ACQUISITIONS AND DIVESTITURES

12 Months Ended

Dec. 31, 2013

Business Combinations [Abstract]

ACQUISITIONS AND DIVESTITURES

ACQUISITIONS AND DIVESTITURES

The following table summarizes the locations of our acquisitions for the years ended December 31, 2013, 2012 and 2011:

Acquisition Locations	2013	2012	2011
United States	13	17	21
Argentina	3	1	1
Brazil	2	1	4
Canada	3	—	2
Chile	1	3	1
Ireland	—	—	1
Japan	3	1	3
Mexico	1	2	—
Portugal	2	1	1
Romania	6	2	6
Spain	3	8	2
United Kingdom	12	5	3
Total	49	41	45

During 2013, we completed 49 acquisitions, of which 13 were domestic and 36 were international businesses. Domestically, we acquired the selected assets of eleven regulated waste businesses, one communication services business, and 100% of the stock of another communication solutions business.

Internationally, in Argentina, we acquired 100% of the stock of two regulated waste businesses and selected assets of one regulated waste business. In Brazil, we acquired 100% of the stock of one regulated waste business and 70% of another regulated waste business. In Canada, we acquired 100% of the stock of two regulated waste businesses and selected assets of one communication solution business. In Chile, we acquired 100% of the stock of one regulated waste business. In Japan, we acquired selected assets of three regulated waste businesses. In Mexico, we acquired 51% stock of a regulated waste business. In Portugal, we acquired 100% of the stock of one regulated waste business and selected assets of another regulated waste business. In Romania, we acquired 100% of the stock of two regulated waste businesses and selected assets of four regulated waste businesses. In Spain, we acquired 100% of the stock of two regulated waste business and selected assets of another regulated waste business. In the United Kingdom, we acquired 100% of the stock of seven regulated waste businesses, one recall and returns business, two communication solutions businesses, and selected assets of two regulated waste businesses.

The following table summarizes the aggregate purchase price paid for acquisitions and other adjustments of consideration to be paid for acquisitions during the years ended December 31, 2013, 2012 and 2011:

In thousands
	2013		2012		2011
Cash	$	161,936	$	224,367	$	469,209
Promissory notes	64,581		70,670		38,461
Deferred consideration	31,149		17,681		11,695
Contingent consideration	4,371		9,190		7,404
Total purchase price	$	262,037	$	321,908	$	526,769

For financial reporting purposes our 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 twelve months ended December 31, 2013, we recognized a net increase in goodwill of $179.8 million excluding the effect of foreign currency translation (see Note 11 - Goodwill and Other Intangible Assets, in the Notes to the Consolidated Financial Statements). A net increase of $61.8 million was assigned to our United States reportable segment, and $118.0 million was assigned to our International reportable segment. Approximately $84.6 million of the goodwill recognized during the twelve months ended December 31, 2013 will be deductible for income taxes.

During the twelve months ended December 31, 2013, we recognized a net increase in intangible assets of $92.4 million, excluding the effect of foreign currency translation. The changes include $77.9 million in the estimated fair value of acquired customer relationships with amortizable lives of 15 to 40 years, $7.9 million in permits with indefinite lives, $5.8 million in tradename with indefinite life, $0.3 million in tradenames with amortizable lives of 10 to 20 years, and $0.5 million in non-competes with amortizable lives of 3 to 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 years ended December 31, 2013, 2012 and 2011:

In thousands
	2013			2012			2011
Fixed assets	$	15,582		$	30,426		$	29,897
Intangibles	92,398			150,149			206,775
Goodwill	179,795			147,156			342,486
Net other assets/ (liabilities)	(20		)	23,102			19,996
Debt	(7,512		)	(4,353		)	(1,240		)
Net deferred tax liabilities	(13,995		)	(20,186		)	(60,437		)
Noncontrolling interests	(4,211		)	(4,386		)	(10,708		)
Total purchase price allocation	$	262,037		$	321,908		$	526,769

During the twelve months ended December 31, 2013, 2012 and 2011 the Company incurred $10.3 million, $7.9 million and $16.7 million, respectively, of acquisition related expenses. These expenses are included with with “Selling, general and administrative expenses” (“SG&A”) on our Consolidated Statements of Income.

The results of operations of these acquired businesses have been included in the consolidated statements of income from the date of the acquisition. Because we integrate acquisitions into our current structure in order to achieve cost synergies, the effect of acquisitions on net income is not practical to estimate. The 2013 estimated impact to revenues of these acquisitions was $56.8 million. The estimated annualized revenues from these acquisitions were approximately $154.3 million. The following consolidated pro forma information on the impact of these acquisitions to our consolidated revenues is based on the assumption that these acquisitions all occurred on January 1, 2013 and 2012.

In thousands
	Years Ended December 31,
	2013	2012
Revenues	2,240,302	2,010,644