Waste Management 2015 Annual Report Download - page 125

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:
2015 2014
Revolving credit facility(a) ............................ $ 831 $ 785
Letter of credit facilities(b) ............................ 150 400
Other(c) ........................................... 316 257
$1,297 $1,442
(a) In July 2015, we amended and restated our revolving credit facility extending the term through July 2020.
At December 31, 2015, we had $20 million of outstanding borrowings and $831 million of letters of credit
issued and supported by the facility, leaving an unused and available credit capacity of $1,399 million.
(b) As of December 31, 2015, we had an aggregate committed capacity of $150 million under letter of credit
facilities with terms extending through December 2018. This letter of credit capacity was fully utilized as of
December 31, 2015.
(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):
2015 2014 2013
Net cash provided by operating activities .............. $2,498 $ 2,331 $ 2,455
Net cash provided by (used in) investing activities ....... $(1,608) $ 995 $(1,900)
Net cash used in financing activities .................. $(2,155) $(2,072) $ (687)
Net Cash Provided by Operating Activities — The most significant items affecting the comparison of our
operating cash flows in 2015 to 2014 are summarized below:
•Increased earnings from our traditional Solid Waste business — In 2015, we saw an increase in cash
earnings from our traditional Solid Waste business which was enhanced by acquisitions and corporate
overhead cost reductions. These cash flow improvements were slightly offset by a decrease in earnings
of our recycling operations.
•Cash flow of divested businesses — The divestiture of Wheelabrator in December 2014 coupled with
the sale of other Solid Waste businesses throughout 2014 affected the year-over-year comparison by
approximately $140 million.
•Decrease in tax payments — Cash paid for income taxes, net of excess tax benefits associated with
equity-based transactions, was $329 million lower on a year-over-year basis, largely driven by (i) lower
year-over-year pre-tax earnings primarily due to the loss on early extinguishment of debt in the first
quarter of 2015 and (ii) the tax implications and related impacts of divestitures and impairments.
•Decrease in interest payments — Cash paid for interest decreased $77 million, primarily due to the
refinancing of a significant portion of our high-coupon senior notes during the first quarter of 2015,
which is discussed further in Note 7 to the Consolidated Financial Statements.
•Multiemployer pension plan settlements — In 2015, we paid approximately $60 million for
multiemployer pension plan settlements primarily associated with the Central States, Southeast and
Southwest Areas Pension Plan and the Teamsters Employers Local 945 Pension Fund. See Note 11 to
the Consolidated Financial Statements for additional information.
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