Acquisitions

9 Months Ended

Sep. 30, 2024

Acquisitions [Abstract]

Acquisitions

7.ACQUISITIONS

The Company acquired 17 individually immaterial non-hazardous solid waste collection, transfer, recycling and disposal businesses and four individually immaterial E&P waste treatment and disposal business during the nine months ended September 30, 2024.  The total transaction-related expenses incurred during the nine months ended September 30, 2024 for these acquisitions were $25,169. These expenses are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Net Income.

The Company acquired nine individually immaterial non-hazardous solid waste collection, transfer, recycling and disposal businesses and one immaterial E&P waste disposal business during the nine months ended September 30, 2023.  The total transaction-related expenses incurred during the nine months ended September 30, 2023 for these acquisitions were $7,014. 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, 2024 and 2023:

	2024		2023
	Acquisitions		Acquisitions
Fair value of consideration transferred:
Cash	$	2,010,274	$	573,185
Debt assumed		83,589		73,397
		2,093,863		646,582
Recognized amounts of identifiable assets acquired and liabilities assumed associated with businesses acquired:
Accounts receivable		90,892		15,412
Prepaid expenses and other current assets		12,512		4,474
Restricted investments		—		5,462
Operating lease right-of-use assets		24,700		14,048
Property and equipment		1,038,803		186,130
Long-term franchise agreements and contracts		82,523		59,509
Customer lists		143,404		5,020
Permits and other intangibles		285,689		2,403
Other assets		1,671		24
Accounts payable and accrued liabilities		(21,824)		(11,005)
Current portion of operating lease liabilities		(2,874)		(366)
Deferred revenue		(11,975)		(1,333)
Contingent consideration		(23,926)		(13,350)
Long-term portion of operating lease liabilities		(14,773)		(13,682)
Other long-term liabilities		(63,721)		(10,439)
Deferred income taxes		—		(3,501)
Total identifiable net assets		1,541,101		238,806
Goodwill	$	552,762	$	407,776

Goodwill acquired during the nine months ended September 30, 2024 and 2023, totaling $552,762 and $317,190, respectively, is expected to be deductible for tax purposes. The fair value of acquired working capital related to five individually immaterial acquisitions completed during the twelve months ended September 30, 2024, 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 five acquisitions are not expected to be material to the Company’s financial position. The adjustments recorded during the nine months ended September 30, 2024 relating to finalizing the acquired working capital for the individually immaterial acquisitions completed during the twelve months ended December 31, 2023 were not material to the Company’s financial position.

The gross amount of trade receivables due under contracts acquired during the nine months ended September 30, 2024, was $96,391, of which $5,499 was expected to be uncollectible. The gross amount of trade receivables due under contracts acquired during the nine months ended September 30, 2023, was $15,538, of which $126 was expected to be uncollectible. The Company did not acquire any other class of receivable as a result of the acquisition of these businesses.