REPUBLIC SERVICES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data) Ì (Continued)
prices. Unrealized gains and losses, net of tax, are recorded as a component of accumulated other
comprehensive income (loss). The Company liquidated a portion of these marketable securities and used the
proceeds to repay the $225.0 million of public notes, which matured in May 2004.
Other Matters
The Company's business activities are conducted in the context of a developing and changing statutory
and regulatory framework. Governmental regulation of the waste management industry requires the Company
to obtain and retain numerous governmental permits to conduct various aspects of its operations. These
permits are subject to revocation, modiÑcation or denial. The costs and other capital expenditures which may
be required to obtain or retain the applicable permits or comply with applicable regulations could be
signiÑcant. Any revocation, modiÑcation or denial of permits could have a material adverse eÅect on the
Company.
13. RELATED PARTY TRANSACTIONS
It is the Company's policy that transactions with related parties must be on terms that, on the whole, are
no less favorable than those that would be available from unaÇliated parties. It is management's belief that all
of these transactions met that standard at the time such transactions were eÅected.
14. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)
The following is an analysis of certain items in the Consolidated Statements of Income by quarter for
2004 and 2003:
First Second Third Fourth
Quarter Quarter Quarter Quarter
Revenue ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $637.3 $683.2 $699.9 $687.7
2003 $594.6 $637.3 $648.0 $637.9
Operating income ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $110.0 $116.2 $116.5 $109.6
2003 $105.4 $113.5 $ 87.3 $106.5
Income before cumulative eÅect of changes in
accounting principlesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $ 56.9 $ 60.9 $ 62.5 $ 57.6
2003 $ 54.6 $ 60.4 $ 44.7 $ 55.7
Net incomeÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $ 56.9 $ 60.9 $ 62.5 $ 57.6
2003 $ 16.8 $ 60.4 $ 44.7 $ 55.7
Diluted income per share before cumulative eÅect of
changes in accounting principles ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $ .36 $ .39 $ .41 $ .38
2003 $ .33 $ .37 $ .28 $ .35
Diluted net income per shareÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 $ .36 $ .39 $ .41 $ .38
2003 $ .10 $ .37 $ .28 $ .35
Weighted average common and common equivalent
shares outstanding ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2004 158.4 155.7 153.8 153.5
2003 163.3 162.5 162.2 160.5
During 2003, the Company experienced an increase in expense associated with self-insurance. This
increase was attributable to the expansion of the Company's operations and various changes in estimates as a
result of continued negative trends through the 2003 policy year, based upon recent actuarial claims
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