Other Liabilities

6 Months Ended

Jun. 30, 2011

Other Liabilities [Abstract]

OTHER LIABILITIES

5. OTHER LIABILITIES

Other Accrued Liabilities

A summary of other accrued liabilities as of June 30, 2011 and December 31, 2010 is as follows (in millions):

	June 30,		December 31,
	2011		2010
Accrued payroll and benefits	$	169.9	$	158.4
Accrued fees and taxes		119.0		111.8
Self-insurance reserves, current portion		121.0		112.7
Accrued dividends		75.3		76.7
Synergy incentive plan		68.1		—
Current tax liabilities		24.5		—
Restructuring liabilities		0.6		3.9
Accrued professional fees and legal settlement reserves		70.9		53.1
Other		102.9		104.7
Total	$	752.2	$	621.3

Other accrued liabilities include the fair value of fuel and commodity hedges of $7.2 million and $8.4 million as of June 30, 2011 and December 31, 2010, respectively.

We expect to pay amounts earned under the synergy incentive plan during the first quarter of 2012. The synergy incentive plan was fully accrued and was included in Other Long-Term Liabilities as of December 31, 2010 in the accompanying consolidated balance sheet.

Other Long-Term Liabilities

A summary of other long-term liabilities as of June 30, 2011 and December 31, 2010 is as follows (in millions):

	June 30,		December 31,
	2011		2010
Deferred compensation liability	$	37.2	$	27.7
Pension and other postretirement liabilities		6.1		14.4
Contingent legal liabilities		74.0		105.8
Ceded insurance reserves		51.8		54.5
Synergy incentive plan		—		68.1
Other		25.4		35.0
Total	$	194.5	$	305.5

Self-Insurance Reserves

In general, our self-insurance reserves are recorded on an undiscounted basis. However, the self-insurance liabilities we acquired in the acquisition of Allied Waste Industries, Inc. (Allied) have been recorded at our estimate of fair value, and, therefore, have been discounted to present value using a rate of 9.75%. Discounted reserves are accreted to interest expense through the period they are paid.

Our liabilities for unpaid and incurred but not reported claims at June 30, 2011 (which includes claims for workers’ compensation, general liability, vehicle liability and employee health care benefits) were $420.6 million under our current risk management program and are included in other accrued liabilities and self-insurance reserves in our consolidated balance sheets. While the ultimate amount of claims incurred is dependent on future developments, we believe recorded reserves are adequate to cover the future payment of claims. However, it is possible that recorded reserves may not be adequate to cover the future payment of claims. Adjustments, if any, to estimates recorded resulting from ultimate claim payments will be reflected in our consolidated statements of income in the periods in which such adjustments are known.

Accrued Liabilities Associated with the Allied Acquisition

We evaluated our operating contracts and leases acquired from Allied and recorded liabilities for unfavorable contract and lease exit costs. The underlying lease agreements and contracts have remaining non-cancellable terms ranging from 1 to 21 years. The following tables reflect activity during the six months ended June 30, 2011 and 2010 associated with unfavorable contracts and lease exit liabilities included in other accrued liabilities (in millions):

	Balance at								Balance at
	December 31,		Payments /						June 30,
	2010		Amortization			Adjustments			2011
Unfavorable contracts	$	37.6	$	(5.0	)	$	(5.3	)	$	27.3
Lease exit costs		5.0		(1.2	)		(0.6	)		3.2
Total	$	42.6	$	(6.2	)	$	(5.9	)	$	30.5

	Balance at							Balance at
	December 31,		Payments /					June 30,
	2009		Amortization			Adjustments		2010
Unfavorable contracts	$	49.0	$	(5.4	)	$	—	$	43.6
Lease exit costs		6.4		(1.0	)		—		5.4
Total	$	55.4	$	(6.4	)	$	—	$	49.0