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ACQUISITIONS (Tables) | 3 Months Ended
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Mar. 31, 2021
Business Combinations [Abstract] |
Summary of purchase price consideration | The following table summarizes the purchase price for Delphi Technologies:
(in millions, except for share data) |
BorgWarner common stock issued for purchase of Delphi Technologies | 37,188,819
BorgWarner share price at October 1, 2020 | $ | 39.54 |
Fair value of stock consideration | $ | 1,470 |
Stock compensation consideration | 7
Total stock consideration | $ | 1,477 |
Cash consideration | 18 |
Repayment of Delphi Technologies’ debt | 896 |
Total consideration | $ | 2,391 |
Schedule of fair values of assets acquired and liabilities | The following table summarizes the estimated fair values of assets acquired and liabilities assumed as of the acquisition date and subsequent measurement period adjustments:
(in millions) | Initial Allocation |  | Measurement Period Adjustments |  | Revised Allocation
ASSETS |  |  |  |  |
Cash and cash equivalents | $ | 460 |  |  | $ | — |  |  | $ | 460 |
Receivables, net | 901 |  |  | 1 |  |  | 902 |
Inventories, net | 398 |  |  | (1) |  |  | 397 |
Prepayments and other current assets | 77 |  |  | — |  |  | 77 |
Property, plant and equipment, net | 1,548 |  |  | — |  |  | 1,548 |
Investments and other long-term receivables | 103 |  |  | — |  |  | 103 |
Goodwill | 710 |  |  | 1 |  |  | 711 |
Other intangible assets, net | 760 |  |  | — |  |  | 760 |
Other non-current assets | 359 |  |  | — |  |  | 359 |
Total assets acquired | 5,316 |  |  | 1 |  |  | 5,317 |
LIABILITIES |  |  |  |  |
Notes payable and other short-term debt | 2 |  |  | — |  |  | 2 |
Accounts payable | 692 |  |  | — |  |  | 692 |
Other current liabilities | 609 |  |  | (1) |  |  | 608 |
Long-term debt | 934 |  |  | — |  |  | 934 |
Other non-current liabilities: |  |  |  |  |
Retirement-related | 313 |  |  | — |  |  | 313 |
Other | 286 |  |  | — |  |  | 286 |
Total liabilities assumed | 2,836 |  |  | (1) |  |  | 2,835 |
Noncontrolling interests | 89 |  |  | — |  |  | 89 |
Net assets and noncontrolling interests acquired | $ | 2,391 |  |  | $ | 2 |  |  | $ | 2,393 |
Schedule of goodwill |
(in millions) |
Air Management | $ | 147 |
e-Propulsion & Drivetrain | 281 |
Fuel Injection | — |
Aftermarket | 283 |
Total acquisition date goodwill | $ | 711 |
A summary of the changes in the carrying amount of goodwill are as follows:
(in millions) | Air Management |  | e-Propulsion & Drivetrain |  | Aftermarket |  | Total
Gross goodwill balance, December 31, 2020 | $ | 1,517 |  |  | $ | 1,313 |  |  | $ | 299 |  |  | $ | 3,129 |
Accumulated impairment losses, December 31, 2020 | (502) |  |  | — |  |  | — |  |  | (502) |
Net goodwill balance, December 31, 2020 | $ | 1,015 |  |  | $ | 1,313 |  |  | $ | 299 |  |  | $ | 2,627 |
Goodwill during the period: |  |  |  |  |  |  |
Measurement period adjustments | (4) |  |  | 9 |  |  | (4) |  |  | 1 |
Other, primarily translation adjustment | (13) |  |  | (12) |  |  | (7) |  |  | (32) |
Ending balance, March 31, 2021 | $ | 998 |  |  | $ | 1,310 |  |  | $ | 288 |  |  | $ | 2,596 |
Schedule of other intangible assets acquired | The following table summarizes the other intangible assets acquired:
(in millions) | Estimated Life |  | Estimated Fair Value
Amortized intangible assets: |  |  |
Developed technology | 14 years |  | $ | 270 |
Customer relationships | 15 years |  | 380 |
Total amortized intangible assets |  |  | 650 |
Unamortized trade name | Indefinite |  | 110 |
Total other intangible assets |  |  | $ | 760 |

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