Waste Management 2013 Annual Report Download - page 189

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The amount reported in 2013 for our environmental remediation liabilities includes the impact of an
increase in the risk-free discount rate used to measure our liabilities from 1.75% at December 31, 2012 to
3.0% at December 31, 2013, resulting in a decrease of $18 million to our environmental remediation
liabilities and a corresponding decrease to “Operating” expenses.
Our recorded liabilities as of December 31, 2013 include the impacts of inflating certain of these costs based
on our expectations for the timing of cash settlement and of discounting certain of these costs to present value.
Anticipated payments of currently identified environmental remediation liabilities as measured in current dollars
are $35 million in 2014, $23 million in 2015, $32 million in 2016, $24 million in 2017, $14 million in 2018 and
$106 million thereafter.
At several of our landfills, we provide financial assurance by depositing cash into restricted trust funds or
escrow accounts for purposes of settling final capping, closure, post-closure and environmental remediation
obligations. Generally, these trust funds are established to comply with statutory requirements and operating
agreements. See Note 20 for additional information related to these trusts.
5. Property and Equipment
Property and equipment at December 31 consisted of the following (in millions):
2013 2012
Land ...................................................................... $ 636 $ 657
Landfills .................................................................. 13,416 13,266
Vehicles ................................................................... 4,115 3,954
Machinery and equipment ..................................................... 3,888 3,967
Containers ................................................................. 2,449 2,482
Buildings and improvements ................................................... 3,594 3,514
Furniture, fixtures and office equipment .......................................... 969 923
29,067 28,763
Less accumulated depreciation on tangible property and equipment .................... (9,205) (8,924)
Less accumulated landfill airspace amortization ................................... (7,518) (7,188)
$12,344 $12,651
Depreciation and amortization expense, including amortization expense for assets recorded as capital leases,
was comprised of the following for the years ended December 31 (in millions):
2013 2012 2011
Depreciation of tangible property and equipment ............................. $ 853 $ 833 $ 800
Amortization of landfill airspace .......................................... 400 395 378
Depreciation and amortization expense ..................................... $1,253 $1,228 $1,178
6. Goodwill and Other Intangible Assets
Goodwill was $6,070 million as of December 31, 2013 compared with $6,291 million as of December 31,
2012. The $221 million decrease in goodwill during 2013 resulted primarily from $509 million of charges to
impair goodwill associated with (i) our Wheelabrator business, which is discussed in more detail below; (ii) our
Puerto Rico operations and (iii) an investment in a majority-owned waste diversion technology company. These
decreases were partially offset by consideration paid for acquisitions in excess of net assets acquired of $327
million, primarily related to our acquisitions of RCI and Greenstar, which are discussed in Note 19. See Notes 3,
19 and 21 for additional information related to Goodwill.
99