NOTE 2 – ACQUISITIONS

Acquisitions

During the years ended December 31, 2017, 2016, and 2015, the Company completed 30, 31, and 43 acquisitions, respectively. The acquisitions were all considered to be business combinations under the current guidance.

The following table summarizes the locations, services, and type of acquisitions:

2017 Acquisitions			Service						Type
Acquisition Locations	Total Number of Acquisitions		Regulated Waste		Secure Information Destruction		Communication Services		Acquisitions of Selected Assets and Liabilities		Acquisitions of Stock
United States		21		2		18		1		21		-
Canada		1		-		1		-		-		1
France		1		-		1		-		1		-
Netherlands		2		1		1		-		2		-
Portugal		1		1		-		-		-		1
Republic of Korea		2		2		-		-		2		-
Spain		2		1		1		-		1		1
Total		30		7		22		1		27		3

2016 Acquisitions			Service						Type
Acquisition Locations	Total Number of Acquisitions		Regulated Waste		Secure Information Destruction		Communication Services		Acquisitions of Selected Assets and Liabilities		Acquisitions of Stock
United States		21		5		15		1		19		2
Australia		3		-		3		-		3		-
Republic of Korea		1		1		-		-		1		-
Romania		2		2		-		-		2		-
Spain		3		2		1		-		2		1
United Kingdom		1		1		-		-		1		-
Total		31		11		19		1		28		3

2015 Acquisitions			Service						Type
Acquisition Locations	Total Number of Acquisitions		Regulated Waste		Secure Information Destruction		Communication Services		Acquisitions of Selected Assets and Liabilities		Acquisitions of Stock
United States		19		13		4		2		16		3
Brazil		2		2		-		-		-		2
Canada		2		-		1		1		-		2
Ireland		1		1		-		-		-		1
Mexico		3		3		-		-		1		2
Netherlands		2		2		-		-		1		1
Republic of Korea		6		6		-		-		6		-
Romania		4		4		-		-		3		1
Spain		4		4		-		-		4		-
Total		43		35		5		3		31		12

The following table summarizes the acquisition date fair value of consideration transferred for acquisitions completed during the years ended December 31, 2017, 2016, and 2015, respectively:

In millions
	2017		2016		2015
Cash	$	52.9	$	55.4	$	2,420.7
Promissory notes		25.3		40.9		64.1
Deferred consideration		1.1		4.1		3.2
Contingent consideration		0.1		1.0		10.1
Total purchase price	$	79.4	$	101.4	$	2,498.1

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 premium paid to acquire businesses that we believe are complementary to our existing operations and fit our growth strategy. During the year ended December 31, 2017, we recognized an increase in goodwill of $46.5 million related to current year acquisitions, excluding the effect of foreign currency translation. Approximately $44.5 million of the goodwill recognized during the year ended December 31, 2017 will be deductible for income taxes.

During the year ended December 31, 2017, we recognized an increase in estimated fair value of acquired customer relationships from current year acquisitions of $28.2 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 allocation for current period acquisitions and other adjustments to purchase price allocations for the years ended December 31, 2017, 2016, and 2015:

In millions
	2017			2016			2015
Fixed assets	$	3.9		$	13.1		$	196.2
Intangibles		28.2			35.5			1,016.8
Goodwill		46.5			52.8			1,450.9
Net other assets and liabilities		1.1			2.2			59.5
Net deferred tax liabilities		(0.3	)		(2.2	)		(225.3	)
Total purchase price allocation	$	79.4		$	101.4		$	2,498.1

The results of operations of these acquired businesses have been included on the Consolidated Statements of Income from the date of the acquisition. 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 consolidated results of operations.

As of December 31, 2017, purchase accounting has been completed for all of our 2016 acquisitions. The following table summarizes the adjustments to the consideration transferred for prior year acquisitions during 2017:

In millions
	Adjustments to Prior Year Acquisitions
Cash	$	(0.4	)
Promissory notes		(0.4	)
Contingent consideration		(9.6	)
Total purchase price	$	(10.4	)

The following table summarizes various adjustments to our prior year acquisitions during 2017:

In millions
	Adjustments to Prior Year Acquisitions
Fixed assets	$	(6.0	)
Intangibles		7.9
Goodwill		(7.4	)
Net other assets and liabilities		(1.5	)
Net deferred tax liabilities		(3.4	)
Total purchase price allocation	$	(10.4	)