REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data)
1. BASIS OF PRESENTATION
The accompanying Consolidated Financial Statements include the accounts of Republic Services, Inc. (a
Delaware corporation) and its subsidiaries (the ""Company''). The Company provides non-hazardous solid
waste collection and disposal services in the United States. All intercompany transactions have been
eliminated in consolidation.
As of January 1, 2003, the Company adopted Statement of Financial Accounting Standards No. 143,
""Accounting for Asset Retirement Obligations'' (""SFAS 143''). SFAS 143 required the Company to change
the methodology it used to record Ñnal capping, closure and post-closure costs relating to its landÑlls. As of
January 1, 2003, the Company recorded an after-tax expense of $20.8 million, or $33.6 million on a pre-tax
basis, as a cumulative eÅect of a change in accounting principle resulting from the adoption of SFAS 143. In
addition, the Company also recorded an after-tax expense of $17.0 million, or $27.4 million on a pre-tax basis,
as a cumulative eÅect of a change in accounting principle for its methane gas collection systems. This change
in accounting for methane gas collection systems was prompted by a thorough evaluation of the Company's
landÑll accounting policies in connection with the adoption of SFAS 143 and is consistent with the
methodology used by other participants in the waste industry.
The following table summarizes the adjustments to net income and earnings per share for the year ended
December 31, 2002 as if SFAS 143 and the Company's change in accounting principle relating to its methane
gas collection systems were eÅective January 1, 2002:
Year Ended
December 31, 2002
Net Diluted Earnings
Income Per Share
ReportedÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $239.6 $1.44
SFAS 143:
Reversal of closure and post-closure expense previously reported ÏÏÏÏ 16.2 .10
Reversal of landÑll purchase price amortization previously reportedÏÏ .8 Ì
Accretion expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (6.5) (.04)
LandÑll amortizationÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (10.9) (.07)
Total adjustments for SFAS 143ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (.4) (.01)
Methane Gas Collection Systems:
Reversal of depreciation previously reported ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .3 Ì
Depletion expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2.3) (.01)
Total adjustment for methane gas collection systems ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (2.0) (.01)
Adjusted ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $237.2 $1.42
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