Waste Management 2011 Annual Report Download - page 140

with cash payments for the previous years’ fourth quarter capital spending. Approximately $206 million
of our fourth quarter 2010 spending was paid in cash in the first quarter of 2011 compared with
approximately $145 million of our fourth quarter 2009 spending that was paid in the first quarter of 2010.
‰Acquisitions — Our spending on acquisitions increased from $281 million during 2009 to $407 million in
2010 and to $867 million in 2011. During the third quarter of 2011, we paid $432 million, net of cash
received of $4 million and inclusive of certain adjustments, to acquire Oakleaf, which provides
outsourced waste and recycling services through a nationwide network of third-party haulers. During the
second quarter of 2010, we paid approximately $150 million to acquire a waste-to-energy facility in
Portsmouth, Virginia. We continue to focus on accretive acquisitions and growth opportunities that will
contribute to improved future results of operations and enhance and expand our existing service offerings.
‰Investments in unconsolidated entities — We made $155 million of cash investments in unconsolidated
entities during 2011. These investments included a $48 million payment made to acquire a noncontrolling
interest in a limited liability company, which was established to invest in and manage a refined coal
facility in North Dakota, and $107 million of investments primarily related to furthering our goal of
growing into new markets by investing in greener technologies.
We made $173 million of cash investments in unconsolidated entities during 2010. These cash
investments were primarily related to a $142 million payment made to acquire a 40% equity investment
in Shanghai Environment Group, a subsidiary of Shanghai Chengtou Holding Co., Ltd. As a joint venture
partner in SEG, we participate in the operation and management of waste-to-energy and other waste
services in the Chinese market. SEG’s focus also includes building new waste-to-energy facilities in
China.
‰Net receipts from restricted funds — Net cash received from our restricted trust and escrow accounts,
which are largely generated from the issuance of tax-exempt bonds for our capital needs, contributed
$107 million to our investing activities in 2011 compared with $48 million in 2010 and $196 million in
2009. The significant decrease in cash received from our restricted trust and escrow accounts during 2010
was due to a decrease in tax-exempt borrowings.
Net Cash Used in Financing Activities — The most significant items affecting the comparison of our
financing cash flows for the periods presented are summarized below:
‰Share repurchases and dividend payments — Our 2011, 2010 and 2009 share repurchases and dividend
payments have been made in accordance with capital allocation programs approved by our Board of
Directors.
We paid $575 million for share repurchases in 2011, compared with $501 million in 2010 and $226
million in 2009. We repurchased approximately 17 million, 15 million and 7 million shares of our
common stock in 2011, 2010 and 2009, respectively. We did not repurchase shares during the first half of
2009 given the state of the economy and the financial markets. In the second half of 2009, we resumed
repurchases of our common stock following improvements in the economy and capital markets.
We paid an aggregate of $637 million in cash dividends during 2011, compared with $604 million in
2010 and $569 million in 2009. The increase in dividend payments is due to our quarterly per share
dividend increasing from $0.29 in 2009, to $0.315 in 2010 and to $0.34 in 2011, and has been offset in
part by a reduction in our common stock outstanding as a result of our share repurchase programs.
In December 2011, we announced that our Board of Directors expects to increase the per share quarterly
dividend from $0.34 to $0.355 for dividends declared in 2012. However, all future dividend declarations
are at the discretion of the Board of Directors, and depend on various factors, including our net earnings,
financial condition, cash required for future business plans and other factors the Board of Directors may
deem relevant. In December 2011, the Board of Directors approved up to $500 million in share
repurchases for 2012. However, future share repurchases will be made at the discretion of management,
and will depend on factors similar to those considered by the Board of Directors in making dividend
declarations.
61