SUPPLEMENTARY INFORMATION (Tables)

6 Months Ended

Jun. 30, 2011

Components of Other Operating Expenses

The components of other operating expenses are as follows (in thousands):

	Other Operating Expenses
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
Construction expense	$	29,805		$	20,654		$	55,910		$	41,139
Insurance subsidiary operating expenses (1)		4,170			4,472			8,051			8,542
Foreign exchange gain		(2,114	)		(10	)		(2,105	)		(999	)
Other		(778	)		32			(3,440	)		(6	)
Total other operating expenses	$	31,083		$	25,148		$	58,416		$	48,676

(1) Insurance subsidiary operating expenses are primarily comprised of incurred but not reported loss reserves, loss adjustment expenses and policy acquisition costs.

Amortization Expense and Contra-Expense Associated with Intangible Assets and Liabilities

The following table details the amount of the actual/estimated amortization expense and contra-expense associated with these intangible assets and liabilities as of June 30, 2011 included or expected to be included in our condensed consolidated statement of income for each of the years indicated (in thousands):

	Waste, Service and Energy Contracts (Amortization Expense)		Waste and  Service Contracts (Contra-Expense)
Six Months ended June 30, 2011	$	19,488	$	(6,203	)
Remainder of 2011	$	18,382	$	(6,205	)
2012		35,770		(12,412	)
2013		32,200		(12,390	)
2014		29,302		(12,500	)
2015		25,943		(8,187	)
2016		23,304		(7,906	)
Thereafter		288,981		(22,829	)
Total	$	453,882	$	(82,429	)

Components of Non-Cash Convertible Debt Related Expense

The components of non-cash convertible debt related expense are as follows (in thousands):

	Non-Cash Convertible Debt Related Expense
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
Debt discount accretion related to the 3.25% Notes	$	5,805		$	5,247		$	11,465		$	10,363
Debt discount accretion related to the Debentures		758			5,146			1,533			10,200
Fair value changes related to the cash convertible note hedge		14,620			7,045			23,857			43,941
Fair value changes related to the cash conversion option derivative		(14,758	)		(5,704	)		(25,270	)		(44,523	)
Total non-cash convertible debt related expense	$	6,425		$	11,734		$	11,585		$	19,981

Components of Comprehensive Income

The components of comprehensive income are as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Comprehensive income, net of income taxes:
Net income attributable to Covanta Holding Corporation	$	18,140		$	25,789		$	151,633		$	18,556
Foreign currency translation		938			(8,473	)		8,332			(9,864	)
Pension and other postretirement plan unrecognized net loss		(100	)		(73	)		(200	)		(147	)
Net unrealized loss on derivatives		(142	)		—			(223	)		—
Net unrealized gain (loss) on available-for-sale securities		264			(98	)		365			78
Other comprehensive (loss) income attributable to Covanta Holding Corporation		960			(8,644	)		8,274			(9,933	)
Comprehensive income attributable to Covanta Holding Corporation	$	19,100		$	17,145		$	159,907		$	8,623
Net income attributable to noncontrolling interests in subsidiaries	$	1,535		$	1,485		$	3,435		$	3,985
Other comprehensive (loss) income — Foreign currency translation		(23	)		(806	)		(125	)		159
Comprehensive income attributable to noncontrolling interests in subsidiaries	$	1,512		$	679		$	3,310		$	4,144

Accumulated Translation Adjustment

Components of Net Unrealized Foreign Currency Translation

The components of net unrealized foreign currency translation consist of the following (in thousands, net of tax):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Net unrealized foreign currency translation adjustments arising during the period	$	2,285		$	(8,473	)	$	9,679		$	(9,864	)
Reclassification adjustment for foreign currency translation included in net income		(1,347	)		—			(1,347	)		—
Net unrealized foreign currency translation adjustment	$	938		$	(8,473	)	$	8,332		$	(9,864	)