Goodwill for 2003 acquisitions totaled approximately $21.2 million. As of December 31, 2003, we had
goodwill, net of accumulated amortization, of $1,558.1 million. $27.7 million of the total purchase price paid
for acquisitions and contingent payments to former owners was allocated to landÑll airspace.
Goodwill for 2002 acquisitions totaled approximately $40.1 million. As of December 31, 2002, we had
goodwill, net of accumulated amortization, of $1,544.2 million.
Consolidated Results of Operations
Years Ended December 31, 2004, 2003 and 2002
Our income before cumulative eÅect of changes in accounting principles was $237.9 million for the year
ended December 31, 2004, as compared to $215.4 million in 2003 and $239.6 million in 2002. Net income was
$237.9 million for year ended December 31, 2004, or $1.53 per diluted share, as compared to $177.6 million,
or $1.10 per diluted share, in 2003 and $239.6 million, or $1.44 per diluted share, in 2002. Net income for the
year ended December 31, 2003 includes an after-tax expense of $37.8 million (net of an income tax beneÑt of
$23.1 million), or $.23 per share, as a cumulative eÅect of a change in accounting principle resulting from the
adoption of Statement of Financial Accounting Standards No. 143, ""Accounting for Asset Retirement
Obligations,'' and a change in accounting principle for our methane gas collection systems. See Note 1, Basis
of Presentation, of the Notes to our Consolidated Financial Statements for further discussion of these changes
in accounting principles. Our operating results for the year ended December 31, 2002 include other charges
(income) described below.
The following table summarizes our costs and expenses in millions of dollars and as a percentage of our
revenue for 2002 through 2004:
2004 2003 2002
$% $% $%
Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $2,708.1 100.0% $2,517.8 100.0% $2,365.1 100.0%
Cost of operationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,714.4 63.3 1,605.4 63.8 1,472.9 62.3
Depreciation, amortization and
depletion of property and
equipment ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 252.4 9.3 233.8 9.3 193.5 8.2
Amortization of intangible assets ÏÏÏÏ 7.0 .3 5.3 .2 6.1 .2
Accretion ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 13.7 .5 12.7 .5 Ì Ì
Selling, general and administrative
expenses ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 268.3 9.9 247.9 9.8 238.7 10.1
Other charges (income)ÏÏÏÏÏÏÏÏÏÏÏÏ Ì Ì Ì Ì (5.6) (.2)
Operating income ÏÏÏÏÏÏÏÏÏ $ 452.3 16.7% $ 412.7 16.4% $ 459.5 19.4%
Revenue. Revenue was $2,708.1 million, $2,517.8 million and $2,365.1 million for the years ended
December 31, 2004, 2003 and 2002, respectively. Revenue increased by $190.3 million, or 7.6%, from 2003 to
34