Capital additions for 2002 include $72.6 million used to purchase equipment consisting primarily of
revenue-producing vehicles originally placed into service pursuant to an operating lease.
Liquidity and Capital Resources
The major components of changes in cash Öows for the years ended December 31, 2004, 2003 and 2002
are discussed below.
Cash Flows From Operating Activities. Cash Öows provided by operating activities were $666.3 million,
$600.5 million and $569.7 million for the years ended December 31, 2004, 2003 and 2002, respectively. The
changes in cash provided by operating activities during the periods are due to the expansion of our business,
the timing of payments received for accounts receivable, and the timing of payments for accounts payable and
income taxes.
In December 2003, we received written approval from the Internal Revenue Service to exclude probable
expansion airspace from our calculation of landÑll amortization, depletion, and Ñnal capping, closure and post-
closure costs for tax purposes. As a result of this change, we recorded a tax receivable of approximately
$48.0 million which was collected or used to oÅset taxes payable during the year ended December 31, 2004.
Also during the year ended December 31, 2004, we collected a $23.0 million note receivable associated with a
divested business.
We expect our cash Öow from operating activities during 2005 to be lower than 2004 and 2003 because of
higher tax payments due to the reversal of bonus depreciation and several one-time items that beneÑted
previous periods, including utilization of a tax receivable and the collection of a note receivable during 2004,
and an increase in self-insurance reserves during 2003.
We use cash Öow from operations to fund capital expenditures, acquisitions, share repurchases, dividend
payments and debt repayments.
Cash Flows Used In Investing Activities. Cash used in investing activities was $206.7 million,
$552.4 million and $316.3 million for the years ended December 31, 2004, 2003 and 2002, respectively, and
consists primarily of cash used for capital additions and business acquisitions for all the periods presented and
cash provided by restricted marketable securities in 2004. Capital additions were $283.8 million, $273.2 mil-
lion and $258.6 million during the years ended December 31, 2004, 2003 and 2002, respectively. Cash used to
acquire businesses, net of cash acquired, was $47.3 million, $51.5 million and $55.8 million during the years
ended December 31, 2004, 2003 and 2002, respectively.
The increase in restricted marketable securities during 2003 consists of amounts transferred from
unrestricted cash for Ñnancial guarantees. In 2004, we liquidated a portion of these marketable securities and
used the proceeds to repay the $225.0 million of public notes. We used letters of credit to replace Ñnancial
guarantees secured by marketable securities that were liquidated.
We intend to Ñnance capital expenditures and acquisitions through cash on hand, cash Öows from
operations, our revolving credit facility, tax-exempt bonds and other Ñnancings. We expect to use primarily
cash for future business acquisitions.
Cash Flows Used In Financing Activities. Cash Öows used in Ñnancing activities was $437.3 million,
$70.4 million and $128.0 million for the years ended December 31, 2004, 2003 and 2002, respectively, and
primarily include proceeds from issuances of tax-exempt bonds, repayments of debt and repurchases of
common stock under our stock repurchase program. Dividends paid were $46.0 million and $19.0 million
during 2004 and 2003, respectively. In 2004, repayments of debt include the liquidation of $225.0 million of
public notes.
From 2000 through 2004, our board of directors authorized the repurchase of up to $1,025.0 million of
our common stock. As of December 31, 2004, we paid $750.4 million to repurchase approximately
35.2 million shares of our common stock, of which $266.1 million was paid during 2004 to repurchase