Business Acquisitions

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Business Acquisitions and Restructuring Charges

BUSINESS ACQUISITIONS AND RESTRUCTURING CHARGES

Acquisitions

We acquired various waste businesses during the six months endedJune 30, 2016 and 2015.  The purchase price for these acquisitions and the allocations of the purchase price follow:

	2016			2015
Purchase price:
Cash used in acquisitions, net of cash acquired	$	13.9		$	512.6
Contingent consideration	—			75.8
Holdbacks	1.0			2.5
Fair value, future minimum lease payments	—			1.5
Total	14.9			592.4
Allocated as follows:
Accounts receivable	0.1			36.2
Landfill airspace	—			152.7
Property and equipment	4.4			150.0
Other assets	0.1			1.4
Accounts payable	—			(7.1		)
Environmental remediation liabilities	(0.1		)	(2.8		)
Closure and post-closure liabilities	(0.1		)	(11.3		)
Other liabilities	(0.1		)	(9.6		)
Fair value of tangible assets acquired and liabilities assumed	4.3			309.5
Excess purchase price to be allocated	$	10.6		$	282.9
Excess purchase price allocated as follows:
Other intangible assets	$	1.7		$	7.5
Goodwill	8.9			275.4
Total allocated	$	10.6		$	282.9

The purchase price allocations are preliminary and are based on information existing at the acquisition dates. Accordingly, the purchase price allocations are subject to change. Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes. These acquisitions are not material to the Company's results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided.

In 2015, we acquired all of the equity interests of Tervita, LLC (Tervita) in exchange for a cash payment of $476.6 million. Tervita provides waste services to a diverse customer base serving oil and natural gas producers and operates three types of waste management and disposal facilities: treatment, recovery and disposal facilities, engineered landfills and salt water disposal injection wells. We allocated $109.3 million of the purchase price to property and equipment, $85.5 million to landfill airspace, $7.2 million to intangible assets, and $21.0 million to net working capital. We also assumed $6.9 million of closure and post-closure obligations and $7.6 million of environmental remediation and other liabilities. Approximately $268 million of the remaining purchase price was allocated to goodwill.

Restructuring Charges

In January 2016, we realigned our field support functions by combining our regions into two field groups, consolidating our areas and streamlining select operational support roles at our Phoenix headquarters. These changes included reducing administrative staffing levels, relocating office space and closing certain office locations.  Additionally, in the second quarter, we began redesigning our accounts payable functions to streamline and consolidate our invoice processing and vendor support. The savings realized from these restructuring efforts will be reinvested in our customer-focused programs and initiatives, which include the consolidation of over 100 customer service locations into three Customer Resource Centers over the next two years.

During the three and six months ended June 30, 2016, we incurred $14.5 million and $26.4 million, respectively, of restructuring charges that consisted of severance and other employee termination benefits, employee relocation benefits, and the closure of offices with lease agreements with non-cancelable terms. During the three and six months ended June 30, 2016, we paid $9.2 million and $14.5 million, respectively, related to these restructuring efforts. We expect to incur additional charges of approximately $25 million over the next two years related to our field realignment, the consolidation of our customer service locations, and the redesign of our accounts payable processes. Substantially all of these restructuring charges will be recorded in our corporate segment.