3. Debt

The following table summarizes the major components of debt as of each balance sheet date (in millions) and provides the maturities and interest rate ranges of each major category as of June 30, 2018:


	June 30,		December 31,
	2018		2017
Revolving credit facility	$	—	$	—
Commercial paper program (weighted average interest rate of 2.4% as of June 30, 2018 and 1.9% as of December 31, 2017)		968		515
Canadian term loan and revolving credit facility, maturing March 2019 (weighted average effective interest rate of 2.7% as of June 30, 2018 and 2.5% as of December 31, 2017)		71		113
Senior notes, maturing through 2045, interest rates ranging from 2.4% to 7.75% (weighted average interest rate of 4.3% as of June 30, 2018 and December 31, 2017)		6,222		6,222
Tax-exempt bonds, maturing through 2045, fixed and variable interest rates ranging from 1.35% to 5.7% (weighted average interest rate of 2.2% as of June 30, 2018 and 2.0% as of December 31, 2017)		2,328		2,370
Capital leases and other, maturing through 2040, interest rates up to 12%		260		327
Debt issuance costs, discounts and other		(53)		(56)
		9,796		9,491
Current portion of long-term debt		828		739
	$	8,968	$	8,752

Debt Classification

As of June 30, 2018, we had $2.1 billion of debt maturing within the next 12 months, including (i) $968 million of short-term borrowings under our commercial paper program; (ii) $796 million of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities; (iii) $265 million of other debt with scheduled maturities within the next 12 months, including $219 million of tax-exempt bonds and (iv) C$94 million, or $71 million, of borrowings under our Canadian term loan. Of the $968 million of short-term borrowings outstanding under our commercial paper program as of June 30, 2018 that are supported by our long-term U.S. and Canadian revolving credit facility (“$2.75 billion revolving credit facility”), we have the intent and ability to refinance or maintain $476 million of these borrowings on a long-term basis, and we have classified these amounts as long-term debt. As of June 30, 2018, we have classified an additional $796 million of debt as long-term because we have the intent and ability to refinance these borrowings on a long-term basis as supported by the forecasted available capacity under our $2.75 billion revolving credit facility, as discussed below. The remaining $828 million is classified as current obligations.

As of June 30, 2018, we also have $268 million of variable-rate tax-exempt bonds that are supported by letters of credit under our $2.75 billion revolving credit facility. The interest rates on our variable-rate tax-exempt bonds are generally reset on either a daily or weekly basis through a remarketing process. All recent tax-exempt bond remarketings have successfully placed Company bonds with investors at market-driven rates and we currently expect future remarketings to be successful. However, if the remarketing agent is unable to remarket our bonds, the remarketing agent can put the bonds to us. In the event of a failed remarketing, we have the availability under our $2.75 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have also classified these borrowings as long-term in our Condensed Consolidated Balance Sheet as of June 30, 2018.

Access to and Utilization of Credit Facilities and Commercial Paper Program

$2.75 Billion Revolving Credit Facility — In June 2018, we entered into the $2.75 billion revolving credit facility, which amended and restated our prior long-term U.S. revolving credit facility. Amendments to the credit agreement included (i) increasing total capacity under the facility from $2.25 billion to $2.75 billion; (ii) establishment of a $750 million accordion feature that may be used to increase total capacity in future periods; (iii) extending the term through June 2023 and (iv) inclusion of two one-year extension options. Waste Management of Canada Corporation and WM Quebec Inc., each an indirect wholly-owned subsidiary of WM, were added as additional borrowers under the $2.75 billion revolving credit facility, and the agreement permits borrowing in Canadian dollars up to the U.S. dollar equivalent of $375 million, with such borrowings to be repaid in Canadian dollars. Waste Management Holdings, Inc., a wholly-owned subsidiary of WM, guarantees all of the obligations under the revolving credit facility.

The $2.75 billion revolving credit facility provides us with credit capacity to be used for either cash borrowings or to support letters of credit or commercial paper. The rates we pay for outstanding U.S. or Canadian loans are generally based on LIBOR or CDOR, respectively, plus a spread depending on the Company’s debt rating assigned by Moody’s Investors Service and Standard and Poor’s. As of June 30, 2018, we had no outstanding borrowings under this facility. We had $603 million of letters of credit issued and $968 million of outstanding borrowings under our commercial paper program, both supported by this facility, leaving unused and available credit capacity of $1.2 billion as of June 30, 2018.

Commercial Paper Program — We have a commercial paper program that enables us to borrow funds for up to 397 days at competitive interest rates. The commercial paper program is fully supported by our $2.75 billion revolving credit facility. In the second quarter of 2018, we amended our commercial paper program, increasing our ability to borrow funds from $1.5 billion to $2.75 billion, provided that the aggregate outstanding amount of commercial paper borrowings, together with borrowings and issued letters of credit under the $2.75 billion revolving credit facility, shall not at any time exceed the aggregate authorized borrowing capacity of such facility. As of June 30, 2018, we had $968 million of outstanding borrowings under our commercial paper program.

Canadian Term Loan and Revolving Credit Facility — We have a Canadian credit agreement (which includes a term loan and revolving credit facility) that matures in March 2019. This agreement provides the Company (i) C$50 million of revolving credit capacity, which can be used for borrowings or letters of credit, and (ii) C$460 million of non-revolving term credit that is prepayable without penalty and principal amounts repaid may not be reborrowed. As of June 30, 2018, we had C$94 million, or $71 million, of outstanding borrowings under our Canadian term loan. During the third quarter of 2018, we expect to incur borrowings under our $2.75 billion revolving credit facility to repay the outstanding borrowings under our Canadian term loan. As of June 30, 2018, we had no borrowings or letters of credit outstanding under the Canadian revolving credit facility.

Other Letter of Credit Facilities — As of June 30, 2018, we utilized $503 million of other letter of credit facilities, which are both committed and uncommitted, with terms maturing through June 2019.

Debt Borrowings and Repayments

Revolving Credit Facility — During the six months ended June 30, 2018, we borrowed and repaid $28 million under our revolving credit facility, which we amended and restated in June 2018, as discussed above.

Commercial Paper Program — During the six months ended June 30, 2018, we had net cash borrowings of $443 million to support new business opportunities and for general corporate purposes.

Canadian Term Loan and Revolving Credit Facility — During the six months ended June 30, 2018, we had net repayments of C$48 million, or $37 million, of net advances under our Canadian term loan and revolving credit facility with available cash. The remaining change in the carrying value of outstanding borrowings under our Canadian term loan is due to foreign currency translation.

Tax-Exempt Bonds — During the six months ended June 30, 2018, we repaid $42 million of our tax-exempt bonds with available cash.

Capital Leases and Other — During the six months ended June 30, 2018, capital leases and other debt had a net decrease of $67 million, primarily due to divestitures and net cash repayments of debt at maturity.