Waste Management 2013 Annual Report Download - page 211

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
During the year ended December 31, 2012, we recognized a total of $67 million of pre-tax restructuring
charges, of which $56 million were related to employee severance and benefit costs associated with these
reorganizations. The remaining charges were primarily related to operating lease obligations for property that
will no longer be utilized.
2011 Restructurings — 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.
Through December 31, 2013, we had recognized charges of $81 million related to employee severance and
benefits associated with our restructuring efforts beginning in 2011 and we have paid approximately $74 million
of these costs. At December 31, 2013, we had approximately $4 million of accrued employee severance related
to our restructuring efforts, which will be paid through the end of 2014.
13. Asset Impairments and Unusual Items
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 Notes 3 and 6
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 years ended December 31 for the respective periods (in millions):
2013 2012 2011
(Income) expense from divestitures ................................... $ (8) $— $1
Asset impairments (other than goodwill) ............................... 472 79 8
$464 $79 $9
During the year ended December 31, 2013, we recognized net charges of $464 million, primarily related to
the following:
‰Landfill impairments — We recognized $262 million of charges to impair certain of our landfills, primarily as
a result of our consideration of management’s decision in the fourth quarter of 2013 not to actively pursue
expansion and/or development of such landfills. These charges were primarily associated with two landfills in
our Eastern Canada Area, which are no longer accepting waste. We had previously concluded that receipt of
permits for these landfills was probable. However, in connection with our asset rationalization and capital
allocation analysis, which was influenced, in some cases, by our acquisition of RCI, we determined that the
future costs to construct these landfills could be avoided as we are able to allocate disposal that would have
gone to these landfills to other facilities and not materially impact operations. As a result of management’s
decision, we determined that the landfill assets were no longer able to be recovered by the undiscounted cash
flows attributable to these assets. As such, we wrote them down to their estimated fair values using a market
approach considering the highest and best use of the assets.
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