Waste Management 2013 Annual Report Download - page 155

Cash and cash equivalents — Cash and cash equivalents consist primarily of cash on deposit and money
market funds that invest in U.S. government obligations with original maturities of three months or less. Our cash
and cash equivalents have decreased as a result of the execution of our strategic growth plans, primarily due to
acquisitions.
Restricted trust and escrow accounts — Restricted trust and escrow accounts consist primarily of funds
deposited for purposes of settling landfill final capping, closure, post-closure and environmental remediation
obligations. These balances are primarily included within long-term “Other assets” in our Consolidated Balance
Sheets.
Debt — We use long-term borrowings in addition to the cash we generate from operations as part of our
overall financial strategy to support and grow our business. We primarily use senior notes and tax-exempt bonds
to borrow on a long-term basis, but we also use other instruments and facilities when appropriate. The
components of our long-term borrowings as of December 31, 2013 are described in Note 7 to the Consolidated
Financial Statements.
Changes in our outstanding debt balances from December 31, 2013 to December 31, 2012 were primarily
attributable to (i) net debt borrowings of $155 million and (ii) the impacts of accounting for other non-cash
changes in our debt balances due to tax-exempt bond issuances, hedge accounting for interest rate swaps, foreign
currency translation, interest accretion and capital leases and other debt obligations.
As of December 31, 2013, we had (i) $481 million of debt maturing within the next 12 months, including
$350 million of 5.0% senior notes that mature in March 2014 and $67 million of tax-exempt bonds; (ii) short-
term borrowings and advances outstanding under credit facilities with long-term maturities, including $420
million of borrowings outstanding under the $2.25 billion revolving credit facility and $9 million of advances
under our Canadian credit facility and (iii) $939 million of tax-exempt borrowings subject to repricing within the
next 12 months. Based on our intent and ability to refinance a portion of this debt on a long-term basis as of
December 31, 2013, including through use of forecasted available capacity under our $2.25 billion revolving
credit facility, we have classified $1.1 billion of this debt as long-term and the remaining $726 million as current
obligations.
We have credit facilities in place to support our liquidity and financial assurance needs. The following table
summarizes our outstanding letters of credit (in millions) at December 31, categorized by type of facility:
2013 2012
Revolving credit facility(a) ............................................ $ 872 $ 933
Letter of credit facilities(b) ............................................ 400 492
Other(c) ........................................................... 267 257
$1,539 $1,682
(a) In July 2013, we amended and restated our revolving credit facility, increasing our total credit capacity to
$2.25 billion and extending the term through July 2018. At December 31, 2013, we had $420 million of
outstanding borrowings and $872 million of letters of credit issued and supported by the facility, leaving an
unused and available credit capacity of $958 million.
(b) As of December 31, 2013, we had an aggregate committed capacity of $400 million under letter of credit
facilities with terms extending through December 2016. This letter of credit capacity was fully utilized as of
December 31, 2013.
(c) These letters of credit are outstanding under various arrangements that do not obligate the counterparty to
provide a committed capacity.
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