Waste Management 2014 Annual Report Download - page 135

The Tax Increase Prevention Act of 2014 was signed into law on December 19, 2014 and included an
extension for one year of the bonus depreciation allowance. As a result, 50% of qualifying capital expenditures
on property placed in service before January 1, 2015 were depreciated immediately. The acceleration of
deductions on 2014 qualifying capital expenditures resulting from the bonus depreciation provisions had no
impact on our effective income tax rate for 2014 although it will reduce our future cash taxes by approximately
$60 million. Taking accelerated deductions results in increased cash taxes in subsequent periods when the
deductions related to the capital expenditures would have otherwise been taken.
Noncontrolling Interests
Net income attributable to noncontrolling interests was $40 million in 2014, $32 million in 2013 and $43
million in 2012. These amounts are principally related to third parties’ equity interests in two limited liability
companies (“LLCs”) that own three waste-to-energy facilities operated by our Wheelabrator business. In
December 2014, we purchased the noncontrolling interests in the LLCs from the third parties in anticipation of
our sale of the Wheelabrator business. The LLCs were then subsequently sold as part of the divestment of our
Wheelabrator business. Refer to Notes 19 and 20 to the Consolidated Financial Statements for information
related to the sale of our Wheelabrator business and the consolidation of these variable interest entities,
respectively.
The decrease in 2013 is primarily due to the net loss of $10 million attributable to noncontrolling interest
holders associated with the $20 million impairment charge related to a majority-owned waste diversion
technology company discussed above in (Income) Expense from Divestitures, Asset Impairments (Other than
Goodwill) and Unusual Items.
Landfill and Environmental Remediation Discussion and Analysis
We owned or operated 247 solid waste and five secure hazardous waste landfills at December 31, 2014 and
262 solid waste and five secure hazardous waste landfills at December 31, 2013. At December 31, 2014 and
2013, the expected remaining capacity, in cubic yards and tonnage of waste that can be accepted at our owned or
operated landfills, is shown below (in millions):
December 31, 2014 December 31, 2013
Remaining
Permitted
Capacity Expansion Capacity Total Capacity
Remaining
Permitted
Capacity Expansion Capacity Total Capacity
Remaining cubic yards ................... 4,708 275 4,983 4,839 279 5,118
Remaining tonnage ..................... 4,660 275 4,935 4,769 282 5,051
Based on remaining permitted airspace as of December 31, 2014 and projected annual disposal volumes, the
weighted average remaining landfill life for all of our owned or operated landfills is approximately 46 years.
Many of our landfills have the potential for expanded disposal capacity beyond what is currently permitted. We
monitor the availability of permitted disposal capacity at each of our landfills and evaluate whether to pursue an
expansion at a given landfill based on estimated future waste volumes and prices, remaining capacity and
likelihood of obtaining an expansion permit. We are seeking expansion permits at 23 of our landfills that meet
the expansion criteria outlined in the Critical Accounting Estimates and Assumptions section above. Although no
assurances can be made that all future expansions will be permitted or permitted as designed, the weighted
average remaining landfill life for all owned or operated landfills is approximately 49 years when considering
remaining permitted airspace, expansion airspace and projected annual disposal volume.
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