e11vk
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 11-K
(Mark One)
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2008
or
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TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 1-12154
WASTE MANAGEMENT RETIREMENT SAVINGS
PLAN FOR BARGAINING UNIT EMPLOYEES
Waste Management, Inc.
1001 Fannin Street
Suite 4000
Houston, TX 77002
WASTE MANAGEMENT RETIREMENT SAVINGS PLAN
FOR BARGAINING UNIT EMPLOYEES
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
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1 |
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Audited Financial Statements |
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2 |
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Supplemental Schedule |
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12 |
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Report of Independent Registered Public Accounting Firm
Administrative Committee
Waste Management Retirement Savings Plan
for Bargaining Unit Employees
We have audited the accompanying statements of net assets available for benefits of the Waste
Management Retirement Savings Plan for Bargaining Unit Employees as of December 31, 2008 and 2007,
and the related statement of changes in net assets available for benefits for the year ended
December 31, 2008. These financial statements are the responsibility of the Plan’s management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. We
were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a basis for designing
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Plan’s internal control over financial reporting.
Accordingly, we express no such opinion. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31, 2008 and 2007, and the
changes in its net assets available for benefits for the year ended December 31, 2008, in
conformity with US generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the financial statements taken
as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December
31, 2008, is presented for purposes of additional analysis and is not a required part of the
financial statements but is supplementary information required by the Department of Labor’s Rules
and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental
schedule has been subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
Houston, Texas
June 24, 2009
1
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Statements of Net Assets Available for Benefits
December 31, 2008 and 2007
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2008 |
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2007 |
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ASSETS: |
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INVESTMENTS, at fair value: |
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Plan interest in the Master Trust (Note 3) |
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$ |
3,777,684 |
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$ |
4,126,470 |
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Participant loans |
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150,601 |
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157,002 |
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Total investments |
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3,928,285 |
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4,283,472 |
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RECEIVABLES: |
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Employee contributions |
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88 |
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11,984 |
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Total receivables |
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88 |
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11,984 |
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Total assets |
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3,928,373 |
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4,295,456 |
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LIABILITIES: |
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Refund of employee contributions |
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— |
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13,336 |
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Total liabilities |
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— |
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13,336 |
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Net assets reflecting investments at fair value |
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3,928,373 |
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4,282,120 |
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Adjustment from fair value to contract value for fully benefit-responsive investment contracts |
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6,282 |
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7,663 |
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NET ASSETS AVAILABLE FOR BENEFITS |
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$ |
3,934,655 |
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$ |
4,289,783 |
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The accompanying notes are an integral part of these financial statements.
2
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Statement of Changes in Net Assets Available for Benefits
Year Ended December 31, 2008
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ADDITIONS TO NET ASSETS AVAILABLE FOR BENEFITS: |
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Contributions: |
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Employee |
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$ |
721,459 |
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Employer |
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445,729 |
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1,167,188 |
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Participant loan interest |
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12,907 |
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Total additions |
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1,180,095 |
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DEDUCTIONS FROM NET ASSETS AVAILABLE FOR BENEFITS: |
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Net investment loss from the Master Trust (Note 3) |
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1,122,333 |
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Benefits paid to participants |
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412,890 |
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Total deductions |
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1,535,223 |
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NET DECREASE IN NET ASSETS AVAILABLE FOR BENEFITS |
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(355,128 |
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NET ASSETS AVAILABLE FOR BENEFITS: |
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Beginning of year |
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4,289,783 |
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End of year |
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$ |
3,934,655 |
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The accompanying notes are an integral part of these financial statements.
3
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements
December 31, 2008
1. Description of Plan
The following description of the Waste Management Retirement Savings Plan for Bargaining Unit
Employees (the “Plan”) provides only general information. Participants should refer to the Summary
Plan Description and the plan document for a more complete description of the Plan’s provisions.
General
The Plan is a defined contribution plan available to all eligible employees, and their
beneficiaries, of Waste Management Holdings, Inc. and subsidiaries (“Waste Management”), and its
affiliates (as defined in the Plan). The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”).
Administration
The board of directors of Waste Management, Inc. (“WMI” or the “Company”), the parent of Waste
Management, has named the Administrative Committee of the Waste Management Employee Benefit Plans
(the “Administrative Committee”) to serve as administrator and fiduciary of the Plan. Waste
Management has entered into a Defined Contribution Plans Master Trust Agreement (the “Master
Trust”) with State Street Bank and Trust Company (“State Street”) whereby State Street serves as
trustee of the Plan. Lion Connecticut Holdings, Inc., a wholly-owned indirect subsidiary of ING
America Insurance Holdings Inc. (“ING), serves as recordkeeper.
Eligibility
Employees (as defined by the Plan) are eligible to participate in the Plan following completion of
a 90-day period of service (as defined by the Plan) if they are covered by a collective bargaining
agreement that provides for participation in the Plan.
Individuals who are ineligible to participate in the Plan consist of (a) leased employees; (b)
individuals providing services to Waste Management as independent contractors; (c) certain
nonresident aliens who have no earned income from sources within the United States of America; and
(d) individuals who are participants in certain other pension, retirement, profit-sharing, stock
bonus, thrift or savings plans maintained by Waste Management or the Company other than the Waste
Management Pension Plan for Collectively Bargained Employees or such other plans as may from time
to time be determined by the Administrative Committee.
Contributions
Participants may contribute from one percent to 25 percent of their pre-tax compensation, as
defined by the Plan, not to exceed certain limits as described in the plan document (“Employee
Contribution”). After-tax contributions are not permitted by the Plan. Participants may also
contribute amounts representing distributions from other qualified plans (“Rollover Contribution”).
The Plan was amended in 2008 to permit employer contributions by participating subsidiaries,
subject to the terms of the applicable collective bargaining agreement(s).
Investment Options
The Plan, through its investments in the Master Trust, currently offers participants (a) six
common/collective trust funds; (b) a Company common stock fund; (c) a self-managed account, which
allows participants to select various securities sold on the New York
4
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
Stock Exchange, American Stock Exchange and NASDAQ; and (d) six target retirement-date funds, which
are also common/collective trust funds. Several restrictions apply, and a minimum balance is
required to participate in the self-managed account. The Plan utilizes cash equivalents to
temporarily hold monies pending settlement for transactions initiated by participants.
Each participant who has invested in the Company common stock fund has the right to vote the shares
of stock in his or her account with respect to any matter that comes before the shareholders for a
vote. Additionally, if a participant invests in the self-managed account, the participant has the
right to vote the shares of any common stock held in the participant’s account.
Vesting
Participants are immediately vested in their Employee Contribution, Rollover Contribution and
employer contribution accounts, plus earnings thereon.
Participant Accounts
Each participant’s account is credited with the participant’s Employee Contribution, Rollover
Contribution and any employer contribution and an allocation of investment income and loss and
expenses. Investment income and loss is allocated to the participant’s account based upon the
participant’s proportionate share of the funds within the Master Trust.
Payment of Benefits
Upon retirement, disability or termination of employment, participants or, in the case of a
participant’s death, their designated beneficiaries, may make withdrawals from their accounts as
specified by the Plan. Prior to termination, participants who have reached age 59-1/2 may withdraw
from the vested portion of their accounts. Distributions are made by a single lump-sum payment or
direct rollover. Distributions of accounts invested in Company common stock may be taken in whole
shares of common stock or cash.
Participants may make withdrawals from the pre-tax portion of their accounts, excluding certain
earnings, in the event of proven financial hardship of the participant. Not more than one hardship
withdrawal is permitted in any 12-month period, and the participant is not permitted to contribute
to the Plan or any other plans maintained by the Company for six months after receiving the
hardship distribution.
Loans
Participants who are active employees may obtain loans of not less than $1,000 and a maximum of 50
percent of the participants’ vested accounts (excluding any amounts invested in the self-managed
account) immediately preceding the loan grant date. In no event shall a loan exceed $50,000,
reduced by the greater of (a) the highest outstanding balance of loans during the one-year period
ending on the date before a new loan is made or modified, or (b) the outstanding balance of loans
on the date a new loan is made or modified. Not more than one loan shall be outstanding at any
time, except for multiple loans which (a) result from a merger of another plan into this Plan, or
(b) result from a participant’s loan becoming taxable under Section 72(p) of the Internal Revenue
Code of 1986, as amended (the “Code”). Interest rates and repayment terms are established by the
Administrative Committee. Such loans shall be repaid by payroll deduction or any other method
approved by the Administrative Committee. The Administrative Committee requires that (a) repayments
be made no less frequently than quarterly; (b) loans be repaid over a period not to exceed 54
months; and (c) repayments be made in equal periodic payments over the term of the loan and applied
to principal using a level amortization over the repayment period.
Administrative Expenses
Master Trust administrative expenses, including trustee, recordkeeping and investment management
fees, are allocated in proportion to the investment balances of the underlying plans and are netted
against investment income. Loan administration fees are charged directly to the account balance of
the participant requesting the loan. Administrative expenses are reflected as a reduction of Master
Trust investment income and are included in “Net investment gain from the Master Trust” in the
accompanying Statement of Changes in Net Assets Available for Benefits. In 2008, the Company
elected to pay certain audit and legal fees of the Plan.
5
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
2. Summary of Accounting Policies
Basis of Accounting
The accompanying financial statements of the Plan have been prepared using the accrual basis of
accounting in accordance with accounting principles generally accepted in the United States.
Benefits paid to participants are recorded when paid.
Use of Estimates
The preparation of the financial statements, and accompanying notes and schedule, requires
management to make estimates that affect accounting for, and recognition of, plan assets and
liabilities and additions and deductions to/from net assets available for benefits. These estimates
must be made because certain of the information used is dependent on future events, cannot be
calculated with a high degree of precision from available data or simply cannot be readily
calculated based on generally accepted methodologies. In some cases, these estimates are
particularly difficult to determine and management must exercise significant judgment. Actual
results could differ materially from the estimates and assumptions used in the preparation of the
financial statements.
Investments
The purpose of the Master Trust is the collective investment of the assets of participating
employee benefit plans of Waste Management and the Company. The Master Trust’s assets are allocated
among participating plans by assigning to each plan those transactions (primarily contributions,
benefit payments and certain administrative expenses) which can be specifically identified, and by
allocating among participating plans, in proportion to the fair value of the assets assigned to
each plan, income and expenses resulting from the collective investment of the assets of the Master
Trust.
Corporate
stocks, mutual funds and publicly-traded partnership interests held by the Master Trust are stated at fair value based on quoted
market prices as of the financial statement date. The fair values of the common/collective trust
funds held by the Master Trust are generally based on net asset values established by State Street
(the issuer of the common/collective trust funds) based on fair values of the underlying assets.
The common/collective trust funds held by the Master Trust include a Stable Value Fund that invests
in fully benefit-responsive guaranteed investment contracts (“GICs”) and synthetic investment
contracts (“Synthetic GICs”). In accordance with FASB Staff Position AAG INV-1 and SOP 94-4-1,
Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies
Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and
Pension Plans (the “FSP”), the fully-benefit responsive investment contracts held by the Stable
Value Fund are reported at fair value. However, contract value is the relevant measurement
attribute for fully benefit-responsive investment contracts because contract value is the amount
participants would receive if they were to initiate permitted transactions under the terms of the
Plan. Accordingly, the Statements of Net Assets Available for Benefits present both the fair value
of the fully-benefit responsive investment contracts and an adjustment from fair value to contract
value to arrive at Net Assets Available for Benefits. The fair value measurement of these
investments is discussed further in Note 4. Short-term investments (included in amounts reported as
common/collective trust funds herein) and loans to participants are stated at cost, which
approximates fair value.
The Master Trust records purchases and sales of securities on a trade-date basis and dividends on
the ex-dividend date.
Risks and Uncertainties
The Plan provides for investments in various securities that, in general, are exposed to various
risks, such as interest rate, credit and overall market volatility risks. Due to the level of risk
associated with certain investment securities, it is reasonably possible that changes in the values
of investment securities will occur in the near term and that such changes could materially affect
the amounts reported in the Statements of Net Assets Available for Benefits and participant account
balances.
New Accounting Pronouncements
Effective January 1, 2008, the Plan adopted SFAS No. 157, Fair Value Measurements. SFAS No. 157
defines and establishes a framework for measuring fair value and expands disclosures about fair
value measurements. Furthermore, SFAS No. 157 specifies a hierarchy of valuation techniques based
upon whether the inputs to those valuation techniques reflect assumptions other market participants
would use based upon market data obtained from independent sources (observable inputs) or reflect
the Plan’s own assumptions of market participant valuation (unobservable inputs).
6
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
The adoption of SFAS No. 157 did
not materially impact the Plan’s financial statements. The additional disclosures required as a
result of the Plan’s adoption of SFAS No. 157 are included in Note 5.
In April 2009, FASB Staff Position SFAS No.157-4, Determining Fair Value When the Volume and Level
of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions
That Are Not Orderly (“FSP SFAS No. 157-4”) was issued. FSP SFAS No. 157-4 provides additional
guidance on (i) estimating fair value when the volume and level of activity for an asset or
liability have significantly decreased in relation to normal market activity for the asset or
liability; and (ii) identifying circumstances that indicate a transaction is not orderly. FSP SFAS
No. 157-4 also amends SFAS No. 157 to require additional disclosures related to the inputs and
valuation techniques used to measure fair value, changes in inputs and valuation techniques, if
any, during the reporting period and the major debt and equity security types held by the reporting
entity. FSP SFAS No. 157-4 is effective for interim and annual reporting periods ending after June
15, 2009. The Company is currently evaluating the impact of the provisions of FSP SFAS No. 157-4 on
the Plan’s financial statements.
3. Plan Interest in the Master Trust
The Plan investments are held in the Master Trust along with the Waste Management Retirement
Savings Plan (the “Non-Union Plan”). As of December 31, 2008 and 2007, the Plan’s beneficial
interest in the net assets of the Master Trust was 0.35% and 0.30%, respectively.
Neither the Plan nor the Non-Union Plan has an undivided interest in the investments held in the
Master Trust since each plan’s interest in the investments of the Master Trust is based on the
account balances of the participants and their elected investment fund options. However, the Plan’s
beneficial interest in each of the underlying investment fund options does not vary significantly
from the Plan’s beneficial interest in the total net assets of the Master Trust.
7
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
The net assets of the Master Trust consist of the following:
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December 31, |
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2008 |
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2007 |
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Assets: |
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Investments, at fair value: |
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Common/collective trust funds |
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$ |
949,051,449 |
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$ |
1,217,636,268 |
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Corporate stocks |
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6,542,197 |
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12,793,377 |
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Waste Management, Inc. common stock |
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104,384,770 |
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100,297,031 |
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Mutual funds |
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12,159,625 |
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17,447,414 |
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Publicly-traded partnership interests and other |
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115,515 |
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109,526 |
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Total investments |
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1,072,253,556 |
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1,348,283,616 |
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Interest receivable |
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822,753 |
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1,009,642 |
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Cash, non-interest bearing |
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20,046 |
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10,337 |
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Total assets |
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1,073,096,355 |
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1,349,303,595 |
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Liabilities: |
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Administrative fees payable |
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737,112 |
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1,016,097 |
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Securities purchased payable |
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11,530 |
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42,469 |
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Total liabilities |
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748,642 |
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1,058,566 |
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Net assets reflecting investments at fair value |
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1,072,347,713 |
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1,348,245,029 |
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Adjustment from fair value to contract value for fully
benefit-responsive investment contracts |
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4,192,195 |
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9,000,025 |
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Net assets, fully benefit-responsive investment contracts at contract value |
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$ |
1,076,539,908 |
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$ |
1,357,245,054 |
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Respective interests in the net assets of the Master Trust by the Non-Union Plan and the Plan are
as follows:
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December 31, |
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2008 |
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2007 |
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Net assets reflecting investments at fair value: |
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|
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Non-Union Plan interest |
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$ |
1,068,570,029 |
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$ |
1,344,118,559 |
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Plan interest |
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3,777,684 |
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|
|
4,126,470 |
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|
|
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Total |
|
$ |
1,072,347,713 |
|
|
$ |
1,348,245,029 |
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Adjustment from fair value to contract value for fully benefit-responsive
investment contracts: |
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Non-Union Plan interest |
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$ |
4,185,913 |
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$ |
8,992,362 |
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Plan interest |
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6,282 |
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|
7,663 |
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|
|
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|
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Total |
|
$ |
4,192,195 |
|
|
$ |
9,000,025 |
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Net assets, fully benefit-responsive investment contracts at contract value: |
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Non-Union Plan interest |
|
$ |
1,072,755,942 |
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$ |
1,353,110,921 |
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Plan interest |
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|
3,783,966 |
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|
|
4,134,133 |
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Total |
|
$ |
1,076,539,908 |
|
|
$ |
1,357,245,054 |
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8
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
Income or loss from investments held in the Master Trust for the year ended December 31, 2008, was
as follows:
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Net appreciation (depreciation) in fair value of: |
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|
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Common/collective trust funds |
|
$ |
(303,868,091 |
) |
|
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Corporate stocks |
|
|
(7,083,616 |
) |
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Waste Management, Inc. common stock |
|
|
1,859,006 |
|
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|
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Mutual funds |
|
|
(6,273,777 |
) |
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|
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Publicly-traded partnership interests and other |
|
|
(89,181 |
) |
|
|
|
|
|
|
|
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Total net depreciation in fair value of investments |
|
|
|
|
|
$ |
(315,455,659 |
) |
Interest |
|
|
|
|
|
|
9,701,095 |
|
Dividends |
|
|
|
|
|
|
706,998 |
|
Dividends — Waste Management, Inc. common stock |
|
|
|
|
|
|
3,292,983 |
|
Other income |
|
|
|
|
|
|
130,005 |
|
|
|
|
|
|
|
|
|
Total investment loss |
|
|
|
|
|
|
(301,624,578 |
) |
Administrative fees |
|
|
|
|
|
|
3,342,902 |
|
|
|
|
|
|
|
|
|
Net
investment loss |
|
|
|
|
|
$ |
(304,967,480 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Union Plan interest in net investment loss from the Master Trust |
|
|
|
|
|
$ |
(303,845,147 |
) |
Plan interest in net investment loss from the Master Trust |
|
|
|
|
|
|
(1,122,333 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
(304,967,480 |
) |
|
|
|
|
|
|
|
|
4. Investment Contracts
The common/collective trust funds held by the Master Trust include a Stable Value Fund that invests
in fully benefit-responsive GICs and Synthetic GICs. The following disclosures provide information
about the nature of these investments and how fair values of these investments are measured.
Guaranteed Investment Contracts — GICs are contracts that provide a specified rate of return for a
specific period of time. The fair values of the GICs included in the Plan’s Stable Value Fund are
measured by State Street using a discounted cash flow methodology. Under this approach, the cash
flows of each individual contract are discounted at the prevailing interpolated swap rate as of the
appropriate measurement date.
Synthetic Guaranteed Investment Contracts — Synthetic GICs are comprised of (a) individual assets
or investments placed in a trust and (b) wrapper contracts that guarantee that participant
transactions will be executed at contract value. The investment portfolio of a Synthetic GIC when
coupled with a wrapper contract attempts to replicate the investment characteristics of traditional
GICs.
State Street measures the fair value of the Synthetic GICs included in the Plan’s Stable Value Fund
as follows:
| • |
|
Fair value of individual assets and investments — Individual assets and investments are
valued at representative quoted market prices when available. Short-term securities, if any,
are stated at amortized cost, which approximates fair value. Debt securities are valued by a
pricing service based on market transactions for comparable securities and various
relationships between securities that are generally recognized by institutional traders.
Investments in regulated investment companies or collective investment funds are valued at the
net asset value per share or unit on the valuation date. Any accrued interest on the
underlying investments is also included as a component of the fair value of those investments. |
| |
| • |
|
Fair value of wrapper contracts — The fair value of wrapper contracts is determined using a
market approach discounting methodology that incorporates the difference between current
market level rates for contract level wrap fees and the wrap fee being charged for the
Synthetic GIC. This difference is calculated as a dollar value and discounted by the
prevailing interpolated swap rate as of the appropriate measurement date. |
9
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
5. Fair Value Measurements
In accordance with SFAS No. 157, the Plan classifies its investments into Level 1, which refers to
investments measured at fair value using quoted prices from active markets for identical assets;
Level 2, which refers to investments not traded on an active market but for which fair value
measurements are based on readily available observable market inputs that are corroborated by
market data; and Level 3, which refers to investments valued based on significant unobservable
inputs that are not corroborated by market data. The Plan’s assets are classified within the fair
value hierarchy based on the lowest level of inputs that is significant to the asset’s fair value
measurement.
The following table sets forth by level within the fair value hierarchy a summary of investments
measured at fair value on a recurring basis as of December 31, 2008:
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
Fair Value Measurements Using |
|
| |
|
|
|
|
|
Quoted |
|
|
Significant |
|
|
|
|
| |
|
|
|
|
|
Prices in |
|
|
Other |
|
|
Significant |
|
| |
|
|
|
|
|
Active |
|
|
Observable |
|
|
Unobservable |
|
| |
|
|
|
|
|
Markets |
|
|
Inputs |
|
|
Inputs |
|
| |
|
Total |
|
|
(Level 1) |
|
|
(Level 2) |
|
|
(Level 3) |
|
Master Trust Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common/collective trust funds |
|
$ |
949,051,449 |
|
|
$ |
— |
|
|
$ |
949,051,449 |
|
|
$ |
— |
|
Corporate stocks |
|
|
6,542,197 |
|
|
|
6,542,197 |
|
|
|
— |
|
|
|
— |
|
Waste Management, Inc. common stock |
|
|
104,384,770 |
|
|
|
104,384,770 |
|
|
|
— |
|
|
|
— |
|
Mutual funds |
|
|
12,159,625 |
|
|
|
12,159,625 |
|
|
|
— |
|
|
|
— |
|
Publicly-traded partnership interests and other |
|
|
115,515 |
|
|
|
115,515 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Master Trust Investments |
|
$ |
1,072,253,556 |
|
|
$ |
123,202,107 |
|
|
$ |
949,051,449 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Master Trust Investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Participant loans |
|
$ |
150,601 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
150,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a reconciliation for assets for which Level 3 inputs were used in determining fair
value:
|
|
|
|
|
Beginning balance |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
157,002 |
|
Issuances, repayments and settlements, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(6,401 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
150,601 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6. Federal Income Taxes
The Plan has received a determination letter from the Internal Revenue Service (the “IRS”) dated
November 30, 2001, stating that the Plan is qualified under Section 401(a) of the Code and,
therefore, the related trust is exempt from taxation. Subsequent to this determination by the IRS,
the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code
to maintain its qualification. The Plan Sponsor has indicated that it will take the necessary
steps, if any, to bring the Plan’s operations into compliance with the Code.
7. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the financial statements
to the Form 5500 as of December 31, 2008 and 2007:
| |
|
|
|
|
|
|
|
|
| |
|
2008 |
|
|
2007 |
|
Net assets available for benefits per the financial statements |
|
$ |
3,934,655 |
|
|
$ |
4,289,783 |
|
Less: adjustment from fair value to contract value for fully benefit-responsive investment contracts |
|
|
(6,282 |
) |
|
|
(7,663 |
) |
|
|
|
|
|
|
|
Net assets available for benefits per the Form 5500 |
|
$ |
3,928,373 |
|
|
$ |
4,282,120 |
|
|
|
|
|
|
|
|
10
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Notes to Financial Statements (continued)
The following is a reconciliation of the net decrease in net assets available for benefits per the
financial statements to the Form 5500 for the year ended December 31, 2008:
| |
|
|
|
|
Net decrease in net assets available for benefits per the financial statements |
|
$ |
(355,128 |
) |
Add: adjustment from fair value to contract value for fully
benefit-responsive investment contracts at December 31, 2007 |
|
|
7,663 |
|
Less: adjustment from fair value to contract value for fully
benefit-responsive investment contracts at December 31, 2008 |
|
|
(6,282 |
) |
|
|
|
|
Net decrease in assets available for benefits per the Form 5500 |
|
$ |
(353,747 |
) |
|
|
|
|
The accompanying financial statements present fully benefit-responsive investment contracts at
contract value. The Form 5500 requires fully benefit-responsive investment contracts to be reported
at fair value. Therefore, the adjustment from fair value to contract value for fully
benefit-responsive investment contracts represents a reconciling item.
8. Plan Termination
Although it has not expressed any intention to do so, subject to the terms of any applicable
collective bargaining agreement, the Company has the right to terminate the Plan subject to the
provisions of ERISA.
9. Commitments and Contingencies
Bond Fund Performance
One of the common/collective trust fund investment options available to participants of the Plan is
a bond market fund. During 2007, there was a significant decline in the market value of the bond
market fund, and effective October 1, 2007, State Street changed the investment strategy of the
bond market fund to a passively managed strategy designed to mirror the performance of the index. A
portion of the bond market fund’s decline in market value can be attributed to changes in general
market conditions for this type of investment. However, given the magnitude of the divergence of
the value of the bond market fund from its established benchmark, the Plan’s Investment Committee
has determined that it is also appropriate to consider whether the investments held by the bond
market fund were consistent with the risk profile defined for this investment option and whether
the bond market fund was managed in accordance with the Plan’s investment policy. As a result, the
Plan has engaged an independent fiduciary to act on behalf of the Plan and its participants with
respect to these considerations and related assessments of any potential remedies, including, but
not limited to, litigation or settlement of potential litigation to recover Plan assets.
10. Related Party Transactions
Certain investments of the Plan are managed by State Street. State Street is the trustee of the
Plan and, therefore, these transactions qualify as party-in-interest transactions. Additionally, a
portion of the Plan’s assets are invested in the Company’s common stock. Because the Company is the
plan sponsor, transactions involving the Company’s common stock qualify as party-in-interest
transactions. All of these transactions are exempt from the prohibited transactions rules.
11
Waste Management Retirement Savings Plan
For Bargaining Unit Employees
Schedule H, Line 4(i) — Schedule of Assets (Held At End of Year)
EIN: 36-2660763 Plan: 007
December 31, 2008
| |
|
|
|
|
|
|
| Identity of Issue |
|
Description of Investment |
|
Current Value |
*Participant Loans
|
|
Various maturity dates with
interest rates ranging from 5.0% to 9.25%
|
|
$ |
150,601 |
|
12
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Administrative
Committee has duly caused this annual report to be signed on its behalf by the undersigned hereunto
duly authorized.
| |
|
|
|
|
|
|
| |
|
WASTE MANAGEMENT RETIREMENT SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES |
|
|
|
|
|
|
|
|
|
Date: June 24, 2009
|
|
By:
|
|
/s/ Krista DelSota
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Krista DelSota |
|
|
|
|
|
|
Vice President, Compensation, Benefits and
Human Resources Information Management |
|
|
|
|
|
|
Waste Management, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
Member, Administrative Committee of the Waste
Management Employee Benefit Plans |
|
|
13
INDEX TO EXHIBITS
| |
|
|
| Exhibit |
|
|
| Number |
|
Description |
|
|
|
23.1
|
|
Consent of Independent Registered Public Accounting Firm |