ACQUISITIONS AND DIVESTITURES

6 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

The following table summarizes the locations of our acquisitions for the six months ended June 30, 2013:

Acquisition Locations	2013
United States	5
Brazil	2
Canada	1
Chile	1
Japan	3
Portugal	2
Romania	2
Spain	1
United Kingdom	7
Total	24

During the quarter ended March 31, 2013, we completed twelve regulated waste acquisitions. Domestically, we acquired selected assets of one business. Internationally, we acquired 100% of the stock of one business in each of Canada, Chile, Portugal, and Romania and of three businesses in the United Kingdom. In addition, we acquired selected assets of two businesses in Japan, one in Spain, and one in the United Kingdom.

During the quarter ended June 30, 2013, we completed twelve acquisitions. Domestically, we acquired the selected assets of four regulated waste businesses. Internationally, in Brazil we acquired 100% of the stock one regulated waste business and 70% of another regulated waste business. In the United Kingdom, we acquired 100% of the stock of a recall and returns business and 100% of the stock of a regulated waste business. In addition, we acquired selected assets of one regulated waste business in each of Japan, Portugal, Romania, and the United Kingdom. We also increased our share in a small subsidiary in Spain to 100%.

The following table summarizes the aggregate purchase price paid for acquisitions and other adjustments of consideration to be paid for acquisitions during the six months ended June 30:

In thousands
	Six Months Ended June 30,
	2013		2012
Cash	$	63,401	$	111,716
Promissory notes	13,725		21,503
Deferred consideration	5,803		11,164
Contingent consideration	3,378		1,661
Total purchase price	$	86,307	$	146,044

For financial reporting purposes, our 2013 and 2012 acquisitions were accounted for using the acquisition method of accounting. These acquisitions resulted in recognition of goodwill in our financial statements reflecting the premium paid to acquire businesses that we believe are complementary to our existing operations and fit our growth strategy. During the six months ended June 30, 2013, we recognized a net increase in goodwill of $58.4 million excluding the effect of foreign currency translation (see Note 9 – Goodwill and Other Intangible Assets, in the Notes to the Condensed Consolidated Financial Statements). A net increase of $16.4 million was assigned to our United States reporting segment, and $42.0 million was assigned to our International reporting segment. Approximately $22.3 million of the goodwill recognized during the six months ended June 30, 2013 will be deductible for income taxes.

During the six months ended June 30, 2013, we recognized a net increase in intangible assets of $34.1 million excluding the effect of foreign currency translation. The changes include $28.3 million in the estimated fair value of acquired customer relationships with amortizable lives of 15 to 40 years, $5.7 million in permits with indefinite lives, and $0.1 million in non-competes with amortizable life of 5 years.

The purchase prices for these acquisitions in excess of acquired tangible assets have been primarily allocated to goodwill and other intangibles and are preliminary, pending completion of certain intangible asset valuations and completion accounts. The following table summarizes the preliminary purchase price allocation for current period acquisitions and other adjustments to purchase price allocations during the six months ended June 30, 2013:

In thousands
Fixed assets	$	8,993
Intangibles	34,108
Goodwill	58,450
Net other assets/ (liabilities)	(4,084		)
Debt	(3,448		)
Net deferred tax liabilities	(5,866		)
Noncontrolling interests	(1,846		)
Total purchase price allocation	$	86,307

During the six months ended June 30, 2013 and 2012, the Company incurred $4.1 million and $3.7 million, respectively, of acquisition related expenses. These expenses are included with SG&A on our Condensed Consolidated Statements of Income.