Our Ñnancial statements are based upon estimates and assumptions that may diÅer from actual results.
Our Ñnancial statements have been prepared in accordance with U.S. generally accepted accounting
principles and necessarily include amounts based on estimates and assumptions made by us. Actual results
could diÅer from these amounts. SigniÑcant items subject to such estimates and assumptions include the
carrying value of long-lived assets, the depletion and amortization of landÑll development costs, accruals for
Ñnal capping, closure and post-closure costs, valuation allowances for accounts receivable, liabilities for
potential litigation, claims and assessments, and liabilities for environmental remediation, deferred taxes and
self-insurance.
We cannot assure you that our reserves for landÑll and environmental costs will be adequate to cover the
requirements of existing environmental regulations, future changes or interpretations of existing regulations, or
the identiÑcation of adverse environmental conditions previously unknown to us.
Changes in insurance markets may impact our Ñnancial results.
Due to the variable condition of the insurance market, we have experienced, and may continue to
experience in the future, increased self-insurance retention levels and increased premiums. As we assume
more risk for self-insurance through higher retention levels, we may experience more variability in our self-
insurance reserves and expense.
We depend on key personnel.
Our future success depends on the continued contributions of several key employees and oÇcers. We do
not maintain key man life insurance policies on any of our oÇcers. The loss of the services of key employees
and oÇcers, whether such loss is through resignation or other causes, or the inability to attract additional
qualiÑed personnel, could have a material adverse eÅect on our Ñnancial condition, results of operations and
growth prospects.
Compliance with environmental and other laws and regulations may impede our growth.
We may need to spend considerable time, eÅort and capital to keep our facilities in compliance with
federal, state and local requirements regulating health, safety, environment, zoning, land use and transporta-
tion. In addition, some of our waste operations that cross state boundaries could be adversely aÅected if the
federal government, or the state or locality in which these waste operations are located, imposes fees on, or
otherwise limits or prohibits, the transportation or disposal of solid waste. If environmental laws become more
stringent, our environmental capital expenditures and costs for environmental compliance may increase in the
future. In addition, due to the possibility of unanticipated events or regulatory developments, the amounts and
timing of future environmental expenditures could vary substantially from those we currently anticipate.
Because of the nature of our operations, we have in the past, currently are, and may in the future be named as
a potentially responsible party in connection with the investigation or remediation of environmental conditions.
We cannot assure you that the resolution of any such investigations will not have a material adverse eÅect on
our Ñnancial condition, results of operations or cash Öows. A signiÑcant judgment or Ñne against our company,
or our loss of signiÑcant permits or licenses, could have a material adverse eÅect on our Ñnancial condition,
results of operations, cash Öows or prospects.
Regulatory approval to develop or expand our landÑlls and transfer stations may be delayed or denied.
Our plans include developing new landÑlls and transfer stations, as well as expanding the disposal and
transfer capacities of certain of our landÑlls and transfer stations, respectively. Various parties, including
citizens' groups and local politicians, sometimes challenge these projects. Responding to these challenges has,