Waste Management 2013 Annual Report Download - page 114

Additionally, fluctuations in the price and supply of CNG could substantially increase our operating expenses,
and a reduction in the existing cost differential between CNG and diesel fuel could materially reduce the benefits
we anticipate from our investment in CNG vehicles. Further, our fuel surcharge program is currently indexed to
diesel fuel prices, and price fluctuations for CNG may not effectively be recovered by this program.
We are increasingly dependent on technology in our operations and if our technology fails, our business
could be adversely affected.
We may experience problems with the operation of our current information technology systems or the
technology systems of third parties on which we rely, as well as the development and deployment of new
information technology systems, that could adversely affect, or even temporarily disrupt, all or a portion of our
operations until resolved. Inabilities and delays in implementing new systems can also affect our ability to realize
projected or expected cost savings. Additionally, any systems failures could impede our ability to timely collect
and report financial results in accordance with applicable laws and regulations.
A cybersecurity incident could negatively impact our business and our relationships with customers.
We use computers in substantially all aspects of our business operations. We also use mobile devices, social
networking and other online activities to connect with our employees and our customers. Such uses give rise to
cybersecurity risks, including security breach, espionage, system disruption, theft and inadvertent release of
information. Our business involves the storage and transmission of numerous classes of sensitive and/or
confidential information and intellectual property, including customers’ personal information, private
information about employees, and financial and strategic information about the Company and its business
partners. We also rely on a Payment Card Industry compliant third party to protect our customers’ credit card
information. Further, as the Company pursues its strategy to grow through acquisitions and to pursue new
initiatives that improve our operations and cost structure, the Company is also expanding and improving its
information technologies, resulting in a larger technological presence and corresponding exposure to
cybersecurity risk. If we fail to assess and identify cybersecurity risks associated with acquisitions and new
initiatives, we may become increasingly vulnerable to such risks. Additionally, while we have implemented
measures to prevent security breaches and cyber incidents, our preventative measures and incident response
efforts may not be entirely effective. The theft, destruction, loss, misappropriation, or release of sensitive and/or
confidential information or intellectual property, or interference with our information technology systems or the
technology systems of third parties on which we rely, could result in business disruption, negative publicity,
brand damage, violation of privacy laws, loss of customers, potential liability and competitive disadvantage.
Our operating expenses could increase as a result of labor unions organizing or changes in regulations
related to labor unions.
Labor unions continually attempt to organize our employees, and these efforts will likely continue in the
future. Certain groups of our employees are currently represented by unions, and we have negotiated collective
bargaining agreements with these unions. Additional groups of employees may seek union representation in the
future, and, if successful, the negotiation of collective bargaining agreements could divert management attention
and result in increased operating expenses and lower net income. If we are unable to negotiate acceptable
collective bargaining agreements, our operating expenses could increase significantly as a result of work
stoppages, including strikes. Any of these matters could adversely affect our financial condition, results of
operations and cash flows.
We could face significant liabilities for withdrawal from multiemployer pension plans.
We are a participating employer in a number of trustee-managed multiemployer, defined benefit pension
plans for employees who are covered by collective bargaining agreements. The risks of participating in these
multiemployer plans are different from single-employer plans in that (i) assets contributed to the multiemployer
plan by one employer may be used to provide benefits to employees or former employees of other participating
employers; (ii) if a participating employer stops contributing to the plan, the unfunded obligations of the plan
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