Waste Management 2014 Annual Report Download - page 129

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.
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
these reorganizations. 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, 2014, we recognized $10 million of goodwill impairment charges
associated with our recycling operations. 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 year ended December 31, 2012, we recognized goodwill
impairment charges of $4 million 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,
2014 2013 2012
(Income) expense from divestitures ....................... $(515) $ (8) $—
Asset impairments .................................... 345 472 79
$(170) $464 $79
During the year ended December 31, 2014, we recognized net income of $170 million, primarily related to
the following:
•(Income) expense from divestitures — We recognized net gains of $515 million, primarily as a result of
a $519 million gain on the sale of our Wheelabrator business and an $18 million gain on the sale of
certain landfill and collection operations in our Eastern Canada Area. Partially offsetting these gains
was a $25 million loss on the divestiture of our Puerto Rico operations and certain other collection and
landfill assets. Refer to Note 19 for additional information related to our divestitures.
•Oil and gas properties impairments — We recognized $272 million of charges to impair certain of our
oil and gas producing properties, primarily as a result of the pronounced decrease in oil and gas prices
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