In December 1999, we entered into an operating lease facility established to Ñnance the acquisition of
operating equipment consisting primarily of revenue-producing vehicles. In July 2002, we retired this facility
using our excess cash.
We used proceeds from our cash on hand, liquidation of marketable securities, cash Öow from operations,
and tax-exempt bonds to fund capital expenditures and acquisitions and to repay debt. We intend to Ñnance
future stock repurchases and dividend payments through cash on hand, cash Öow from operations, our
revolving credit facility and other Ñnancings.
Credit Rating
Our company has received investment grade credit ratings. As of December 31, 2004, our senior debt was
rated BBB°/positive by Standard & Poor's, BBB°/positive by Fitch and Baa2 by Moody's.
Operating Lease Facility
In December 1999, we entered into a $100.0 million facility established to Ñnance the acquisition of
operating equipment consisting primarily of revenue-producing vehicles. In July 2002, we exercised our right
to purchase the equipment underlying this facility by paying $72.6 million using our excess cash, which was
the balance outstanding under the facility at that time.
Fuel Hedge
During June 2001, we entered into option agreements for approximately 14.3 million gallons of heating
oil. Under Statement of Financial Accounting Standards No. 133, ""Accounting for Derivative Instruments
and Hedging Activities,'' as amended, the options qualiÑed for and were designated as eÅective hedges of
changes in the prices of forecasted diesel fuel purchases. These option agreements settled each month in equal
notional amounts expiring in December 2002. The option agreements were structured as zero-cost collars
indexed to the price of heating oil. In accordance with SFAS 133, $1.6 million net of tax, representing the
eÅective portion of the change in fair value has been recorded in stockholders' equity as a component of
accumulated other comprehensive income for the year ended December 31, 2002. The ineÅective portion of
the change in fair value of approximately $.1 million for the year ended December 31, 2002 has been included
in other income, (expense) net in the accompanying Consolidated Statements of Income. Realized losses of
$.8 million for the year ended December 31, 2002 related to these option agreements are included in cost of
operations in our Consolidated Statements of Income.
Contractual Obligations
The following table summarizes our contractual obligations as of December 31, 2004 (in millions):
Maturities
of Notes Final
Payable and Capping, Amounts Due Unconditional
Operating Capital Long-Term Closure and to Former Purchase
Year Ending December 31, Leases Leases Debt Post-Closure Remediation Owners Commitments Total
2005ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 4.1 $ Ì $ 2.4 $ 14.6 $ 2.7 $4.3 $27.6 $ 55.7
2006ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3.1 Ì 2.2 58.1 2.5 Ì 9.9 75.8
2007ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.8 Ì 1.6 49.5 2.5 Ì 2.0 58.4
2008ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.6 Ì 1.2 20.1 2.5 Ì 1.4 26.8
2009ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1.3 Ì 376.1 31.9 2.5 Ì 1.4 413.2
Thereafter ÏÏÏÏÏÏÏÏÏÏ 5.6 25.0 947.0 457.7 41.3 Ì 11.8 1,488.4
Total ÏÏÏÏÏÏ $18.5 $25.0 $1,330.5 $631.9 $54.0 $4.3 $54.1 $2,118.3
The estimated remaining Ñnal capping, closure and post-closure expenditures presented above are
undiscounted and include both payments for liabilities incurred and recorded as of December 31, 2004 and
estimated future liabilities expected to be incurred as the remaining landÑll disposal capacities are consumed.
47