Waste Management 2015 Annual Report Download - page 129

•Premiums paid on early extinguishment of debt — Premiums paid on early extinguishment of debt of
$555 million during the year ended December 31, 2015 are primarily related to (i) make-whole
premiums paid on certain senior notes that the Company decided to redeem in advance of their
scheduled maturities and (ii) premiums paid to tender certain high-coupon senior notes. See Note 7 to
the Consolidated Financial Statements for further discussion of these transactions.
•Acquisitions of and distributions paid to noncontrolling interests — The purchases of and distributions
paid to our noncontrolling interests were $1 million, $125 million and $59 million in 2015, 2014 and
2013, respectively. The increase during 2014 compared to 2013 is primarily attributable to the purchase
of the noncontrolling interests in the LLCs related to our waste-to-energy facilities in December 2014
for $91 million, in anticipation of our sale of our Wheelabrator business. The LLCs were then
subsequently sold as part of the divestment. See Note 20 to the Consolidated Financial Statements for
further discussion of these LLCs.
Summary of Contractual Obligations
The following table summarizes our contractual obligations as of December 31, 2015 and the anticipated
effect of these obligations on our liquidity in future years (in millions):
2016 2017 2018 2019 2020 Thereafter Total
Recorded Obligations:
Expected environmental liabilities:(a)
Final capping, closure and post-closure .......... $ 112 $139 $ 132 $106 $ 140 $2,105 $ 2,734
Environmental remediation ................... 32 26 30 19 11 89 207
144 165 162 125 151 2,194 2,941
Debt payments(b),(c),(d) ..................... 730 221 792 175 740 6,379 9,037
Unrecorded Obligations:(e)
Non-cancelable operating lease obligations ....... 89 77 61 51 42 281 601
Estimated unconditional purchase obligations(f) . . . 184 164 126 100 86 424 1,084
Anticipated liquidity impact as of
December 31, 2015 ................... $1,147 $627 $1,141 $451 $1,019 $9,278 $13,663
(a) Environmental liabilities include final capping, closure, post-closure and environmental remediation costs.
The amounts included here reflect environmental liabilities recorded in our Consolidated Balance Sheet as
of December 31, 2015 without the impact of discounting and inflation. Our recorded environmental
liabilities for final capping, closure and post-closure will increase as we continue to place additional tons
within the permitted airspace at our landfills.
(b) The amounts reported here represent the scheduled principal payments related to our long-term debt,
excluding related interest. Refer to Note 7 to the Consolidated Financial Statements for information
regarding interest rates.
(c) Our debt obligations as of December 31, 2015 include $316 million of tax-exempt bonds subject to repricing
within the next 12 months, which is prior to their scheduled maturities. If the re-offerings of the bonds are
unsuccessful, then the bonds can be put to us, requiring immediate repayment. We have classified the
anticipated cash flows for these contractual obligations based on the scheduled maturity of the borrowing
for purposes of this disclosure. For additional information regarding the classification of these borrowings in
our Consolidated Balance Sheet as of December 31, 2015, refer to Note 7 to the Consolidated Financial
Statements.
(d) Our recorded debt obligations include non-cash adjustments associated with discounts, premiums and fair
value adjustments for interest rate hedging activities. These amounts have been excluded here because they
will not result in an impact to our liquidity in future periods.
(e) Our unrecorded obligations represent operating lease obligations and purchase commitments from which we
expect to realize an economic benefit in future periods. We have also made certain guarantees, as discussed
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