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Acquisitions

6 Months Ended

Jun. 30, 2023

7.ACQUISITIONS

The Company acquired seven individually immaterial non-hazardous solid waste collection, transfer, recycling and disposal businesses and one E&P landfill during the six months ended June 30, 2023. The total transaction-related expenses incurred during the six months ended June 30, 2023 for these acquisitions were $3,905. These expenses are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Net Income.

The Company acquired eight individually immaterial non-hazardous solid waste collection, transfer and recycling businesses during the six months ended June 30, 2022. The total transaction-related expenses incurred during the six months ended June 30, 2022 for these acquisitions were $8,232. These expenses are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Net Income.

The results of operations of the acquired businesses have been included in the Company’s Condensed Consolidated Financial Statements from their respective acquisition dates. The Company expects these acquired businesses to contribute towards the achievement of the Company’s strategy to expand through acquisitions. Goodwill acquired is attributable to the synergies and ancillary growth opportunities expected to arise after the Company’s acquisition of these businesses.

The following table summarizes the consideration transferred to acquire these businesses and the preliminary amounts of identifiable assets acquired and liabilities assumed at the acquisition dates for the acquisitions consummated in the six months ended June 30, 2023 and 2022:


	2023		2022
	Acquisitions		Acquisitions
Fair value of consideration transferred:
Cash	$	213,152	$	546,982
Debt assumed		17,097		—
		230,249		546,982

Recognized amounts of identifiable assets acquired and liabilities assumed associated with businesses acquired:
Accounts receivable		9,047		14,656
Prepaid expenses and other current assets		2,214		3,444
Restricted investments		5,462		—
Operating lease right-of-use assets		885		2,852
Property and equipment		123,506		139,121
Long-term franchise agreements and contracts		59,509		17,482
Customer lists		4,457		53,099
Permits and other intangibles		2,403		62,406
Accounts payable and accrued liabilities		(5,661)		(21,347)
Current portion of operating lease liabilities		(191)		(947)
Deferred revenue		(1,342)		(4,877)
Contingent consideration		(13,350)		(5,543)
Long-term portion of operating lease liabilities		(694)		(1,905)
Other long-term liabilities		(6,257)		—
Deferred income taxes		(1,077)		(9,074)
Total identifiable net assets		178,911		249,367
Goodwill	$	51,338	$	297,615

Goodwill acquired during the six months ended June 30, 2023 and 2022, totaling $51,338 and $156,645, respectively, is expected to be deductible for tax purposes. The fair value of acquired working capital related to six individually immaterial acquisitions completed during the twelve months ended June 30, 2023, is provisional pending receipt of information from the acquirees to support the fair value of the assets acquired and liabilities assumed. Any adjustments recorded relating to finalizing the working capital for these six acquisitions are not expected to be material to the Company’s financial position.

The gross amount of trade receivables due under contracts acquired during the six months ended June 30, 2023, was $9,189, of which $142 was expected to be uncollectible. The gross amount of trade receivables due under contracts acquired during the six months ended June 30, 2022, was $17,436, of which $2,780 was expected to be uncollectible. The Company did not acquire any other class of receivable as a result of the acquisition of these businesses.