Waste Management 2011 Annual Report Download - page 142

Summary of Contractual Obligations
The following table summarizes our contractual obligations as of December 31, 2011 and the anticipated
effect of these obligations on our liquidity in future years (in millions):
2012 2013 2014 2015 2016 Thereafter Total
Recorded Obligations:
Expected environmental liabilities(a)
Final capping, closure and post-closure ........ $ 123 $ 98 $ 86 $114 $ 95 $1,993 $ 2,509
Environmental remediation .................. 38 26 27 24 12 138 265
161 124 113 138 107 2,131 2,774
Debt payments(b),(c),(d) .................... 918 210 460 455 696 6,924 9,663
Unrecorded Obligations:(e)
Non-cancelable operating lease obligations ..... 91 77 68 56 45 238 575
Estimated unconditional purchase
obligations(f) ........................... 148 143 47 36 29 237 640
Anticipated liquidity impact as of
December 31, 2011 .................... $1,318 $554 $688 $685 $877 $9,530 $13,652
(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, 2011 without the impact of discounting and inflation. Our recorded environmental
liabilities for final capping, closure and post-closure will increase as we continue to place additional tons
within the permitted airspace at our landfills.
(b) The amounts reported here represent the scheduled principal payments related to our long-term debt,
excluding related interest. Refer to Note 7 to the Consolidated Financial Statements for information
regarding interest rates.
(c) Our debt obligations as of December 31, 2011 include $305 million of tax-exempt bonds subject to
re-pricing 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, 2011, refer to Note 7 to the Consolidated
Financial Statements.
(d) 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.
(e) 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 11 to the Consolidated Financial Statements, that we do not expect to materially affect our current
or future financial position, results of operations or liquidity.
(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 contracts that require us
to purchase minimum quantities of goods or services, we have estimated our future minimum obligations
based on the current market values of the underlying products or services. Accordingly, the amounts
reported in the table are not necessarily indicative of our actual cash flow obligations. See Note 11 to the
Consolidated Financial Statements for discussion of the nature and terms of our unconditional purchase
obligations.
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