Business Acquisitions, Investments and Restructuring Charges

3 Months Ended

Mar. 31, 2020

Business Acquisitions, Investments and Restructuring Charges

BUSINESS ACQUISITIONS, INVESTMENTS AND RESTRUCTURING CHARGES

Acquisitions

We acquired various waste businesses during the three months ended March 31, 2020 and 2019. The purchase price for these business acquisitions and the allocations of the purchase price follows:


	2020		2019
Purchase price:
Cash used in acquisitions, net of cash acquired	$	52.2	$	50.6

Holdbacks	2.5		3.9
Fair value, future minimum finance lease payments	0.3		—

Total	$	55.0	$	54.5
Allocated as follows:
Accounts receivable	$	2.3	$	1.6

Property and equipment	17.3		7.7
Operating right-of-use lease assets	0.2		—
Other assets	0.2		0.4

Accounts payable	(1.2)		—

Environmental remediation liabilities	(1.5)		—

Operating right-of-use lease liabilities	(0.2)		—
Other liabilities	(0.9)		(0.4)
Fair value of tangible assets acquired and liabilities assumed	16.2		9.3
Excess purchase price to be allocated	$	38.8	$	45.2
Excess purchase price allocated as follows:
Other intangible assets	$	1.8	$	12.7
Goodwill	37.0		32.5
Total allocated	$	38.8	$	45.2

The purchase price allocations are based on information existing at the acquisition dates. Accordingly, certain of the purchase price allocations are preliminary and subject to change. Substantially all of the goodwill and intangible assets recorded for these acquisitions are deductible for tax purposes.

These acquisitions are not material to our results of operations, individually or in the aggregate. As a result, no pro forma financial information is provided.

Investments

In 2020, we continued to acquire non-controlling equity interests in certain limited liability companies that qualified for investment tax credits under Section 48 of the Internal Revenue Code. In exchange for our non-controlling interests, we made capital contributions of $9.4 million, which were recorded to other assets in our March 31, 2020 consolidated balance sheet. During the three months ended March 31, 2020 and 2019, we also reduced the carrying value of these investments by $13.2 million and $11.6 million, respectively, as a result of tax credits allocated to us, cash distributions and our share of income and loss pursuant to the terms of the limited liability company agreements.

Restructuring Charges

In 2019, we incurred costs related to the redesign of certain back-office software systems, which continued into 2020. During the three months ended March 31, 2020 and 2019, we incurred restructuring charges of $3.8 million and $3.0 million, respectively, that primarily related to these restructuring efforts. During the three months ended March 31, 2020 and 2019, we paid $3.8 million and $4.6 million, respectively, related to these restructuring efforts.

In 2020, we expect to incur additional restructuring charges of approximately $10 million primarily related to the redesign of certain of our back-office software systems. Substantially all of these restructuring charges will be recorded in our corporate segment.