Waste Management 2006 Annual Report Download - page 85

Summary of Contractual Obligations
The following table summarizes our contractual obligations as of December 31, 2006 and the anticipated effect
of these obligations on our liquidity in future years (in millions):
2007 2008 2009 2010 2011 Thereafter Total
Recorded Obligations:
Expected environmental liabilities(a)
Final capping, closure and post-closure . . ....... $ 111 $112 $ 110 $ 110 $ 58 $1,566 $ 2,067
Environmental remediation ................. 44 41 29 22 12 179 327
155 153 139 132 70 1,745 2,394
Debt payments(b),(c) ...................... 815 539 681 713 247 5,305 8,300
Unrecorded Obligations:(d)
Share repurchases(e) ...................... 70 — — — — — 70
Non-cancelable operating lease obligations . ....... 89 71 59 51 34 152 456
Estimated unconditional purchase obligations(f) . . . . . 150 133 127 114 70 357 951
Anticipated liquidity impact as of
December 31, 2006 . . . ................. $1,279 $896 $1,006 $1,010 $421 $7,559 $12,171
(a) Environmental liabilities include final capping, closure, post-closure and environmental remediation costs.
The amounts included here reflect environmental liabilities recorded in our Consolidated Balance Sheet as of
December 31, 2006 without the impact of discounting and inflation. Our recorded environmental liabilities
will increase as we continue to place additional tons within the permitted airspace at our landfills.
(b) Our debt obligations as of December 31, 2006 include $255 million of fixed rate tax-exempt bonds subject to
repricing within the next twelve months, which is prior to their scheduled maturities. If the re-offerings of the
bonds are unsuccessful, then the bonds can be put to us, requiring immediate repayment. We have classified the
anticipated cash flows for these contractual obligations based on the scheduled maturity of the borrowing for
purposes of this disclosure. For additional information regarding the classification of these borrowings in our
Consolidated Balance Sheet as of December 31, 2006, refer to Note 7 to the Consolidated Financial
Statements.
(c) Our recorded debt obligations include non-cash adjustments associated with discounts, premiums and fair
value adjustments for interest rate hedging activities. These amounts have been excluded here because they
will not result in an impact to our liquidity in future periods. In addition, $45 million of our future debt
payments and related interest obligations will be made with debt service funds held in trust and included as
long-term “Other assets” within our December 31, 2006 Consolidated Balance Sheet.
(d) Our unrecorded obligations represent operating lease obligations and purchase commitments from which we
expect to realize an economic benefit in future periods. We have also made certain guarantees, as discussed in
Note 10 to the Consolidated Financial Statements, that we do not expect to materially affect our current or
future financial position, results of operations or liquidity.
(e) In December 2006, we entered into a plan under SEC Rule 10b5-1 to effect market purchases of our common
stock. The $70 million disclosed here represents the minimum amount of common stock that could be
repurchased under the terms of the plan. These common stock repurchases were made in accordance with our
Board of Directors approved capital allocation program which authorizes up to $1.2 billion in share
repurchases and dividends in 2007. We repurchased $72 million of our common stock pursuant to the plan,
which was completed on February 9, 2007.
(f) Our unconditional purchase obligations are for various contractual obligations that we generally incur in the
ordinary course of our business. Certain of our obligations are quantity driven. For these contracts, we have
estimated our future obligations based on the current market values of the underlying products or services. See
Note 10 to the Consolidated Financial Statements for discussion of the nature and terms of our unconditional
purchase obligations.
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