Waste Management 2013 Annual Report Download - page 127

(a) Proceeds from divestitures of businesses for the year ended December 31, 2011 included the receipt of a
payment of $17 million related to a note receivable from a prior year divestiture. This receipt is included as
a component of “Other” within “Cash flows from investing activities” in our Consolidated Statement of
Cash Flows.
When comparing our cash flows from operating activities for the year ended December 31, 2013 to the
comparable period in 2012, the increase of $160 million was primarily related to the impact of higher cash
earnings, favorable impacts of working capital changes and the payment of $59 million to settle the liabilities
associated with the termination of our forward starting swaps in September 2012. The increase was partially
offset by an increase in tax payments of $145 million and the favorable cash receipt of $72 million resulting from
the termination of interest rate swaps in April 2012.
When comparing our cash flows from operating activities for the year ended December 31, 2012 to the
comparable period in 2011, the decrease of $174 million was primarily related to the impact of lower cash
earnings, an increase in tax payments of $63 million, the payment of $59 million to settle the liabilities associated
with the termination of our forward starting swaps in September 2012 and unfavorable impacts of working
capital changes. The decrease was partially offset by a favorable cash receipt of $72 million resulting from the
termination of interest rate swaps in April 2012.
The decrease in capital expenditures when comparing the year ended December 31, 2013 to the comparable
period can generally be attributed to increased focus on capital spending management. The increase in capital
expenditures when comparing the year ended December 31, 2012 to the comparable period in 2011 is a result of
our increased spending on compressed natural gas vehicles, related fueling infrastructure and growth initiatives,
and the impact of timing differences associated with cash payments for the previous years’ fourth quarter capital
spending. We generally use a significant portion of our free cash flow on capital spending in the fourth quarter of
each year. A more significant portion of our fourth quarter 2011 spending was paid in cash in 2012 than in the
preceding year.
Acquisitions
Greenstar, LLC — On January 31, 2013, we paid $170 million inclusive of certain adjustments, to acquire
Greenstar, LLC (“Greenstar”). Pursuant to the sale and purchase agreement, up to an additional $40 million is
payable to the sellers during the period from 2014 to 2018, of which $20 million is guaranteed. The remaining
$20 million of this consideration is contingent based on changes in certain recyclable commodity indexes and
had a preliminary estimated fair value at closing of $16 million. Greenstar was an operator of recycling and
resource recovery facilities. This acquisition provides the Company’s customers with greater access to recycling
solutions, having supplemented our extensive nationwide recycling network with the operations of one of the
nation’s largest private recyclers. Since the acquisition date, the Greenstar business has recognized revenues of
$139 million and net losses of $17 million, which are included in our Consolidated Statement of Operations.
RCI Environnement, Inc. — On July 5, 2013, we paid C$509 million, or $481 million, to acquire
substantially all of the assets of RCI Environnement, Inc. (“RCI”), the largest waste management company in
Quebec, and certain related entities. Total consideration, inclusive of amounts for estimated working capital, was
C$515 million, or $487 million. RCI provides collection, transfer, recycling and disposal operations throughout
the Greater Montreal area. The acquired RCI operations complement and expand the Company’s existing assets
and operations in Quebec. Since the acquisition date, the RCI business has recognized revenues of $87 million
and net income of $7 million, which are included in our Consolidated Statement of Operations.
Oakleaf Global Holdings — On July 28, 2011, we paid $432 million, net of cash received of $4 million and
inclusive of certain adjustments, to acquire Oakleaf. Oakleaf provides outsourced waste and recycling services
through a nationwide network of third-party haulers. We acquired Oakleaf to advance our growth and
transformation strategies and increase our national accounts customer base while enhancing our ability to provide
comprehensive environmental solutions. For the year ended December 31, 2011, subsequent to the acquisition
date, Oakleaf recognized revenues of $265 million and net income of less than $1 million, which are included in
our Consolidated Statement of Operations.
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