REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
9. EARNINGS PER SHARE
Basic earnings per share is computed by dividing net income by the weighted average number of common
shares (including deferred stock units) outstanding during the period. Diluted earnings per share is based on
the combined weighted average number of common shares and common share equivalents outstanding which
include, where appropriate, the assumed exercise of employee stock options and unvested restricted stock
awards. In computing diluted earnings per share, the Company utilizes the treasury stock method.
Earnings per share for the years ended December 31, 2004, 2003 and 2002 are calculated as follows:
Years Ended December 31,
2004 2003 2002
Numerator:
Net income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $237.9 $177.6 $239.6
Denominator:
Denominator for basic earnings per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 152.8 160.3 165.4
EÅect of dilutive securities Ì
Options to purchase common stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.5 1.8 1.3
Denominator for diluted earnings per shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 155.3 162.1 166.7
Basic earnings per shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.56 $ 1.11 $ 1.45
Diluted earnings per share ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 1.53 $ 1.10 $ 1.44
Antidilutive securities not included in the diluted earnings per share
calculation:
Options to purchase common stock ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì .1 .8
Weighted-average exercise price ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $31.50 $25.02 $19.87
10. SEGMENT INFORMATION
The Company's operations are managed and evaluated through Ñve regions: Eastern, Central, Southern,
Southwestern and Western. These Ñve regions are presented below as the Company's reportable segments.
These reportable segments provide integrated waste management services consisting of collection, transfer and
disposal of domestic non-hazardous solid waste.
Summarized Ñnancial information concerning the Company's reportable segments for the respective
years ended December 31 is shown in the following table:
Depreciation,
Amortization,
Gross Intercompany Net Depletion and Operating Capital Total
2004 Revenue Revenue(b) Revenue Accretion(c) Income Expenditures(d) Assets
Eastern Region ÏÏÏÏÏÏÏÏÏ $ 648.6 $(103.2) $ 545.4 $ 43.8 $ 80.0 $ 51.4 $ 878.5
Central Region ÏÏÏÏÏÏÏÏÏ 700.9 (156.6) 544.3 79.4 100.9 84.9 1,083.6
Southern RegionÏÏÏÏÏÏÏÏ 751.9 (79.6) 672.3 66.7 110.8 71.4 879.3
Southwestern Region ÏÏÏÏ 342.1 (33.0) 309.1 30.6 41.2 24.7 405.3
Western Region ÏÏÏÏÏÏÏÏ 788.4 (151.9) 636.5 48.3 158.3 48.7 817.6
Corporate Entities(a)ÏÏÏÏ .6 (.1) .5 4.3 (38.9) 2.7 400.3
TotalÏÏÏÏÏÏÏÏÏÏ $3,232.5 $(524.4) $2,708.1 $273.1 $452.3 $283.8 $4,464.6
80