Waste Management 2008 Annual Report Download - page 134
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Please find page 134 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.A summary of our stock options is presented in the table below (shares in thousands):
Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price Shares
Weighted
Average
Exercise
Price
2008 2007 2006
Years Ended December 31,
Outstanding, Beginning of year.... 14,620 $29.33 21,779 $29.52 33,004 $28.06
Granted(a) ................... 6 $35.27 17 $38.47 88 $37.42
Exercised(b). . . ............... (1,506) $24.95 (5,252) $25.96 (10,820) $24.47
Forfeited or expired ............ (2,075) $45.09 (1,924) $40.75 (493) $43.47
Outstanding, End of year(c) ...... 11,045 $26.97 14,620 $29.33 21,779 $29.52
Exercisable, End of year......... 11,044 $26.97 14,618 $29.33 21,694 $29.49
(a) Although we stopped granting stock options in 2005, some of our outstanding options have a reload feature that
provides for the automatic grant of a new stock option when the exercise price of the existing stock option is
paid using already owned shares of common stock. The new option will be for the same number of shares used
as payment of the exercise price.
(b) The aggregate intrinsic value of stock options exercised during the years ended December 31, 2008, 2007 and
2006 was $16 million, $62 million and $112 million, respectively.
(c) Stock options outstanding as of December 31, 2008 have a weighted average remaining contractual term of
3.5 years and an aggregate intrinsic value of $80 million based on the market value of our common stock on
December 31, 2008.
We received cash proceeds of $37 million, $135 million and $270 million during the years ended December 31,
2008, 2007 and 2006, respectively, from our employees’ stock option exercises. We also realized tax benefits from
these stock option exercises during the years ended December 31, 2008, 2007 and 2006 of $6 million, $24 million
and $42 million, respectively. These amounts have been presented as cash inflows in the “Cash flows from financing
activities” section of our Consolidated Statements of Cash Flows.
Exercisable stock options at December 31, 2008, were as follows (shares in thousands):
Range of Exercise Prices Shares
Weighted Average
Exercise Price
Weighted Average
Remaining Years
$13.31-$20.00 .............................. 2,215 $18.62 3.25
$20.01-$30.00 .............................. 7,887 $27.09 3.85
$30.01-$40.00 .............................. 273 $33.20 3.38
$40.01-$50.00 .............................. 125 $47.11 0.02
$50.01-$56.44 .............................. 544 $51.38 0.06
$13.31-$56.44 .............................. 11,044 $26.97 3.49
Non-Employee Director Plans
Our non-employee directors receive annual grants of shares of our common stock, payable in two equal
installments, under our 2004 Stock Incentive Plan. Prior to 2008, our directors received deferred stock units and
were allowed to elect to defer a portion of their cash compensation in the form of deferred stock units, which were to be
paid out in shares of our common stock at the termination of board service, pursuant to our 2003 Directors’ Deferred
Compensation Plan. However, in late 2007, the members of the Board of Directors each elected to receive payment of
100
WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)