Waste Management 2007 Annual Report Download - page 111

Landfill operating permits are not presented above and are recognized on a combined basis with other landfill
assets and amortized using our landfill amortization method. Amortization expense for other intangible assets was
$23 million for 2007, $26 million for 2006 and $31 million for 2005. At December 31, 2007, we had $9 million of
other intangible assets that are not subject to amortization. The intangible asset amortization expense estimated as
of December 31, 2007, for the next five years is as follows (in millions):
2008 2009 2010 2011 2012
$21 $17 $14 $13 $12
7. Debt and Interest Rate Derivatives
Debt
The following table summarizes the major components of debt at December 31 (in millions):
2007 2006
Revolving credit facility (weighted average interest rate of 5.4% at December 31,
2007) ....................................................... $ 300 $ —
Letter of credit facilities ........................................... — —
Canadian credit facility (weighted average interest rate of 5.3% at December 31,
2007 and 4.8% at December 31, 2006) .............................. 336 308
Senior notes and debentures, maturing through 2032, interest rates ranging from
5.0% to 8.75% (weighted average interest rate of 7.0% at December 31, 2007
and 2006) .................................................... 4,584 4,829
Tax-exempt bonds maturing through 2039, fixed and variable interest rates
ranging from 2.9% to 7.4% (weighted average interest rate of 4.4% at
December 31, 2007 and 4.5% at December 31, 2006) ................... 2,533 2,440
Tax-exempt project bonds, principal payable in periodic installments, maturing
through 2027, fixed and variable interest rates ranging from 3.5% to 9.3%
(weighted average interest rate of 5.3% at December 31, 2007 and 5.4% at
December 31, 2006) ............................................ 290 352
Capital leases and other, maturing through 2036, interest rates up to 12% . ..... 294 388
$8,337 $8,317
Less current portion .............................................. 329 822
$8,008 $7,495
Revolving credit facility — On August 17, 2006, WMI entered into a five-year, $2.4 billion revolving credit
facility, replacing the $2.4 billion syndicated revolving credit facility that would have expired in October 2009. This
facility provides us with credit capacity to be used for either cash borrowings or to support letters of credit. At
December 31, 2007, we had $300 million of outstanding borrowings and $1,437 million of letters of credit issued
and supported by the facility. Our unused and available credit capacity of the facility was $663 million as of
December 31, 2007. The borrowings outstanding at December 31, 2007 mature in the first quarter of 2008. In
January 2008, we repaid $50 million of the outstanding borrowings with available cash. We currently intend to
refinance the remaining outstanding borrowings on a long-term basis. Accordingly, $250 million of this outstanding
debt obligation has been reflected as long-term in our December 31, 2007 Consolidated Balance Sheet.
Letter of credit facilities — We have a $350 million letter of credit facility that matures in December 2008 and
three letter of credit and term loan agreements for an aggregate of $295 million maturing at various points from
2008 through 2013. These facilities are currently being used to back letters of credit issued to support our bonding
and financial assurance needs. Our letters of credit generally have terms providing for automatic renewal after one
year. In the event of an unreimbursed draw on a letter of credit, the amount of the draw paid by the letter of credit
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)