Document and Company Information (USD $)
In Billions, except Share data, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2009
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Feb. 11, 2010
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Jun. 30, 2009
|
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | WASTE MANAGEMENT INC | ||
Entity Central Index Key | 0000823768 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2009 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 13.8 | ||
Entity Common Stock, Shares Outstanding (actual number) | 484,972,117 |
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If the value is true, then the document as an amendment to previously-filed/accepted document. No definition available.
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End date of current fiscal year in the format --MM-DD. No definition available.
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The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements this will be the filing date. The format of the date is CCYY-MM-DD. No definition available.
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- Definition
The type of document being provided (such as 10-K, 10-Q, N-1A, etc). The document type should be limited to the same value as the supporting SEC submission type. The acceptable values are as follows: S-1, S-3, S-4, S-11, F-1, F-3, F-4, F-9, F-10, 6-K, 8-K, 10, 10-K, 10-Q, 20-F, 40-F, N-1A, 485BPOS, NCSR, N-Q, and Other. No definition available.
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- Definition
A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate number of shares outstanding of each of registrant's classes of common stock, as of latest practicable date. Where multiple classes exist define each class by adding class of stock items such as Common Class A [Member], Common Class B [Member] onto the Instrument [Domain] of the Entity Listings, Instrument No definition available.
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- Definition
Indicate "Yes" or "No" whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. No definition available.
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- Definition
State aggregate market value of voting and non-voting common equity held by non-affiliates computed by reference to price at which the common equity was last sold, or average bid and asked price of such common equity, as of the last business day of registrant's most recently completed second fiscal quarter. The public float should be reported on the cover page of the registrants form 10K. No definition available.
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- Definition
The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Indicate "Yes" or "No" if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. No definition available.
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- Definition
Indicate "Yes" or "No" if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A. No definition available.
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- Definition
Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount due from customers or clients, within one year of the balance sheet date (or the normal operating cycle, whichever is longer), for goods or services (including trade receivables) that have been delivered or sold in the normal course of business, reduced to the estimated net realizable fair value by an allowance established by the entity of the amount it deems uncertain of collection. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value received from shareholders in common stock-related transactions that are in excess of par value or stated value and amounts received from other stock-related transactions. Includes only common stock transactions (excludes preferred stock transactions). May be called contributed capital, capital in excess of par, capital surplus, or paid-in capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Dollar value of issued common stock whether issued at par value, no par or stated value. This item includes treasury stock repurchased by the entity. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying value as of the balance sheet date of the sum of short-term debt and current maturities of long-term debt and capital lease obligations, which are due within one year (or one business cycle if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total carrying amount of consideration received or receivable as of the balance sheet date on potential earnings that were not recognized as revenue or other forms of income in conformity with GAAP, and which are expected to be recognized as such within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The current portion of the aggregate tax effects as of the balance sheet date of all future tax deductions arising from temporary differences between tax basis and generally accepted accounting principles basis recognition of assets, liabilities, revenues and expenses, which can only be deducted for tax purposes when permitted under enacted tax laws; after deducting the allocated valuation allowance, if any, to reduce such amount to net realizable value. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. An unrecognized tax benefit that is directly related to a position taken in a tax year that results in a net operating loss carryforward should be presented as a reduction of the related deferred tax asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Represents the noncurrent portion of deferred tax liabilities, which result from applying the applicable tax rate to net taxable temporary differences pertaining to each jurisdiction to which the entity is obligated to pay income tax. A noncurrent taxable temporary difference is a difference between the tax basis and the carrying amount of a noncurrent asset or liability in the financial statements prepared in accordance with generally accepted accounting principles. In a classified statement of financial position, an enterprise shall separate deferred tax liabilities and assets into a current amount and a noncurrent amount. Deferred tax liabilities and assets shall be classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. A deferred tax liability or asset that is not related to an asset or liability for financial reporting, including deferred tax assets related to carryforwards, shall be classified according to the expected reversal date of the temporary difference. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of FAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No definition available.
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- Definition
Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Sum of the carrying values as of the balance sheet date of all long-term debt, which is debt initially having maturities due after one year from the balance sheet date or beyond the operating cycle, if longer, but excluding the portions thereof scheduled to be repaid within one year or the normal operating cycle, if longer plus capital lease obligations due to be paid more than one year after the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which is directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of current assets not separately presented elsewhere in the balance sheet. Current assets are expected to be realized or consumed within one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent assets not separately disclosed in the balance sheet due to materiality considerations. Noncurrent assets are expected to be realized or consumed after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate carrying amount, as of the balance sheet date, of noncurrent obligations not separately disclosed in the balance sheet due to materiality considerations. Noncurrent liabilities are expected to be paid after one year (or the normal operating cycle, if longer). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amounts due as of the balance sheet date from parties or arising from transactions not otherwise specified in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Carrying amount as of the balance sheet date of capitalized payments for supplies which will be consumed in operations within one year or the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Value of common and preferred shares of an entity that were issued, repurchased by the entity, and are held in its treasury. Treasury stock is issued but is not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The estimated amount of costs required as of the balance sheet date to comply with regulatory requirements pertaining to the retirement of an asset, which will be paid after one year or beyond the normal operating cycle, if longer. Carrying value of the obligation (known or estimated) arising from requirements to perform activities to remediate one or more sites, payable after twelve months or beyond the next operating cycle if longer. No definition available.
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Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified |
Dec. 31, 2009
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Dec. 31, 2008
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Current assets: | ||
Allowance for doubtful accounts | $ 31 | $ 39 |
Accumulated depreciation and amortization | $ 13,994 | $ 13,273 |
Waste Management, Inc. stockholders' equity: | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized (actual number) | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued (actual number) | 630,282,461 | 630,282,461 |
Treasury stock, shares (actual number) | 144,162,063 | 139,546,915 |
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- Definition
The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
A valuation allowance for trade and other receivables due to an Entity within one year (or the normal operating cycle, whichever is longer) that are expected to be uncollectible. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate dividends declared during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Total costs of sales and operating expenses for the period. No definition available.
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- Definition
The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Definition
Interest and debt related expenses associated with nonoperating financing activities of the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The portion of net income (loss) attributable to the noncontrolling interest (if any) deducted in order to derive the portion attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net result for the period of deducting operating expenses from operating revenues. No definition available.
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- Definition
The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income statement under materiality guidelines. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Amount charged against earnings in the period for incurred and estimated costs, excluding asset retirement obligations, associated with exit from or disposal of business activities or restructurings pursuant to a program that is planned and controlled by management, and materially changes either the scope of a business undertaken by an entity, or the manner in which that business is conducted. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Depreciation, Depletion and Amortization associated with Property Plant and Equipment and Intangible Assets. No definition available.
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X | ||||||||||
- Definition
The aggregate amount of asset impairment charges, gains and losses related to the divestiture of businesses, and unsual items incurred during an accounting period. Generally, these items are either unusual or infrequent, but not both (in which case they would be extraordinary items). No definition available.
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X | ||||||||||
- Definition
Sum of operating profit and nonoperating income (expense) before income taxes, extraordinary items, cumulative effects of changes in accounting principles, and noncontrolling interest. No definition available.
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- Details
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- Definition
Interest and Other Income (Expense), Total. No definition available.
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- Definition
Interest Income. No definition available.
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- Definition
Generally recurring costs associated with normal operations excluding Selling, General and Administrative Expense, Depreciation, Depletion and Amortization Expense, Restructuring Expense, and expense from Asset Impairments and Unusual Items. No definition available.
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- Details
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- Definition
Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change between the beginning and ending balance of cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element represents the cash inflow reported in the enterprise's financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
Reductions in the entity's income taxes that arise when compensation cost (from non-qualified share-based compensation) recognized on the entity's tax return exceeds compensation cost from share-based compensation recognized in financial statements. This element reduces net cash provided by operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The difference between the sale price or salvage price and the book value of a property, plant, and equipment asset that was sold or retired during the reporting period. This element refers to the gain (loss). Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
This element represents the undistributed income (or loss) of equity method investments, net of dividends or other distributions received from unconsolidated subsidiaries, certain corporate joint ventures, and certain noncontrolled corporations; such investments are accounted for under the equity method of accounting. This element excludes distributions that constitute a return of investment, which are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the amount due from customers for the credit sale of goods and services; includes accounts receivable and other types of receivables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net change during the reporting period in the aggregate amount of obligations and expenses incurred but not paid. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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- Definition
The net change during the reporting period in other operating obligations not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net cash inflow (outflow) for the net change associated with funds that are not available for withdrawal or use (such as funds held in escrow) and are associated with underlying transactions that are classified as investing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Definition
The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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X | ||||||||||
- Details
|
X | ||||||||||
- Definition
The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
The net cash outflow (inflow) from other investing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow from the distribution of an entity's earnings in the form of dividends to common shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow to acquire debt and equity securities not classified as either held-to-maturity securities or trading securities which would be classified as available-for-sale securities and reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash inflow associated with security instrument that either represents a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The net cash inflow (outflow) from noncontrolled interest to increase or decrease the number of shares they have in the entity. This does not include dividends paid to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash inflow associated with the sale of debt and equity securities classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash inflow associated with the amount received from holders exercising their stock options. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Amount of the current period expense charged against operations, the offset which is generally to the allowance for doubtful accounts for the purpose of reducing receivables, including notes receivable, to an amount that approximates their net realizable value (the amount expected to be collected). Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The cash outflow associated with security instrument that either represents a creditor or an ownership relationship with the holder of the investment security with a maturity of beyond one year or normal operating cycle, if longer. The nature of such security interests included herein may consist of debt securities, long-term capital lease obligations, and capital securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The aggregate amount of noncash, equity-based employee remuneration. This may include the value of stock options, amortization of restricted stock, and adjustment for officers compensation. As noncash, this element is an add back when calculating net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Depreciation, Depletion and Amortization associated with Property Plant and Equipment and Intangible Assets. No definition available.
|
X | ||||||||||
- Definition
The aggregate amount of asset impairment charges, gains and losses related to the divestiture of businesses, and unsual items incurred during an accounting period. Generally, these items are either unusual or infrequent, but not both (in which case they would be extraordinary items). No definition available.
|
X | ||||||||||
- Definition
Increase (Decrease) in Other Assets, Current. No definition available.
|
X | ||||||||||
- Definition
Increase (Decrease) in Other Assets, Non-current. No definition available.
|
X | ||||||||||
- Definition
Interest accretion on and discount rate adjustments to environmental remediation liabilities and recovery assets No definition available.
|
X | ||||||||||
- Definition
Interest accretion on landfill liabilities No definition available.
|
X | ||||||||||
- Definition
This element represents the cash inflow during the period from the sale of businesses and other assets. No definition available.
|
X | ||||||||||
- Definition
The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Cumulative net-of-tax effect of initial adoption of FIN 48 - Accounting for Uncertainty in Income Taxes on the opening balance of retained earnings. The cumulative-effect adjustment does not include items that would not be recognized in earnings, such as the effect of adopting this Interpretation on tax positions related to business combinations. The amount of that cumulative-effect adjustment is the difference between the net amount of assets and liabilities recognized in the statement of financial position prior to the application of this Interpretation and the net amount of assets and liabilities recognized as a result of applying the provisions of this Interpretation. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Cumulative effect of initial adoption of Statement of Financial Accounting Standard 158 (FAS No. 158), Employers' Accounting for Defined Benefit Pension and Other Postretirement Plans on beginning retained earnings, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Common stock cash dividend declared by an entity during the period. This element includes paid and unpaid dividends declared during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Decrease in noncontrolling interest balance from payment of dividends or other distributions to noncontrolling interest holders. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Gross appreciation or the gross loss in value of the total unsold securities at the end of an accounting period, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Net changes to accumulated comprehensive income during the period related to benefit plans, after tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of tax. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on qualifying hedges, unrealized holding gains (losses) on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Net of tax effect of the reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Change in accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges, net of tax effect. The after tax effect change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Number of shares of stock issued as of the balance sheet date, including shares that had been issued and were previously outstanding but which are now held in the treasury. No definition available.
|
X | ||||||||||
- Definition
Total of Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity including portions attributable to both the parent and noncontrolling interests (previously referred to as minority interest), if any. The entity including portions attributable to the parent and noncontrolling interests is sometimes referred to as the economic entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
This element represents movements included in the statement of changes in stockholders' equity which are not separately disclosed or provided for elsewhere in the taxonomy. No definition available.
|
X | ||||||||||
- Definition
Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Equity-based compensation transactions, including dividend equivalents, net of taxes. No definition available.
|
X | ||||||||||
- Definition
Equity-based compensation transactions, including dividend equivalents, net of taxes, shares. No definition available.
|
X | ||||||||||
- Definition
This element represents movements included in treasury stock which are not separately disclosed or provided for elsewhere in the taxonomy. No definition available.
|
X | ||||||||||
- Definition
Tax effect of the gross appreciation or the gross loss, net of reclassification adjustment, in the change in value of available for sale securities during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Tax effect on reclassification adjustment for accumulated gains and losses from derivative instrument designated and qualifying as the effective portion of cash flow hedges included in accumulated comprehensive income that was realized in net income during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
X | ||||||||||
- Definition
Tax effect on the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Business
|
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2009
|
|||||
Business [Abstract] | |||||
Business |
The financial statements presented in this report represent the
consolidation of Waste Management, Inc., a Delaware corporation;
Waste Management’s wholly-owned and majority-owned
subsidiaries; and certain variable interest entities for which
Waste Management or its subsidiaries are the primary beneficiary
as described in Note 20. Waste Management is a holding
company and all operations are conducted by its subsidiaries.
When the terms “the Company,” “we,”
“us” or “our” are used in this document,
those terms refer to Waste Management, Inc., its consolidated
subsidiaries and consolidated variable interest entities. When
we use the term “WMI,” we are referring only to Waste
Management, Inc., the parent holding company.
We are the leading provider of integrated waste services in
North America. Using our vast network of assets and employees,
we provide a comprehensive range of waste management services.
Through our subsidiaries we provide collection, transfer,
recycling, disposal and
waste-to-energy
services. In providing these services, we actively pursue
projects and initiatives that we believe make a positive
difference for our environment, including recovering and
processing the methane gas produced naturally by landfills into
a renewable energy source. Our customers include commercial,
industrial, municipal and residential customers, other waste
management companies, electric utilities and governmental
entities.
We manage and evaluate our principal operations through five
Groups. Our four geographic Groups, which include our Eastern,
Midwest, Southern and Western Groups, provide collection,
transfer, recycling and disposal services. Our fifth Group is
the Wheelabrator Group, which provides
waste-to-energy
services. We also provide additional services that are not
managed through our five Groups, which are presented in this
report as “Other.” Additional information related to
our segments, including changes in the basis for our reported
segments from December 31, 2008, can be found under
“Reclassifications” in Note 2 and in Note 21.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Describes the nature of an entity's business, the major products or services it sells or provides and its principal markets, including the locations of those markets. If the entity operates in more than one business, the disclosure also indicates the relative importance of its operations in each business and the basis for the determination (for example, assets, revenues, or earnings). Disclosures about the nature of operations need not be quantified; relative importance could be conveyed by use of terms such as "predominately", "about equally", or "major and other". This element is also referred to as "Business Description". Reference 1: http://www.xbrl.org/2003/role/presentationRef
|
Accounting Changes and Reclassifications
|
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2009
|
|||||
Accounting Changes and Reclassifications [Abstract] | |||||
Accounting Changes and Reclassifications |
Accounting
Changes
Fair Value Measurements — In September 2006,
the Financial Accounting Standards Board issued authoritative
guidance associated with fair value measurements. This guidance
defined fair value, established a framework for measuring fair
value, and expanded disclosures about fair value measurements.
In February 2008, the FASB delayed the effective date of the
guidance for all non-financial assets and non-financial
liabilities, except those that are measured at fair value on a
recurring basis. Accordingly, we adopted this guidance for
assets and liabilities recognized at fair value on a recurring
basis effective January 1, 2008 and adopted the guidance
for non-financial assets and liabilities measured on a
non-recurring basis effective January 1, 2009. The
application of the fair value framework did not have a material
impact on our consolidated financial position, results of
operations or cash flows.
Business Combinations — In December 2007, the
FASB issued revisions to the authoritative guidance associated
with business combinations. This guidance clarified and revised
the principles for how an acquirer recognizes and measures
identifiable assets acquired, liabilities assumed, and any
noncontrolling interest in the acquiree. This guidance also
addressed the recognition and measurement of goodwill acquired
in business combinations and expanded disclosure requirements
related to business combinations. Effective January 1,
2009, we adopted the FASB’s revised guidance associated
with business combinations. The portions of this guidance that
relate to business combinations completed before January 1,
2009 did not have a material impact on our consolidated
financial statements. Further, business combinations completed
in 2009, which are discussed in Note 19, have not been
material to our financial position, results of operations or
cash flows. However, to the extent that future business
combinations are material, our adoption of the FASB’s
revised authoritative guidance associated with business
combinations may significantly impact our accounting and
reporting for future acquisitions, principally as a result of
(i) expanded requirements to value acquired assets,
liabilities and contingencies at
their fair values when such amounts can be determined; and
(ii) the requirement that acquisition-related transaction
and restructuring costs be expensed as incurred rather than
capitalized as a part of the cost of the acquisition.
Noncontrolling Interests in Consolidated Financial
Statements — In December 2007, the FASB issued
authoritative guidance that established accounting and reporting
standards for noncontrolling interests in subsidiaries and for
the de-consolidation of a subsidiary. The guidance also
established that a noncontrolling interest in a subsidiary is an
ownership interest in the consolidated entity that should be
reported as equity in the consolidated financial statements. We
adopted this guidance on January 1, 2009. The presentation
and disclosure requirements of this guidance, which must be
applied retrospectively for all periods presented, have resulted
in reclassifications to our prior period consolidated financial
information and the remeasurement of our 2008 and 2007 effective
tax rates, which are discussed in Note 9.
Accounting for Uncertainty in Income Taxes — In
June 2006, the FASB issued authoritative guidance associated
with accounting for uncertainty in income taxes. This guidance
prescribed a recognition threshold and measurement attribute for
financial statement recognition and measurement of tax positions
taken or expected to be taken in tax returns. This guidance also
addressed the de-recognition, classification and disclosure of
tax positions, as well as the accounting for related interest
and penalties. In May 2007, the FASB issued authoritative
guidance associated with the criteria that must be evaluated in
determining if a tax position has been effectively settled and
should be recognized as a tax benefit. Our adoption of this
guidance effective January 1, 2007 resulted in the
recognition of a $28 million increase in our liabilities
for unrecognized tax benefits, a $32 million increase in
our non-current deferred tax assets and a $4 million
increase in our beginning retained earnings as a cumulative
effect of change in accounting principle. Refer to Note 9
for additional information about our unrecognized tax benefits.
Employers’ Accounting for Defined Benefit Pension and
Other Post-retirement Plans — In September 2006,
the FASB issued revisions to the authoritative guidance
associated with the accounting and reporting of post-retirement
benefit plans. This guidance required companies to recognize the
overfunded or underfunded status of their defined benefit
pension and other post-retirement plans as an asset or liability
and to recognize changes in that funded status through
comprehensive income in the year in which the changes occur. We
adopted these recognition provisions effective December 31,
2006. The FASB’s revised guidance also required companies
to measure the funded status of defined benefit pension and
other post-retirement plans as of their year-end reporting date.
These measurement date provisions were effective for us as of
December 31, 2008. We applied the measurement provisions by
measuring our benefit obligations as of September 30, 2007,
our prior measurement date, and recognizing a pro-rata share of
net benefit costs for the transition period from October 1,
2007 to December 31, 2008 as a cumulative effect of change
in accounting principle in retained earnings as of
December 31, 2008. The application of the recognition and
measurement provisions of this revised authoritative guidance
did not have a material impact on our financial position or
results of operations for the periods presented.
Subsequent Events — In May 2009, the FASB
established standards related to accounting for, and disclosure
of, events that occur after the balance sheet date, but before
financial statements are issued or are available to be issued.
We have adopted the provisions of this guidance, which became
effective for interim and annual reporting periods ending after
June 15, 2009. We have evaluated subsequent events through
the date and time the financial statements were issued on
February 16, 2010. No material subsequent events have
occurred since December 31, 2009 that required recognition
or disclosure in our current period financial statements.
Reclassifications
Segments — During the first quarter of 2009, we
transferred responsibility for the oversight of
day-to-day
recycling operations at our material recovery facilities and
secondary processing facilities to the management teams of our
four geographic Groups. We believe that, by integrating the
management of our recycling facilities’ operations with our
other solid waste business, we can more efficiently provide
comprehensive environmental solutions to our customers and
ensure that we are focusing on maximizing the profitability and
return on invested capital of our business on an integrated
basis. As a result of this operational change, we also changed
the way we
review the financial results of our geographic Groups. Beginning
in 2009, the financial results of our material recovery
facilities and secondary processing facilities are included as a
component of their respective geographic Group and the financial
results of our recycling brokerage business and electronics
recycling services are included as part of our “Other”
operations. We have reflected the impact of these changes for
all periods presented to provide financial information that
consistently reflects our current approach to managing our
geographic Group operations. Refer to Note 21 for further
discussion about our reportable segments.
|
X | ||||||||||
- Details
|
X | ||||||||||
- Definition
Accounting Changes and Reclassifications . No definition available.
|
Summary of Significant Accounting Policies
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2009
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies |
Principles
of Consolidation
The accompanying Consolidated Financial Statements include the
accounts of WMI, its wholly-owned and majority-owned
subsidiaries and certain variable interest entities for which we
have determined that we are the primary beneficiary. All
material intercompany balances and transactions have been
eliminated. Investments in entities in which we do not have a
controlling financial interest are accounted for under either
the equity method or cost method of accounting, as appropriate.
Estimates
and Assumptions
In preparing our financial statements, we make numerous
estimates and assumptions that affect the accounting for and
recognition and disclosure of assets, liabilities, equity,
revenues and expenses. We must make these estimates and
assumptions because certain information that we use is dependent
on future events, cannot be calculated with a high degree of
precision from data available or simply cannot be readily
calculated based on generally accepted methods. In some cases,
these estimates are particularly difficult to determine and we
must exercise significant judgment. In preparing our financial
statements, the most difficult, subjective and complex estimates
and the assumptions that deal with the greatest amount of
uncertainty relate to our accounting for landfills,
environmental remediation liabilities, asset impairments, and
self-insurance reserves and recoveries. Each of these items is
discussed in additional detail below. Actual results could
differ materially from the estimates and assumptions that we use
in the preparation of our financial statements.
Cash
and Cash Equivalents
Cash and cash equivalents consist primarily of cash on deposit
and money market funds that invest in United States government
obligations with original maturities of three months or less.
Concentrations
of Credit Risk
Financial instruments that potentially subject us to
concentrations of credit risk consist primarily of cash and cash
equivalents, investments held within our trust funds and escrow
accounts, accounts receivable and derivative instruments. We
make efforts to control our exposure to credit risk associated
with these instruments by (i) placing our assets and other
financial interests with a diverse group of credit-worthy
financial institutions; (ii) holding high-quality financial
instruments while limiting investments in any one instrument;
and (iii) maintaining strict policies over credit extension
that include credit evaluations, credit limits and monitoring
procedures, although generally we do not have collateral
requirements for credit extensions. Our overall credit risk
associated with trade receivables is limited due to the large
number of geographically diverse customers we service. At
December 31, 2009 and 2008, no single customer represented
greater than 5% of total accounts receivable.
Trade
and Other Receivables
Our receivables are recorded when billed or when cash is
advanced and represent claims against third parties that will be
settled in cash. The carrying value of our receivables, net of
the allowance for doubtful accounts, represents the estimated
net realizable value. We estimate our allowance for doubtful
accounts based on historical
collection trends; type of customer, such as municipal or
commercial; the age of outstanding receivables; and existing
economic conditions. If events or changes in circumstances
indicate that specific receivable balances may be impaired,
further consideration is given to the collectibility of those
balances and the allowance is adjusted accordingly. Past-due
receivable balances are written off when our internal collection
efforts have been unsuccessful. Also, we recognize interest
income on long-term interest-bearing notes receivable as the
interest accrues under the terms of the notes.
Landfill
Accounting
Cost Basis of Landfill Assets — We capitalize
various costs that we incur to make a landfill ready to accept
waste. These costs generally include expenditures for land
(including the landfill footprint and required landfill buffer
property), permitting, excavation, liner material and
installation, landfill leachate collection systems, landfill gas
collection systems, environmental monitoring equipment for
groundwater and landfill gas, directly related engineering,
capitalized interest,
on-site road
construction and other capital infrastructure costs. The cost
basis of our landfill assets also includes asset retirement
costs, which represent estimates of future costs associated with
landfill final capping, closure and post-closure activities.
These costs are discussed below.
Final Capping, Closure and Post-Closure Costs —
Following is a description of our asset retirement activities
and our related accounting:
We develop our estimates of these obligations using input from
our operations personnel, engineers and accountants. Our
estimates are based on our interpretation of current
requirements and proposed regulatory changes and are intended to
approximate fair value. Absent quoted market prices, the
estimate of fair value should be based on the best available
information, including the results of present value techniques.
In many cases, we contract with third parties to fulfill our
obligations for final capping, closure and post-closure. We use
historical experience, professional engineering judgment and
quoted and actual prices paid for similar work to determine the
fair value of these obligations. We are required to recognize
these obligations at market prices whether we plan to contract
with third parties or perform the work ourselves. In those
instances where we perform the work with internal resources, the
incremental profit margin realized is recognized as a component
of operating income when the work is performed.
Once we have determined the final capping, closure and
post-closure costs, we inflate those costs to the expected time
of payment and discount those expected future costs back to
present value. During the years ended December 31, 2009 and
2008, we inflated these costs in current dollars until the
expected time of payment using an inflation rate of 2.5%. We
discount these costs to present value using the credit-adjusted,
risk-free rate effective at the time an obligation is incurred
consistent with the expected cash flow approach. Any changes in
expectations that result in an upward revision to the estimated
cash flows are treated as a new liability and discounted at the
current rate while downward revisions are discounted at the
historical weighted-average rate of the recorded obligation. As
a result, the credit-adjusted, risk-free discount rate used to
calculate the present value of an obligation is specific to each
individual asset retirement obligation. The weighted-average
rate applicable to our asset retirement obligations at
December 31, 2009 is between 6.0% and 8.0%, the range of
the credit-adjusted, risk-free discount rates effective since we
adopted the FASB’s authoritative guidance related to asset
retirement obligations in 2003. We expect to apply a
credit-adjusted, risk-free discount rate of 6.0% to liabilities
incurred in the first quarter of 2010.
We record the estimated fair value of final capping, closure and
post-closure liabilities for our landfills based on the capacity
consumed through the current period. The fair value of final
capping obligations is developed based on our estimates of the
airspace consumed to date for each final capping event and the
expected timing of each final capping event. The fair value of
closure and post-closure obligations is developed based on our
estimates of the airspace consumed to date for the entire
landfill and the expected timing of each closure and
post-closure activity. Because these obligations are measured at
estimated fair value using present value techniques, changes in
the estimated cost or timing of future final capping, closure
and post-closure activities could result in a material change in
these liabilities, related assets and results of operations. We
assess the appropriateness of the estimates used to develop our
recorded balances annually, or more often if significant facts
change.
Changes in inflation rates or the estimated costs, timing or
extent of future final capping and closure and post-closure
activities typically result in both (i) a current
adjustment to the recorded liability and landfill asset; and
(ii) a change in liability and asset amounts to be recorded
prospectively over either the remaining capacity of the related
discrete final capping event or the remaining permitted and
expansion airspace (as defined below) of the landfill. Any
changes related to the capitalized and future cost of the
landfill assets are then recognized in accordance with our
amortization policy, which would generally result in
amortization expense being recognized prospectively over the
remaining capacity of the final capping event or the remaining
permitted and expansion airspace of the landfill, as
appropriate. Changes in such estimates associated with airspace
that has been fully utilized result in an adjustment to the
recorded liability and landfill assets with an immediate
corresponding adjustment to landfill airspace amortization
expense.
During the years ended December 31, 2009, 2008 and 2007,
adjustments associated with changes in our expectations for the
timing and cost of future final capping, closure and
post-closure of fully utilized airspace resulted in
$14 million, $3 million and $17 million in net
credits to landfill airspace amortization expense, respectively,
with the majority of these credits resulting from revised
estimates associated with final capping changes. In managing our
landfills, our engineers look for ways to reduce or defer our
construction costs, including final capping costs. The benefit
recognized in these years was generally the result of
(i) concerted efforts to improve the operating efficiencies
of our landfills and volume declines, both of which have allowed
us to delay spending for final capping activities;
(ii) effectively managing the cost of final capping
material and construction; or (iii) landfill expansions
that resulted in reduced or deferred final capping costs.
Interest accretion on final capping, closure and post-closure
liabilities is recorded using the effective interest method and
is recorded as final capping, closure and post-closure expense,
which is included in “Operating” costs and expenses
within our Consolidated Statements of Operations.
Amortization of Landfill Assets — The
amortizable basis of a landfill includes (i) amounts
previously expended and capitalized; (ii) capitalized
landfill final capping, closure and post-closure costs;
(iii) projections of future purchase and development costs
required to develop the landfill site to its remaining permitted
and
expansion capacity; and (iv) projected asset retirement
costs related to landfill final capping, closure and
post-closure activities.
Amortization is recorded on a
units-of-consumption
basis, applying expense as a rate per ton. The rate per ton is
calculated by dividing each component of the amortizable basis
of a landfill by the number of tons needed to fill the
corresponding asset’s airspace. For landfills that we do
not own, but operate through operating or lease arrangements,
the rate per ton is calculated based on expected capacity to be
utilized over the lesser of the contractual term of the
underlying agreement or the life of the landfill.
We apply the following guidelines in determining a
landfill’s remaining permitted and expansion airspace:
For unpermitted airspace to be initially included in our
estimate of remaining permitted and expansion airspace, the
expansion effort must meet all of the criteria listed above.
These criteria are evaluated by our field-based engineers,
accountants, managers and others to identify potential obstacles
to obtaining the permits. Once the unpermitted airspace is
included, our policy provides that airspace may continue to be
included in remaining permitted and expansion airspace even if
these criteria are no longer met, based on the facts and
circumstances of a specific landfill. In these circumstances,
continued inclusion must be approved through a landfill-specific
review process that includes approval of our Chief Financial
Officer and a review by the Audit Committee of our Board of
Directors on a quarterly basis. Of the 39 landfill sites
with expansions at December 31, 2009, 14 landfills
required the Chief Financial Officer to approve the inclusion of
the unpermitted airspace. Nine of these landfills required
approval by our Chief Financial Officer because of community or
political opposition that could impede the expansion process.
The remaining five landfills required approval primarily due to
the permit application processes not meeting the one- or
five-year requirements.
When we include the expansion airspace in our calculations of
remaining permitted and expansion airspace, we also include the
projected costs for development, as well as the projected asset
retirement costs related to final capping, and closure and
post-closure of the expansion in the amortization basis of the
landfill.
Once the remaining permitted and expansion airspace is
determined in cubic yards, an airspace utilization factor, or
AUF, is established to calculate the remaining permitted and
expansion capacity in tons. The AUF is established using the
measured density obtained from previous annual surveys and is
then adjusted to account for settlement. The amount of
settlement that is forecasted will take into account several
site-specific factors including current and projected mix of
waste type, initial and projected waste density, estimated
number of years of life remaining, depth of underlying waste,
anticipated access to moisture through precipitation or
recirculation of landfill leachate, and operating practices. In
addition, the initial selection of the AUF is subject to a
subsequent multi-level review by our engineering group, and the
AUF used is reviewed on a periodic basis and revised as
necessary. Our historical experience generally indicates that
the impact of settlement at a landfill is greater later in the
life of the landfill when the waste placed at the landfill
approaches its highest point under the permit requirements.
After determining the costs and remaining permitted and
expansion capacity at each of our landfills, we determine the
per ton rates that will be expensed as waste is received and
deposited at the landfill by dividing the costs by the
corresponding number of tons. We calculate per ton amortization
rates for each landfill for assets associated with each final
capping event, for assets related to closure and post-closure
activities and for all other costs capitalized or to be
capitalized in the future. These rates per ton are updated
annually, or more often, as significant facts change.
It is possible that actual results, including the amount of
costs incurred, the timing of final capping, closure and
post-closure activities, our airspace utilization or the success
of our expansion efforts could ultimately turn out to be
significantly different from our estimates and assumptions. To
the extent that such estimates, or related assumptions, prove to
be significantly different than actual results, lower
profitability may be experienced due to higher amortization
rates, or higher expenses; or higher profitability may result if
the opposite occurs. Most significantly, if it is determined
that expansion capacity should no longer be considered in
calculating the recoverability of a landfill asset, we may be
required to recognize an asset impairment or incur significantly
higher amortization expense. If it is determined that the
likelihood of receiving an expansion permit has become remote,
the capitalized costs related to the expansion effort are
expensed immediately.
Environmental Remediation Liabilities — We are
subject to an array of laws and regulations relating to the
protection of the environment. Under current laws and
regulations, we may have liabilities for environmental damage
caused by operations, or for damage caused by conditions that
existed before we acquired a site. These liabilities include
potentially responsible party, or PRP, investigations,
settlements, and certain legal and consultant fees, as well as
costs directly associated with site investigation and clean up,
such as materials, external contractor costs and incremental
internal costs directly related to the remedy. We provide for
expenses associated with environmental remediation obligations
when such amounts are probable and can be reasonably estimated.
We routinely review and evaluate sites that require remediation
and determine our estimated cost for the likely remedy based on
a number of estimates and assumptions.
Where it is probable that a liability has been incurred, we
estimate costs required to remediate sites based on
site-specific facts and circumstances. We routinely review and
evaluate sites that require remediation, considering whether we
were an owner, operator, transporter, or generator at the site,
the amount and type of waste hauled to the site and the number
of years we were associated with the site. Next, we review the
same type of information with respect to other named and unnamed
PRPs. Estimates of the cost for the likely remedy are then
either developed using our internal resources or by third-party
environmental engineers or other service providers. Internally
developed estimates are based on:
There can sometimes be a range of reasonable estimates of the
costs associated with the likely remedy of a site. In these
cases, we use the amount within the range that constitutes our
best estimate. If no amount within the range appears to be a
better estimate than any other, we use the amount that is the
low end of such range. If we used the high ends of such ranges,
our aggregate potential liability would be approximately
$150 million higher on a discounted basis than the
$256 million recorded in the Consolidated Financial
Statements as of December 31, 2009.
Estimating our degree of responsibility for remediation is
inherently difficult. Determining the method and ultimate cost
of remediation requires that a number of assumptions be made.
Our ultimate responsibility may differ materially from current
estimates. It is possible that technological, regulatory or
enforcement developments, the results of environmental studies,
the inability to identify other PRPs, the inability of other
PRPs to contribute to the settlements of such liabilities, or
other factors could require us to record additional liabilities.
Additionally, our ongoing review of our remediation liabilities
could result in revisions that could cause upward or downward
adjustments to income from operations.
Where we believe that both the amount of a particular
environmental remediation liability and the timing of the
payments are reliably determinable, we inflate the cost in
current dollars (by 2.5% at both December 31, 2009 and
2008) until the expected time of payment and discount the
cost to present value using a risk-free discount rate, which is
based on the rate for United States Treasury bonds with a term
approximating the weighted average period until settlement of
the underlying obligation. We determine the risk-free discount
rate and the inflation rate on an annual basis unless interim
changes would significantly impact our results of operations.
For remedial liabilities that have been discounted, we include
interest accretion, based on the effective interest method, in
“Operating” costs and expenses in our Consolidated
Statements of Operations. The following table summarizes the
impacts of revisions in the risk-free discount rate applied to
our environmental remediation liabilities and recovery assets
during the reported periods (in millions) and the risk-free
discount rate applied as of each reporting date:
The portion of our recorded environmental remediation
liabilities that has never been subject to inflation or
discounting as the amounts and timing of payments are not
readily determinable was $44 million at December 31,
2009 and $47 million at December 31, 2008. Had we not
inflated and discounted any portion of our environmental
remediation liability, the amount recorded would have increased
by $20 million at December 31, 2009 and decreased by
$6 million at December 31, 2008.
Property
and Equipment (exclusive of landfills, discussed
above)
We record property and equipment at cost. Expenditures for major
additions and improvements are capitalized and maintenance
activities are expensed as incurred. We depreciate property and
equipment over the estimated useful life of the asset using the
straight-line method. We assume no salvage value for our
depreciable property and equipment. When property and equipment
are retired, sold or otherwise disposed of, the cost and
accumulated depreciation are removed from our accounts and any
resulting gain or loss is included in results of operations as
an offset or increase to operating expense for the period.
The estimated useful lives for significant property and
equipment categories are as follows (in years):
We include capitalized costs associated with developing or
obtaining internal-use software within furniture, fixtures and
office equipment. These costs include direct external costs of
materials and services used in developing or obtaining the
software and internal costs for employees directly associated
with the software development project. As of December 31,
2009, capitalized costs for software placed in service, net of
accumulated depreciation, were $33 million. In addition,
our furniture, fixtures and office equipment includes
$46 million as of December 31, 2009 and
$90 million as of December 31, 2008 for costs incurred
for software under development. The significant decrease in
capitalized costs for software under development from
December 31, 2008 to December 31, 2009 is attributable
to the recognition of a $51 million charge recognized
during 2009 as a result of our determination to abandon the SAP
waste and recycling revenue management software. Refer to
Note 13 for additional information related to the
management determination to abandon this software development
project.
Leases
We lease property and equipment in the ordinary course of our
business. Our most significant lease obligations are for
property and equipment specific to our industry, including real
property operated as a landfill, transfer station or
waste-to-energy
facility and equipment such as compactors. Our leases have
varying terms. Some may include renewal or purchase options,
escalation clauses, restrictions, penalties or other obligations
that we consider in determining minimum lease payments. The
leases are classified as either operating leases or capital
leases, as appropriate.
Operating Leases (excluding landfills discussed
below) — The majority of our leases are operating
leases. This classification generally can be attributed to
either (i) relatively low fixed minimum lease payments as a
result of real property lease obligations that vary based on the
volume of waste we receive or process or (ii) minimum lease
terms that are much shorter than the assets’ economic
useful lives. Management expects that in the normal course of
business our operating leases will be renewed, replaced by other
leases, or replaced with fixed asset expenditures. Our rent
expense during each of the last three years and our future
minimum operating lease payments for each of the next five years
for which we are contractually obligated as of December 31,
2009 are disclosed in Note 11.
Capital Leases (excluding landfills discussed
below) — Assets under capital leases are
capitalized using interest rates determined at the inception of
each lease and are amortized over either the useful life of the
asset or the lease term, as appropriate, on a straight-line
basis. The present value of the related lease payments is
recorded as a debt obligation. Our future minimum annual capital
lease payments are included in our total future debt obligations
as disclosed in Note 7.
Landfill Leases — From an operating
perspective, landfills that we lease are similar to landfills we
own because generally we own the landfill’s operating
permit and will operate the landfill for the entire lease term,
which in many cases is the life of the landfill. As a result,
our landfill leases are generally capital leases. The most
significant portion of our rental obligations for landfill
leases is contingent upon operating factors such as disposal
volumes and often there are no contractual minimum rental
obligations. Contingent rental obligations are expensed as
incurred. For landfill capital leases that provide for minimum
contractual rental obligations, we record the
present value of the minimum obligation as part of the landfill
asset, which is amortized on a
units-of-consumption
basis over the shorter of the lease term or the life of the
landfill.
Acquisitions
We generally recognize assets acquired and liabilities assumed
in business combinations, including contingent assets and
liabilities, based on fair value estimates as of the date of
acquisition.
Contingent Consideration — In certain
acquisitions, we agree to pay additional amounts to sellers
contingent upon achievement by the acquired businesses of
certain negotiated goals, such as targeted revenue levels,
targeted disposal volumes or the issuance of permits for
expanded landfill airspace. For acquisitions completed in 2009,
we have recognized liabilities for these contingent obligations
based on their estimated fair value at the date of acquisition
with any differences between the acquisition-date fair value and
the ultimate settlement of the obligations being recognized as
an adjustment to income from operations. For acquisitions
completed before 2009, these obligations were recognized as
incurred and accounted for as an adjustment to the initial
purchase price of the acquired assets.
Assumed Assets and Liabilities — Assets and
liabilities arising from contingencies such as pre-acquisition
environmental matters and litigation are recognized at their
acquisition-date fair value when their respective fair values
can be determined. If the fair values of such contingencies
cannot be determined, they are recognized at the acquisition
date if the contingencies are probable and an amount can be
reasonably estimated. Acquisition-date fair value estimates are
revised as necessary if, and when, additional information
regarding these contingencies becomes available to further
define and quantify assets acquired and liabilities assumed.
Beginning in 2009, all acquisition-related transaction costs
have been expensed as incurred. For acquisitions completed
before 2009, direct costs incurred for a business combination
were accounted for as part of the cost of the acquired business.
Goodwill
and Other Intangible Assets
Goodwill is the excess of our purchase cost over the fair value
of the net assets of acquired businesses. We do not amortize
goodwill, but as discussed in the “Asset impairments”
section below, we assess our goodwill for impairment at least
annually.
Other intangible assets consist primarily of customer contracts,
customer lists, covenants
not-to-compete,
licenses, permits (other than landfill permits, as all
landfill-related intangible assets are combined with landfill
tangible assets and amortized using our landfill amortization
policy), and other contracts. Other intangible assets are
recorded at cost and are amortized using either a 150% declining
balance approach or a straight-line basis as we determine
appropriate. Customer contracts and customer lists are generally
amortized over seven to ten years. Covenants
not-to-compete
are amortized over the term of the non-compete covenant, which
is generally two to five years. Licenses, permits and other
contracts are amortized over the definitive terms of the related
agreements. If the underlying agreement does not contain
definitive terms and the useful life is determined to be
indefinite, the asset is not amortized.
Asset
Impairments
We monitor the carrying value of our long-lived assets for
potential impairment and test the recoverability of such assets
whenever events or changes in circumstances indicate that their
carrying amounts may not be recoverable. These events or changes
in circumstances are referred to as impairment indicators. If an
impairment indicator occurs, , we perform a test of
recoverability by comparing the carrying value of the asset or
asset group to its undiscounted expected future cash flows. If
cash flows cannot be separately and independently identified for
a single asset, we will determine whether an impairment has
occurred for the group of assets for which we can identify the
projected cash flows. If the carrying values are in excess of
undiscounted expected future cash flows, we
measure any impairment by comparing the fair value of the asset
or asset group to its carrying value. Fair value is generally
determined by considering (i) internally developed
discounted projected cash flow analysis of the asset or asset
group; (ii) actual third-party valuations;
and/or
(iii) information available regarding the current market
for similar assets. If the fair value of an asset or asset group
is determined to be less than the carrying amount of the asset
or asset group, an impairment in the amount of the difference is
recorded in the period that the impairment indicator occurs and
is included in the “(Income) expense from divestitures,
asset impairments and unusual items” line item in our
Consolidated Statement of Operations. Estimating future cash
flows requires significant judgment and projections may vary
from the cash flows eventually realized, which could impact our
ability to accurately assess whether an asset has been impaired.
There are additional considerations for impairments of landfills
and goodwill, as described below.
Landfills — Certain impairment indicators
require significant judgment and understanding of the waste
industry when applied to landfill development or expansion
projects. For example, a regulator may initially deny a landfill
expansion permit application though the expansion permit is
ultimately granted. In addition, management may periodically
divert waste from one landfill to another to conserve remaining
permitted landfill airspace. Therefore, certain events could
occur in the ordinary course of business and not necessarily be
considered indicators of impairment of our landfill assets due
to the unique nature of the waste industry.
Goodwill — At least annually, we assess whether
goodwill is impaired. We assess whether an impairment exists by
comparing the fair value of each operating segment to its
carrying value, including goodwill. We use a combination of two
valuation methods, a market approach and an income approach, to
estimate the fair value of our operating segments. Fair value
computed by these two methods is arrived at using a number of
factors, including projected future operating results, economic
projections, anticipated future cash flows, comparable
marketplace data and the cost of capital. There are inherent
uncertainties related to these factors and to our judgment in
applying them to this analysis. However, we believe that these
two methods provide a reasonable approach to estimating the fair
value of our operating segments.
The market approach estimates fair value by measuring the
aggregate market value of publicly-traded companies with similar
characteristics of our business as a multiple of their reported
cash flows. We then apply that multiple to our operating
segment’s cash flows to estimate their fair value. We
believe that this approach is appropriate because it provides a
fair value estimate using valuation inputs from entities with
operations and economic characteristics comparable to our
operating segments.
The income approach is based on the long-term projected future
cash flows of our operating segments. We discount the estimated
cash flows to present value using a weighted-average cost of
capital that considers factors such as the timing of the cash
flows and the risks inherent in those cash flows. We believe
that this approach is appropriate because it provides a fair
value estimate based upon our operating segments’ expected
long-term performance considering the economic and market
conditions that generally affect our business.
Additional impairment assessments may be performed on an interim
basis if we encounter events or changes in circumstances that
would indicate that, more likely than not, the carrying value of
goodwill has been impaired. Refer to Note 6 for additional
information related to goodwill impairment considerations made
during the reported periods.
Restricted
Trust and Escrow Accounts
As of December 31, 2009, our restricted trust and escrow
accounts consist principally of (i) funds deposited for
purposes of settling landfill closure, post-closure and
environmental remediation obligations; and (ii) funds
received from the issuance of tax-exempt bonds held in trust for
the construction of various projects or facilities. As of
December 31, 2009 and 2008, we had $306 million and
$381 million, respectively, of restricted trust and escrow
accounts, which are primarily included in long-term “Other
assets” in our Consolidated Balance Sheets.
Closure, Post-Closure and Environmental Remediation
Funds — At several of our landfills, we provide
financial assurance by depositing cash into restricted trust
funds or escrow accounts for purposes of settling closure,
post-closure and environmental remediation obligations. Balances
maintained in these trust funds and escrow accounts will
fluctuate based on (i) changes in statutory requirements;
(ii) future deposits made to comply with contractual
arrangements; (iii) the ongoing use of funds for qualifying
closure, post-closure and environmental remediation activities;
(iv) acquisitions or divestitures of landfills; and
(v) changes in the fair value of the financial instruments
held in the trust fund or escrow accounts.
Tax-Exempt Bond Funds — We obtain funds from
the issuance of industrial revenue bonds for the construction of
collection and disposal facilities and for equipment necessary
to provide waste management services. Proceeds from these
arrangements are directly deposited into trust accounts, and we
do not have the ability to use the funds in regular operating
activities. Accordingly, these borrowings are excluded from
financing activities in our Consolidated Statements of Cash
Flows. At the time our construction and equipment expenditures
have been documented and approved by the applicable bond
trustee, the funds are released and we receive cash. These
amounts are reported in the Consolidated Statements of Cash
Flows as an investing activity when the cash is released from
the trust funds. Generally, the funds are fully expended within
a few years of the debt issuance. When the debt matures, we
repay our obligation with cash on hand and the debt repayments
are included as a financing activity in the Consolidated
Statements of Cash Flows.
Foreign
Currency
We have operations in Canada. The functional currency of our
Canadian subsidiaries is Canadian dollars. The assets and
liabilities of our foreign operations are translated to
U.S. dollars using the exchange rate at the balance sheet
date. Revenues and expenses are translated to U.S. dollars
using the average exchange rate during the period. The resulting
translation difference is reflected as a component of
comprehensive income.
Derivative
Financial Instruments
We primarily use derivative financial instruments to manage our
risk associated with fluctuations in interest rates and foreign
currency exchange rates. We use interest rate swaps to maintain
a strategic portion of our long-term debt obligations at
variable, market-driven interest rates. In 2009, we entered into
interest rate derivatives in anticipation of senior note
issuances planned for 2010 through 2014 to effectively lock in a
fixed interest rate for those anticipated issuances. Foreign
currency exchange rate derivatives are used to hedge our
exposure to changes in exchange rates for anticipated cash
transactions between WM Holdings and its Canadian
subsidiaries.
We obtain current valuations of our interest rate and foreign
currency hedging instruments from third-party pricing models.
The estimated fair values of derivatives used to hedge risks
fluctuate over time and should be viewed in relation to the
underlying hedged transaction and the overall management of our
exposure to fluctuations in the underlying risks. The fair value
of derivatives is included in other current assets, other
long-term assets, accrued liabilities or other long-term
liabilities, as appropriate. Any ineffectiveness present in
either fair value or cash flow hedges is recognized immediately
in earnings without offset. There was no significant
ineffectiveness in 2009, 2008 or 2007.
Self-Insurance
Reserves and Recoveries
We have retained a significant portion of the risks related to
our health and welfare, automobile, general liability and
workers’ compensation insurance programs. The exposure for
unpaid claims and associated expenses, including incurred but
not reported losses, generally is estimated with the assistance
of external actuaries and by factoring in pending claims and
historical trends and data. The gross estimated liability
associated with settling unpaid claims is included in
“Accrued liabilities” in our Consolidated Balance
Sheets if expected to be settled within one year, or otherwise
is included in long-term “Other liabilities.”
Estimated insurance recoveries related to recorded liabilities
are reflected as current “Other receivables” or
long-term “Other assets” in our Consolidated Balance
Sheets when we believe that the receipt of such amounts is
probable.
Revenue
Recognition
Our revenues are generated from the fees we charge for waste
collection, transfer, disposal and recycling services and the
sale of recycled commodities, electricity and steam. The fees
charged for our services are generally defined in our service
agreements and vary based on contract-specific terms such as
frequency of service, weight, volume and the general market
factors influencing a region’s rates. The fees we charge
for our services generally include fuel surcharges, which are
intended to pass through increased direct and indirect costs
incurred because of changes in market prices for fuel. We
generally recognize revenue as services are performed or
products are delivered. For example, revenue typically is
recognized as waste is collected, tons are received at our
landfills or transfer stations, recycling commodities are
delivered or as kilowatts are delivered to a customer by a
waste-to-energy
facility or independent power production plant.
We bill for certain services prior to performance. Such services
include, among others, certain residential contracts that are
billed on a quarterly basis and equipment rentals. These advance
billings are included in deferred revenues and recognized as
revenue in the period service is provided.
Capitalized
Interest
We capitalize interest on certain projects under development,
including internal-use software and landfill expansion projects,
and on certain assets under construction, including operating
landfills and
waste-to-energy
facilities. During 2009, 2008 and 2007, total interest costs
were $443 million, $472 million, and
$543 million, respectively, of which $17 million for
2009, $17 million for 2008, and $22 million for 2007,
were capitalized, primarily for landfill construction costs. The
capitalization of interest for operating landfills is based on
the costs incurred in the pursuit of probable landfill
expansions and on discrete landfill cell construction projects
that are expected to exceed $500,000 and require over
60 days to construct. In addition to the direct cost of the
cell construction project, the calculation of capitalized
interest includes an allocated portion of the common landfill
site costs. The common landfill site costs include the
development costs of a landfill project or the purchase price of
an operating landfill, and the ongoing infrastructure costs
benefiting the landfill over its useful life. These costs are
amortized to expense in a manner consistent with other landfill
site costs.
Income
Taxes
The Company is subject to income tax in the United States,
Canada and Puerto Rico. Current tax obligations associated with
our provision for income taxes are reflected in the accompanying
Consolidated Balance Sheets as a component of “Accrued
liabilities,” and the deferred tax obligations are
reflected in “Deferred income taxes.”
Deferred income taxes are based on the difference between the
financial reporting and tax basis of assets and liabilities. The
deferred income tax provision represents the change during the
reporting period in the deferred tax assets and deferred tax
liabilities, net of the effect of acquisitions and dispositions.
Deferred tax assets include tax loss and credit carry-forwards
and are reduced by a valuation allowance if, based on available
evidence, it is more likely than not that some portion or all of
the deferred tax assets will not be realized. Significant
judgment is required in assessing the timing and amounts of
deductible and taxable items. We establish reserves when,
despite our belief that our tax return positions are fully
supportable, we believe that certain positions may be challenged
and potentially disallowed. When facts and circumstances change,
we adjust these reserves through our provision for income taxes.
To the extent interest and penalties may be assessed by taxing
authorities on any underpayment of income tax, such amounts have
been accrued and are classified as a component of income tax
expense in our Consolidated Statements of Operations.
Contingent
Liabilities
We estimate the amount of potential exposure we may have with
respect to claims, assessments and litigation in accordance with
accounting principles generally accepted in the United States.
We are party to pending or threatened legal proceedings covering
a wide range of matters in various jurisdictions. It is not
always possible to predict the outcome of litigation, as it is
subject to many uncertainties. Additionally, it is not always
possible for management to make a meaningful estimate of the
potential loss or range of loss associated with such
contingencies.
Supplemental
Cash Flow Information
Non-cash investing and financing activities are excluded from
the Consolidated Statements of Cash Flows. For the years ended
December 31, 2009, 2008 and 2007, non-cash activities
included proceeds from tax-exempt borrowings, net of principal
payments made directly from trust funds, of $105 million,
$169 million and $144 million, respectively.
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This element may be used to describe all significant accounting policies of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Landfill and Environmental Remediation Liabilities
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Dec. 31, 2009
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Landfill and Environmental Remediation Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Landfill and Environmental Remediation Liabilities |
Liabilities for landfill and environmental remediation costs are
presented in the table below (in millions):
The changes to landfill and environmental remediation
liabilities for the years ended December 31, 2008 and 2009
are reflected in the table below (in millions):
Our recorded liabilities as of December 31, 2009 include
the impacts of inflating certain of these costs based on our
expectations for the timing of cash settlement and of
discounting certain of these costs to present value. Anticipated
payments of currently identified environmental remediation
liabilities as measured in current dollars are $41 million
in 2010; $36 million in 2011; $23 million in 2012;
$17 million in 2013; $14 million in 2014; and
$146 million thereafter.
At several of our landfills, we provide financial assurance by
depositing cash into restricted trust funds or escrow accounts
for purposes of settling closure, post-closure and environmental
remediation obligations. The fair value of these escrow accounts
and trust funds was $231 million at December 31, 2009
and $213 million at December 31, 2008, and is
primarily included as long-term “Other assets” in our
Consolidated Balance Sheets.
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- Definition
Description of the asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees. This element may be used for all the disclosures related to asset retirement obligations. Disclosures of environmental loss contingencies, such as presence of hazardous waste, relevant information from reports issued by regulators, and estimated costs to achieve compliance with regulatory requirements. This element may be used for all of an entity's disclosures about environmental loss contingencies. This element may be used as a single block of text to encapsulate the entire inventory disclosure including data and tables. No definition available.
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Property and Equipment
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Dec. 31, 2009
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Property and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment |
Property and equipment at December 31 consisted of the following
(in millions):
Depreciation and amortization expense, including amortization
expense for assets recorded as capital leases, was comprised of
the following for the years ended December 31 (in millions):
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Disclosure of long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, building and production equipment. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures. This element may be used as a single block of text to include the entire PPE disclosure, including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Goodwill and Other Intangible Assets
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Dec. 31, 2009
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Goodwill and Other Intangible Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets |
Goodwill was $5,632 million as of December 31, 2009
compared with $5,462 million as of December 31, 2008.
The $170 million increase in our goodwill during 2009 was
primarily related to consideration paid for acquisitions in
excess of net assets acquired of $125 million and
accounting for foreign currency translation.
We incurred no impairment of goodwill as a result of our annual,
fourth quarter goodwill impairment tests in 2009, 2008 or 2007.
Additionally, we did not encounter any events or changes in
circumstances that indicated that an impairment was more likely
than not during interim periods in 2009, 2008 or 2007. However,
there can be no assurance that goodwill will not be impaired at
any time in the future.
As previously disclosed, in late 2008, there was a rapid and
sharp decline in recyclable commodity prices due to a
significant decrease in demand for recyclable commodities, both
domestically and internationally. This significant shift in
recycling market conditions was analyzed for purposes of our
2008 annual goodwill impairment test, although no impairment was
required. Consistent with our expectations, the unprecedented
declines in recyclable commodity prices and demand experienced
during late 2008 and early 2009 were temporary in nature.
Accordingly, we believe that the estimates and assumptions made
with respect to the fair value of our recycling operations for
our annual goodwill impairment tests in 2008 and 2009
appropriately considered the effects of commodity risks on this
business.
Our other intangible assets as of December 31, 2009 and
2008 were comprised of the following (in millions):
Additional information related to intangible assets acquired
through 2009 business combinations is included in Note 19.
Amortization expense for other intangible assets was
$29 million for 2009, $24 million for 2008 and
$23 million for 2007. At December 31, 2009, we had
$40 million of intangible assets that are not subject to
amortization, which are primarily operating permits that do not
have stated expirations or that have routine, administrative
renewal processes. The intangible asset amortization expense
estimated as of December 31, 2009 is $34 million in
2010; $30 million in 2011; $28 million in 2012;
$23 million in 2013; and $18 million in 2014.
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- Definition
Discloses the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain or loss on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. This element may be used as a single block of text to include the entire intangible asset disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Debt
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Dec. 31, 2009
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Debt [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt |
The following table summarizes the major components of debt at
December 31 (in millions) and provides the maturities and
interest rates of each major category as of December 31,
2009:
Debt
Classification
As of December 31, 2009, we had (i) $998 million
of debt maturing within twelve months, consisting primarily of
U.S.$255 million under our Canadian credit facility and
$600 million of 7.375% senior notes that mature in
August 2010; and (ii) $767 million of fixed-rate
tax-exempt borrowings subject to re-pricing within the next
twelve months. Under accounting principles generally accepted in
the United States, this $1,765 million of debt must be
classified as current unless we have the intent and ability to
refinance it on a long-term basis. As discussed below, as of
December 31, 2009, we had the intent and ability to
refinance $1,016 million of this debt on a long-term basis.
We have classified the remaining $749 million as current
obligations as of December 31, 2009.
All of the borrowings outstanding under the Canadian credit
facility mature less than one year from the date of issuance,
but may be renewed under the terms of the facility, which
matures in November 2012. As of December 31, 2009, we
intend to repay U.S.$57 million of the outstanding
borrowings under the facility with available cash during the
next twelve months and refinance the remaining balance under the
terms of the facility. As a result, as of December 31,
2009, U.S.$198 million of advances under the facility were
classified as long-term based on our intent and ability to
refinance the obligations on a long-term basis under the terms
of the facility.
Additionally, we have classified the $767 million of
tax-exempt bonds subject to re-pricing within twelve months as
long-term as of December 31, 2009 based on our intent and
ability to refinance any failed re-pricings using our
$2.4 billion revolving credit facility. Although we also
intend to refinance the $600 million of senior notes
maturing in August 2010 on a long-term basis, an aggregate of
$1,578 million of capacity under our revolving credit
facility is currently utilized to support outstanding letters of
credit and we currently forecast available capacity under the
facility during the next twelve months to be $4 million
less than the current available capacity. After giving effect to
these items, only $51 million of capacity is forecasted to
be available under the revolving credit facility, giving us the
ability to classify only $51 million of the August 2010
maturity as long-term as of December 31, 2009.
As of December 31, 2009, we also have $771 million of
variable-rate tax-exempt bonds and $46 million of
variable-rate tax-exempt project bonds. The interest rates on
these bonds are reset on either a daily or weekly basis through
a remarketing process. If the remarketing agent is unable to
remarket the bonds, then the remarketing agent can put the bonds
to us. These bonds are supported by letters of credit
guaranteeing repayment of the bonds in this event. We classified
these borrowings as long-term in our Consolidated Balance Sheet
at December 31, 2009 because the borrowings are supported
by letters of credit issued under our five-year revolving credit
facility, which is long-term.
Access
to and Utilization of Credit Facilities
Revolving Credit Facility — In August 2006, WMI
entered into a five-year, $2.4 billion revolving credit
facility. This facility provides us with credit capacity to be
used for either cash borrowings or to support letters of credit.
At December 31, 2009, we had no outstanding borrowings and
$1,578 million of letters of credit issued and supported by
the facility. The unused and available credit capacity of the
facility was $822 million as of December 31, 2009.
The $300 million of outstanding borrowings at
December 31, 2008 was repaid in the first quarter of 2009
with proceeds from the February 2009 issuance of senior notes
discussed below.
Letter of Credit Facilities — As of
December 31, 2009, we have a $175 million letter of
credit facility that expires in June 2010, a $105 million
letter of credit facility that expires in June 2013 and a
$100 million letter of credit facility that expires in
December 2014. These facilities are currently being used to back
letters of credit issued to support our bonding and financial
assurance needs. Our letters of credit generally have terms
providing for automatic renewal after one year. In the event of
an unreimbursed draw on a letter of credit, the amount of the
draw paid by the letter of credit provider generally converts
into a term loan for the remaining term of the respective
facility. Through December 31, 2009, we had not experienced
any unreimbursed draws on letters of credit under these
facilities.
As of December 31, 2009, no borrowings were outstanding
under these letter of credit facilities, and we had unused and
available credit capacity of $9 million.
Canadian Credit Facility — In November 2005,
Waste Management of Canada Corporation, one of our wholly-owned
subsidiaries, entered into a three-year credit facility
agreement with an initial credit capacity of up to
C$410 million. The agreement was entered into to facilitate
WMI’s repatriation of accumulated earnings and capital from
its Canadian subsidiaries. In December 2007, we amended the
agreement, increasing the available capacity, which had been
reduced to C$305 million due to debt repayments, to
C$340 million. The amendment also extended the maturity
date of the facility to November 2012 and added an uncommitted
option to increase the capacity by an additional
C$25 million.
As of December 31, 2009, we had U.S.$257 million of
principal (U.S.$255 million net of discount) outstanding
under this credit facility. Advances under the facility do not
accrue interest during their terms. Accordingly, the proceeds we
initially received were for the principal amount of the advances
net of the total interest obligation due for the term of the
advance, and the debt was initially recorded based on the net
proceeds received. The advances have a weighted average
effective interest rate of 1.3% at December 31, 2009, which
is being amortized to interest expense with a corresponding
increase in our recorded debt obligation using the effective
interest method. During the year ended December 31, 2009,
we increased the carrying value of the debt for the recognition
of U.S.$6 million of interest expense. A total of
U.S.$31 million of advances under the facility matured
during 2009 and were repaid with available cash. Accounting for
changes in the Canadian currency translation rate increased the
carrying value of these borrowings by U.S.$38 million
during 2009.
Debt
Borrowings and Repayments
Senior Notes — In February 2009, we issued
$350 million of 6.375% senior notes due March 2015 and
$450 million of 7.375% senior notes due March 2019.
The net proceeds from the debt issuance were $793 million.
A portion of the proceeds was used to repay $300 million of
outstanding borrowings under the revolving credit facility and
the remaining proceeds were used in repaying $500 million
of 6.875% senior notes that matured in May 2009.
In November 2009, we issued $600 million of
6.125% senior notes due in November 2039. The net proceeds
from the debt issuance were $592 million. We intend to use
a portion of the proceeds to fund our anticipated purchase of a
40% equity investment in Shanghai Environment Group for
approximately $140 million, as discussed in Note 11.
We are actively pursuing other acquisitions and investment
opportunities in our waste-to energy and solid waste businesses
and expect to spend up to an additional $350 million over
the next six months from the proceeds of this offering on such
acquisitions and investments. All remaining proceeds will be
used for general corporate purposes. Pending application of the
offering proceeds as described, we have temporarily invested the
proceeds in money market funds, which are reflected as cash
equivalents in our December 31, 2009 Consolidated Balance
Sheet.
The remaining change in the carrying value of our senior notes
from December 31, 2008 to December 31, 2009 is due to
accounting for our
fixed-to-floating
interest rate swap agreements, which are accounted for as fair
value hedges resulting in all fair value adjustments being
reflected as a component of the carrying value of the underlying
debt. For additional information regarding our interest rate
derivatives, refer to Note 8.
Tax-Exempt Bonds — We actively issue tax-exempt
bonds as a means of accessing low-cost financing for capital
expenditures. We issued $130 million of tax-exempt bonds
during 2009. The proceeds from these debt issuances may only be
used for the specific purpose for which the money was raised,
which is generally to finance expenditures for landfill
construction and development, equipment, vehicles and facilities
in support of our operations. Proceeds from bond issues are held
in trust until such time as we incur qualified expenditures, at
which time we are reimbursed from the trust funds. During the
year ended December 31, 2009, $65 million of our
tax-exempt bonds were repaid with available cash.
Tax-Exempt Project Bonds — Tax-exempt project
bonds have been used by our Wheelabrator Group to finance the
development of
waste-to-energy
facilities. These facilities are integral to the local
communities they serve, and, as such, are supported by long-term
contracts with multiple municipalities. The bonds generally have
periodic amortizations that are supported by the cash flow of
each specific facility being financed. During the year ended
December 31, 2009, we repaid $64 million of our
tax-exempt project bonds with either available cash or debt
service funds.
Capital Leases and Other — The decrease in our
capital leases and other debt obligations in 2009 is primarily
related to the repayment of various borrowings upon their
scheduled maturities.
Scheduled Debt and Capital Lease Payments —
Scheduled debt and capital lease payments for the next five
years are as follows: $985 million in 2010;
$259 million in 2011; $584 million in 2012;
$174 million in 2013; and $430 million in 2014. Our
recorded debt and capital lease obligations include non-cash
adjustments associated with discounts, premiums and fair value
adjustments for interest rate hedging activities, which have
been excluded from these amounts because they will not result in
cash payments.
Secured
Debt
Our debt balances are generally unsecured, except for
$70 million of the tax-exempt project bonds outstanding at
December 31, 2009 that were issued by certain subsidiaries
within our Wheelabrator Group. These bonds are secured by the
related subsidiaries’ assets that have a carrying value of
$301 million and the related subsidiaries’ future
revenue.
Debt
Covenants
Our revolving credit facility and certain other financing
agreements contain financial covenants. The most restrictive of
these financial covenants are contained in our revolving credit
facility. The following table summarizes the requirements of
these financial covenants and the results of the calculation, as
defined by the revolving credit facility:
Our revolving credit facility and senior notes also contain
certain restrictions intended to monitor our level of
indebtedness, types of investments and net worth. We monitor our
compliance with these restrictions, but do not believe that they
significantly impact our ability to enter into investing or
financing arrangements typical for our business. As of
December 31, 2009, we were in compliance with the covenants
and restrictions under all of our debt agreements.
|
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- Definition
Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Interest Rate and Foreign Currency Derivatives
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Dec. 31, 2009
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Interest Rate and Foreign Currency Derivatives [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate and Foreign Currency Derivatives |
The following table summarizes the fair values of derivative
instruments recorded in our Consolidated Balance Sheets as of
December 31, 2009 (in millions):
The following table summarizes the fair values of derivative
instruments recorded in our Consolidated Balance Sheets as of
December 31, 2008 (in millions):
For information related to the methods used to measure our
derivative assets and liabilities at fair value, refer to
Note 18.
Interest
Rate Derivatives
Interest
Rate Swaps
We use interest rate swaps to maintain a portion of our debt
obligations at variable market interest rates. As of
December 31, 2009, we had approximately $5.4 billion
in fixed-rate senior notes outstanding. The interest payments on
$1.1 billion, or 20%, of these senior notes have been
swapped to variable interest rates to protect the debt against
changes in fair value due to changes in benchmark interest
rates. As of December 31, 2008, we had approximately
$4.5 billion in fixed-rate senior notes outstanding, of
which $2.0 billion, or 43%, had been swapped to variable
interest rates. The significant terms of our interest rate swap
agreements as of December 31, 2009 and 2008 are summarized
in the table below (in millions):
The decrease in the notional amount of our interest rate swaps
from December 31, 2008 to December 31, 2009 is due to
(i) the scheduled maturity of interest rate swaps with a
notional amount of $500 million in May 2009; and
(ii) our election to terminate interest rate swaps with a
notional amount of $350 million in December 2009. The
terminated interest rate swaps were scheduled to mature in
November 2012. Upon termination of the swaps, we received
$20 million in cash for their fair value plus accrued
interest receivable. The associated fair value adjustments to
long-term debt will be amortized as a reduction to interest
expense over the remaining term of the underlying debt using the
effective interest method. The cash proceeds received from our
termination of the swaps
have been classified as a change in other assets within
“Net cash provided by operating activities” in the
Consolidated Statement of Cash Flows.
We have designated our interest rate swaps as fair value hedges
of our fixed-rate senior notes. Fair value hedge accounting for
interest rate swap contracts increased the carrying value of
debt instruments by $91 million as of December 31,
2009 and $150 million as of December 31, 2008. The
following table summarizes the accumulated fair value
adjustments from interest rate swap agreements at December 31
(in millions):
Gains or losses on the derivatives as well as the offsetting
losses or gains on the hedged items attributable to our interest
rate swaps are recognized in current earnings. We include gains
and losses on our interest rate swaps as adjustments to interest
expense, which is the same financial statement line item where
offsetting gains and losses on the related hedged items are
recorded. The following table summarizes the impact of changes
in the fair value of our interest rate swaps and the underlying
hedged items on our results of operations (in millions):
We also recognize the impacts of (i) net periodic
settlements of current interest on our active interest rate
swaps and (ii) the amortization of previously terminated
interest rate swap agreements as adjustments to interest
expense. The following table summarizes the impact of periodic
settlements of active swap agreements and the impact of
terminated swap agreements on our results of operations (in
millions):
Treasury
Rate Locks
During the third quarter of 2009, we entered into Treasury rate
locks with a total notional value of $200 million to hedge
the risk of changes in semi-annual interest payments that are
expected for senior notes that the Company plans to issue late
in the second quarter of 2010. We have designated our Treasury
rate lock derivatives as cash flow hedges. As of
December 31, 2009, the fair value of these interest rate
derivatives is comprised of $4 million of current assets.
We recognized pre-tax and after-tax gains of $4 million and
$2 million, respectively, to other comprehensive income for
changes in their fair value during the year ended
December 31, 2009. There was no significant ineffectiveness
associated with these hedges during the year ended
December 31, 2009.
Our “Accumulated other comprehensive income” also
includes deferred losses, net of taxes, of $16 million as
of December 31, 2009 and $20 million as of
December 31, 2008 related to Treasury rate locks that had
been executed in previous years in anticipation of senior note
issuances. As these instruments also were designated as cash
flow hedges, the deferred losses are being reclassified to
earnings over the term of the hedged cash flows, which extend
through 2032. As of December 31, 2009, $7 million (on
a pre-tax basis) is scheduled to be reclassified into interest
expense over the next twelve months.
Forward-Starting
Interest Rate Swaps
The Company currently expects to issue fixed-rate debt in March
2011, November 2012 and March 2014 and has executed
forward-starting interest rate swaps for these anticipated debt
issuances with notional amounts of $150 million,
$200 million and $175 million, respectively. We
entered into the forward-starting interest rate swaps during the
fourth quarter of 2009 to hedge the risk of changes in the
anticipated semi-annual interest payments due to fluctuations in
the forward ten-year LIBOR swap rate. Each of the
forward-starting swaps has an effective date of the anticipated
date of debt issuance and a tenor of ten years.
We have designated our forward-starting interest rate swaps as
cash flow hedges. As of December 31, 2009, the fair value
of these interest rate derivatives is comprised of
$9 million of long-term assets. We recognized pre-tax and
after-tax gains of $9 million and $5 million,
respectively, to other comprehensive income for changes in the
fair value of our forward-starting interest rate swaps during
the year ended December 31, 2009. There was no significant
ineffectiveness associated with these hedges during the year
ended December 31, 2009.
Credit-Risk
Features
Certain of our interest rate derivative instruments contain
provisions related to the Company’s credit ratings. If the
Company’s credit rating were to fall below investment
grade, the counterparties have the ability to cancel the
derivative agreements and request immediate payment of any net
liability positions. We do not have any derivative instruments
with credit-risk-related contingent features that are in a net
liability position at December 31, 2009.
Foreign
Exchange Derivatives
We use foreign currency exchange rate derivatives to hedge our
exposure to changes in exchange rates for anticipated
intercompany cash transactions between WM Holdings and its
Canadian subsidiaries. As of December 31, 2009, we have
foreign currency forward contracts outstanding for all of our
anticipated cash flows associated with an outstanding debt
arrangement with these wholly-owned subsidiaries. The hedged
cash flows include C$370 million of principal payments,
which are scheduled for December 31, 2010, and
C$22 million of interest payments scheduled for
December 31, 2010. We have designated our foreign currency
derivatives as cash flow hedges.
Gains or losses on the derivatives and the offsetting losses or
gains on the hedged items attributable to foreign currency
exchange risk are recognized in current earnings. We include
gains and losses on our foreign currency forward contracts as
adjustments to other income and expense, which is the same
financial statement line item where offsetting gains and losses
on the related hedged items are recorded. The following table
summarizes the pre-
tax impacts of our foreign currency cash flow derivatives on our
results of operations and comprehensive income (in millions):
The above table represents the impacts of our foreign exchange
contracts on a pre-tax basis. Amounts reported in other
comprehensive income and accumulated other comprehensive income
are reported net of tax. Adjustments to other comprehensive
income for changes in the fair value of our foreign currency
cash flow hedges resulted in the recognition of an after-tax
loss of $28 million during the year ended December 31,
2009; an after-tax gain of $40 million during the year
ended December 31, 2008; and an after-tax loss of
$28 million during the year ended December 31, 2007.
Adjustments for the reclassification of gains or (losses) from
accumulated other comprehensive income into income were
$(28) million during the year ended December 31, 2009;
$44 million during the year ended December 31, 2008;
and $(34) million during the year ended December 31,
2007. There was no significant ineffectiveness associated with
these hedges during the years ended December 31, 2009, 2008
or 2007. Ineffectiveness has been included in other income and
expense during each of the reported periods.
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- Definition
This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Income Taxes
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Income Taxes |
Provision
for Income Taxes
Our “Provision for income taxes” consisted of the
following (in millions):
The U.S. federal statutory income tax rate is reconciled to
the effective rate as follows:
The comparability of our income taxes for the reported periods
has been significantly affected by variations in our income
before income taxes, tax audit settlements, changes in effective
state and Canadian statutory tax rates, utilization of state net
operating loss and credit carry-forwards, utilization of a
capital loss carry-back and non-conventional fuel tax credits.
For financial reporting purposes, income before income taxes
showing domestic and foreign sources was as follows (in
millions) for the years ended December 31, 2009, 2008 and
2007:
Tax Audit Settlements — The Company and its
subsidiaries file income tax returns in the United States and
Puerto Rico, as well as various state and local jurisdictions
and Canada. We are currently under audit by the IRS and from
time to time we are audited by other taxing authorities. Our
audits are in various stages of completion.
During 2009, we effectively settled an IRS audit for the 2008
tax year as well as various state tax audits. The settlement of
these tax audits resulted in a reduction to our “Provision
for income taxes” of $11 million, or $0.02 per diluted
share, for the year ended December 31, 2009.
During 2008, we settled IRS audits for the 2006 and 2007 tax
years as well as various state tax audits. In addition, we
settled Canadian audits for the tax years 2002 through 2005. The
settlement of these tax audits resulted in a reduction to our
“Provision for income taxes” of $26 million, or
$0.05 per diluted share, for the year ended December 31,
2008.
During 2007, we settled an IRS audit for the tax years 2004 and
2005 and various state tax audits, resulting in a reduction in
income tax expense of $40 million, or $0.08 per diluted
share. Our 2007 “Net income attributable to Waste
Management, Inc.” was also increased by $1 million due
to interest income recognized from audit settlements.
We are currently in the examination phase of an IRS audit for
the 2009 tax year and expect this audit to be completed within
the next 12 months. We participate in the IRS’s
Compliance Assurance Program, which means we work with the IRS
throughout the year in order to resolve any material issues
prior to the filing of our year-end
return. We are also currently undergoing audits by various state
and local jurisdictions that date back to 1999 and examinations
associated with Canada that date back to 1998.
Effective State Tax Rate Change — During 2009,
our current state tax rate increased from 6.0% to 6.25% and our
deferred state tax rate increased from 5.5% to 5.75%, resulting
in an increase to our provision for income taxes of
$3 million and $6 million, respectively. During 2008,
our current state tax rate increased from 5.5% to 6.0%,
resulting in an increase to our income taxes of $5 million.
The increases in these rates are primarily due to changes in
state law. The comparison of our effective state tax rate during
the reported periods has also been affected by
return-to-accrual
adjustments, which reduced our “Provision for income
taxes” in 2009, 2008 and 2007.
Canada Statutory Tax Rate Change — During 2009,
the provincial tax rates in Ontario were reduced, which resulted
in a $13 million tax benefit as a result of the revaluation
of the related deferred tax balances. In addition, during 2007,
the Canadian federal government enacted tax rate reductions,
which resulted in a $30 million tax benefit on the
revaluation of the related deferred tax balances. We did not
have any comparable adjustments during the year ended
December 31, 2008.
State Net Operating Loss and Credit
Carry-Forwards — During 2009 and 2008, we realized
state net operating loss and credit carry-forwards by reducing
related valuation allowances resulting in a reduction to our
“Provision for income taxes” for those periods of
$35 million and $3 million, respectively. No
corresponding benefit was recognized in 2007.
Capital Loss Carry-Back — During 2009, we
generated a capital loss from the liquidation of a foreign
subsidiary. We have determined that the capital loss can be
utilized to offset capital gains from 2006 and 2007, which
resulted in a reduction to our 2009 “Provision for income
taxes” of $65 million.
Non-Conventional Fuel Tax Credits — The
favorable impact of non-conventional fuel tax credits on our
2007 effective tax rate was derived from our investments in two
coal-based, synthetic fuel production facilities, which provided
$37 million of tax credits in 2007, and our landfill
gas-to-energy
projects, which provided $13 million of tax credits in
2007. The fuel generated from the facilities and our landfill
gas-to-energy
projects qualified for tax credits through 2007 under
Section 45K of the Internal Revenue Code.
Our noncontrolling interests in the coal-based synthetic fuel
production facilities resulted in the recognition of our
pro-rata share of the facilities’ losses, the amortization
of our investments, and additional expense associated with other
estimated obligations all being recorded as “Equity in net
losses of unconsolidated entities” within our Consolidated
Statements of Operations. In 2007, our equity in the net losses
of the facilities was $42 million and we recognized a tax
benefit associated with the losses and the associated tax
credits of $53 million.
Unremitted Earnings in Foreign Subsidiaries —
At December 31, 2009, remaining unremitted earnings in
foreign operations were approximately $550 million, which
are considered permanently invested and, therefore, no provision
for U.S. income taxes has been accrued for these unremitted
earnings.
Deferred
Tax Assets (Liabilities)
The components of the net deferred tax assets (liabilities) at
December 31 are as follows (in millions):
At December 31, 2009, we had $28 million of federal
net operating loss, or NOL, carry-forwards, $1.4 billion of
state NOL carry-forwards, and $12 million of Canadian NOL
carry-forwards. The federal and state NOL carry-forwards have
expiration dates through the year 2029. The Canadian NOL
carry-forwards are expected to be utilized in 2010. We also
realized a capital loss, $76 million of which is carried
forward and expires in 2014. In addition, we have
$39 million of state tax credit carry-forwards at
December 31, 2009.
We have established valuation allowances for uncertainties in
realizing the benefit of certain tax loss and credit
carry-forwards and other deferred tax assets. While we expect to
realize the deferred tax assets, net of the valuation
allowances, changes in estimates of future taxable income or in
tax laws may alter this expectation. The valuation allowance
increased $4 million in 2009. This was primarily due to an
increase of $26 million resulting from our capital loss
carry-forward, offset, in part, by a $24 million state tax
benefit due to a reduction in the valuation allowance related to
the expected utilization of state NOL and credit carry-forwards.
The remaining increase in our valuation allowance was due to
changes in our gross deferred tax assets due to changes in state
NOL and credit carry-forwards.
Liabilities
for Uncertain Tax Positions
A reconciliation of the beginning and ending amount of
unrecognized tax benefits, including accrued interest for 2009,
2008 and 2007 is as follows (in millions):
These liabilities are primarily included as a component of
long-term “Other liabilities” in our Consolidated
Balance Sheets because the Company generally does not anticipate
that settlement of the liabilities will require
payment of cash within the next twelve months. As of
December 31, 2009, $50 million of unrecognized tax
benefits, if recognized in future periods, would impact our
effective tax rate.
We recognize interest expense related to unrecognized tax
benefits in tax expense. During the years ended
December 31, 2009, 2008 and 2007 we recognized
approximately $4 million, $4 million and
$7 million, respectively, of such interest expense as a
component of our “Provision for income taxes.” We had
approximately $11 million and $9 million of accrued
interest in our Consolidated Balance Sheets as of
December 31, 2009 and 2008, respectively. We do not have
any accrued liabilities or expense for penalties related to
unrecognized tax benefits for the years ended December 31,
2009, 2008 and 2007.
We anticipate that approximately $20 million of liabilities
for unrecognized tax benefits, including accrued interest, and
$7 million of related deferred tax assets may be reversed
within the next 12 months. The anticipated reversals are
related to various federal and state tax items, none of which
are material, and are expected to result from audit settlements
or the expiration of the applicable statute of limitations
period.
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Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Employee Benefit Plans [Abstract] | |||||
Employee Benefit Plans |
Defined Contribution Plans — Our Waste
Management retirement savings plans are 401(k) plans that cover
employees, except those working subject to collective bargaining
agreements that do not allow for coverage under such plans.
Employees are generally eligible to participate in the plans
following a
90-day
waiting period after hire and may contribute as much as 25% of
their annual compensation, subject to annual contribution
limitations established by the IRS. Under our largest retirement
savings plan, we match, in cash, 100% of employee contributions
on the first 3% of their eligible compensation and match 50% of
employee contributions on the next 3% of their eligible
compensation, resulting in a maximum match of 4.5%. Both
employee and Company contributions vest immediately. Charges to
“Operating” and “Selling, general and
administrative” expenses for our defined contribution plans
were $50 million in 2009, $59 million in 2008 and
$54 million in 2007.
Defined Benefit Plans — Certain of the
Company’s subsidiaries sponsor pension plans that cover
employees not covered by the Savings Plan. These employees are
members of collective bargaining units. In addition,
Wheelabrator Technologies Inc., a wholly-owned subsidiary,
sponsors a pension plan for its former executives and former
Board members. As of December 31, 2009, the combined
benefit obligation of these pension plans was $69 million,
and the plans had $51 million of plan assets, resulting in
an unfunded benefit obligation for these plans of
$18 million.
In addition, Waste Management Holdings, Inc. and certain of its
subsidiaries provided post-retirement health care and other
benefits to eligible employees. In conjunction with our
acquisition of WM Holdings in July 1998, we limited
participation in these plans to participating retired employees
as of December 31, 1998. The unfunded benefit obligation
for these plans was $45 million at December 31, 2009.
Our accrued benefit liabilities for our defined benefit pension
and other post-retirement plans are $63 million as of
December 31, 2009 and are included as components of
“Accrued liabilities” and long-term “Other
liabilities” in our Consolidated Balance Sheet.
We are a participating employer in a number of trustee-managed
multi-employer, defined benefit pension plans for employees who
participate in collective bargaining agreements. Contributions
of $34 million in 2009, $35 million in 2008 and
$33 million in 2007 were charged to operations for our
subsidiaries’ ongoing participation in these defined
benefit plans. Our portion of the projected benefit obligation,
plan assets and unfunded liability of the multi-employer pension
plans are not material to our financial position. Specific
benefit levels provided by union pension plans are not
negotiated with or known by the employer contributors.
Based on our negotiations with collective bargaining units and
our review of the plans in which they participate, we may
negotiate for the complete or partial withdrawal from one or
more of these pension plans. If we elect to withdraw from these
plans, we may incur expenses associated with our obligations for
unfunded vested
benefits at the time of the withdrawal. As discussed in
Note 11, in 2009 and 2008, we recognized aggregate charges
of $9 million and $39 million, respectively, to
“Operating” expenses for the withdrawal of certain
bargaining units from multi-employer pension plans.
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Commitments and Contingencies |
Financial Instruments — We have obtained
letters of credit, performance bonds and insurance policies and
have established trust funds and issued financial guarantees to
support tax-exempt bonds, contracts, performance of landfill
closure and post-closure requirements, environmental
remediation, and other obligations.
Historically, our revolving credit facilities have been used to
obtain letters of credit to support our bonding and financial
assurance needs. We also have three letter of credit facilities
that were established to provide us with additional sources of
capacity from which we may obtain letters of credit. These
facilities are discussed further in Note 7. We obtain
surety bonds and insurance policies from an entity in which we
have a noncontrolling financial interest. We also obtain
insurance from a wholly-owned insurance company, the sole
business of which is to issue policies for the parent holding
company and its other subsidiaries, to secure such performance
obligations. In those instances where our use of financial
assurance from entities we own or have financial interests in is
not allowed, we generally have available alternative bonding
mechanisms.
Because virtually no claims have been made against the financial
instruments we use to support our obligations, and considering
our current financial position, management does not expect that
any claims against or draws on these instruments would have a
material adverse effect on our consolidated financial
statements. We have not experienced any unmanageable difficulty
in obtaining the required financial assurance instruments for
our current operations. In an ongoing effort to mitigate risks
of future cost increases and reductions in available capacity,
we continue to evaluate various options to access cost-effective
sources of financial assurance.
Insurance — We carry insurance coverage for
protection of our assets and operations from certain risks
including automobile liability, general liability, real and
personal property, workers’ compensation, directors’
and officers’ liability, pollution legal liability and
other coverages we believe are customary to the industry. Our
exposure to loss for insurance claims is generally limited to
the per incident deductible under the related insurance policy.
Our exposure, however, could increase if our insurers were
unable to meet their commitments on a timely basis.
We have retained a significant portion of the risks related to
our automobile, general liability and workers’ compensation
insurance programs. For our self-insured retentions, the
exposure for unpaid claims and associated expenses, including
incurred but not reported losses, is based on an actuarial
valuation and internal estimates. The estimated accruals for
these liabilities could be affected if future occurrences or
loss development significantly differ from the assumptions used.
As of December 31, 2009, our general liability insurance
program carried self-insurance exposures of up to
$2.5 million per incident and our workers’
compensation insurance program carried self-insurance exposures
of up to $5 million per incident. As of December 31,
2009, our auto liability insurance program included a
per-incident base deductible of $5 million, subject to
additional aggregate deductibles in the $5 million to
$10 million layer of $4.8 million. Self-insurance
claims reserves acquired as part of our acquisition of
WM Holdings in July 1998 were discounted at 3.75% at
December 31, 2009, 2.25% at December 31, 2008 and 4.0%
at December 31, 2007. The changes to our net insurance
liabilities for the three years ended December 31, 2009 are
summarized below (in millions):
For the 14 months ended January 1, 2000, we insured
certain risks, including auto, general liability and
workers’ compensation, with Reliance National Insurance
Company, whose parent filed for bankruptcy in June 2001. In
October 2001, the parent and certain of its subsidiaries,
including Reliance National Insurance Company, were placed in
liquidation. We believe that because of probable recoveries from
the liquidation, currently estimated to be $14 million, it
is unlikely that events relating to Reliance will have a
material adverse impact on our financial statements.
We do not expect the impact of any known casualty, property,
environmental or other contingency to have a material impact on
our financial condition, results of operations or cash flows.
Operating Leases — Rental expense for leased
properties was $114 million during both 2009 and 2008 and
$135 million during 2007. These amounts primarily include
rents under operating leases. Minimum contractual payments due
for our operating lease obligations are $88 million in
2010, $75 million in 2011, $72 million in 2012,
$58 million in 2013 and $47 million in 2014.
Our minimum contractual payments for lease agreements during
future periods is significantly less than current year rent
expense because our significant lease agreements at landfills
have variable terms based either on a percentage of revenue or a
rate per ton of waste received.
Purchase Commitment — We continue to focus on
the expansion of our
waste-to-energy
business and are actively pursuing various projects in the
United States and internationally. In August 2009, we entered
into an agreement to purchase a 40% equity investment in
Shanghai Environment Group (“SEG”), a subsidiary of
Shanghai Chengtou Holding, for approximately $140 million.
As a joint venture partner in SEG, we will participate in the
operation and management of
waste-to-energy
and other waste services in the Chinese market. SEG will also
focus on building new
waste-to-energy
facilities in China. The Ministry of Commerce of the
People’s Republic of China approved the transaction in
January 2010 and we currently expect the transaction to close
during the first half of 2010.
Other
Commitments
Our unconditional obligations are established in the ordinary
course of our business and are structured in a manner that
provides us with access to important resources at competitive,
market-driven rates. Our actual future obligations under these
outstanding agreements are generally quantity driven, and, as a
result, our associated financial obligations are not fixed as of
December 31, 2009. For these contracts, we have estimated
our future obligations based on the current market values of the
underlying products or services. Our estimated minimum
obligations for the above-described purchase obligations are
$166 million in 2010, $61 million in 2011,
$53 million in 2012, $31 million in 2013 and
$18 million in 2014. We currently expect the products and
services provided by these agreements to continue to meet the
needs of our ongoing operations. Therefore, we do not expect
these established arrangements to materially impact our future
financial position, results of operations or cash flows.
Guarantees — We have entered into the following
guarantee agreements associated with our operations:
We currently do not believe it is reasonably likely that we
would be called upon to perform under these guarantees and do
not believe that any of the obligations would have a material
effect on our financial position, results of operations and cash
flows.
Environmental Matters — A significant portion
of our operating costs and capital expenditures could be
characterized as costs of environmental protection, as we are
subject to an array of laws and regulations relating to the
protection of the environment. Under current laws and
regulations, we may have liabilities for environmental damage
caused by our operations, or for damage caused by conditions
that existed before we acquired a site. In addition to
remediation activity required by state or local authorities,
such liabilities include PRP investigations.
The costs associated with these liabilities can include
settlements, certain legal and consultant fees, as well as
incremental internal and external costs directly associated with
site investigation and
clean-up.
As of December 31, 2009, we had been notified that we are a
PRP in connection with 74 locations listed on the EPA’s
National Priorities List, or NPL. Of the 74 sites at which
claims have been made against us, 16 are sites we own. Each of
the NPL sites we own was initially developed by others as a
landfill disposal facility. At each of these facilities, we are
working in conjunction with the government to characterize or
remediate identified site problems, and we have either agreed
with other legally liable parties on an arrangement for sharing
the costs of remediation or are working toward a cost-sharing
agreement. We generally expect to receive any amounts due from
other participating parties at or near the time that we make the
remedial expenditures. The other 58 NPL sites, which we do not
own, are at various procedural stages under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980,
as amended, known as CERCLA or Superfund.
The majority of these proceedings involve allegations that
certain of our subsidiaries (or their predecessors) transported
hazardous substances to the sites, often prior to our
acquisition of these subsidiaries. CERCLA generally provides for
liability for those parties owning, operating, transporting to
or disposing at the sites. Proceedings arising under Superfund
typically involve numerous waste generators and other waste
transportation and disposal companies and seek to allocate or
recover costs associated with site investigation and
remediation, which costs could be substantial and could have a
material adverse effect on our consolidated financial
statements. At some of the sites at which we have been
identified as a PRP, our liability is well defined as a
consequence of a governmental decision and an agreement among
liable parties as to the share each will pay for implementing
that remedy. At other sites, where no remedy has been selected
or the liable parties have been unable to agree on an
appropriate allocation, our future costs are uncertain.
Litigation — In April 2002, two former
participants in the ERISA plans of Waste Management Holdings,
Inc., a wholly-owned subsidiary we acquired in 1998
(“WM Holdings”), filed a lawsuit in the
U.S. District Court for the District of Columbia in a case
entitled William S. Harris, et al. v. James E. Koenig,
et al. The lawsuit named as defendants WM Holdings; the
members of WM Holdings’ Board of Directors prior to
July 1998; the administrative and investment committees of
WM Holdings’ ERISA plans and their individual members;
WMI’s retirement savings plan; the investment committees of
WMI’s plan and its individual members; and State Street
Bank & Trust, the trustee and investment manager of
the ERISA plans. The lawsuit attempts to increase the recovery
of a class of ERISA plan participants based on allegations
related to both the events alleged in, and the settlements
relating to, the securities class action against
WM Holdings that was settled in 1998 and the securities
class action against WMI that was settled in 2001. The
defendants filed motions to dismiss the complaints on the
pleadings, and the Court granted in part and denied in part the
defendants’ motions in the first quarter of 2009. However,
in December 2009, the Court granted the plaintiffs’ motion
for leave to file a fourth amended complaint to overcome the
dismissal of certain complaints and motion for leave to file a
substitute fourth amended complaint to add two new claims. Each
of Mr. Pope, Mr. Rothmeier and Ms. San Juan
Cafferty, members of our Board of Directors, was a member of the
WM Holdings’ Board of Directors and therefore is a
named defendant in these actions, as is Mr. Simpson, our
Chief Financial Officer, by virtue of his membership on the WMI
ERISA plan Investment Committee at that time. All of the
defendants intend to continue to defend themselves vigorously.
There are two separate wage and hour lawsuits pending against
certain of our subsidiaries in California, each seeking class
certification. The actions were coordinated to proceed in
San Diego County. Both lawsuits make the same general
allegations that the defendants failed to comply with certain
California wage and hour laws, including allegedly failing to
provide meal and rest periods, and failing to properly pay
hourly and overtime wages. We deny the claims and intend to
continue to vigorously defend these matters. Given the inherent
uncertainties of litigation, the ultimate outcome cannot be
predicted at this time, nor can possible damages, if any, be
reasonably estimated. Similarly, a purported class action
lawsuit was filed against WMI in August 2008 in federal court in
Minnesota alleging that we violated the Fair Labor Standards
Act. The court in the Minnesota lawsuit denied the
plaintiffs’ motion for conditional class certification,
after which 33 separate lawsuits were filed in 32 states in
addition to
Minnesota, all pursuing the same claims contained in the class
action lawsuit, but on
state-by-state
bases. In December 2009, we reached a tentative settlement to
resolve all 33 lawsuits.
From time to time, we also are named as defendants in personal
injury and property damage lawsuits, including purported class
actions, on the basis of having owned, operated or transported
waste to a disposal facility that is alleged to have
contaminated the environment or, in certain cases, on the basis
of having conducted environmental remediation activities at
sites. Some of the lawsuits may seek to have us pay the costs of
monitoring of allegedly affected sites and health care
examinations of allegedly affected persons for a substantial
period of time even where no actual damage is proven. While we
believe we have meritorious defenses to these lawsuits, the
ultimate resolution is often substantially uncertain due to the
difficulty of determining the cause, extent and impact of
alleged contamination (which may have occurred over a long
period of time), the potential for successive groups of
complainants to emerge, the diversity of the individual
plaintiffs’ circumstances, and the potential contribution
or indemnification obligations of co-defendants or other third
parties, among other factors.
As a large company with operations across the United States and
Canada, we are subject to various proceedings, lawsuits,
disputes and claims arising in the ordinary course of our
business. Many of these actions raise complex factual and legal
issues and are subject to uncertainties. Actions filed against
us include commercial, customer, and employment-related claims,
including purported class action lawsuits related to our
customer service agreements and purported class actions
involving federal and state wage and hour and other laws. The
plaintiffs in some actions seek unspecified damages or
injunctive relief, or both. These actions are in various
procedural stages, and some are covered in part by insurance. We
currently do not believe that any such actions will ultimately
have a material adverse impact on our consolidated financial
statements.
WMI’s charter and bylaws require indemnification of its
officers and directors if statutory standards of conduct have
been met and allow the advancement of expenses to these
individuals upon receipt of an undertaking by the individuals to
repay all expenses if it is ultimately determined that they did
not meet the required standards of conduct. Additionally, WMI
has entered into separate indemnification agreements with each
of the members of its Board of Directors as well as its Chief
Executive Officer, its President and its Chief Financial
Officer. The Company may incur substantial expenses in
connection with the fulfillment of its advancement of costs and
indemnification obligations in connection with current actions
involving former officers of the Company or its subsidiaries,
including the Harris lawsuit mentioned above, or other
actions or proceedings that may be brought against its former or
current officers, directors and employees.
On March 20, 2008, we filed a lawsuit in state district
court in Harris County, Texas against SAP AG and SAP America,
Inc., alleging fraud and breach of contract. The lawsuit relates
to our 2005 software license from SAP for a waste and recycling
revenue management system and agreement for SAP to implement the
software on a fixed-fee basis. We have alleged (i) that SAP
demonstrated and sold software that SAP represented was a
mature,
“out-of-the-box”
software solution that met the specific business requirements of
the Company; (ii) that SAP represented no production,
modification or customization would be necessary; and
(iii) that SAP represented the software would be fully
implemented throughout the Company in 18 months. We are
vigorously pursuing all claims available, including recovery of
all payments we have made, costs we have incurred and the
benefits we have not realized. SAP filed a general denial to the
suit. Discovery is ongoing and trial is currently scheduled for
May 2010.
During the first quarter of 2009, we determined to enhance and
improve our existing revenue management system and not pursue
alternatives associated with the development and implementation
of a revenue management system that would include the licensed
SAP software. Accordingly, after careful consideration of the
failures and immaturity of the SAP software, we determined to
abandon any alternative that includes the use of the SAP
software. Our determination to abandon the SAP software resulted
in non-cash impairment charges of $51 million. Refer to
Note 13 for additional information related to the
impairment charge.
Item 103 of the SEC’s
Regulation S-K
requires disclosure of certain environmental matters when a
governmental authority is a party to the proceedings and the
proceedings involve potential monetary sanctions that we
reasonably believe could exceed $100,000. The following matter
pending as of December 31, 2009 is disclosed in accordance
with that requirement:
On April 4, 2006, the EPA issued a Finding and Notice of
Violation (“FNOV”) to Waste Management of Hawaii,
Inc., an indirect wholly-owned subsidiary of WMI, and to the
City and County of Honolulu for alleged violations of the
federal Clean Air Act, based on alleged failure to submit
certain reports and design plans required by the EPA, and the
failure to begin and timely complete the installation of a gas
collection and control system for the Waimanalo Gulch Sanitary
Landfill on Oahu. The FNOV did not propose a penalty amount and
the parties have been in confidential settlement negotiations.
Pursuant to an indemnity agreement, any penalty assessed will be
paid by the Company, and not by the City and County of Honolulu.
Multi-Employer, Defined Benefit Pension Plans —
Over 20% of our workforce is covered by collective bargaining
agreements, which are with various union locals across the
United States. As a result of some of these agreements, certain
of our subsidiaries are participating employers in a number of
trustee-managed multi-employer, defined benefit pension plans
for the affected employees. One of the most significant
multi-employer pension plans in which we participate is the
Central States Southeast and Southwest Areas Pension Plan
(“Central States Pension Plan”), which has reported
that it adopted a rehabilitation plan as a result of its
actuarial certification for the plan year beginning
January 1, 2008. The Central States Pension Plan is in
“critical status,” as defined by the Pension
Protection Act of 2006.
In connection with our ongoing re-negotiation of various
collective bargaining agreements, we may discuss and negotiate
for the complete or partial withdrawal from one or more of these
pension plans. In 2008, we recognized an aggregate charge of
$39 million to “Operating” expenses for the
withdrawal of certain bargaining units from multi-employer
pension plans, including a $35 million charge resulting
from our partial withdrawal from the Central States Pension
Plan. In 2009, we recognized an additional charge of
$9 million to “Operating” expenses for the
withdrawal of certain bargaining units in the East from
multi-employer pension plans. We do not believe that our
withdrawals from the multi-employer plans, individually or in
the aggregate, would have a material adverse effect on our
financial condition or liquidity. However, withdrawals of other
bargaining units in the future could have a material adverse
effect on our results of operations for the period in which any
such withdrawals may be recorded.
Tax Matters — During 2009, we effectively
settled our 2008 federal tax audit and various state tax audits
resulting in a tax benefit of $11 million. We are currently
in the examination phase of an IRS audit for the 2009 tax year
and expect this audit to be completed within the next
12 months. We participate in the IRS’s Compliance
Assurance Program, which means we work with the IRS throughout
the year in order to resolve any material issues prior to the
filing of our year-end tax return. We are also currently
undergoing audits by various state and local jurisdictions that
date back to 1999 and examinations associated with Canada that
date back to 1998. To provide for certain potential tax
exposures, we maintain a liability for unrecognized tax
benefits, 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.
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- Definition
Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Restructuring
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Dec. 31, 2009
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Restructuring [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring |
2009 Restructuring — In January 2009, we took
steps to further streamline our organization by
(i) consolidating our Market Areas; (ii) integrating
the management of our recycling operations with our other solid
waste business; and (iii) realigning our Corporate
organization with this new structure in order to provide support
functions more efficiently.
Our principal operations are managed through our Groups, which
are discussed in Note 21. Each of our four geographic
Groups had been further divided into 45 Market Areas. As a
result of our restructuring, the Market Areas were consolidated
into 25 Areas. We found that our larger Market Areas generally
were able to achieve efficiencies through economies of scale
that were not present in our smaller Market Areas, and this
reorganization has allowed
us to lower costs and to continue to standardize processes and
improve productivity. In addition, during the first quarter of
2009, responsibility for the oversight of
day-to-day
recycling operations at our material recovery facilities and
secondary processing facilities was transferred from our Waste
Management Recycle America, or WMRA, organization to our four
geographic Groups. By integrating the management of our
recycling facilities’ operations with our other solid waste
business, we are able to more efficiently provide comprehensive
environmental solutions to our customers. In addition, as a
result of this realignment, we have significantly reduced the
overhead costs associated with managing this portion of our
business and have increased the geographic Groups’ focus on
maximizing the profitability and return on invested capital of
our business on an integrated basis.
This restructuring eliminated over 1,500 employee positions
throughout the Company. During 2009, we recognized
$50 million of pre-tax charges associated with this
restructuring, of which $41 million were related to
employee severance and benefit costs. The remaining charges were
primarily related to operating lease obligations for property
that will no longer be utilized. The following table summarizes
the charges recognized in 2009 for this restructuring by each of
our reportable segments and our Corporate and Other
organizations (in millions):
Through December 31, 2009, we had paid approximately
$36 million of the employee severance and benefit costs
incurred as a result of this restructuring. The length of time
we are obligated to make severance payments varies, with the
longest obligation continuing through the fourth quarter of 2010.
2008 Restructuring — The $2 million of
restructuring expenses recognized during 2008 was related to a
reorganization of customer service functions in our Western
Group and the realignment of certain operations in our Southern
Group.
2007 Restructuring — In 2007, we restructured
certain operations and functions, resulting in the recognition
of a charge of $10 million. Approximately $7 million
of our restructuring costs was incurred by our Corporate
organization, $2 million was incurred by our Midwest Group
and $1 million was incurred by our Western Group. These
charges included $8 million for employee severance and
benefit costs and $2 million related to operating lease
agreements.
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- Definition
Description of restructuring activities including exit and disposal activities, which should include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. This description does not include restructuring costs in connection with a business combination or discontinued operations and long-lived assets (disposal groups) sold or classified as held for sale. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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(Income) Expense from Divestitures, Asset Impairments and Unusual Items
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Dec. 31, 2009
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(Income) Expense from Divestitures, Asset Impairments and Unusual Items [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Income) Expense from Divestitures, Asset Impairments 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):
(Income) Expense from Divestitures (including
held-for-sale
impairments) — The net gains from divestitures
during 2008 and 2007 were a result of our focus on selling
underperforming businesses. In 2008, these gains were
primarily related to the divestiture of underperforming
collection operations in our Southern Group; and in 2007, the
gains were related to the divestiture of underperforming
collection, transfer and recycling operations in our Eastern,
Western and Southern Groups.
Asset Impairments (excluding
held-for-sale
impairments) — Through December 31, 2008, we
had capitalized $70 million of accumulated costs associated
with the development of our waste and recycling revenue
management system. A significant portion of these costs was
specifically associated with the purchase of the license of
SAP’s waste and recycling revenue management software and
the efforts required to develop and configure that software for
our use. After a failed pilot implementation of the software in
one of our smallest Market Areas, the development efforts
associated with the SAP revenue management system were suspended
in 2007. As disclosed in Note 11, in March 2008, we filed
suit against SAP and are currently scheduled for trial in May
2010.
During 2009, we determined to enhance and improve our existing
revenue management system and not pursue alternatives associated
with the development and implementation of a revenue management
system that would include the licensed SAP software.
Accordingly, after careful consideration of the failures of the
SAP software, we determined to abandon any alternative that
would include the use of the SAP software. The determination to
abandon the SAP software as our revenue management system
resulted in a non-cash charge of $51 million,
$49 million of which was recognized during the first
quarter of 2009 and $2 million of which was recognized
during the fourth quarter of 2009.
We recognized an additional $32 million of impairment
charges during 2009, $27 million of which was recognized by
the West Group during the fourth quarter of 2009 to fully impair
a landfill in California as a result of a change in our
expectations for the future operations of the landfill. The
remaining impairment charges were primarily attributable to a
charge required to write down certain of our investments in
portable self-storage operations to their fair value as a result
of our acquisition of a controlling financial interest in those
operations.
During 2008, we recognized a $4 million impairment charge,
primarily as a result of a decision to close a landfill in our
Southern Group. During 2007, we recognized $12 million in
impairment charges related to two landfills in our Southern
Group. The impairments were necessary as a result of the
re-evaluation of our business alternatives for one landfill and
the expiration of a contract that we had expected would be
renewed that had significantly contributed to the volumes for
the second landfill.
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Any additional information related to the determination or classification of material events or transactions that are abnormal or significantly different from typical activities or are not reasonably expect to recur in the foreseeable future; but not both, and therefore does not meet both criteria for classification as an extraordinary item. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. No definition available.
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Accumulated Other Comprehensive Income
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Accumulated Other Comprehensive Income |
The components of accumulated other comprehensive income were as
follows (in millions):
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Capital Stock, Share Repurchases and Dividends
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Capital Stock, Share Repurchases and Dividends |
Capital
Stock
As of December 31, 2009, we have 486.1 million shares
of common stock issued and outstanding. We have 1.5 billion
shares of authorized common stock with a par value of $0.01 per
common share. The Board of Directors
is authorized to issue preferred stock in series, and with
respect to each series, to fix its designation, relative rights
(including voting, dividend, conversion, sinking fund, and
redemption rights), preferences (including dividends and
liquidation) and limitations. We have ten million shares of
authorized preferred stock, $0.01 par value, none of which
is currently outstanding.
Share
Repurchases
In 2007, the maximum amount of capital allocated to our share
repurchases and dividend payments by our Board of Directors was
$2.1 billion. In 2008, our Board of Directors approved a
capital allocation program that included the authorization for
up to $1.4 billion in combined cash dividends and common
stock repurchases. Additionally, $184 million of the
capital allocated to share repurchases in 2007 remained
available for 2008 repurchases. In July 2008, we suspended our
share repurchases in connection with a proposed acquisition. In
the fourth quarter of 2008, we determined that, given the state
of the economy and the financial markets, it would be prudent to
suspend repurchases for the foreseeable future. As a result,
share repurchases made during 2008 were significantly less than
that which was authorized.
In June 2009, we decided that the improvement in the capital
markets and the economic environment supported a decision to
resume repurchases of our common stock during the second half of
2009.
The following is a summary of activity under our stock
repurchase programs for each year presented:
In December 2009, we entered into a plan under SEC
Rule 10b5-1
to effect market purchases of our common stock in 2010. These
common stock repurchases were made in accordance with our Board
approved capital allocation program. We repurchased $68 million
of our common stock pursuant to the plan, which was completed on
February 12, 2010.
Future share repurchases will be made within the limits approved
by our Board of Directors at the discretion of management, and
will depend on factors similar to those considered by the Board
in making dividend declarations.
Dividends
Our quarterly dividends have been declared by our Board of
Directors and paid in accordance with the capital allocation
programs discussed above. Cash dividends declared and paid were
$569 million in 2009, or $1.16 per common share;
$531 million in 2008, or $1.08 per common share; and
$495 million in 2007, or $0.96 per common share.
In December 2009, we announced that our Board of Directors
expects to increase the per share quarterly dividend from $0.29
to $0.315 for dividends declared in 2010. However, all future
dividend declarations are at the discretion of the Board of
Directors, and depend on various factors, including our net
earnings, financial condition, cash required for future business
plans and other factors the Board may deem relevant.
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Capital Stock, Share Repurchases and Dividends. No definition available.
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Stock-Based Compensation
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Stock-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation |
Employee
Stock Purchase Plan
We have an Employee Stock Purchase Plan under which employees
that have been employed for at least 30 days may purchase
shares of our common stock at a discount. The plan provides for
two offering periods for purchases: January through June and
July through December. At the end of each offering period,
employees are able
to purchase shares of our common stock at a price equal to 85%
of the lesser of the market value of the stock on the first and
last day of such offering period. The purchases are made through
payroll deductions, and the number of shares that may be
purchased is limited by IRS regulations. The total number of
shares issued under the plan for the offering periods in each of
2009, 2008 and 2007 was approximately 969,000, 839,000 and
713,000, respectively. Including the impact of the January 2010
issuance of shares associated with the July to December 2009
offering period, approximately 2.5 million shares remain
available for issuance under the plan.
Accounting for our Employee Stock Purchase Plan increased annual
compensation expense by approximately $6 million, or
$4 million net of tax, for both 2009 and 2008 and by
approximately $5 million, or $3 million net of tax,
for 2007.
Employee
Stock Incentive Plans
Pursuant to our stock incentive plan, we have the ability to
issue stock options, stock awards and stock appreciation rights,
all on terms and conditions determined by the Management
Development and Compensation Committee of our Board of Directors.
The Company’s 2004 Stock Incentive Plan, which authorized
the issuance of up to 34 million shares of our common
stock, terminated by its terms in May 2009, at which time
stockholders approved our 2009 Stock Incentive Plan. Under the
2009 Plan, up to 26.2 million shares of our common stock
are available for issuance. All of our stock-based compensation
awards described herein have been made under either our 2004 or
2009 Plan. We currently utilize treasury shares to meet the
needs of our equity-based compensation programs under the 2009
Plan and to settle outstanding awards granted pursuant to
previous incentive plans.
During the three years ended December 31, 2009, the
Company’s long-term incentive plan, or LTIP, has included
an annual grant of restricted stock units and performance share
units for key employees. Beginning in 2008, the annual LTIP
grant made to the Company’s senior leadership team, which
generally represents the Company’s executive officers, has
been comprised solely of performance share units. During the
reported periods, the Company has also granted restricted stock
units to employees working on key initiatives; in connection
with new hires and promotions; and to field-based managers.
Restricted Stock Units — A summary of our
restricted stock units is presented in the table below (units in
thousands):
Restricted stock units provide award recipients with dividend
equivalents during the vesting period, but the units may not be
voted or sold until time-based vesting restrictions have lapsed.
Restricted stock units provide for three-year cliff vesting.
Unvested units are subject to forfeiture in the event of
voluntary or for-cause termination.
Restricted stock units are subject to pro-rata vesting upon an
employee’s retirement or involuntary termination other than
for cause and become immediately vested in the event of an
employee’s death or disability.
Compensation expense associated with restricted stock units is
measured based on the grant-date fair value of our common stock
and is recognized on a straight-line basis over the required
employment period, which is generally the vesting period.
Compensation expense is only recognized for those awards that we
expect to vest, which we estimate based upon an assessment of
current period and historical forfeitures.
Performance Share Units — Performance share
units are payable in shares of common stock based on the
achievement of certain financial measures, after the end of a
three-year performance period. At the end of the three-year
period, the number of shares awarded can range from 0% to 200%
of the targeted amount. A summary of our performance share units
is presented in the table below (units in thousands):
Performance share units have no voting rights and dividend
equivalents are paid out in cash based on actual performance at
the end of the awards’ performance period. Performance
share units are payable to an employee (or his beneficiary) upon
death or disability as if that employee had remained employed
until the end of the performance period, are subject to pro-rata
vesting upon an employee’s retirement or involuntary
termination other than for cause and are subject to forfeiture
in the event of voluntary or for-cause termination.
Compensation expense associated with performance share units
that continue to vest based on future performance is measured
based on the grant-date fair value of our common stock.
Compensation expense is recognized ratably over the performance
period based on our estimated achievement of the established
performance criteria. Compensation expense is only recognized
for those awards that we expect to vest, which we estimate based
upon an assessment of both the probability that the performance
criteria will be achieved and current period and historical
forfeitures.
For the years ended December 31, 2009, 2008 and 2007, we
recognized $22 million, $42 million and
$31 million, respectively, of compensation expense
associated with restricted stock unit and performance share unit
awards as a component of “Selling, general and
administrative” expenses in our Consolidated Statement of
Operations. Our “Provision for income taxes” for the
years ended December 31, 2009, 2008 and 2007 include
related deferred income tax benefits of $9 million,
$16 million and $12 million, respectively. We have not
capitalized any equity-based compensation costs during the years
ended December 31, 2009, 2008 and 2007.
Compensation expense recognized in 2009 was significantly less
than expense recognized in prior years primarily due to the
Company’s determination that it is no longer probable that
the targets established for performance share units granted in
2008 will be met. Accordingly, during the second quarter of
2009, we recognized an adjustment to “Selling, general and
administrative” expenses for the reversal of all previously
recognized compensation expense associated with this award. As
of December 31, 2009, we estimate that a total of
approximately $30 million of currently unrecognized
compensation expense will be recognized in future periods for
unvested restricted stock unit and performance share unit awards
issued and outstanding. Our estimated unrecognized compensation
expense is also lower in 2009 than in prior years as a result of
our determination that it is no longer probable that the targets
for performance share units granted in 2008 will be achieved.
Unrecognized compensation expense associated with all unvested
awards currently outstanding is expected to be recognized over a
weighted average period of approximately two years.
Stock Options — Prior to 2005, stock options
were the primary form of equity-based compensation we granted to
our employees.
A summary of our stock options is presented in the table below
(shares in thousands):
We received cash proceeds of $20 million, $37 million
and $135 million during the years ended December 31,
2009, 2008 and 2007, respectively, from our employees’
stock option exercises. We also realized tax benefits from these
stock option exercises during the years ended December 31,
2009, 2008 and 2007 of $5 million, $6 million and
$24 million, respectively. These amounts have been
presented as cash inflows in the “Cash flows from financing
activities” section of our Consolidated Statements of Cash
Flows.
Exercisable stock options at December 31, 2009, were as
follows (shares in thousands):
Non-Employee
Director Plans
Our non-employee directors currently receive annual grants of
shares of our common stock, payable in two equal installments,
under the same stock incentive plans we use for employees’
equity grants, described above. Prior to 2008, our directors
received deferred stock units and were allowed to elect to defer
a portion of their cash compensation in the form of deferred
stock units, to be paid out in shares of our common stock at the
termination of board service, pursuant to our
2003 Directors’ Deferred Compensation Plan. In late
2007, each member of the
Board of Directors elected to receive payment of shares for his
deferred stock units at the end of December 2008 and recognized
taxable income on such payment. The Board of Directors
terminated the 2003 Directors’ Plan in 2009 and, as a
result, no shares remain available for issuance under that plan.
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Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Earnings Per Share
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Earnings Per Share |
Basic and diluted earnings per share were computed using the
following common share data (shares in millions):
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This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Fair Value Measurements
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
Assets
and Liabilities Accounted for at Fair Value
Authoritative guidance associated with fair value measurements
provides a framework for measuring fair value and establishes a
fair value hierarchy that prioritizes the inputs used to measure
fair value, giving the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities
(Level 1 inputs) and the lowest priority to unobservable
inputs (Level 3 inputs).
We use valuation techniques that maximize the use of observable
inputs and minimize the use of unobservable inputs. In measuring
the fair value of our assets and liabilities, we use market data
or assumptions that we believe market participants would use in
pricing an asset or liability, including assumptions about risk
when appropriate. As
of December 31, 2009, our assets and liabilities that are
measured at fair value on a recurring basis include the
following (in millions):
Cash and
Cash Equivalents
Cash equivalents are reflected at fair value in our Consolidated
Financial Statements based upon quoted market prices and consist
primarily of money market funds that invest in United States
government obligations with original maturities of three months
or less.
Available-for-Sale
Securities
Available for-sale securities are recorded at fair value based
on quoted market prices. These assets include restricted trusts
and escrow accounts invested in money market mutual funds,
equity-based mutual funds and other equity securities. The cost
basis of restricted trusts and escrow accounts invested in
equity-based mutual funds and other equity securities was
$77 million as of December 31, 2009 and 2008.
Unrealized holding gains and losses on these instruments are
recorded as either an increase or decrease to the asset balance
and deferred as a component of “Accumulated other
comprehensive income” in the equity section of our
Consolidated Balance Sheets. The net unrealized holding gains on
these instruments, net of taxes, were $2 million as of
December 31, 2009 and the net unrealized holding losses on
these instruments, net of taxes, were $2 million as of
December 31, 2008. The fair value of our remaining
available-for-sale
securities approximates our cost basis in the investments.
Interest
Rate Derivatives
As of December 31, 2009, we are party to
(i) fixed-to-floating
interest rate swaps that are designated as fair value hedges of
our currently outstanding senior notes;
(ii) forward-starting interest rate swaps that are
designated as cash flow hedges of anticipated interest payments
for future fixed-rate debt issuances; and (iii) Treasury
rate locks that are designated as cash flow hedges of
anticipated interest payments of a future fixed-rate debt
issuance. Our
fixed-to-floating
interest rate swaps and forward-starting interest rate swaps are
LIBOR based instruments. Accordingly, these derivatives are
valued using a third-party pricing model that incorporates
information about LIBOR yield curves for each instrument’s
respective term. Our Treasury rate locks are valued using a
third-party pricing model that incorporates information about
the
on-the-run
10-year
U.S. Treasury yield curve. The third-party pricing model
used to value our interest rate derivatives also incorporates
Company and counterparty credit valuation adjustments, as
appropriate. Counterparties to our interest rate derivatives are
financial institutions who participate in our $2.4 billion
revolving credit facility. Valuations of our interest rate
derivatives may fluctuate significantly from
period-to-period
due to volatility in underlying interest rates, which are driven
by market
conditions and the scheduled maturities of the derivatives.
Refer to Note 8 for additional information regarding our
interest rate derivatives.
Foreign
Currency Derivatives
Our foreign currency derivatives are valued using forward
Canadian dollar exchange prices at the reporting date.
Counterparties to these contracts are financial institutions who
participate in our $2.4 billion revolving credit facility.
Valuations may fluctuate significantly from
period-to-period
due to volatility in the Canadian dollar to U.S. dollar
exchange rate. Due to the short-term maturities of the
Company’s foreign currency exchange derivatives,
counterparty credit risk is not significant. Refer to
Note 8 for additional information regarding our foreign
currency derivatives.
Fair
Value of Debt
At December 31, 2009, the carrying value of our debt was
approximately $8.9 billion compared with $8.3 billion
at December 31, 2008. The carrying value of our debt
includes adjustments for both the unamortized fair value
adjustments related to terminated hedge arrangements and fair
value adjustments of debt instruments that are currently hedged.
The estimated fair value of our debt was approximately
$9.3 billion at December 31, 2009 and approximately
$7.7 billion at December 31, 2008. The estimated fair
value of our senior notes is based on quoted market prices. The
carrying value of remarketable debt approximates fair value due
to the short-term nature of the attached interest rates. The
fair value of our other debt is estimated using discounted cash
flow analysis, based on rates we would currently pay for similar
types of instruments. The increase in the fair value of our debt
when comparing December 31, 2009 with December 31,
2008 is primarily related to (i) an increase in outstanding
debt balances; (ii) an increase in market prices for
corporate debt securities due to a significant improvement in
the condition of the credit markets as compared with late 2008,
which caused a substantial increase in the fair value of our
publicly-traded senior notes; and (iii) a significant
decrease in current market rates on fixed-rate tax-exempt bonds.
Although we have determined the estimated fair value amounts
using available market information and commonly accepted
valuation methodologies, considerable judgment is required in
interpreting market data to develop the estimates of fair value.
Accordingly, our estimates are not necessarily indicative of the
amounts that we, or holders of the instruments, could realize in
a current market exchange. The use of different assumptions
and/or
estimation methodologies could have a material effect on the
estimated fair values. The fair value estimates are based on
information available as of December 31, 2009 and
December 31, 2008. These amounts have not been revalued
since those dates, and current estimates of fair value could
differ significantly from the amounts presented.
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- Definition
This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Acquisitions and Divestitures
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12 Months Ended | ||||
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Dec. 31, 2009
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Acquisitions and Divestitures [Abstract] | |||||
Acquisitions and Divestitures |
Acquisitions
We continue to pursue the acquisition of businesses that are
accretive to our solid waste operations and enhance and expand
our existing service offerings. We have seen the greatest
opportunities for realizing superior returns from tuck-in
acquisitions, which are primarily the purchases of collection
operations that enhance our existing route structures and are
strategically located near our existing disposal operations.
In 2009, we acquired businesses primarily related to our
collection operations. Total consideration, net of cash
acquired, for acquisitions was $336 million, which included
$266 million in cash payments, a liability for additional
cash payments with an estimated fair value of $46 million,
and assumed liabilities of $24 million. The additional cash
payments are contingent upon achievement by the acquired
businesses of certain negotiated goals, which generally included
targeted revenues. At the date of acquisition, our estimated
obligations for the contingent cash payments were between
$42 million and $56 million. As of December 31,
2009, we had paid $15 million of this contingent
consideration.
The allocation of purchase price was primarily to “Property
and equipment,” which had an estimated fair value of
$102 million; “Other intangible assets,” which
had an estimated fair value of $105 million; and
“Goodwill” of $125 million. Goodwill is a result
of expected synergies from combining the acquired businesses
with our existing operations and is tax deductible.
Our 2009 acquisitions included the purchase of the remaining
equity interest in one of our portable self-storage investments,
increasing our equity interest in this entity from 50% to 100%.
As a result of this acquisition, we recognized a $4 million
loss for the remeasurement of the fair value of our initial
equity investment, which was determined to be $5 million.
This loss was recognized as a component of “(Income)
expense from divestitures, asset impairments and unusual
items” in our Statement of Operations.
In 2008 and 2007, we completed several acquisitions for a cost,
net of cash acquired, of $280 million and $90 million,
respectively.
Divestitures
The aggregate sales price for divestitures of operations was
$1 million in 2009, $59 million in 2008, and
$224 million in 2007. The proceeds from these sales were
comprised substantially of cash. We recognized net gains on
these divestitures of $33 million in 2008, and
$59 million in 2007. The impact to our 2009 income from
operations of gains and losses on divestitures was less than
$1 million. These divestitures were made as part of our
initiative to improve or divest certain underperforming and
non-strategic operations.
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- Definition
Acquisitions and Divestitures. No definition available.
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Variable Interest Entities
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12 Months Ended | ||||
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Dec. 31, 2009
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Variable Interest Entities [Abstract] | |||||
Variable Interest Entities |
Following is a description of our financial interests in
variable interest entities that we consider significant,
including (i) those for which we have determined that we
are the primary beneficiary of the entity and, therefore, have
consolidated the entity into our financial statements; and
(ii) those that represent a significant interest in an
unconsolidated entity. As disclosed in Note 24, we are in
the process of assessing revised guidance from the FASB related
to variable interest entities that is effective for the Company
January 1, 2010.
Consolidated
Variable Interest Entities
Waste-to-Energy
LLCs — On June 30, 2000, two limited
liability companies were established to purchase interests in
existing leveraged lease financings at three
waste-to-energy
facilities that we lease, operate and maintain. We own a 0.5%
interest in one of the LLCs (“LLC I”) and a 0.25%
interest in the second LLC (“LLC II”). John Hancock
Life Insurance Company owns 99.5% of LLC I and 99.75% of LLC II
is owned by LLC I and the CIT Group. In 2000, Hancock and CIT
made an initial investment of $167 million in the LLCs,
which was used to purchase the three
waste-to-energy
facilities and assume the seller’s indebtedness. Under the
LLC agreements, the LLCs shall be dissolved upon the occurrence
of any of the following events: (i) a written decision of
all members of the LLCs; (ii) December 31, 2063;
(iii) a court’s dissolution of the LLCs; or
(iv) the LLCs ceasing to own any interest in the
waste-to-energy
facilities.
Income, losses and cash flows of the LLCs are allocated to the
members based on their initial capital account balances until
Hancock and CIT achieve targeted returns; thereafter, we will
receive 80% of the earnings of each of the LLCs and Hancock and
CIT will be allocated the remaining 20% based on their
respective equity interests. All capital allocations made
through December 31, 2009 have been based on initial
capital account balances as the target returns have not yet been
achieved.
Our obligations associated with our interests in the LLCs are
primarily related to the lease of the facilities. In addition to
our minimum lease payment obligations, we are required to make
cash payments to the LLCs for differences between fair market
rents and our minimum lease payments. These payments are subject
to adjustment based on factors that include the fair market
value of rents for the facilities and lease payments made
through the re-measurement dates. In addition, we may be
required under certain circumstances to make capital
contributions to
the LLCs based on differences between the fair market value of
the facilities and defined termination values as provided for by
the underlying lease agreements, although we believe the
likelihood of the occurrence of these circumstances is remote.
We determined that we are the primary beneficiary of the LLCs
because our interest in the entities is subject to variability
based on changes in the fair market value of the leased
facilities, while Hancock’s and CIT’s interests are
structured to provide targeted returns based on their respective
initial investments. As of December 31, 2009, our
Consolidated Balance Sheet includes $331 million of net
property and equipment associated with the LLCs’
waste-to-energy
facilities and $234 million in noncontrolling interests
associated with Hancock’s and CIT’s interests in the
LLCs. During the years ended December 31, 2009, 2008 and
2007, we recognized noncontrolling interest expense of
$50 million, $41 million and $35 million,
respectively, for Hancock’s and CIT’s interests in the
LLCs’ earnings, which are largely eliminated in WMI’s
consolidation.
Trusts for Closure, Post-Closure or Environmental Remediation
Obligations — We have determined that we are the
primary beneficiary of trust funds that were created to settle
certain of our closure, post-closure or environmental
remediation obligations. Although we are not always the sole
beneficiary of these trust funds, we have determined that we are
the primary beneficiary because we retain a majority of the
risks and rewards associated with changes in the fair value of
the assets held in trust. As the trust funds are expected to
continue to meet the statutory requirements for which they were
established, we do not believe that there is any material
exposure to loss associated with the trusts. The consolidation
of these variable interest entities has not materially affected
our financial position or results of operations.
Significant
Unconsolidated Variable Interest Entities
Investments in Coal-Based Synthetic Fuel Production
Facilities — As discussed in Note 9, through
December 31, 2007, we owned an interest in two coal-based
synthetic fuel production facilities. Along with the other
equity investors, we supported the operations of the entities in
exchange for a pro-rata share of the tax credits generated by
the facilities. Our obligation to support the facilities’
operations was, therefore, limited to the tax benefit we
received. We were not the primary beneficiary of either of these
entities. As such, we accounted for these investments under the
equity method of accounting and did not consolidate the
facilities.
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- Definition
Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Segment and Related Information
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Segment and Related Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Related Information |
We currently manage and evaluate our operations primarily
through our Eastern, Midwest, Southern, Western and Wheelabrator
Groups. These five Groups are presented below as our reportable
segments. Our segments provide integrated waste management
services consisting of collection, disposal (solid waste and
hazardous waste landfills), transfer,
waste-to-energy
facilities and independent power production plants that are
managed by Wheelabrator, recycling services and other services
to commercial, industrial, municipal and residential customers
throughout the United States and in Puerto Rico and Canada. The
operations not managed through our five Groups are presented
herein as “Other.”
As a result of the transfer of responsibility for the oversight
of
day-to-day
recycling operations at our material recovery facilities and
secondary processing facilities to the management teams of our
geographic Groups, we also changed the way we review the
financial results of our geographic Groups. Beginning in 2009,
the financial results of our material recovery facilities and
secondary processing facilities are included as a component of
their respective geographic Group and the financial results of
our recycling brokerage business and electronics recycling
services are included as part of our “Other”
operations. We have reflected the impact of these changes for
all periods presented to provide financial information that
consistently reflects our current approach to managing our
geographic Group operations.
Summarized financial information concerning our reportable
segments for the respective years ended December 31 is shown in
the following table (in millions):
The table below shows the total revenues by principal line of
business (in millions):
Net operating revenues relating to operations in the United
States and Puerto Rico, as well as Canada are as follows (in
millions):
Property and equipment (net) relating to operations in the
United States and Puerto Rico, as well as Canada are as follows
(in millions):
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- Definition
This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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Quarterly Financial Data (Unaudited)
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2009
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Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data (Unaudited) |
The following table summarizes the unaudited quarterly results
of operations for 2009 and 2008 (in millions, except per share
amounts):
Basic and diluted earnings per common share for each of the
quarters presented above is based on the respective weighted
average number of common and dilutive potential common shares
outstanding for each quarter and the sum of the quarters may not
necessarily be equal to the full year basic and diluted earnings
per common share amounts.
From time to time, our operating results are significantly
affected by unusual or infrequent transactions or events. The
following significant and unusual items have affected the
comparison of our operating results during the periods presented:
First
Quarter 2009
Second
Quarter 2009
Third
Quarter 2009
Fourth
Quarter 2009
First
Quarter 2008
Second
Quarter 2008
Third
Quarter 2008
Fourth
Quarter 2008
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- Details
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- Definition
This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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Condensed Consolidating Financial Statements
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2009
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Condensed Consolidating Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Statements |
WM Holdings has fully and unconditionally guaranteed all of
WMI’s senior indebtedness. WMI has fully and
unconditionally guaranteed all of WM Holdings’ senior
indebtedness. None of WMI’s other subsidiaries have
guaranteed any of WMI’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):
CONDENSED
CONSOLIDATING BALANCE SHEETS
December 31,
2009
December 31,
2008
CONDENSED
CONSOLIDATING STATEMENTS OF OPERATIONS
CONDENSED
CONSOLIDATING STATEMENTS OF CASH FLOWS
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- Definition
Text block that encapsulates the detailed table comprising the condensed financial statements (balance sheet, income statement and statement of cash flows), normally using the registrant (parent) as the sole domain member. If condensed consolidating financial statements are being presented, other domain members (in addition to parent) such as guarantor subsidiaries, non-guarantor subsidiaries, and the consolidation eliminations, will be included in order that the respective monetary amounts for each of the domains will aggregate to the respective amounts on the consolidated financial statements. The line items are the various captions used to compile the condensed financial statements. Using extensions, most, if not all, of the elements representing condensed financial statement captions will be the same as those used for the consolidated financial statements captions. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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New Accounting Pronouncements (Unaudited)
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12 Months Ended | ||||
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Dec. 31, 2009
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New Accounting Pronouncements (Unaudited) [Abstract] | |||||
Description of new accounting pronouncements not yet adopted |
Consolidation of Variable Interest Entities —
In June 2009, the FASB issued revised authoritative guidance
associated with the consolidation of variable interest entities.
This revised guidance replaces the current quantitative-based
assessment for determining which enterprise has a controlling
interest in a variable interest entity with an approach that is
now primarily qualitative. This qualitative approach focuses on
identifying the enterprise that has (i) the power to direct
the activities of the variable interest entity that can most
significantly impact the entity’s performance; and
(ii) the obligation to absorb losses and the right to
receive benefits from the entity that could potentially be
significant to the variable interest entity. This revised
guidance also requires an ongoing assessment of whether an
enterprise is the primary beneficiary of a variable interest
entity rather than a reassessment only upon the occurrence of
specific events. The new FASB-issued authoritative guidance
associated with the consolidation of variable interest entities
is effective for the Company January 1, 2010. The change in
accounting may either be applied by recognizing a
cumulative-effect adjustment to retained earnings on the date of
adoption or by retrospectively restating one or more years and
recognizing a cumulative-effect adjustment to retained earnings
as of the beginning of the earliest year restated. We are
currently in the process of assessing the provisions of this
revised guidance and have not determined whether the adoption
will have a material impact on our consolidated financial
statements.
Multiple-Deliverable Revenue Arrangements — In
September 2009, the FASB amended authoritative guidance
associated with multiple-deliverable revenue arrangements. This
amended guidance addresses the determination of when individual
deliverables within an arrangement may be treated as separate
units of accounting and modifies the manner in which transaction
consideration is allocated across the separately identifiable
deliverables. The amendments to authoritative guidance
associated with multiple-deliverable revenue arrangements are
effective for the Company January 1, 2011, although the
FASB does permit early adoption of the guidance provided that it
is retroactively applied to the beginning of the year of
adoption. The new accounting standard may be applied either
retrospectively for all periods presented or prospectively to
arrangements entered into or materially modified after the date
of adoption. We are in the process of assessing the provisions
of this new guidance and currently do not expect that the
adoption will have a material impact on our consolidated
financial statements. However, our adoption of this guidance may
significantly impact our accounting and reporting for future
revenue arrangements to the extent they are material.
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- Definition
Description of new accounting pronouncements not yet adopted text block. No definition available.
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Valuation and Qualifying Accounts
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Dec. 31, 2009
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts |
Schedule Of Valuation And Qualifying Accounts Disclosure
WASTE
MANAGEMENT, INC.
SCHEDULE II —
VALUATION AND QUALIFYING ACCOUNTS
(In
Millions)
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X | ||||||||||
- Definition
An element designated to encapsulate the entire schedule of any allowance and reserve accounts (their beginning and ending balances, as well as a reconciliation by type of activity during the period). Alternatively, disclosure of the required information may be within the footnotes to the financial statements or a supplemental schedule to the financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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- Details
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