REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
Accumulated Amortization
Goodwill Other Total
Balance, December 31, 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(143.4) $(18.2) $(161.6)
Amortization expense ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì (5.8) (5.8)
Balance, December 31, 2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $(143.4) $(24.0) $(167.4)
In general, goodwill is tested for impairment on an annual basis. In testing for impairment, the Company
estimates the fair value of each operating segment and compares the fair values with the carrying values. If the
fair value of an operating segment is greater than its carrying value, then no impairment results. If the fair
value is less than its carrying value, then the Company would determine the fair value of the goodwill. The fair
value of goodwill is determined by deducting the fair value of an operating segment's identiÑable assets and
liabilities from the fair value of the operating segment as a whole, as if that operating segment had just been
acquired and the purchase price were being initially allocated. If the fair value of the goodwill were less than
its carrying value for a segment, an impairment charge would be recorded to earnings in the Company's
Consolidated Statement of Income.
In addition, the Company would evaluate an operating segment for impairment if events or circumstances
change between annual tests indicating a possible impairment. Examples of such events or circumstances
include:
‚ A signiÑcant adverse change in legal factors or in the business climate,
‚ An adverse action or assessment by a regulator,
‚ A more likely than not expectation that a segment or a signiÑcant portion thereof will be sold, or
‚ The testing for recoverability under Statement of Financial Accounting Standards No. 144, ""Account-
ing for the Impairment of Long-Lived Assets,'' of a signiÑcant asset group within the segment.
The Company incurred no impairment of goodwill as a result of its goodwill impairment test in 2004.
However, there can be no assurance that goodwill will not be impaired at any time in the future.
Accrued Liabilities
A summary of accrued liabilities is as follows:
December 31,
2004 2003
Accrued payroll and beneÑts ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 51.3 $ 43.2
Accrued fees and taxes ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 31.4 29.6
Accrued interestÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.4 18.7
Accrued dividends ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 18.1 9.5
OtherÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 16.1 17.6
$135.3 $118.6
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