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Acquisitions | 9 Months Ended
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Sep. 30, 2019
Business Combinations [Abstract] |
Acquisitions | ACQUISITIONS Acquisition of Andeavor On October 1, 2018, we acquired Andeavor. The total value of consideration transferred was $23.46 billion, consisting of $19.97 billion in equity and $3.49 billion in cash. The cash portion of the purchase price was funded using cash on hand. Our financial results reflect the results of Andeavor from the date of the acquisition. We accounted for the Andeavor acquisition using the acquisition method of accounting, which requires Andeavor assets and liabilities to be recorded to our balance sheet at fair value as of the acquisition date. The size and the breadth of the Andeavor acquisition necessitated the use of the one year measurement period provided under ASC 805 to fully analyze all the factors used in establishing the asset and liability fair values as of the acquisition date. We completed a final determination of the fair value of certain assets and liabilities during the three months ended September 30, 2019 and recorded adjustments to our preliminary purchase price allocation. These adjustments reflect the completion of valuation studies of the acquired property, plant and equipment in order to finalize assumptions used in their cost approach valuation methodology and finalization of specific valuation assumptions and data inputs for other individual asset valuation models. The fair value estimates of assets acquired and liabilities assumed as of the acquisition date are noted in the table below.
(In millions) | As originally reported |  | Adjustments |  | As adjusted
Cash and cash equivalents | $ | 382 |  |  | $ | — |  |  | $ | 382 |
Receivables | 2,744 |  |  | (7 | ) |  | 2,737 |
Inventories | 5,204 |  |  | 37 |  |  | 5,241 |
Other current assets | 378 |  |  | (6 | ) |  | 372 |
Equity method investments | 865 |  |  | (113 | ) |  | 752 |
Property, plant and equipment, net | 16,545 |  |  | (1,059 | ) |  | 15,486 |
Other noncurrent assets(a) | 3,086 |  |  | (11 | ) |  | 3,075 |
Total assets acquired | 29,204 |  |  | (1,159 | ) |  | 28,045 |
Accounts payable | 4,003 |  |  | (41 | ) |  | 3,962 |
Payroll and benefits payable | 348 |  |  | 9 |  |  | 357 |
Accrued taxes | 590 |  |  | (110 | ) |  | 480 |
Debt due within one year | 34 |  |  |  |  | 34 |
Other current liabilities | 392 |  |  | 27 |  |  | 419 |
Long-term debt | 8,875 |  |  | 1 |  |  | 8,876 |
Deferred income taxes | 1,609 |  |  | (60 | ) |  | 1,549 |
Defined benefit postretirement plan obligations | 432 |  |  | — |  |  | 432 |
Deferred credit and other liabilities | 714 |  |  | 33 |  |  | 747 |
Noncontrolling interests | 5,059 |  |  | 3 |  |  | 5,062 |
Total liabilities and noncontrolling interest assumed | 22,056 |  |  | (138 | ) |  | 21,918 |
Net assets acquired excluding goodwill | 7,148 |  |  | (1,021 | ) |  | 6,127 |
Goodwill | 16,314 |  |  | 1,021 |  |  | 17,335 |
Net assets acquired | $ | 23,462 |  |  | $ | — |  |  | $ | 23,462 |
(a) | Includes intangible assets.
The purchase consideration allocation resulted in the recognition of $17.3 billion in goodwill, of which $1.0 billion is tax deductible due to a carryover basis from Andeavor. Our Refining & Marketing, Midstream and Retail segments recognized $5.2 billion, $8.1 billion and $4.0 billion of goodwill, respectively. The recognized goodwill represents the value expected to be created by further optimization of crude supply, a nationwide retail and marketing platform, diversification of our refining and midstream footprints and optimization of information systems and business processes. Pro Forma Financial Information The following unaudited pro forma financial information presents consolidated results assuming the Andeavor acquisition occurred on January 1, 2017. The unaudited pro forma information does not give effect to potential synergies that could result from the transaction and is not necessarily indicative of the results of future operations.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) |  | 2018 |  | 2018
Sales and other operating revenues |  | $ | 35,250 |  |  | $ | 99,588 |
Net income attributable to MPC |  | 1,057 |  |  | 2,562 |
The pro forma information includes adjustments to align accounting policies, including our policy to expense refinery turnarounds when they occur, an adjustment to depreciation expense to reflect the increased fair value of property, plant and equipment, increased amortization expense related to identifiable intangible assets and the related income tax effects. Acquisition of Terminal and Retail Locations in Buffalo, New York During the third quarter of 2019, we acquired a 900,000-barrel capacity light product and asphalt terminal and 33 NOCO Express retail stores in Buffalo, Syracuse and Rochester, New York, from NOCO Incorporated for total consideration of $135 million. Based on the final fair value estimates of assets acquired and liabilities assumed at the acquisition date, $38 million of the purchase price was allocated to property, plant and equipment, $3 million to inventory and $94 million to goodwill. Goodwill is tax deductible and represents the value expected to be created by geographically expanding our retail platform and the assembled workforce. The terminal is accounted for within the R&M segment and the retail stores are accounted for within the Retail segment. Acquisition of Express Mart During the fourth quarter of 2018, Speedway acquired 78 transportation fuel and convenience store locations from Petr-All Petroleum Consulting Corporation for total consideration of $266 million. These stores are located primarily in the Syracuse, Rochester and Buffalo markets in New York and had been operated under the Express Mart brand. Based on the final fair value estimates of assets acquired and liabilities assumed at the acquisition date, $97 million of the purchase price was allocated to property, plant and equipment, $9 million to inventory, $2 million to intangibles and $158 million to goodwill. Goodwill is tax deductible and represents the value expected to be created by geographically expanding our retail platform and the assembled workforce. These operations are accounted for within the Retail segment. Acquisition of Mt. Airy Terminal On September 26, 2018, MPLX acquired an eastern U.S. Gulf Coast export terminal (“Mt. Airy Terminal”) from Pin Oak Holdings, LLC for total consideration of $451 million. At the time of the acquisition, the terminal included tanks with 4 million barrels of third-party leased storage capacity and a dock with 120 mbpd of capacity. The Mt. Airy Terminal is located on the Mississippi River between New Orleans and Baton Rouge, near several Gulf Coast refineries, including our Garyville Refinery, and numerous rail lines and pipelines. The Mt. Airy Terminal is accounted for within the Midstream segment. In the first quarter of 2019, an adjustment to the initial purchase price was made for approximately $5 million related to the final settlement of the acquisition. This reduced the total purchase price to $446 million and resulted in $336 million of property, plant and equipment, $121 million of goodwill and the remainder being attributable to net liabilities assumed. Goodwill represents the significant growth potential of the terminal due to the multiple pipelines and rail lines which cross the property, the terminal’s position as an aggregation point for liquids growth in the region for both ocean-going vessels and inland barges, the proximity of the terminal to MPC’s Garyville refinery and other refineries in the region as well as the opportunity to construct an additional dock at the site. All of the goodwill recognized related to this transaction is tax deductible. Assuming the acquisition of the terminal and retail locations from NOCO Incorporated had occurred on January 1, 2018 and the acquisitions of Express Mart and Mt. Airy Terminal had occurred on January 1, 2017, the consolidated pro forma results would not have been materially different from the reported results.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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