9.	Acquisitions

Greenstar, LLC — On January 31, 2013, we paid $170 million inclusive of certain adjustments to acquire Greenstar, LLC (“Greenstar”). Pursuant to the sale and purchase agreement, up to an additional $40 million is payable to the sellers during the period from 2014 to 2018, of which $20 million is guaranteed. The remaining $20 million of this consideration is contingent, based on changes in certain recyclable commodity indexes, and had a preliminary estimated fair value at closing of $16 million. Greenstar was an operator of recycling and resource recovery facilities. This acquisition provides the Company’s customers with greater access to recycling solutions, having supplemented our extensive nationwide recycling network with the operations of one of the nation’s largest private recyclers.

Goodwill of $122 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned predominantly to our Areas and, to a lesser extent, our recycling brokerage services, as they are expected to benefit from the synergies of the combination. Goodwill related to this acquisition is deductible for income tax purposes. There were no material adjustments to the purchase price allocation from the date of acquisition.

RCI Environnement, Inc. — On July 5, 2013, we paid C$509 million, or $481 million, to acquire substantially all of the assets of RCI Environnement, Inc. (“RCI”), the largest waste management company in Quebec, and certain related entities. Total consideration, inclusive of amounts for estimated working capital, was C$515 million, or $487 million. RCI provides collection, transfer, recycling and disposal operations throughout the Greater Montreal area. The acquired RCI operations complement and expand the Company’s existing assets and operations in Quebec.

Goodwill of $191 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned to our Eastern Canada Area as it is expected to benefit from the synergies of the combination. A portion of goodwill related to this acquisition is deductible for income tax purposes in accordance with Canadian tax law.

The allocation of the purchase price for the Greenstar acquisition is final. The allocation of the purchase price for the RCI acquisition is preliminary and subject to change based on the finalization of our detailed valuations. The following table presents the final allocation of the purchase price for Greenstar and adjustments since the acquisition date to the allocation of the purchase price for RCI (in millions):


				RCI
	Greenstar			July 5, 2013			Adjustments			March 31, 2014
Accounts and other receivables	$	30		$	32		$	—		$	32
Parts and supplies		4			—			—			—
Other current assets		2			—			—			—
Property and equipment		58			118			(1	)		117
Goodwill		122			177			14			191
Other intangible assets		32			169			—			169
Accounts payable		(17	)		—			—			—
Accrued liabilities		(12	)		—			—			—
Deferred revenues		—			(4	)		—			(4	)
Landfill and environmental remediation liabilities		(2	)		(1	)		—			(1	)
Deferred income taxes, net		—			—			(14	)		(14	)
Current portion of long-term debt		(4	)		—			—			—
Long-term debt, less current portion		(2	)		(4	)		1			(3	)
Other liabilities		(5	)		—			—			—

Total purchase price	$	206		$	487		$	—		$	487

The following table presents the final and preliminary allocations of the purchase price for Greenstar and RCI, respectively, to other intangible assets (amounts in millions, except for amortization periods):


	Greenstar				RCI
	Amount		Weighted Average Amortization Periods (in Years)		Amount		Weighted Average Amortization Periods (in Years)
Customer relationships	$	—		—	$	162		15.0
Supplier relationships		31		10.0		—		—
Lease agreements		1		8.4		—		—
Trade name		—		—		7		5.0

Total other intangible assets subject to amortization	$	32		10.0	$	169		14.6

The following pro forma consolidated results of operations have been prepared as if the acquisitions of Greenstar and RCI occurred at January 1, 2013 (in millions, except per share amounts):


	Three Months Ended
	March 31, 2013
Operating revenues	$	3,391
Net income attributable to Waste Management, Inc.		167
Basic earnings per common share		0.36
Diluted earnings per common share		0.36