Acquisitions

9 Months Ended

Sep. 30, 2022

Acquisitions [Abstract]

Acquisitions

7.ACQUISITIONS

The Company acquired 15 individually immaterial non-hazardous solid waste collection, transfer, recycling and disposal businesses during the nine months ended September 30, 2022.  The total acquisition-related costs incurred during the nine months ended September 30, 2022 for these acquisitions were $18,694. These expenses are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Net Income.

The Company acquired 14 individually immaterial non-hazardous solid waste collection, transfer and recycling businesses during the nine months ended September 30, 2021.  The total acquisition-related costs incurred during the nine months ended September 30, 2021 for these acquisitions were $6,220. These expenses are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Net Income.

The results of operations of the acquired businesses have been included in the Company’s Condensed Consolidated Financial Statements from their respective acquisition dates. The Company expects these acquired businesses to contribute

towards the achievement of the Company’s strategy to expand through acquisitions. Goodwill acquired is attributable to the synergies and ancillary growth opportunities expected to arise after the Company’s acquisition of these businesses.

The following table summarizes the consideration transferred to acquire these businesses and the preliminary amounts of identifiable assets acquired and liabilities assumed at the acquisition dates for the acquisitions consummated in the nine months ended September 30, 2022 and 2021:

	2022		2021
	Acquisitions		Acquisitions
Fair value of consideration transferred:
Cash	$	1,272,910	$	561,276
Debt assumed		96,814		30,485
		1,369,724		591,761
Recognized amounts of identifiable assets acquired and liabilities assumed associated with businesses acquired:
Accounts receivable		32,329		19,792
Prepaid expenses and other current assets		6,549		2,007
Operating lease right-of-use assets		3,160		1,707
Property and equipment		617,267		152,955
Long-term franchise agreements and contracts		109,364		76,847
Customer lists		69,378		46,449
Permits and other intangibles		97,548		83,659
Other assets		—		4
Accounts payable and accrued liabilities		(34,905)		(27,406)
Current portion of operating lease liabilities		(1,100)		(727)
Deferred revenue		(7,766)		(4,771)
Contingent consideration		(6,543)		(2,512)
Long-term portion of operating lease liabilities		(2,060)		(980)
Other long-term liabilities		(3,498)		(2,306)
Deferred income taxes		(26,440)		(33,829)
Total identifiable net assets		853,283		310,889
Goodwill	$	516,441	$	280,872

Goodwill acquired during the nine months ended September 30, 2022 and 2021, totaling $272,186 and $114,006, respectively, is expected to be deductible for tax purposes.

The fair value of acquired working capital related to 11 individually immaterial acquisitions completed during the twelve months ended September 30, 2022, is provisional pending receipt of information from the acquirees to support the fair value of the assets acquired and liabilities assumed. Any adjustments recorded relating to finalizing the working capital for these 11 acquisitions are not expected to be material to the Company’s financial position.

The gross amount of trade receivables due under contracts acquired during the nine months ended September 30, 2022, was $37,486, of which $5,157 was expected to be uncollectible. The gross amount of trade receivables due under contracts acquired during the nine months ended September 30, 2021, was $21,673, of which $1,881 was expected to be uncollectible. The Company did not acquire any other class of receivable as a result of the acquisition of these businesses.