Capitalization of Landfill Permitting Costs
As part of its normal business operations, Waste Management allocated substantial resources toward development of new landfills and expansion of existing landfills. A significant part of the landfill development and expansion costs related to the process of obtaining required permits from the appropriate government authorities. Over the years, the company faced increased difficulty in obtaining the required landfill permits; it often invested significantly in projects that had to be abandoned or were materially impaired.