Waste Management 2009 Annual Report Download - page 132

WASTE MANAGEMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Millions)
2009 2008 2007
Years Ended December 31,
Cash flows from operating activities:
Consolidated net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,060 $ 1,128 $ 1,209
Adjustments to reconcile consolidated net income to net cash provided by operating
activities:
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,166 1,238 1,259
Deferred income tax (benefit) provision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (94) 150 70
Interest accretion on landfill liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 77 74
Interest accretion on and discount rate adjustments to environmental remediation
liabilities and recovery assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (30) 41 17
Provision for bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 50 43
Equity-based compensation expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 48 37
Equity in net losses of unconsolidated entities, net of distributions . . . . . . . . . . . . . . . . 2 1 39
Net gain from disposal of assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (13) (33) (27)
Effect of (income) expense from divestitures, asset impairments and unusual items . . . . 83 (29) (47)
Excess tax benefits associated with equity-based transactions . . . . . . . . . . . . . . . . . . . . (4) (7) (26)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 216 (22)
Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) (9) 6
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5 5
Accounts payable and accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 (183) (88)
Deferred revenues and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (62) (118) (110)
Net cash provided by operating activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,362 2,575 2,439
Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (281) (280) (90)
Capital expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,179) (1,221) (1,211)
Proceeds from divestitures of businesses (net of cash divested) and other sales of
assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 112 278
Purchases of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (1,220)
Proceeds from sales of short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,404
Net receipts from restricted trust and escrow accounts. . . . . . . . . . . . . . . . . . . . . . . . . 196 178 120
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (14) 28 (42)
Net cash used in investing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,250) (1,183) (761)
Cash flows from financing activities:
New borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,749 1,525 944
Debt repayments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,335) (1,785) (1,200)
Common stock repurchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (226) (410) (1,421)
Cash dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (569) (531) (495)
Exercise of common stock options and warrants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 37 142
Excess tax benefits associated with equity-based transactions . . . . . . . . . . . . . . . . . . . . 4 7 26
Distributions paid to noncontrolling interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) (56) (20)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (50) (43) 78
Net cash used in financing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (457) (1,256) (1,946)
Effect of exchange rate changes on cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . 5 (4) 2
Increase (decrease) in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 660 132 (266)
Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480 348 614
Cash and cash equivalents at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,140 $ 480 $ 348
See notes to Consolidated Financial Statements.
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