Waste Management 2015 Annual Report Download - page 128

We announced in December 2015 that the Board of Directors refreshed its prior authorization of up to
$1 billion in future share repurchases. Any future share repurchases will be made at the discretion of
management, and will depend on factors similar to those considered by the Board of Directors in
making dividend declarations.
•Dividend payments — For the periods presented, all dividends have been declared and paid in
accordance with financial plans approved by our Board of Directors.
We paid an aggregate of $695 million in cash dividends during 2015, compared with $693 million in
2014, and $683 million in 2013. The increase in dividend payments is due to our quarterly per share
dividend increasing from $0.365 in 2013, to $0.375 in 2014, and to $0.385 in 2015 and has been offset,
in part, by a reduction in our common stock outstanding as a result of our share repurchase programs.
In December 2015, we announced that our Board of Directors expects to increase the quarterly
dividend from $0.385 to $0.41 per share for dividends declared in 2016. However, all future dividend
declarations are at the discretion of the Board of Directors and depend on various factors, including our
net earnings, financial condition, cash required for future business plans and other factors the Board
may deem relevant.
•Proceeds from the exercise of common stock options — The exercise of common stock options
generated $77 million of financing cash inflows during 2015 compared with $93 million during 2014
and $132 million during 2013. The year-over-year changes are generally due to the level of stock
options exercised throughout the year, which is primarily driven by changes in the Company’s stock
price and the number of exercisable options.
•Debt borrowings (repayments) — Net debt repayments were $427 million in 2015 and $751 million in
2014 compared to net debt borrowings of $155 million in 2013. The following summarizes our cash
borrowings and debt repayments made during each year (in millions):
Years Ended December 31,
2015 2014 2013
Borrowings:
U.S. revolving credit facility .................... $ 100 $2,225 $ 1,140
Canadian credit facility and term loan ............. 11 88 1,007
Senior notes ................................. 1,781 347 —
Tax-exempt bonds ............................ 262 — —
Other debt ................................... 183 157 85
$ 2,337 $ 2,817 $ 2,232
Repayments:
U.S. revolving credit facility .................... $ (80) $(2,645) $(1,120)
Canadian credit facility and term loan ............. (130) (243) (666)
Senior notes ................................. (1,970) (350) —
Tax-exempt bonds ............................ (341) (123) (162)
Capital leases and other debt .................... (243) (207) (129)
$(2,764) $(3,568) $(2,077)
Net borrowings (repayments) ........................ $ (427) $ (751) $ 155
For the year ended December 31, 2015, non-cash financing activities included $262 million of tax-
exempt bond refundings and reissuances. For the year ended December 31, 2013, non-cash financing
activities included proceeds from tax-exempt borrowings, net of principal payments made directly from
trust funds, of $99 million. During 2014, we did not have any significant non-cash financing activities.
Refer to Note 7 to the Consolidated Financial Statements for additional information related to our debt
borrowings and repayments.
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