Waste Management 2010 Annual Report Download - page 157

obligations by $215 million. This increase was offset by $49 million of repayments of various borrowings at their
scheduled maturities.
Scheduled Debt and Capital Lease Payments — Scheduled debt and capital lease payments for the next five
years are as follows: $511 million in 2011; $614 million in 2012; $203 million in 2013; $459 million in 2014; and
$452 million in 2015. Our recorded debt and capital lease obligations include non-cash adjustments associated with
discounts, premiums and fair value adjustments for interest rate hedging activities, which have been excluded from
these amounts because they will not result in cash payments.
Secured Debt
Our debt balances are generally unsecured, except for $30 million of the tax-exempt project bonds outstanding
at December 31, 2010 that were issued by certain subsidiaries within our Wheelabrator Group. These bonds are
secured by the related subsidiaries’ assets, which have a carrying value of $295 million, and the related subsidiaries’
future revenue.
Debt Covenants
Our revolving credit facility and certain other financing agreements contain financial covenants. The most
restrictive of these financial covenants are contained in our revolving credit facility. The following table sum-
marizes the requirements of these financial covenants, as defined by the revolving credit facility:
Interest coverage ratio ................................................ H2.75 to 1
Total debt to EBITDA ................................................ G3.5 to 1
Our revolving credit facility and senior notes also contain certain restrictions intended to monitor our level of
indebtedness, types of investments and net worth. We monitor our compliance with these restrictions, but do not
believe that they significantly impact our ability to enter into investing or financing arrangements typical for our
business. As of December 31, 2010 and December 31, 2009, we were in compliance with the covenants and
restrictions under all of our debt agreements.
8. Derivative Instruments and Hedging Activities
The following table summarizes the fair values of derivative instruments recorded in our Consolidated Balance
Sheet as of December 31 (in millions):
Derivatives Designated as Hedging Instruments Balance Sheet Location 2010 2009
December 31,
Interest rate contracts ......................... Current other assets $ 1 $13
Interest rate contracts ......................... Long-term other assets 37 32
Total derivative assets $38 $45
Interest rate contracts ......................... Current accrued liabilities $11 $—
Foreign exchange contracts .................... Current accrued liabilities — 18
Electricity commodity contracts ................. Current accrued liabilities 1 —
Interest rate contracts ......................... Long-term accrued liabilities 13 —
Foreign exchange contracts .................... Long-term accrued liabilities 3 —
Total derivative liabilities $28 $18
For information related to the methods used to measure our derivative assets and liabilities at fair value, refer to
Note 18.
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)