Waste Management 2015 Annual Report Download - page 155

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
deferred tax assets and deferred tax liabilities, net of the effect of acquisitions and dispositions. Deferred tax
assets include tax loss and credit carry-forwards and are reduced by a valuation allowance if, based on available
evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Significant judgment is required in assessing the timing and amounts of deductible and taxable items. We
establish reserves for uncertain tax positions when, despite our belief that our tax return positions are fully
supportable, we believe that certain positions may be challenged and potentially disallowed. When facts and
circumstances change, we adjust these reserves through our provision for income taxes.
Should interest and penalties be assessed by taxing authorities on any underpayment of income tax, such
amounts would be accrued and classified as a component of income tax expense in our Consolidated Statements
of Operations.
Contingent Liabilities
We estimate the amount of potential exposure we may have with respect to claims, assessments and
litigation in accordance with U.S. Generally Accepted Accounting Principles. We are party to pending or
threatened legal proceedings covering a wide range of matters in various jurisdictions. It is difficult to predict the
outcome of litigation, as it is subject to many uncertainties. Additionally, it is not always possible for
management to make a meaningful estimate of the potential loss or range of loss associated with such
contingencies. See Note 11 for discussion of our commitments and contingencies.
Supplemental Cash Flow Information
Years Ended December 31,
Cash paid during the year (in millions): 2015 2014 2013
Interest, net of capitalized interest and periodic
settlements from interest rate swap agreements ....... $384 $461 $478
Income taxes .................................... 419 758 511
For the year ended December 31, 2015, non-cash investing and financing activities included $262 million of
tax-exempt bond refundings and reissuances as discussed further in Note 7. For the year ended December 31,
2013, non-cash investing and 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
investing and financing activities. Non-cash investing and financing activities are generally excluded from the
Consolidated Statements of Cash Flows.
4. Landfill and Environmental Remediation Liabilities
Liabilities for landfill and environmental remediation costs are presented in the table below (in millions):
December 31, 2015 December 31, 2014
Landfill Environmental Remediation Total Landfill Environmental Remediation Total
Current (in accrued liabilities) ............ $ 112 $ 31 $ 143 $ 104 $ 43 $ 147
Long-term ............................ 1,406 178 1,584 1,339 192 1,531
$1,518 $209 $1,727 $1,443 $235 $1,678
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