Subjective or Disclosure
Policy Description Complex Judgments Reference
Final Capping, Closure Prior to January 1, 2003, Total future costs for Management's Discussion
and Post-Closure costs for Ñnal closure of capping, closure and post- and Analysis of Financial
our landÑlls and costs for closure are developed Condition and Results of
providing required post- annually by engineers. Operations Ì LandÑll
closure monitoring and Changes in these and Environmental
maintenance were estimates could aÅect our Matters and Ì Selected
charged to cost of amortization of Ñnal Balance Sheet Accounts.
operations based upon capping, closure and post-Note 3, Accrued LandÑllconsumed airspace using closure costs and our and Environmental Coststhe units-of-consumption accretion expense. in the Consolidatedmethod. These costs were Financial Statements.not inÖated or discounted
to the present value of
total estimated costs. On
January 1, 2003, we
adopted Statement of
Financial Accounting
Standards No. 143,
""Accounting for Asset
Retirement Obligations.''
Under SFAS 143,
obligations associated
with Ñnal capping
activities that occur
during the operating life
of the landÑll are
recognized on a units-of-
consumption basis as
airspace is consumed
within each discrete
capping event.
Obligations related to
closure and post-closure
activities that occur after
the landÑll has ceased
operations are recognized
on a units-of-consumption
basis as airspace is
consumed throughout the
entire landÑll life.
LandÑll retirement
obligations are capitalized
as the related liabilities
are recognized and
amortized using the
units-of-consumption
method over the airspace
consumed within the
capping event or the
airspace consumed
throughout the entire
landÑll, depending upon
the nature of the
obligation. All obligations
are initially measured at
estimated fair value. Fair
value is calculated on a
present value basis using
an inÖation rate and the
company's credit-
adjusted, risk-free rate.
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