8-KOther Events

WASTE MANAGEMENT INC 8-K Report, Corporate Update (Aug 28, 2012)

Filed August 28, 2012For Securities:WM

Summary

Waste Management, Inc. (WM) filed this Form 8-K on August 28, 2012, primarily to disclose the impact of adopting a new accounting standard, FASB ASU No. 2011-05 and its amendment ASU 2011-12, on its historical financial statements. This adoption affects how comprehensive income is presented. The filing provides selected components of the company's Consolidated Statements of Comprehensive Income for the fiscal years 2011, 2010, and 2009, allowing investors to see the breakdown of net income and other comprehensive income (loss) items. Key changes highlighted by the adoption of the new standard relate to the presentation of unrealized gains/losses on derivative instruments, available-for-sale securities, foreign currency translation adjustments, and changes in the funded status of post-retirement benefit obligations. While the adoption itself does not change the overall financial performance or comprehensive income, it alters the presentation within the financial statements. Investors should note that 'Comprehensive income attributable to Waste Management, Inc.' saw a decrease in 2011 compared to prior years, reflecting the presented figures.

Key Highlights

  • 1WM is reporting on the adoption of new accounting standards (ASU 2011-05 and ASU 2011-12) related to the presentation of Comprehensive Income.
  • 2The filing provides comparative data for Consolidated Statements of Comprehensive Income for fiscal years 2011, 2010, and 2009.
  • 3The adoption of the new accounting pronouncements impacts the presentation format of comprehensive income components, not the underlying financial results.
  • 4Selected components of Other Comprehensive Income (Loss) include unrealized gains/losses on derivatives, available-for-sale securities, foreign currency translation, and changes in post-retirement benefit obligations.
  • 5In 2011, 'Comprehensive income attributable to Waste Management, Inc.' was $903 million, a decrease from $975 million in 2010 and $1,114 million in 2009.
  • 6The filing aims to ensure historical financial information in the 2011 Form 10-K reflects the new presentation requirements.

Frequently Asked Questions

The primary purpose of this 8-K filing is to inform investors about Waste Management, Inc.'s adoption of new accounting standards (ASU 2011-05 and ASU 2011-12) concerning the presentation of comprehensive income and its effect on historical financial information.

No, the adoption of these new accounting standards does not alter the company's actual financial performance or total comprehensive income. It only changes how these figures are presented within the financial statements.

The key components include unrealized gains or losses on derivative instruments, unrealized gains or losses on available-for-sale securities, foreign currency translation adjustments, and changes in the funded status of post-retirement benefit obligations, all net of taxes.

The decrease in 'Comprehensive income attributable to Waste Management, Inc.' from $975 million in 2010 to $903 million in 2011 is a reflection of the presented financial results for those periods, influenced by various factors affecting net income and other comprehensive income. The adoption of the new accounting standard itself did not cause this decrease but rather affects how these figures are reported.