ITEM 6.
SELECTED FINANCIAL DATA The following Selected Financial Data should be read in conjunction with our consolidated financial statements and notes thereto as of December 31, 2010 and 2009 and for each of the three years in the period ended December 31, 2010 and Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations included elsewhere in this Form 10-K.
The Allied acquisition was effective December 5, 2008 and has been accounted for as an acquisition of Allied by Republic.
The consolidated financial statements include the operating results of Allied from the date of the acquisition, and have not been retroactively restated to include Allied’s historical financial position or results of operations.
In accordance with the purchase method of accounting, the purchase price paid has been allocated to the assets and liabilities acquired based upon their estimated fair values as of the acquisition date, with the excess of the purchase price over the net assets acquired being recorded as goodwill.
Our shares, per share data and weighted average common and common equivalent shares outstanding have been retroactively adjusted for all periods prior to 2007 to reflect a 3-for-2 stock split in the form of a stock dividend that was effective on March 16, 2007.
See Notes 1, 2, 3, 8, 9, 10 and 12 of the notes to our consolidated financial statements in Item 8 of this Form 10-K for a discussion of basis of presentation, significant accounting policies, business acquisitions and divestitures, restructuring charges, landfill and environmental costs, debt, income taxes and stockholders’ equity and their effect on comparability of year-to-year data.
These historical results are not necessarily indicative of the results to be expected in the future.
Amounts are in millions, except per share amounts.
## Table 0 ##
Cost of Operations – 2009 versus 2008 Our cost of operations, as a percentage of revenue, improved 6.5% to 59.1% for the year ended December 31, 2009 compared to 65.6% for the year ended December 31, 2008, primarily as a result of the following: ?
Transfer and disposal costs decreased as a percentage of revenue primarily due to lower fuel and disposal costs.
In addition, transfer and disposal costs were also favorably impacted by increased internalization of our waste streams into landfills either owned or operated by us.  ?
Fuel costs decreased approximately 35% from an average of $3.80 per gallon during 2008 to an average of $2.47 per gallon during 2009.  ?
Landfill operating costs decreased 3.8% as a percentage of revenue, primarily due to charges we recorded during 2008 consisting of $98.0 million related to estimated costs to comply with Final Findings and Orders issued by the Ohio Environmental Protection Agency and the Agreed Order on Consent issued by the Environmental Protection Agency in response to environmental conditions at the Countywide facility, $21.9 million related to environmental conditions at our closed disposal facility in California and $34.0 million related to environmental conditions at the Sunrise Landfill.
These charges increased our 2008 cost of operations as a percentage of revenue by 4.2% for the year ended December 31, 2008.  ?
Other cost of operations increased 0.7% as a percentage of revenue primarily due to increases in occupancy and facility expenses as well as equipment rental expense.
Depreciation, Amortization and Depletion of Property and Equipment The following table summarizes depreciation, amortization and depletion of property and equipment for the years ended December 31, 2010, 2009 and 2008 (in millions of dollars and as a percentage of revenue):
## Table 1 ##
Depreciation, Amortization and Depletion of Property and Equipment – 2010 versus 2009 The decrease in landfill depletion and amortization in aggregate dollars and as a percentage of revenue is due to a reduction of amortization expense associated with lower landfill volumes and assets divested as required by the DOJ.
Depreciation and amortization of property and equipment, as a percentage of revenue, has remained consistent year over year.
Depreciation, Amortization and Depletion of Property and Equipment – 2009 versus 2008 The increase in depreciation, amortization and depletion expenses as a percentage of revenue is primarily due to increases in depreciation and depletion expense associated with equipment and landfills acquired from Allied and recorded at their fair values.
We allocated $2.6 billion of fair value to the landfills we acquired from Allied.
The increase in the landfill depletion and amortization in aggregate dollars is directly attributable to this allocation of fair value.
Amortization of Other Intangible and Other Assets Expenses for amortization of intangible and other assets were $71.5 million, $70.6 million and $11.8 million, or, as a percentage of revenue, 0.9%, 0.9% and 0.3% for the years ended December 31, 2010, 2009 and 2008, respectively.
Our other intangible and other assets primarily relate to customer lists, franchise agreements, municipal contracts, trade names, favorable lease assets and to a lesser extent non-compete agreements.
The
charges related to our estimates of the outcome of various legal matters and a charge of $2.9 million related to the synergy related bonus.
Excluding charges for synergies, conforming accounting policies, bankruptcies and certain legal matters, selling, general and administrative expenses for the years ended December 31, 2010, 2009 and 2008 would have been $824.7 million, $838.8 million and $387.9 million, or 10.2%, 10.2% and 10.5% as a percentage of revenue, respectively.
With the completion of the integration of Allied, our goal is to maintain our selling, general and administrative costs at no more than 10.0% of revenue, which we believe is appropriate given our existing business platform.
Loss (gain) on Disposition of Assets and Impairments, Net Loss (gain) on disposition of assets and impairments, net of costs to sell was $19.1 million, $(137.0) million and $89.8 million for the years ended December 31, 2010, 2009 and 2008, respectively.
We divested certain assets throughout 2010 resulting in a net loss on disposition of assets of $4.0 million, including transaction costs.
Additionally, we recorded an impairment loss of $15.1 million related to certain long-lived assets that are held and used.
During the year ended December 31, 2009, we divested of certain assets as required by the DOJ as a condition of the Allied acquisition and recorded a gain of $153.5 million.
Offsetting this gain was a loss of $10.2 million recognized in connection with the divestiture of a hauling operation in Miami-Dade County, Florida as well as $7.1 million of additional asset impairments, primarily related to our former corporate offices and other assets sold or held for sale.
During the year ended December 31, 2008, we recorded a charge of $75.9 million related to the impairment of the Countywide facility.
This impairment relates to the anticipated loss of permitted airspace associated with complying with F&Os issued by the OEPA and the AOC issued by the EPA based upon recent negotiations with the OEPA and the EPA.
Also during the year ended December 31, 2008, we recorded $7.8 million of other impairment charges, consisting primarily of charges related to our former corporate office in South Florida.
Restructuring Charges During the year ended December 31, 2010, we incurred $11.4 million of restructuring and integration charges related to the integration of Allied, which consisted of charges and adjustments for severance, employee termination and relocation benefits.
The remainder of the charges primarily related to consulting and professional fees.
Substantially all of these charges were recorded in our corporate entities segment.
We do not expect to incur any significant additional charges with respect to this plan.
During the years ended December 31, 2009 and 2008, we incurred $63.2 million and $82.7 million, respectively, of such charges.
Interest Expense The following table provides the components of interest expense, including accretion of debt discounts and accretion of discounts primarily associated with environmental and self-funded risk insurance liabilities assumed in the Allied acquisition:
## Table 2 ##
The decrease in interest expense during the year ended December 31, 2010 versus 2009 is due to refinancing our higher interest rate debt during 2010 and in the second half of 2009 and the net reduction of borrowings.
REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents, trade accounts receivable and derivative instruments.
We place our cash and cash equivalents with high quality financial institutions.
Such balances may be in excess of FDIC insured limits.
To manage the related credit exposure, we continually monitor the credit worthiness of the financial institutions where we have deposits.
Concentrations of credit risk with respect to trade accounts receivable are limited due to the wide variety of customers and markets in which we provide services, as well as the dispersion of our operations across many geographic areas.
We provide services to commercial, industrial, municipal and residential customers in the United States and Puerto Rico.
We perform ongoing credit evaluations of our customers, but do not require collateral to support customer receivables.
We establish an allowance for doubtful accounts based on various factors including the credit risk of specific customers, age of receivables outstanding, historical trends, economic conditions and other information.
No customer exceeded 5% of our outstanding accounts receivable balance at December 31, 2010 or 2009.
Accounts Receivable, Net of Allowance for Doubtful Accounts Accounts receivable represent receivables from customers for collection, transfer, recycling, disposal and other services.
Our receivables are recorded when billed or when the related revenue is earned, if earlier, and represent claims against third parties that will be settled in cash.
The carrying value of our receivables, net of the allowance for doubtful accounts, represents their estimated net realizable value.
Provisions for doubtful accounts are evaluated on a monthly basis and are recorded based on our historical collection experience, the age of the receivables, specific customer information and economic conditions.
We also review outstanding balances on an account-specific basis.
In general, reserves are provided for accounts receivable in excess of ninety days old.
Past due receivable balances are written-off when our collection efforts have been unsuccessful in collecting amounts due.
The following table reflects the activity in our allowance for doubtful accounts for the years ended December 31, 2010, 2009 and 2008:

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="5">Year Ended December 31,</td></tr><tr><td></td><td>2010</td><td>2009</td><td>2008</td><td>2007</td><td>2006</td></tr><tr><td> Statement of Operations Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>$8,106.6</td><td>$8,199.1</td><td>$3,685.1</td><td>$3,176.2</td><td>$3,070.6</td></tr><tr><td>Expenses:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cost of operations</td><td>4,764.8</td><td>4,844.2</td><td>2,416.7</td><td>2,003.9</td><td>1,924.4</td></tr><tr><td>Depreciation, amortization and depletion</td><td>833.7</td><td>869.7</td><td>354.1</td><td>305.5</td><td>296.0</td></tr><tr><td>Accretion</td><td>80.5</td><td>88.8</td><td>23.9</td><td>17.1</td><td>15.7</td></tr><tr><td>Selling, general and administrative</td><td>858.0</td><td>880.4</td><td>434.7</td><td>313.7</td><td>315.0</td></tr><tr><td>Loss (gain) on disposition of assets and impairments, net</td><td>19.1</td><td>-137.0</td><td>89.8</td><td>—</td><td>—</td></tr><tr><td>Restructuring charges</td><td>11.4</td><td>63.2</td><td>82.7</td><td>—</td><td>—</td></tr><tr><td>Operating income</td><td>1,539.1</td><td>1,589.8</td><td>283.2</td><td>536.0</td><td>519.5</td></tr><tr><td>Interest expense</td><td>-507.4</td><td>-595.9</td><td>-131.9</td><td>-94.8</td><td>-95.8</td></tr><tr><td>Loss on extinguishment of debt</td><td>-160.8</td><td>-134.1</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Interest income</td><td>0.7</td><td>2.0</td><td>9.6</td><td>12.8</td><td>15.8</td></tr><tr><td>Other income (expense), net</td><td>5.4</td><td>3.2</td><td>-1.6</td><td>14.1</td><td>4.2</td></tr><tr><td>Income before income taxes</td><td>877.0</td><td>865.0</td><td>159.3</td><td>468.1</td><td>443.7</td></tr><tr><td>Provision for income taxes</td><td>369.5</td><td>368.5</td><td>85.4</td><td>177.9</td><td>164.1</td></tr><tr><td>Net income</td><td>507.5</td><td>496.5</td><td>73.9</td><td>290.2</td><td>279.6</td></tr><tr><td>Less: Income attributable to noncontrolling interests</td><td>-1.0</td><td>-1.5</td><td>-0.1</td><td>—</td><td>—</td></tr><tr><td>Net income attributable to Republic Services, Inc.</td><td>$506.5</td><td>$495.0</td><td>$73.8</td><td>$290.2</td><td>$279.6</td></tr><tr><td>Basic earnings per share attributable to Republic Services, Inc. stockholders:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic earnings per share</td><td>$1.32</td><td>$1.30</td><td>$0.38</td><td>$1.53</td><td>$1.41</td></tr><tr><td>Weighted average common shares outstanding</td><td>383.0</td><td>379.7</td><td>196.7</td><td>190.1</td><td>198.2</td></tr><tr><td>Diluted earnings per share attributable to Republic</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Services, Inc. stockholders:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Diluted earnings per share</td><td>$1.32</td><td>$1.30</td><td>$0.37</td><td>$1.51</td><td>$1.39</td></tr><tr><td>Weighted average common and common equivalent shares outstanding</td><td>385.1</td><td>381.0</td><td>198.4</td><td>192.0</td><td>200.6</td></tr><tr><td>Cash dividends per common share</td><td>$0.7800</td><td>$0.7600</td><td>$0.7200</td><td>$0.5534</td><td>$0.4000</td></tr></table>
<table><tr><td></td><td colspan="2">2010</td><td colspan="2">2009</td><td colspan="2">2008</td></tr><tr><td>Depreciation and amortization of property and equipment</td><td>$511.6</td><td>6.3%</td><td>$520.6</td><td>6.3%</td><td>$222.6</td><td>6.0%</td></tr><tr><td>Landfill depletion and amortization</td><td>250.6</td><td>3.1</td><td>278.5</td><td>3.4</td><td>119.7</td><td>3.3</td></tr><tr><td>Depreciation, amortization and depletion expense</td><td>$762.2</td><td>9.4%</td><td>$799.1</td><td>9.7%</td><td>$342.3</td><td>9.3%</td></tr></table>
<table><tr><td></td><td>2010</td><td>2009</td><td>2008</td></tr><tr><td>Interest expense on debt and capital lease obligations</td><td>$413.2</td><td>$453.5</td><td>$123.9</td></tr><tr><td>Accretion of debt discounts</td><td>52.4</td><td>92.1</td><td>10.1</td></tr><tr><td>Accretion of remediation and risk reserves</td><td>48.1</td><td>58.1</td><td>0.5</td></tr><tr><td>Less: capitalized interest</td><td>-6.3</td><td>-7.8</td><td>-2.6</td></tr><tr><td>Total interest expense</td><td>$507.4</td><td>$595.9</td><td>$131.9</td></tr></table>

Question: What is the ratio of Accretion in Table 0 to the Accretion of debt discounts in Table 2 in 2009?
Answer: 0.96417
Reasoning program: divide(88.8,92.1)