10-K Project Essay

694 WordsJul 14, 20133 Pages
10-K Report 1. Political 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.

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