Other Liabilities

12 Months Ended

Dec. 31, 2011

7. OTHER LIABILITIES

Other Accrued Liabilities

A summary of other accrued liabilities as of December 31 is as follows:


	2011		2010
Accrued payroll and benefits	$	168.9	$	158.4
Accrued fees and taxes		115.3		111.8
Self-insurance reserves, current portion		114.4		112.7
Accrued dividends		81.4		76.7
Synergy incentive plan		68.1		-
Current tax liabilities		29.4		-
Restructuring liabilities		0.3		3.9
Accrued professional fees and contigent legal liabilities		81.3		53.1
Other		93.4		104.7

Total	$	752.5	$	621.3

Other accrued liabilities include the fair value of fuel and recycling commodity hedges of $5.4 million and $8.4 million at December 31, 2011 and 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.

Other Long-Term Liabilities

A summary of other long-term liabilities as of December 31 is as follows:


	2011		2010
Deferred compensation plan liability	$	31.4	$	27.7
Pension and other postretirement liabilities		46.8		14.4
Contingent legal liabilities		59.3		105.8
Ceded insurance reserves		58.0		54.5
Synergy incentive plan		-		68.1
Other		26.6		35.0

Total	$	222.1	$	305.5

Self-Insurance Reserves

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

Our liabilities for unpaid and incurred but not reported claims at December 31, 2011 (which includes claims for workers’ compensation, general liability, vehicle liability and employee health care benefits) were $418.3 million under our current risk management program and are included in other accrued liabilities and self-insurance reserves, net of current portion 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. The following table summarizes the activity in our self-insurance reserves for the years ended December 31:


	2011			2010			2009
Balance at beginning of year	$	417.2		$	412.9		$	408.1
Additions charged to expense		367.3			364.9			481.3
Payments		(372.1	)		(368.9	)		(489.7	)
Accretion expense		5.9			8.3			13.2

Balance at end of year		418.3			417.2			412.9
Less: Current portion		(114.4	)		(112.7	)		(110.9	)

Long-term portion	$	303.9		$	304.5		$	302.0

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 16 years. The following tables reflect activity during the year ended December 31, 2011 and 2010 associated with unfavorable contracts and lease exit liabilities included in other accrued and other long-term liabilities:


	Balance at December 31, 2010		Payments / Amortization			Adjustments			Balance at December 31, 2011
Unfavorable contracts	$	37.6	$	(9.5	)	$	(5.3	)	$	22.8
Lease exit costs		5.0		(1.4	)		(0.6	)		3.0

Total	$	42.6	$	(10.9	)	$	(5.9	)	$	25.8


	Balance at December 31, 2009		Payments / Amortization			Adjustments			Balance at December 31, 2010
Unfavorable contracts	$	49.0	$	(10.1	)	$	(1.3	)	$	37.6
Lease exit costs		6.4		(1.4	)		-			5.0

Total	$	55.4	$	(11.5	)	$	(1.3	)	$	42.6