Seasonal changes may adversely aÅect our business and operations.
Our operations may be adversely aÅected by periods of inclement weather which could increase the
volume of waste collected under our existing contracts (without corresponding compensation), delay the
collection and disposal of waste, reduce the volume of waste delivered to our disposal sites, or delay the
construction or expansion of our landÑll sites and other facilities.
We may be unable to extend the maturity of our revolving short-term credit facility.
We have a revolving short-term credit facility in the principal amount of $300 million which expires in
June 2005. We anticipate extending the maturity of this credit facility until at least June 2006. However, we
cannot assure you that we will receive such extension and, if so, whether such extension will be on terms as
favorable to us as those currently contained in the credit facility.
The outcome of audits by the Internal Revenue Service may adversely aÅect our company.
Through the date of our initial public oÅering in July 1998, we Ñled consolidated federal income tax
returns with AutoNation. In accordance with the tax sharing agreement we have with AutoNation, we may be
liable for certain assessments imposed by the Internal Revenue Service for the periods through June 1998.
The Internal Revenue Service is auditing our consolidated tax returns for Ñscal years 1998 through 2003. No
assurance can be given with respect to the outcome of the audits for these periods or the eÅect they may have
on us, or that our reserves with respect thereto are adequate. A signiÑcant assessment against us could have a
material adverse eÅect on our Ñnancial position, results of operations or cash Öows.
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