Waste Management 2014 Annual Report Download - page 148

correlates with natural gas prices in many of the markets in which we operate. During the three years ended
December 31, 2014, we generally have not entered into derivatives to hedge the risks associated with changes in
the market prices of these commodities, with the exception of electricity commodity derivatives divested in
conjunction with the sale of our Wheelabrator business in December 2014. Alternatively, we attempt to manage
these risks through operational strategies that focus on capturing our costs in the prices we charge our customers
for the services provided. Accordingly, as the market prices for these commodities increase or decrease, our
revenues also increase or decrease.
Currency Rate Exposure — We have operations in Canada as well as a cost center in India and investments
in Hong Kong. From time to time, we use currency derivatives to mitigate the impact of currency translation on
cash flows of intercompany Canadian-currency denominated debt transactions. Our foreign currency derivatives
have not materially affected our financial position or results of operations for the periods presented. In addition,
while changes in foreign currency exchange rates could significantly affect the fair value of our foreign currency
derivatives, we believe these changes in fair value would not have a material impact to the Company. The foreign
currency exposure associated with these investments has not been material. Refer to Notes 8 and 14 of the
Consolidated Financial Statements for additional information regarding our foreign currency derivatives.
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