The following table reÖects our net investment in our landÑlls, excluding non-depletable land, and our
depletion, amortization and accretion expense for the years ended December 31, 2004, 2003 and 2002. It also
shows on a pro forma basis what our depletion, amortization and accretion expense would have been if
SFAS 143 and the changes in accounting principles relating to our methane gas collection systems were
eÅective on January 1, 2002:
Years Ended December 31,
Pro Forma
2004 2003 2002 2002
Number of landÑlls owned or operated ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 58 58 56 56
Net investment, excluding non-depletable land (in millions)ÏÏÏÏÏÏÏÏÏÏÏ $ 782.7 $ 751.4 $ 694.7 $ 754.5
Total estimated available disposal capacity (in millions of cubic yards)ÏÏ 1,751.8 1,767.3 1,711.2 1,711.2
Net investment per cubic yard ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ .45 $ .43 $ .41 $ .44
LandÑll depletion and amortization expense (in millions) ÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 98.4 $ 92.8 $ 86.9 $ 67.4
Accretion expense (in millions) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13.7 12.7 10.5 Ì
Closure and post-closure expense (in millions) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì 26.1
112.1 105.5 97.4 93.5
Airspace consumed (in millions of cubic yards) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 42.1 39.3 34.6 34.6
Depletion, amortization, accretion, closure and post-closure expense per
cubic yard of airspace consumed ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 2.66 $ 2.68 $ 2.82 $ 2.70
During the twelve months ended December 31, 2004 and 2003, our weighted average compaction rate
was approximately 1,500 pounds per cubic yard.
As of December 31, 2004, we expect to spend an estimated additional $1,524.1 million on existing
landÑlls, primarily related to cell construction and environmental structures, over their expected remaining
lives. Our total expected gross investment, excluding non-depletable land, estimated to be $2.3 billion, or
$1.32 per cubic yard, is used in determining our depletion and amortization expense based upon airspace
consumed using the units-of-consumption method.
We accrue costs related to environmental remediation activities through a charge to income in the period
such liabilities become probable and can be reasonably estimated. We also accrue costs related to
environmental remediation activities associated with properties acquired through business combinations as a
charge to cost in excess of fair value of net assets acquired or landÑll purchase price allocated to airspace, as
appropriate. No signiÑcant amounts were charged to expense during the years ended December 31, 2004, 2003
and 2002.
Financial Condition
At December 31, 2004, we had $237.0 million of restricted cash deposits and $38.7 million of restricted
marketable securities held as Ñnancial guarantees, including $119.0 million of restricted cash held for capital
expenditures under certain debt facilities, and $34.3 million and $38.7 million of restricted cash and restricted
marketable securities, respectively, pledged to various regulatory agencies and governmental entities as
Ñnancial guarantees of our performance related to Ñnal capping, closure and post-closure obligations at our
landÑlls. Restricted marketable securities consist of mutual funds invested in short-term investment grade
securities, including mortgage-backed securities and U.S. Government obligations. These securities are
available for sale and, as a result, are stated at fair value based upon quoted market prices. Unrealized gains
and losses, net of tax, are recorded as a component of accumulated other comprehensive income (loss). We
liquidated a portion of these marketable securities and used the proceeds to repay the $225.0 million of public
notes, which matured in May 2004.
In July 1998, we entered into a $1.0 billion unsecured revolving credit facility with a group of banks.
$500.0 million of the credit facility was scheduled to expire in July 2002 and the remaining $500.0 million was