REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
date of acquisition. The Company allocates the cost of the acquired business to the assets acquired and the
liabilities assumed based on estimates of fair values thereof. These estimates are revised during the allocation
period as necessary if, and when, information regarding contingencies becomes available to further deÑne and
quantify assets acquired and liabilities assumed. To the extent contingencies such as preacquisition environ-
mental matters, litigation and related legal fees are resolved or settled during the allocation period, such items
are included in the revised allocation of the purchase price. After the allocation period, the eÅect of changes in
such contingencies is included in results of operations in the periods in which the adjustments are determined.
The Company does not believe potential diÅerences between its fair value estimates and actual fair values are
material.
The Company acquired various solid waste businesses during the years ended December 31, 2004, 2003
and 2002. The aggregate purchase price paid for these transactions was $47.4 million, $51.5 million and
$55.8 million, respectively.
During 2004, 2003 and 2002, $28.2 million, $27.7 million and $5.1 million, respectively, of the total
purchase price paid for acquisitions and contingent payments to former owners was allocated to landÑll
airspace. For landÑlls purchased as part of a group of several assets, the allocations of purchase price were
based on the discounted expected future cash Öow of each landÑll relative to other assets within the acquired
group and were adjusted for other non-depletable landÑll assets and liabilities acquired (primarily Ñnal
capping, closure and post-closure liabilities). LandÑll purchase price is amortized using the units-of-
consumption method over total available airspace, which includes probable expansion airspace where
appropriate, and is included in property and equipment, net in the accompanying Consolidated Balance
Sheets.
The following summarizes the preliminary purchase price allocations for business combinations ac-
counted for under the purchase method of accounting:
Years Ended December 31,
2004 2003 2002
Property and equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $36.6 $ 41.3 $27.0
Intangible assets ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 14.1 24.3 43.0
Restricted cash ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ .6 Ì Ì
Working capital deÑcit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (3.4) (14.9) (8.9)
Other assets (liabilities), netÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (.6) .8 (5.3)
Cash used in acquisitions, net of cash acquired ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $47.3 $ 51.5 $55.8
Substantially all of the intangible assets recorded for these acquisitions are deductible for tax purposes.
The Company's unaudited pro forma consolidated results of operations assuming all signiÑcant acquisi-
tions during 2004 accounted for under the purchase method of accounting had occurred at the beginning of
the periods presented are as follows:
Years Ended
December 31,
2004 2003
Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,715.1 $2,530.0
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 238.1 $ 179.7
Diluted earnings per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.53 $ 1.11
Weighted-average common and common equivalent shares
outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 155.3 162.1
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