Waste Management 2008 Annual Report Download - page 81
Download and view the complete annual report
Please find page 81 of the 2008 Waste Management annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.We have credit facilities in place to support our liquidity and financial assurance needs. The following table
summarizes our outstanding letters of credit (in millions) at December 31 categorized by facility:
2008 2007
Revolving credit facility(a) ......................................... $1,803 $1,437
Letter of credit facility(b) .......................................... — 350
Letter of credit and term loan agreements(c) ............................ 272 294
Other(d) ....................................................... 91 90
$2,166 $2,171
(a) WMI’s $2.4 billion revolving credit facility matures in August 2011. At December 31, 2008, $1,803 million of
letters of credit and $300 million of borrowings were outstanding under the facility, leaving an unused and
available credit capacity of $297 million. The increase in our utilization of this facility during 2008 is due to the
expiration of our $350 million letter of credit facility in December 2008.
(b) This $350 million letter of credit facility expired in December 2008, and the letters of credit that had previously
been supported by this facility were issued under the revolving credit facility.
(c) At December 31, 2008, we have a $175 million letter of credit and term loan agreement that expires in June
2010 and a $105 million letter of credit and term loan agreement that expires in June 2013. At December 31,
2008, no borrowings were outstanding under these agreements, and we had $8 million of unused and available
capacity. At December 31, 2007, we also had a $15 million letter of credit and term loan agreement that expired
in June 2008.
(d) These letters of credit are outstanding under various arrangements that do not provide for a committed credit
capacity.
Summary of Cash Flow Activity
The following is a summary of our cash flows for the year ended December 31 for each respective period (in
millions):
2008 2007 2006
Net cash provided by operating activities ..................... $2,575 $ 2,439 $ 2,540
Net cash used in investing activities ......................... $(1,183) $ (761) $ (788)
Net cash used in financing activities......................... $(1,256) $(1,946) $(1,803)
Net Cash Provided by Operating Activities — The most significant items affecting the comparison of our
operating cash flows for 2008 and 2007 are summarized below:
•Earnings decline — Our income from operations, net of depreciation and amortization, decreased by
$41 million, on a year-over-year basis, which negatively affected our cash flow from operations in 2008.
•Receivables — The change in our trade receivables balances, net of effects of acquisitions and divestitures,
provided a source of cash of approximately $185 million in 2008. In 2008, our receivables balances declined
primarily due to a decrease in fourth quarter revenues as compared with the prior year, but also due to
improved efficiency of collections. Additionally, during the third quarter of 2008, we collected an
outstanding receivable related to our investments in the synthetic fuel production facilities that provided
us with Section 45K tax credits through 2007. Approximately $60 million of the cash we received
represented amounts that we paid to the facilities during 2006 and 2007 for which we did not ultimately
realize a tax benefit, and was reflected as an operating cash inflow.
•Increased income tax payments — Cash paid for income taxes, net of excess tax benefits associated with
equity-based transactions, was approximately $170 million higher on a year-over-year basis, due in large
part to an increase in both our taxable income and our effective tax rate. The comparability of our 2008 and
47