Waste Management 2013 Annual Report Download - page 144

The increase in amortization of intangible assets in 2013 is primarily related to the amortization of customer
relationships acquired through our acquisition of RCI. The increase in amortization of intangible assets in 2012 is
primarily related to the amortization of customer relationships acquired through our acquisition of Oakleaf in
2011 and by our Areas located in the Northern U.S.
Restructuring
During the year ended December 31, 2013, we recognized a total of $18 million of pre-tax restructuring
charges, of which $7 million was related to employee severance and benefit costs, including costs associated with
our acquisitions of Greenstar and RCI and our 2012 restructurings. The remaining charges were primarily related
to operating lease obligations for property that will no longer be utilized. We do not expect to incur any material
charges associated with our past restructuring efforts in future periods.
In July 2012, we announced a reorganization of operations, designed to streamline management and staff
support and reduce our cost structure, while not disrupting our front-line operations. Principal organizational
changes included removing the management layer of our four geographic Groups, each of which previously
constituted a reportable segment, and consolidating and reducing the number of our geographic Areas through
which we evaluate and oversee our Solid Waste subsidiaries from 22 to 17. This reorganization eliminated
approximately 700 employee positions throughout the Company, including positions at both the management and
support level. Voluntary separation arrangements were offered to many employees.
During the year ended December 31, 2012, we recognized a total of $67 million of pre-tax restructuring
charges, of which $56 million were primarily related to employee severance and benefit costs associated with our
July 2012 restructuring. The remaining charges were primarily related to operating lease obligations for property
that will no longer be utilized.
Goodwill Impairments
During the year ended December 31, 2013, we recognized $509 million of goodwill impairment charges,
primarily related to (i) $483 million associated with our Wheelabrator business; (ii) $10 million associated with
our Puerto Rico operations and (iii) $9 million associated with a majority-owned waste diversion technology
company. During the years ended December 31, 2012 and 2011, we recognized goodwill impairment charges of
$4 million and $1 million, respectively, related to certain of our non-Solid Waste operations. See Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations — Critical Estimates
and Assumptions — Asset Impairments and Notes 3 and 6 to the Consolidated Financial Statements for additional
information related to these impairment charges as well as the accounting policy and analysis involved in
identifying and calculating impairments.
(Income) Expense from Divestitures, Asset Impairments (Other than Goodwill) and Unusual Items
The following table summarizes the major components of “(Income) expense from divestitures, asset
impairments and unusual items” for the year ended December 31 for the respective periods (in millions):
Years Ended December 31,
2013 2012 2011
(Income) expense from divestitures ................................. $ (8) $— $1
Asset impairments ............................................... 472 79 8
$464 $79 $9
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