REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
The following table summarizes the balance sheet impact of adopting SFAS 143 and the Company's
change in accounting relating to methane gas collection systems:
December 31, January 1,
2002 Change 2003
Property and equipment:
LandÑll development costs ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,026.3 $ 188.6 $1,214.9
Buildings and improvementsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 270.9 (11.7) 259.2
Accumulated depletion and amortization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (304.1) (245.4) (549.5)
$ 993.1 $ (68.5) $ 924.6
Goodwill:
Goodwill ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $1,687.7 $ (6.9) $1,680.8
Accumulated amortization ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (143.5) (.1) (143.6)
$1,544.2 $ (7.0) $1,537.2
Final capping, closure and post-closure liabilities:
Current landÑll liabilitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 17.9 $ Ì $ 17.9
Long-term landÑll liabilities ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 179.0 (14.5) 164.5
$ 196.9 $ (14.5) $ 182.4
In January 2003, the Financial Accounting Standards Board issued Interpretation 46, ""Consolidation of
Variable Interest Entities'' (""FIN 46''). FIN 46 introduced a new consolidation model which determines
control and consolidation based upon the primary beneÑciary of the potential variability in gains and losses of
the entity being evaluated. This interpretation was eÅective for all variable interest entities beginning
March 31, 2004. The Company evaluated its organizational structure and concluded that FIN 46 has no
impact on its consolidated Ñnancial position, results of operations or cash Öows.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The consolidated 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
management. Actual results could diÅer from these amounts. SigniÑcant items subject to such estimates and
assumptions include the depletion and amortization of landÑll development costs, liabilities 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.
Accounts Receivable
Accounts receivable represent receivables from customers for collection, transfer, disposal and other
services. Receivables are recorded when billed. Accounts receivable, net of the allowance for doubtful
accounts, represents their estimated net realizable value. Provisions for doubtful accounts are recorded based
on historical collection experience, the age of the receivables, speciÑc customer information and economic
conditions. In general, reserves are provided for accounts receivable in excess of ninety days old. Accounts
receivable are written oÅ when they are deemed uncollectible.
58