Waste Management 2015 Annual Report Download - page 139

WASTE MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
Years Ended December 31,
2015 2014 2013
Cash flows from operating activities:
Consolidated net income ...................................................... $ 752 $1,338 $ 130
Adjustments to reconcile consolidated net income to net cash provided by operating
activities:
Depreciation and amortization .............................................. 1,245 1,292 1,333
Deferred income tax (benefit) provision ...................................... 30 (118) (149)
Interest accretion on landfill liabilities ....................................... 89 88 87
Interest accretion on and discount rate adjustments to environmental remediation
liabilities and recovery assets ............................................ 1 14 (10)
Provision for bad debts ................................................... 36 42 39
Equity-based compensation expense ......................................... 72 65 58
Excess tax benefits associated with equity-based transactions ..................... (15) (5) (10)
Net gain on disposal of assets .............................................. (18) (35) (21)
Effect of goodwill impairments ............................................. — 10 509
Effect of (income) expense from divestitures, asset impairments (other than goodwill)
and unusual items and other ............................................. 87 (137) 535
Equity in net losses of unconsolidated entities, net of dividends ................... 42 42 34
Loss on early extinguishment of debt ........................................ 555 — —
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables ........................................................ (178) (268) 44
Other current assets .................................................. 16 (19) (7)
Other assets ........................................................ (7) 22 4
Accounts payable and accrued liabilities .................................. (112) 117 (27)
Deferred revenues and other liabilities ................................... (97) (117) (94)
Net cash provided by operating activities ......................................... 2,498 2,331 2,455
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired ................................ (554) (35) (724)
Capital expenditures ..................................................... (1,233) (1,151) (1,271)
Proceeds from divestitures of businesses and other assets (net of cash divested) ....... 145 2,253 138
Net receipts from restricted trust and escrow accounts ........................... 51 19 71
Investments in unconsolidated entities ....................................... (20) (33) (33)
Other ................................................................. 3 (58) (81)
Net cash provided by (used in) investing activities .................................. (1,608) 995 (1,900)
Cash flows from financing activities:
New borrowings ........................................................ 2,337 2,817 2,232
Debt repayments ........................................................ (2,764) (3,568) (2,077)
Premiums paid on early extinguishment of debt ................................ (555) — —
Common stock repurchases ................................................ (600) (600) (239)
Cash dividends .......................................................... (695) (693) (683)
Exercise of common stock options .......................................... 77 93 132
Excess tax benefits associated with equity-based transactions ..................... 15 5 10
Acquisitions of and distributions paid to noncontrolling interests .................. (1) (125) (59)
Other ................................................................. 31 (1) (3)
Net cash used in financing activities ............................................. (2,155) (2,072) (687)
Effect of exchange rate changes on cash and cash equivalents ......................... (3) (5) (4)
Increase (decrease) in cash and cash equivalents ................................... (1,268) 1,249 (136)
Cash and cash equivalents at beginning of year .................................... 1,307 58 194
Cash and cash equivalents at end of year ......................................... $ 39 $1,307 $ 58
See notes to Consolidated Financial Statements.
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