Waste Management 2007 Annual Report Download - page 80

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•Proceeds and tax benefits from the exercise of options and warrants — The exercise of common stock
options and warrants and the related excess tax benefits generated a total of $168 million of financing cash
inflows during 2007, compared with $340 million in 2006 and $129 million in 2005. We believe the
significant increase in stock option and warrant exercises in 2006 was due to the substantial increase in the
market value of our common stock during 2006. The accelerated vesting of all outstanding stock options in
December 2005 also resulted in increased cash proceeds from stock option exercises because the accel-
eration made additional options available for exercise. As discussed above, the adoption of SFAS No. 123(R)
on January 1, 2006 resulted in the classification of tax savings provided by equity-based compensation as a
financing cash inflow rather than an operating cash inflow beginning in the first quarter of 2006. This change
in accounting increased cash flows from financing activities by $26 million in 2007 and $45 million in 2006.
•Net debt repayments — Net debt repayments were $256 million in 2007, $500 million in 2006 and
$11 million in 2005. The following summarizes our most significant cash borrowings and debt repayments
made during each year (in millions):
2007 2006 2005
Years Ended December 31,
Borrowings:
Revolving credit facility . . . .............................. $ 300 $ — $ —
Canadian credit facility . . . .............................. 644 432 365
$ 944 $ 432 $ 365
Repayments:
Canadian credit facility . . . .............................. $ (680) $(479) $ —
Senior notes ......................................... (300) (300) (103)
Tax exempt bonds ..................................... (52) (9) —
Tax exempt project bonds . . ............................. (61) (50) (46)
Convertible subordinated notes ............................ — — (35)
Capital leases and other debt ............................. (107) (94) (192)
$(1,200) $(932) $(376)
Net repayments ......................................... $ (256) $(500) $ (11)
•Change in cash overdraft position — Changes in our cash overdraft position are reflected as “Other”
financing activities in the Consolidated Statement of Cash Flows. The significant changes in our cash
overdraft positions as of each year-end are generally attributable to the timing of cash deposits.
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