REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
and accounting personnel to annually adjust the Company's rates used to expense capitalized costs. Changes
in these estimates primarily relate to changes in available airspace, inÖation and applicable regulations.
Changes in available airspace include changes due to the addition of airspace lying in probable expansion
areas.
Total Available Disposal Capacity
As of December 31, 2004, the Company owned or operated 58 solid waste landÑlls with total available
disposal capacity of approximately 1.7 billion in-place cubic yards. Total available disposal capacity represents
the sum of estimated permitted airspace plus an estimate of expansion airspace that the Company believes has
a probable likelihood of being permitted.
Probable Expansion Airspace
Before airspace included in an expansion area is determined as probable expansion airspace and,
therefore, included in the Company's calculation of total available disposal capacity, the following criteria
must be met:
1. The land associated with the expansion airspace is either owned by the Company or is controlled
by the Company pursuant to an option agreement;
2. The Company is committed to supporting the expansion project Ñnancially and with appropriate
resources;
3. There are no identiÑed fatal Öaws or impediments associated with the project, including political
impediments;
4. Progress is being made on the project;
5. The expansion is attainable within a reasonable time frame; and
6. The Company believes it is likely the expansion permit will be received.
Upon meeting the Company's expansion criteria, the rates used at each applicable landÑll to expense
costs to acquire, construct, close and maintain a site during the post-closure period are adjusted to include
probable expansion airspace and all additional costs to be capitalized or accrued associated with the expansion
airspace.
The Company has identiÑed three sequential steps that landÑlls generally follow to obtain expansion
permits. These steps are as follows:
1. Obtaining approval from local authorities;
2. Submitting a permit application to state authorities; and
3. Obtaining permit approval from state authorities.
Once a landÑll meets the Company's expansion criteria, management continuously monitors each site's
progress in obtaining the expansion permit. If at any point it is determined that an expansion area no longer
meets the required criteria, the probable expansion airspace is removed from the landÑll's total available
capacity and the rates used at the landÑll to expense costs to acquire, construct, cap, close and maintain a site
during the post-closure period are adjusted accordingly.
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