UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
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Date of report (Date of earliest event reported) |
April 3, 2007
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(Exact Name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction of Incorporation)
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1-14267
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65-0716904 |
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(Commission File Number)
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(IRS Employer Identification No.) |
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110 SE 6th Street, 28th Floor, Fort Lauderdale, Florida
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33301 |
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(Address of Principal Executive Offices)
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(Zip Code) |
(Registrants Telephone Number, Including Area Code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13d-4(c)) |
ITEM 8.01. OTHER EVENTS.
Republic Services of Ohio II, LLC (Republic-Ohio), an Ohio limited liability company and
wholly-owned subsidiary of Republic Services, Inc. (the Company), has been issued Final Findings
and Orders (the F&Os) from the Ohio Environmental Protection Agency (OEPA). The F&Os relate to
environmental conditions attributed to a chemical reaction resulting from the disposal of aluminum
production waste at the Countywide Recycling and Disposal Facility (Countywide) in East Sparta,
Ohio. The F&Os require certain actions to be taken by Republic-Ohio to address the environmental
conditions, including, without limitation, the following actions: (a) prohibiting leachate
recirculation, (b) refraining from the disposal of solid waste in certain portions of the site, (c)
updating engineering plans and specifications and providing further information regarding the
integrity of various engineered components at the site, (d) performing additional data collection,
(e) taking additional measures to address emissions, (f) expanding the gas collection and control
system, and (g) submitting to OEPA a plan to suppress the chemical reaction and, following approval
by OEPA, implementing such plan.
Based upon current information and engineering analyses, the Company believes that the cost
for Republic-Ohio to comply with the F&Os will be approximately $22 million. The Company will
record a $22 million charge to income from continuing operations before provision for income taxes
during the three months ended March 31, 2007. The Company will adjust this charge, if necessary,
to reflect the effects of new or additional information, to the extent that such information
impacts the costs, timing or duration of the required actions. The majority of these costs are
expected to be paid during 2007. In addition, the Company will incur approximately $3.3 million of
additional amortization and depletion expense during 2007 associated with a reduction of remaining
available airspace at Countywide. The Companys 2007 operating income and cash flows from
operating activities will be impacted accordingly.
The Company intends to vigorously pursue financial contributions from third parties for its
costs to comply with the F&Os.
Additionally, the Stark County Health Department, in connection with the annual issuance of
Countywides operating license, is evaluating the environmental conditions that are the subject of
the F&Os. The Company expects that the Health Department will make a decision regarding the
renewal of Countywides operating license in May 2007.
Certain statements and information included herein constitute forward-looking statements
within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Such
forward-looking statements involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance, or achievements to be materially different from any
future results, performance, or achievements expressed or implied in or by such forward-looking
statements. Such factors include, among other things whether our estimates and assumptions
concerning our selected balance sheet accounts, final capping, closure, post-closure and
remediation costs, available airspace, and projected costs and expenses related to our landfills
turn out to be correct or appropriate, and other factors contained in our filings with the
Securities and Exchange Commission.
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