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Debt | 6 Months Ended
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Jun. 30, 2021
Debt |
Debt | 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, 2021:
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, | ​ | December 31,
​ |  | 2021 |  | 2020
Commercial paper program (weighted average interest rate of 0.4% as of June 30, 2021 and December 31, 2020) | ​ | $ | 1,500 | ​ | $ | 1,814
Senior notes, maturing through 2050, interest rates ranging from 0.75% to 7.75% (weighted average interest rate of 3.1% as of June 30, 2021 and 3.3% as of December 31, 2020) | ​ | ​ | 8,126 | ​ | ​ | 8,465
Canadian senior notes, C$500 million maturing September 2026, interest rate of 2.6% | ​ |  | 403 | ​ | ​ | 393
Tax-exempt bonds, maturing through 2048, fixed and variable interest rates ranging from 0.05% to 4.3% (weighted average interest rate of 1.6% as of June 30, 2021 and 1.7% as of December 31, 2020) | ​ |  | 2,672 | ​ |  | 2,571
Financing leases and other, maturing through 2085, weighted average interest rate of 4.7% as of June 30, 2021 and 4.6% as of December 31, 2020 (a) | ​ |  | 625 | ​ |  | 652
Debt issuance costs, discounts and other | ​ |  | (82) | ​ |  | (85)
​ | ​ |  | 13,244 | ​ |  | 13,810
Current portion of long-term debt | ​ |  | 361 | ​ |  | 551
​ | ​ | $ | 12,883 | ​ | $ | 13,259
(a) | Excluding our landfill financing leases, the maturities of our financing leases and other debt obligations extend through 2059.
Debt Classification As of June 30, 2021 we had $2.9 billion of debt maturing within the next 12 months, including (i) $1.5 billion of short-term borrowings under our commercial paper program (net of related discount on issuance); (ii) $1.2 billion of tax-exempt bonds with term interest rate periods that expire within the next 12 months, which is prior to their scheduled maturities and (iii) $212 million of other debt with scheduled maturities within the next 12 months, including $103 million of tax-exempt bonds. As of June 30, 2021, we have classified $2.6 billion of debt maturing in the next 12 months 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 $3.5 billion long-term U.S. and Canadian revolving credit facility (“$3.5 billion revolving credit facility”), as discussed below. The remaining $361 million of debt maturing in the next 12 months is classified as current obligations. As of June 30, 2021, we also had $54 million of variable-rate tax-exempt bonds with long-term scheduled maturities supported by letters of credit under our $3.5 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 $3.5 billion revolving credit facility to fund these bonds until they are remarketed successfully. Accordingly, we have classified the $54 million of variable-rate tax-exempt bonds with maturities of more than one year as long-term in our Condensed Consolidated Balance Sheet as of June 30, 2021. Access to and Utilization of Credit Facilities and Commercial Paper Program $3.5 Billion Revolving Credit Facility — Our $3.5 billion revolving credit facility, maturing November 2024, provides us with credit capacity to be used for cash borrowings, to support letters of credit and to support our commercial paper program. 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, 2021, we had no outstanding borrowings under this facility. We had $266 million of letters of credit issued and $1.5 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program, both supported by the facility, leaving unused and available credit capacity of $1.7 billion as of June 30, 2021. WM Holdings, a wholly-owned subsidiary of WM, guarantees all of the obligations under the $3.5 billion revolving credit facility. 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 rates we pay for outstanding borrowings are based on the term of the notes. The commercial paper program is fully supported by our $3.5 billion revolving credit facility. As of June 30, 2021, we had $1.5 billion of outstanding borrowings (net of related discount on issuance) under our commercial paper program. Other Letter of Credit Lines — As of June 30, 2021, we had utilized $615 million of other uncommitted letter of credit lines with terms maturing through June 2022. Debt Borrowings and Repayments Commercial Paper Program — During the six months ended June 30, 2021, we made cash repayments of $954 million, which were partially offset by $640 million of cash borrowings (net of related discount on issuance). Senior Notes — In May 2021, WM issued $950 million of senior notes consisting of $475 million of 2.00% senior notes due June 1, 2029 and $475 million of 2.95% senior notes due June 1, 2041. The net proceeds from these debt issuances were $942 million, all of which were used, along with available cash on hand, to retire $1.3 billion of certain high-coupon senior notes. The cash paid included the principal amount of the debt retired, $211 million of related premiums and other third-party costs, and $15 million of accrued interest. We recognized a $220 million loss on early extinguishment of debt in our Condensed Consolidated Statement of Operations related to the tender offer, including $211 million of premiums and other third-party costs and $9 million primarily related to unamortized discounts and debt issuance costs. We also recognized $6 million of charges to interest expense for the write-off of cash flow hedges associated with the tendered notes, which was previously being amortized to interest expense through the notes’ stated maturities. The following table summarizes the principal amount of senior notes redeemed within each series in order of acceptance priority level (in millions): ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Principal | ​ | ​ | ​
​ |  | Outstanding |  | Notes Tendered
Description |  | Prior to Tender |  | and Redeemed
6.125% WM senior notes due 2039 |  | $ | 252 |  | $ | 6
7.75% WM senior notes due 2032 |  | ​ | 153 |  | ​ | 9
7.375% WM senior notes due 2029 | ​ | ​ | 81 | ​ | ​ | —
4.15% WM senior notes due 2049 | ​ | ​ | 1,000 | ​ | ​ | 316
4.10% WM senior notes due 2045 | ​ | ​ | 750 | ​ | ​ | 334
3.90% WM senior notes due 2035 | ​ | ​ | 450 | ​ | ​ | 153
7.00% WM senior notes due 2028 | ​ | ​ | 330 | ​ | ​ | 73
7.10% WM Holdings senior notes due 2026 | ​ | ​ | 249 | ​ | ​ | 26
3.50% WM senior notes due 2024 | ​ | ​ | 350 | ​ | ​ | 194
3.125% WM senior notes due 2025 | ​ | ​ | 600 | ​ | ​ | 178
3.15% WM senior notes due 2027 | ​ | ​ | 750 | ​ | ​ | —
2.90% WM senior notes due 2022 | ​ |  | 500 | ​ |  | —
2.40% WM senior notes due 2023 | ​ |  | 500 | ​ |  | —
Total | ​ | $ | 5,965 | ​ | $ | 1,289
​ In conjunction with the tender offer, we entered into a reverse Treasury rate lock with a total notional value of $450 million to hedge our interest rate exposure. We did not designate the reverse Treasury rate lock as a cash flow hedge. Upon completion of the tender offer, we terminated the reverse Treasury rate lock and paid $8 million in cash. The related loss is included in other, net in the Condensed Consolidated Statement of Operations. ​ Tax-Exempt Bonds — We issued $125 million of new tax-exempt bonds in 2021. The proceeds from the issuance of these bonds were deposited directly into a restricted trust fund and may only be used for the specific purpose for which the money was raised, which is generally to finance expenditures for landfill and solid waste disposal facility construction and development. Additionally, during the six months ended June 30, 2021, we repaid $24 million of our tax-exempt bonds with available cash at their scheduled maturities. Financing Leases and Other — The decrease during the six months ended June 30, 2021 is due to $59 million of cash repayments of debt at maturity, partially offset by an increase of $32 million primarily associated with non-cash financing leases.

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- Definition The entire disclosure for debt and capital lease obligations can be reported. Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. Also includes descriptions and amounts of capital leasing arrangements that consist of direct financing, sales type and leveraged leases. Disclosure may include the effect on the balance sheet and the income statement resulting from a change in lease classification for leases that at inception would have been classified differently had guidance been in effect at the inception of the original lease. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -URI http://asc.fasb.org/topic&trid=2208923 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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