On December 12, 2002, the SEC filed a lawsuit against four executives of Safety-Kleen Corp., one of the country's leading providers of industrial waste collection and disposal services. The primary issue was that the executives had directed others in the company to record improper adjustments, which had the effect of overstating net income during those periods. Complete this case by downloading, from www.mhhe.com/phillips4e, excerpts from the SEC's court documents and questions about adjustments related to Safety-Kleen's operating expenses and management bonuses.