Waste Management Inc., balance sheet: debt

US$ in millions

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Current portion of long-term debt	708)	551)	218)	432)	739)
Long-term debt, less current portion	12,697)	13,259)	13,280)	9,594)	8,752)
Total debt (carrying amount)	13,405)	13,810)	13,498)	10,026)	9,491)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Waste Management Inc. total debt increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

	Dec 31, 2021
Selected Financial Data (US$ in millions)
Total debt (fair value)	14,100)
Financial Ratio
Debt, fair value to carrying amount ratio	1.05

Weighted average interest rate on debt: 2.46%

Interest rate	Debt amount¹	Interest rate × Debt amount
0.40%	1,778)	7)
3.10%	8,126)	252)
2.60%	395)	10)
1.40%	2,619)	37)
4.50%	567)	26)
Total	13,485)	331)
2.46%

¹ US$ in millions

² Weighted-average interest rate = 100 × 331 ÷ 13,485 = 2.46%

Waste Management Inc., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Interest expense	375)	457)	464)	384)	368)
Capitalized interest	13)	16)	21)	16)	15)
Total interest costs	388)	473)	485)	400)	383)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Waste Management Inc. interest expense decreased from 2019 to 2020 and from 2020 to 2021.
Capitalized interest	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Waste Management Inc. capitalized interest decreased from 2019 to 2020 and from 2020 to 2021.
Total interest costs	Total interest costs incurred during the period and either capitalized or charged against earnings.	Waste Management Inc. total interest costs decreased from 2019 to 2020 and from 2020 to 2021.

	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Selected Financial Data (US$ in millions)
Net income attributable to Waste Management, Inc.	1,816)	1,496)	1,670)	1,925)	1,949)
Add: Net income attributable to noncontrolling interest	1)	—)	1)	(2)	—)
Add: Income tax expense	532)	397)	434)	453)	242)
Add: Interest expense	375)	457)	464)	384)	368)
Earnings before interest and tax (EBIT)	2,724)	2,350)	2,569)	2,760)	2,559)

Total interest costs	388)	473)	485)	400)	383)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	7.26	5.14	5.54	7.19	6.95
Adjusted interest coverage ratio (with capitalized interest)²	7.02	4.97	5.30	6.90	6.68

2021 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 2,724 ÷ 375 = 7.26

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Total interest costs
= 2,724 ÷ 388 = 7.02

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Waste Management Inc. adjusted interest coverage ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Waste Management Inc. (NYSE:WM)

Analysis of Debt