Waste Management 2008 Annual Report Download - page 135
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Please find page 135 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.the shares their deferred stock units represented and recognize taxable income on such payment. The payment occurred
in December 2008. The 2003 Directors’ Plan is still in effect and there currently are approximately 377,000 shares
remaining available for issuance under the plan. However, it is the Company’s current intent to utilize common stock
grants, which will be issued under the 2004 Stock Incentive Plan or any successor plans, for director compensation.
16. Earnings Per Share
The following table reconciles the number of common shares outstanding at December 31 of each year to the
number of weighted average basic common shares outstanding and the number of weighted average diluted
common shares outstanding for the purposes of calculating basic and diluted earnings per common share. The table
also provides the number of shares of common stock potentially issuable at the end of each period and the number of
potentially issuable shares excluded from the diluted earnings per share computation for each period (shares in
millions):
2008 2007 2006
Years Ended December 31,
Number of common shares outstanding at year-end .................. 490.7 500.1 533.7
Effect of using weighted average common shares outstanding .......... 1.4 17.2 6.7
Weighted average basic common shares outstanding ................. 492.1 517.3 540.4
Dilutive effect of equity-based compensation awards, warrants and other
contingently issuable shares.................................. 3.3 4.5 5.7
Weighted average diluted common shares outstanding ................ 495.4 521.8 546.1
Potentially issuable shares..................................... 15.1 18.2 26.0
Number of anti-dilutive potentially issuable shares excluded from diluted
common shares outstanding .................................. 0.8 2.4 4.6
17. Fair Value Measurements
SFAS No. 157 provides a framework for measuring fair value and establishes a fair value hierarchy that
prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active
markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3
inputs).
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WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)