Waste Management 2015 Annual Report Download - page 89

We may use our $2.25 billion revolving credit facility and our C$150 million Canadian revolving credit
facility to meet our cash needs, to the extent available, until maturity in July 2020 and November 2017,
respectively. As of December 31, 2015, we had $20 million of outstanding borrowings and $831 million of
letters of credit issued and supported by the $2.25 billion revolving credit facility, leaving an unused and
available credit capacity of $1,399 million, and we had no outstanding borrowings under the Canadian revolving
credit facility. In the event of a default under our credit facilities, we could be required to immediately repay all
outstanding borrowings and make cash deposits as collateral for all obligations the facility supports, which we
may not be able to do. Additionally, any such default could cause a default under many of our other credit
agreements and debt instruments. Without waivers from lenders party to those agreements, any such default
would have a material adverse effect on our ability to continue to operate.
The adoption of climate change legislation or regulations restricting emissions of “greenhouse gases” could
increase our costs to operate.
Our landfill operations emit methane, identified as a GHG. There are a number of legislative and regulatory
efforts at the state, regional and federal levels to curtail the emission of GHGs to ameliorate the effect of climate
change. Should comprehensive federal climate change legislation be enacted, we expect it could impose costs on
our operations that might not be offset by the revenue increases associated with our lower-carbon service options,
the materiality of which we cannot predict. In 2010, the EPA published a Prevention of Significant Deterioration
and Title V Greenhouse Gas Tailoring Rule, which expanded the EPA’s federal air permitting authority to
include the six GHGs. The rule sets new thresholds for GHG emissions that define when Clean Air Act permits
are required. The current requirements of these rules have not significantly affected our operations or cash flows,
due to the tailored thresholds and exclusions of certain emissions from regulation. However, if certain changes to
these regulations were enacted, such as lowering the thresholds or the inclusion of biogenic emissions, then the
amendments could have an adverse effect on our operating costs.
The seasonal nature of our business, severe weather events and “one-time” special projects cause our
results to fluctuate, and prior performance is not necessarily indicative of our future results.
Our operating revenues tend to be somewhat higher in summer months, primarily due to the higher volume
of construction and demolition waste. The volumes of industrial and residential waste in certain regions where
we operate also tend to increase during the summer months. Our second and third quarter revenues and results of
operations typically reflect these seasonal trends.
Service disruptions caused by severe storms, extended periods of inclement weather or climate extremes
resulting from climate change can significantly affect the operating results of the affected Areas. On the other
hand, certain destructive weather conditions that tend to occur during the second half of the year, such as the
hurricanes that most often impact our operations in the Southern and Eastern U.S., can actually increase our
revenues in the areas affected. While weather-related and other “one-time” occurrences can boost revenues
through additional work for a limited time, as a result of significant start-up costs and other factors, such revenue
can generate earnings at comparatively lower margins.
For these and other reasons, operating results in any interim period are not necessarily indicative of
operating results for an entire year, and operating results for any historical period are not necessarily indicative of
operating results for a future period. Our stock price may be negatively impacted by interim variations in our
results.
We could be subject to significant fines and penalties, and our reputation could be adversely affected, if our
businesses, or third parties with whom we have a relationship, were to fail to comply with United States or
foreign laws or regulations.
Some of our projects and new business may be conducted in countries where corruption has historically
been prevalent. It is our policy to comply with all applicable anti-bribery laws, such as the U.S. Foreign Corrupt
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