Waste Management 2014 Annual Report Download - page 220

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
projected operating losses partially offset by gains on divestitures. These items had a negative impact
of $0.02 on our diluted earnings per share.
• Income from operations was impacted by a favorable adjustment to “Operating” expenses due to an
increase in the risk-free discount rate used to measure our environmental remediation liabilities and
recovery assets, which positively affected our diluted earnings per share by $0.01.
Third Quarter 2013
• Net income was negatively impacted by the recognition of pre-tax charges aggregating $23 million
comprised of (i) $18 million related to impairments, primarily attributable to an investment in a
majority-owned waste diversion technology company and (ii) $5 million of losses on divestitures,
primarily related to oil and gas producing properties. These items had a negative impact of $0.02 on
our diluted earnings per share.
• Income from operations was negatively impacted by the recognition of pre-tax charges aggregating
$8 million primarily associated with the partial withdrawal from an underfunded multiemployer
pension plan and, to a lesser extent, other restructuring charges. These items had a negative impact of
$0.01 on our diluted earnings per share.
• Income from operations was positively impacted as a result of the collection of certain fully reserved
receivables related to our Puerto Rico operations, which positively affected our diluted earnings per
share by $0.01.
Fourth Quarter 2013
• Net income was negatively impacted by the recognition of net pre-tax charges aggregating $1 billion
comprised of (i) a $483 million charge to impair goodwill associated with our Wheelabrator business;
(ii) $262 million of charges to impair certain landfills, primarily in our Eastern Canada Area; (iii) $130
million of charges to write down the carrying value of three waste-to-energy facilities; (iv) $61 million
of charges attributable to investments in waste diversion technology companies; (v) $31 million of
charges to impair various recycling assets; (vi) a $15 million charge to write down the carrying value
of an oil and gas property to its estimated fair value and (vii) other charges to impair goodwill and
write down the carrying value of assets to their estimated fair values related to certain of our
operations, partially offset by gains on divestitures. These items had a negative impact of $1.84 on our
diluted earnings per share.
• Income from operations was negatively impacted by pre-tax restructuring charges of $5 million which
negatively affected our diluted earnings per share by $0.01.
• Income from operations was positively impacted by net adjustments associated with changes in our
expectations for the timing and cost of future final capping, closure and post-closure of fully utilized
airspace, and by an increase in the risk-free discount rate used to measure environmental remediation
liabilities and recovery assets. These items positively affected our diluted earnings per share by $0.02.
23. Condensed Consolidating Financial Statements
WM Holdings has fully and unconditionally guaranteed all of WM’s senior indebtedness. WM has fully and
unconditionally guaranteed all of WM Holdings’ senior indebtedness. None of WM’s other subsidiaries have
guaranteed any of WM’s or WM Holdings’ debt. As a result of these guarantee arrangements, we are required to
present the following condensed consolidating financial information (in millions):
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