9.	Acquisitions

Southern Waste Systems/Sun Recycling — On January 8, 2016, Waste Management Inc. of Florida, a wholly-owned subsidiary of WM, acquired certain operations and business assets of SWS in Southern Florida. The acquired business assets include residential, commercial, and industrial solid waste collection, processing/recycling and transfer operations, equipment, vehicles, real estate and customer agreements. Total consideration was $525 million and is subject to standard post-closing adjustments. The acquisition was funded primarily with borrowings under our $2.25 billion revolving credit facility. For the three months ended March 31, 2016, SWS recognized revenues of $37 million and net income of $1 million which are included in our Condensed Consolidated Statement of Operations.

Goodwill of $250 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned to our Florida Area as it is expected to benefit from the synergies of the combination. Goodwill related to this acquisition is deductible for income tax purposes.

Deffenbaugh Disposal, Inc. — On March 26, 2015, we acquired Deffenbaugh, one of the largest privately owned collection and disposal firms in the Midwest, for total consideration, net of cash acquired, of $400 million. Deffenbaugh’s assets include five collection operations, seven transfer stations, two recycling facilities, one subtitle-D landfill, and one construction and demolition landfill.

Goodwill of $159 million was calculated as the excess of the consideration paid over the net assets recognized and represents the future economic benefits expected to arise from other assets acquired that could not be individually identified and separately recognized. Goodwill has been assigned to our Areas that will be integrating these operations as they are expected to benefit from the synergies of the combination. Goodwill related to this acquisition is not deductible for income tax purposes.

The allocation of the purchase price for the Deffenbaugh acquisition is final. The allocation of the purchase price for the SWS acquisition is preliminary and subject to change based on the finalization of our detailed valuations. The following table presents the final allocation of the purchase price for Deffenbaugh and the acquisition date allocation of the purchase price for SWS (in millions):


	Deffenbaugh			SWS
Cash and cash equivalents	$	15		$	—
Accounts and other receivables		22			—
Parts and supplies		2			—
Deferred income tax asset		11			—
Other current assets		10			—
Property and equipment		207			93
Goodwill		159			250
Other intangible assets		100			182
Other assets		1			—
Accounts payable		(2	)		—
Accrued liabilities		(20	)		—
Deferred revenues		(6	)		—
Landfill and environmental remediation liabilities		(18	)		—
Deferred income tax liability		(52	)		—
Other liabilities		(14	)		—

Total purchase price	$	415		$	525

The following table presents the final and preliminary allocations of the purchase price for Deffenbaugh and SWS, respectively, to other intangible assets (amounts in millions, except for amortization periods):


	Deffenbaugh				SWS
	Amount		Weighted Average Amortization Periods (in Years)		Amount		Weighted Average Amortization Periods (in Years)
Customer relationships	$	94		15.0	$	160		10.0
Noncompete agreements		—		—		18		5.0
Trade name		6		15.0		4		10.0

Total other intangible assets subject to amortization	$	100		15.0	$	182		9.5

The following pro forma consolidated results of operations have been prepared as if the acquisitions of Deffenbaugh and SWS occurred at January 1, 2015 (in millions, except per share amounts):


	Three Months Ended March 31,
	2016		2015
Operating revenues	$	3,178	$	3,111
Net income (loss) attributable to Waste Management, Inc.		258		(130	)
Basic earnings (loss) per common share		0.58		(0.28	)
Diluted earnings (loss) per common share		0.58		(0.28	)