Waste Management 2013 Annual Report Download - page 192

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
7. Debt
The following table summarizes the major components of debt at each balance sheet date (in millions) and
provides the maturities and interest rate ranges of each major category as of December 31, 2013:
2013 2012
U.S. revolving credit facility, maturing July 2018 (weighted average interest rate of 1.2% at
December 31, 2013 and 1.4% at December 31, 2012) .............................. $ 420 $ 400
Letter of credit facilities, maturing through December 2016 ........................... — —
Canadian credit facility and term loan, maturing November 2017 (weighted average effective
interest rate of 2.7% at December 31, 2013 and 2.9% at December 31, 2012) ........... 414 75
Senior notes maturing through 2039, interest rates ranging from 2.60% to 7.75% (weighted
average interest rate of 5.7% at December 31, 2013 and 2012) ....................... 6,287 6,305
Tax-exempt bonds maturing through 2045, fixed and variable interest rates ranging from
0.03% to 5.7% (weighted average interest rate of 2.3% at December 31, 2013 and 2.8% at
December 31, 2012) ........................................................ 2,664 2,727
Capital leases and other, maturing through 2055, interest rates up to 12% ................ 441 409
$10,226 $9,916
Current portion of long-term debt ................................................ 726 743
$ 9,500 $9,173
Debt Classification
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 U.S. revolving credit facility (“$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.
As of December 31, 2013, we also have $577 million of variable-rate tax-exempt bonds. The interest rates
on these bonds are reset on either a daily or weekly basis through a remarketing process. If the remarketing agent
is unable to remarket the bonds, the remarketing agent can put the bonds to us. These bonds are supported by
letters of credit guaranteeing repayment of the bonds in this event. We classified these borrowings as long-term
in our Consolidated Balance Sheet at December 31, 2013 because the borrowings are supported by letters of
credit issued under our $2.25 billion revolving credit facility, which is long-term.
Access to and Utilization of Credit Facilities
$2.25 Billion Revolving Credit Facility — 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. This
facility provides us with credit capacity to be used for either cash borrowings or to support letters of credit. The
rates we pay for outstanding loans are generally based on LIBOR plus a spread depending on the Company’s
debt rating assigned by Moody’s Investors Service and Standard and Poor’s. The spread above LIBOR ranges
from 0.90% to 1.475%. At December 31, 2013, we had $420 million of outstanding borrowings and $872 million
of letters of credit issued and supported by the facility. The unused and available credit capacity of the facility
was $958 million as of December 31, 2013.
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