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ACQUISITIONS (Tables) | 9 Months Ended
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Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract] |
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 June 4, 2021, the acquisition date:
(in millions) | Initial Allocation |  | Measurement Period Adjustments |  | Revised Allocation
ASSETS |  |  |  |  |
Cash and cash equivalents (including restricted cash of $16 million) | $ | 29 |  |  | $ | — |  |  | $ | 29 |
Receivables, net | 16 |  |  | — |  |  | 16 |
Inventories, net | 42 |  |  | (2) |  |  | 40 |
Prepayments and other current assets | 5 |  |  | — |  |  | 5 |
Property, plant and equipment, net | 106 |  |  | 4 |  |  | 110 |
Goodwill | 707 |  |  | (4) |  |  | 703 |
Other intangible assets, net | 130 |  |  | — |  |  | 130 |
Total assets acquired | 1,035 |  |  | (2) |  |  | 1,033 |
LIABILITIES |  |  |  |  |
Notes payable and other short-term debt | 8 |  |  | — |  |  | 8 |
Accounts payable | 22 |  |  | — |  |  | 22 |
Other current liabilities | 13 |  |  | 5 |  |  | 18 |
Long-term debt | 69 |  |  | — |  |  | 69 |
Other non-current liabilities | 39 |  |  | (7) |  |  | 32 |
Total liabilities assumed | 151 |  |  | (2) |  |  | 149 |
Noncontrolling interest | 96 |  |  | — |  |  | 96 |
Net assets and noncontrolling interest acquired | $ | 788 |  |  | $ | — |  |  | $ | 788 |
The following table summarizes the final 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 |  |  | (4) |  |  | 897 |
Inventories, net | 398 |  |  | (5) |  |  | 393 |
Prepayments and other current assets | 77 |  |  | 2 |  |  | 79 |
Property, plant and equipment, net | 1,548 |  |  | (31) |  |  | 1,517 |
Investments and other long-term receivables | 103 |  |  | (1) |  |  | 102 |
Goodwill | 710 |  |  | 44 |  |  | 754 |
Other intangible assets, net | 760 |  |  | — |  |  | 760 |
Other non-current assets | 359 |  |  | 1 |  |  | 360 |
Total assets acquired | 5,316 |  |  | 6 |  |  | 5,322 |
LIABILITIES |  |  |  |  |
Notes payable and other short-term debt | 2 |  |  | — |  |  | 2 |
Accounts payable | 692 |  |  | 1 |  |  | 693 |
Other current liabilities | 609 |  |  | 9 |  |  | 618 |
Long-term debt | 934 |  |  | — |  |  | 934 |
Other non-current liabilities: |  |  |  |  |
Retirement-related | 313 |  |  | — |  |  | 313 |
Other non-current liabilities | 286 |  |  | (4) |  |  | 282 |
Total liabilities assumed | 2,836 |  |  | 6 |  |  | 2,842 |
Noncontrolling interest | 89 |  |  | — |  |  | 89 |
Net assets and noncontrolling interest acquired | $ | 2,391 |  |  | $ | — |  |  | $ | 2,391 |
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 | 5 years |  | $ | 70 |
Customer relationships | 11 years |  | 25 |
Total amortized intangible assets |  |  | 95 |
Unamortized trade name | Indefinite |  | 35 |
Total other intangible assets |  |  | $ | 130 |
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 |
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 goodwill |
(in millions) |
Air Management | $ | 150 |
e-Propulsion & Drivetrain | 301 |
Fuel Injection | — |
Aftermarket | 303 |
Total acquisition date goodwill | $ | 754 |
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: |  |  |  |  |  |  |
Acquisition | 707 |  |  | — |  |  | — |  |  | 707 |
Measurement period adjustments | (4) |  |  | 28 |  |  | 16 |  |  | 40 |
Held for sale | — |  |  | (18) |  |  | — |  |  | (18) |
Other, primarily translation adjustment | (36) |  |  | (31) |  |  | (4) |  |  | (71) |
Ending balance, September 30, 2021 | $ | 1,682 |  |  | $ | 1,292 |  |  | $ | 311 |  |  | $ | 3,285 |

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- Definition Tabular disclosure of finite-lived and indefinite-lived intangible assets acquired as part of a business combination. + References No definition available. + Details
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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123413009&loc=d3e4845-128472 + Details
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