10-K Project 2

10-K Project 2
Regulation of greenhouse gas emissions could impose costs on our operations, the magnitude of which we cannot yet estimate. (pg.16)
If the comprehensive federal climate change legislation be enacted, it would have great impact on the company. As in the 10-K mentioned, "our landfill operations emit methane, identified as a greenhouse gas, and our vehicle fleet emits, among other things, carbon dioxide, which also is a greenhouse gas" (pg. 16). Even though, the company is in the process of converting to Compressed Natural Gas (CNG), there are only 1,300 CNG out of the total of 15,000 active vehicles. The vehicle fleet is also subject to regulations by Environmental Protection Agency (EPA) and National Highway Traffic Safety Administration (NHTSA). The outcome is heavily weighted on initial cost, but would save fuel later on. The fleet conversion to CNG would also increase the upfront costs but provide the company a competitive advantage over its competitors when bidding for the contract with clean emission focused communities.

2. Economic
Our business is directly affected by changes in national and general economic factors and overall economic activity that are outside of our control, including consumer confidence and interest rates. (pg.12)
Since the company operates with high fixed-cost structure, the reduction in waste volume will lower the revenue and increase operating costs. A weak economic results in the reduction of consumer purchases or consumption, which in turn produce lower solid waste volume. With such low volume, the company will have to limit the services they provide, therefore affect their ability to generate revenue, increase competitive pricing pressure and higher operating cost. The company also has substantial indebtedness, the interest rates will also directly affect their operating results.

We continue to focus on innovative waste disposal processes and programs to help our customers achieve their goals related to sustainability and environmentally sound waste practices.
In recent years, customers pay more attention to environmental issue and recycling. Communities encourage their residents to commit to their recycling programs. The company is also invested in the recycling centers. With the investment, the company is hoping to expand their recycling capabilities to certain locations. The effort has positive impact on the company since customers are more aware of environmental protection nowadays.

4. Technology
We will continue to exceed our customers’ expectations through consistently delivering high quality service and an expanded use of technology to make it easier to do business with us.
The company implemented their online technology so that customers can access information and perform certain services or make payment. This also has positive impact on the company because most of customers use internet and keep track of their records online. Also, this could reduce the cost of hiring customer service representative and also human errors. In an effort of protecting the environment and complying with the regulations, the company gradually converts its fleet vehicle to CNG which using their preferred alternative fuel technology which would benefit them in the future.

5. Environment
Adverse weather conditions, including those brought about by climate change, may limit our operations and increase the costs of collection and disposal.
As mentioned above, the weather condition also affect the company's operations. The extreme weather resulted from global warming such as severe droughts, floods will cause the delay or suspense the waste collection process. This incident is very difficult to overcome. The adverse weather conditions would lower landfill capacity and ability, lower the waste volume. In some extreme condition, it would affect the broad operating regions which forces for temporary suspension
6. Legal
Despite our efforts, we may incur additional hazardous substances liability in excess of amounts presently known and accrued.
The company may be accounted for substantial liability under The Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERLA). If that is the case, they will have to clean up their sites that contain substances, as defined by CERLA as "hazardous"(17). There are a lot of those hazardous could be present in waste collected, transported without knowing exactly. These liabilities will have a negative impact to the operation, financial status and cash flow.

10-K Project 2 9.2 of 10 on the basis of 2304 Review.