Waste Management 2013 Annual Report Download - page 223

WASTE MANAGEMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Acquisition of Greenstar, LLC
On January 31, 2013, we paid $170 million inclusive of certain adjustments, to acquire Greenstar, LLC
(“Greenstar”). Pursuant to the sale and purchase agreement, up to an additional $40 million is payable to the
sellers during the period from 2014 to 2018, of which $20 million is guaranteed. The remaining $20 million of
this consideration is contingent based on changes in certain recyclable commodity indexes and had a preliminary
estimated fair value at closing of $16 million. Greenstar was an operator of recycling and resource recovery
facilities. This acquisition provides the Company’s customers with greater access to recycling solutions, having
supplemented our extensive nationwide recycling network with the operations of one of the nation’s largest
private recyclers. Since the acquisition date, the Greenstar business has recognized revenues of $139 million and
net losses of $17 million, which are included in our Consolidated Statement of Operations.
Goodwill of $122 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 predominantly to our Areas
and, to a lesser extent, our recycling brokerage services, as they are expected to benefit from the synergies of the
combination. Goodwill related to this acquisition is deductible for income tax purposes. There have been no
material adjustments to the purchase price allocation since the date of acquisition.
The following table presents the final allocation of the purchase price for the Greenstar acquisition (in
millions):
December 31, 2013
Accounts and other receivables .......................................... $ 30
Parts and supplies .................................................... 4
Other current assets ................................................... 2
Property and equipment ................................................ 58
Goodwill ........................................................... 122
Other intangible assets ................................................. 32
Accounts payable .................................................... (17)
Accrued liabilities .................................................... (12)
Landfill and environmental remediation liabilities ........................... (2)
Current portion of long-term debt ........................................ (4)
Long-term debt, less current portion ...................................... (2)
Other liabilities ...................................................... (5)
Total purchase price ................................................ $206
The following table presents the final allocation of the purchase price to intangible assets (amounts in
millions, except for amortization periods):
Amount
Weighted Average
Amortization
Periods (in Years)
Supplier relationships ......................................... $31 10.0
Lease agreements ............................................ 1 8.4
Total intangible assets subject to amortization .................... $32 10.0
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