Waste Management 2015 Annual Report Download - page 176

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
multiemployer defined benefit pension plans for the covered employees. Refer to Note 10 for additional
information about our participation in multiemployer defined benefit pension plans considered individually
significant. In connection with our ongoing renegotiation of various collective bargaining agreements, we may
discuss and negotiate for the complete or partial withdrawal from one or more of these pension plans. A complete
or partial withdrawal from a multiemployer pension plan may also occur if employees covered by a collective
bargaining agreement vote to decertify a union from continuing to represent them. Any other circumstance
resulting in a decline in Company contributions to a multiemployer defined benefit pension plan through a
reduction in the labor force, whether through attrition over time or through a business event (such as the
discontinuation or nonrenewal of a customer contract, the decertification of a union, or relocation, reduction or
discontinuance of certain operations) may also trigger a complete or partial withdrawal from one or more of these
pension plans.
One of the most significant multiemployer pension plans in which we have participated is the Central States,
Southeast and Southwest Areas Pension Plan (“Central States Pension Plan”). In 2008, we reached agreement
with all of the unions involved to cease participation in the Central States Pension Plan. Since that time, litigation
with the Central States Pension Plan had been pending over several matters, including the effective date that our
contribution obligations ceased. In the third quarter of 2015, we settled and paid all amounts due for all pending
litigation with the trustees for the Central States Pension Plan regarding liability for contributions to the plan and
withdrawal liability resulting from the cessation of contributions. Similarly, in the fourth quarter of 2015, we
settled and paid all amounts due for outstanding issues regarding plan contributions and withdrawal liability with
the Teamsters Employers Local 945 Pension Fund.
In 2015, we recognized a $51 million charge to “Operating” expenses associated with withdrawal from
certain underfunded multiemployer pension plans, nearly all of which was associated with the Central States
Pension Plan and the Teamsters Employers Local 945 Pension Fund withdrawals discussed above. We do not
believe any additional liability above the charges we have already recognized for previous withdrawals could be
material to the Company’s business, financial condition, liquidity, results of operations or cash flows. Similarly,
we also do not believe that any future withdrawals, individually or in the aggregate, from the multiemployer
pension plans to which we contribute, could have a material adverse effect on our business, financial condition or
liquidity. However, such withdrawals could have a material adverse effect on our results of operations or cash
flows for a particular reporting period, depending on the number of employees withdrawn in any future period
and the financial condition of the multiemployer pension plan(s) at the time of such withdrawal(s).
Tax Matters — We maintain a liability for uncertain tax positions, the balance of which management
believes is adequate. Results of audit assessments by taxing authorities are not currently expected to have a
material adverse impact on our results of operations or cash flows. See Note 9 for additional discussion regarding
tax matters.
12. Restructuring
The following table summarizes pre-tax restructuring charges, including employee severance and benefit
costs and other charges, for the years ended December 31 for the respective periods (in millions):
2015 2014 2013
Solid Waste .............................................. $ 14 $10 $ 7
Wheelabrator ............................................ — 1 1
Corporate and Other ....................................... 1 71 10
$ 15 $82 $18
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