges recognized for this restructuring by each of our current
reportable segments and our Corporate and Other organization for the year ended December 31, 2011
(in millions):
Eastern ....................................................................... $ 2
Midwest ...................................................................... 3
Southern ..................................................................... 2
Western ...................................................................... 3
Wheelabrator .................................................................. 1
Corporate and Other ............................................................ 8
Total ........................................................................ $19
Through December 31, 2011, we have paid approximately $10 million of the employee severance and
benefit costs incurred as a result of 2011 restructuring activities.
2009 Restructuring — In January 2009, we streamlined our organization by (i) consolidating many of our
Market Areas; (ii) integrating the management of our recycling operations with our other solid waste business;
and (iii) realigning our Corporate organization with this new structure in order to provide support functions more
efficiently.
Our principal operations are managed through our Groups, which are discussed in Note 21. Each of our four
geographic Groups had been further divided into 45 Market Areas. As a result of our restructuring, the Market
Areas were consolidated into 25 Areas. We found that our larger Market Areas generally were able to achieve
efficiencies through economies of scale that were not present in our smaller Market Areas, and this
reorganization has allowed us to lower costs and to continue to standardize processes and improve productivity.
In addition, during the first quarter of 2009, responsibility for the oversight of day-to-day recycling operations at
our material recovery facilities and secondary processing facilities was transferred from our Waste Management
Recycle America, or WMRA, organization to our four geographic Groups. By integrating the management of our
recycling facilities’ operations with our other solid waste business, we are able to more efficiently provide
comprehensive environmental solutions to our customers. In addition, as a result of this realignment, we have
significantly reduced the overhead costs associated with managing this portion of our business and have
increased the geographic Groups’ focus on maximizing the profitability and return on invested capital of our
business on an integrated basis.
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