NOTE 3 – ACQUISITIONS

Acquisitions

During the six months ended June 30, 2018, the Company completed 15 acquisitions of businesses under the current guidance.

The following table summarizes the locations, services, and type of acquisitions for the six months ended June 30, 2018:

			Service
Acquisition Locations	Total Number of Acquisitions		Regulated Waste		Secure Information Destruction
United States		15		1		14
Total		15		1		14

The following table summarizes the acquisition date fair value of consideration transferred for current year acquisitions and the adjustment to the consideration transferred for the prior year acquisitions during the six months ended June 30, 2018:

In millions
	Six Months Ended June 30, 2018
	Current Year Acquisitions		Adjustments to Prior Year Acquisitions			Total
Cash, net of cash acquired	$	29.0	$	-		$	29.0
Promissory notes		21.5		-			21.5
Deferred consideration		0.6		-			0.6
Contingent consideration		-		(0.4	)		(0.4	)
Total purchase price	$	51.1	$	(0.4	)	$	50.7

For financial reporting purposes, our acquisitions were accounted for using the acquisition method of accounting. These acquisitions resulted in the recognition of goodwill in our financial statements, reflecting the excess of the purchase price paid over the fair value of the net assets acquired from these businesses that we believe are complementary to our existing operations and fit our growth strategy. During the six months ended June 30, 2018, we recognized an increase in goodwill of $31.6 million related to current year acquisitions, excluding the effect of foreign currency translation, which will be deductible for income taxes.

During the six months ended June 30, 2018, we recognized an increase in estimated fair value of acquired customer relationships from current year acquisitions of $17.2 million, excluding the effect of foreign currency translation, with amortizable lives of 10 to 30 years.

The fair value of consideration transferred in a business combination is allocated to the tangible and intangible assets assumed at the acquisition date, with the remaining unallocated amount recorded as goodwill. The allocations of the acquisition price for recent acquisitions have been prepared on a preliminary basis, pending completion of certain intangible asset valuations and finalization of the opening balance sheet.

The following table summarizes the preliminary purchase price allocations for current year acquisitions and adjustments to purchase price allocations for prior year acquisitions for the six months ended June 30, 2018:

In millions
	Six Months Ended June 30, 2018
	Current Year Acquisitions		Adjustments to Prior Year Acquisitions			Total
Fixed assets	$	1.5	$	4.7		$	6.2
Intangibles		17.2		0.6			17.8
Goodwill		31.6		(7.3	)		24.3
Net other assets and liabilities		0.8		1.6			2.4
Total purchase price allocation	$	51.1	$	(0.4	)	$	50.7

The results of operations of these acquired businesses have been included in the Condensed Consolidated Statements of Income (Loss) from the date of the acquisitions. Pro forma results of operations for these acquisitions are not presented because the pro forma effects, individually or in the aggregate, were not material to the Company’s condensed consolidated results of operations.