Our insurance programs for worker's compensation, general liability, vehicle liability and employee-
related health care beneÑts are eÅectively self-insured. Claims in excess of self-insurance levels are fully
insured subject to policy limits. Accruals are based on claims Ñled and actuarial estimates of claims
development and claims incurred but not reported. Due to the variable condition of the insurance market, we
have experienced, and may continue to experience in the future, increased self-insurance retention levels and
increased premiums. As we assume more risk for self-insurance through higher retention levels, we may
experience more variability in our self-insurance reserves and expense.
In the normal course of business, we may be required to post performance bonds, insurance policies,
letters of credit and/or cash or marketable securities deposits in connection with municipal residential
collection contracts, the operation, closure or post-closure of landÑlls, certain remediation contracts, certain
environmental permits, and certain business licenses and permits. Bonds issued by surety companies operate as
a Ñnancial guarantee of our performance. To date, we have satisÑed Ñnancial responsibility requirements by
making cash or marketable securities deposits or by obtaining bank letters of credit, insurance policies or
surety bonds.
Employees
As of December 31, 2004, we employed approximately 13,400 full-time employees, approximately 3,100
of whom were covered by collective bargaining agreements. Our management believes that we have good
relations with our employees.
Compensation
We believe that our compensation program eÅectively aligns our Ñeld and corporate management team
with the company's overall goal of generating increasing amounts of free cash Öow while achieving targeted
earnings and returns on invested capital. This is done by utilizing simple and measurable metrics on which
incentive pay is based. At the Ñeld level, these metrics are based upon free cash Öow, earnings and return on
invested capital for each manager's geographic area of responsibility. Great eÅort is taken to ensure that these
individual goals agree to the overall goals of the company. Incentive compensation at the corporate level is
based on the obtainment of our company's overall goals. In addition, certain Ñeld and corporate employees
also participate in a long-term incentive program. We believe this program aligns our company's short- and
long-term goals and helps ensure that the long-term success of our company is not sacriÑced for the
obtainment of short-term goals.
Corporate History
We were incorporated as a Delaware corporation in 1996 by our former parent company, AutoNation,
Inc. In 1998, AutoNation separated its non-hazardous solid waste services division from its other businesses
and we completed an initial public oÅering of shares of our common stock. In 1999, AutoNation sold
substantially all of its remaining interest in our company in a secondary public oÅering.
Availability of Reports and Other Information
Our corporate website is http://www.republicservices.com. We make available on this website, free of
charge, access to our Annual Report on Form  10-K, Quarterly Reports on Form 10-Q, Current Reports on
Form 8-K, Proxy Statement on Schedule 14A and amendments to those materials Ñled or furnished pursuant
to Section 13(a) or 15(d) of the Securities and Exchange Act of 1934 as soon as reasonably practicable after
we electronically submit such material to the Securities and Exchange Commission. Our corporate website
also contains our Corporate Governance Guidelines, Code of Ethics and Charters of the Nominating and
Corporate Governance Committee, Audit Committee and Compensation Committee of the Board of
Directors. In addition, the Commission's website is http://www.sec.gov. The Commission makes available on
this website, free of charge, reports, proxy and information statements, and other information regarding