Waste Management 2013 Annual Report Download - page 253

Non-GAAP Measure
Our letter to Shareholders, Customers, Employees and Communities included in this 2013 Annual Report
presents adjusted earnings per diluted share (adjusted EPS), which excludes certain items affecting comparability
of our results. Adjusted EPS is not defined by generally accepted accounting principles (GAAP). Please see
below for a reconciliation of the differences between adjusted EPS and earnings per diluted share calculated in
accordance with GAAP. We believe that non-GAAP measures provide useful information to investors by
excluding items that the Company does not believe reflect its fundamental business performance and/or are not
representative or indicative of our results of operations. Non-GAAP measures should be viewed in addition to,
and not in lieu of, the comparable GAAP measure.
Year Ended
December 31, 2013
(Dollars in Millions, Except
Per Share Amounts)
(Unaudited)
Adjusted Earnings Per Diluted Share After-tax Amount (a)
Per Share
Amount
Net Income and Earnings Per Diluted Share, as reported ..................... $ 98 $0.21
Adjustments to Net Income and Earnings Per Diluted Share:
Asset impairments (b) ............................................... 896
Restructuring ...................................................... 11
Partial withdrawal from multiemployer pension plan ....................... 3
910 1.94
Adjusted Net Income and Adjusted Earnings Per Diluted Share ............... $1,008 $2.15
(a) Tax expense attributable to each adjustment was as follows: Asset impairments- $142 million;
Restructuring- $7 million; and Partial withdrawal from multiemployer pension plan- $2 million.
(b) Adjustments include impairment charges (net of non-controlling interest associated with certain of our
impaired assets) associated with assets in the “Asset Impairments and Unusual Items” financial caption, as
well as impairment charges associated with certain of our investments in unconsolidated entities that are
included in the “Equity in Earnings (Losses) of Unconsolidated Entities” and “Other, net” financial
captions. See Note 13 to the Consolidated Financial Statements, beginning on page 121 of our Annual
Report on Form 10-K (enclosed herein), for additional information about the primary drivers of these
charges.