Waste Management 2014 Annual Report Download - page 141

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:
2014 2013
Revolving credit facility(a) ............................ $ 785 $ 872
Letter of credit facilities(b) ............................ 400 400
Other(c) ........................................... 278 267
$1,463 $1,539
(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, 2014, we had no outstanding
borrowings and $785 million of letters of credit issued and supported by the facility, leaving an unused and
available credit capacity of $1,465 million.
(b) As of December 31, 2014, we had an aggregate committed capacity of $400 million under letter of credit
facilities with terms extending through December 2018. This letter of credit capacity was fully utilized as of
December 31, 2014.
(c) These letters of credit are outstanding under various arrangements that do not obligate the counterparty to
provide a committed capacity.
Summary of Cash Flow Activity
The following is a summary of our cash flows for the years ended December 31 (in millions):
2014 2013 2012
Net cash provided by operating activities .............. $2,331 $ 2,455 $ 2,295
Net cash provided by (used in) investing activities ....... $ 995 $(1,900) $(1,830)
Net cash used in financing activities .................. $(2,072) $ (687) $ (530)
Net Cash Provided by Operating Activities — The most significant items affecting the comparisons of our
operating cash flows in 2014 as compared to 2013 are summarized below:
•Increase in earnings – Our income from operations, excluding depreciation and amortization, increased
by $1.2 billion, on a year-over-year basis. Certain of the more significant drivers of our earnings
improvement include:
• Lower non-cash impairment charges of $652 million in 2014 as compared to 2013; and
• The net gain on the sale of our Wheelabrator business of $519 million in 2014.
After considering these items, and certain other non-cash items included in our comparative results, our
earnings drove an improvement in our cash flows from operating activities of approximately $100
million.
•Increase in tax payments — Cash paid for income taxes was approximately $247 million higher on a
year-over-year basis due to (i) higher pre-tax earnings; (ii) approximately $210 million anticipated
overpayment during 2014, when comparing our year-end tax provisions to payments made throughout
the year; and (iii) taxes associated with the divestiture of our Puerto Rico operations and certain other
collection and landfill assets.
•Forward starting swaps — During the first quarter of 2014, the forward-starting interest rate swaps
associated with the anticipated issuance of senior notes in 2014 matured, and we paid cash of $36
million to settle the liabilities related to the swaps. This cash payment has been classified as a change
in “Accounts payable and accrued liabilities” within “Net cash provided by operating activities” in the
Consolidated Statement of Cash Flows.
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