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ACQUISITIONS | 9 Months Ended
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Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract] |
ACQUISITIONS | NOTE 3 - ACQUISITIONS FPT Acquisition Overview On November 18, 2021, pursuant to the FPT Acquisition Agreement, we completed the FPT Acquisition, in which we were the acquirer. The FPT Acquisition gives us a competitive advantage in sourcing prime scrap, a key raw material for our steelmaking facilities. We incurred acquisition-related costs, excluding severance costs, of $1 million for the nine months ended September 30, 2022, which was recorded in Selling, general and administrative expenses on the Statements of Unaudited Condensed Consolidated Operations. The fair value of the total purchase consideration was determined as follows:
| (In Millions)
Cash consideration: |
Cash consideration pursuant to the FPT Acquisition Agreement | $ | 778 |
Cash consideration paid related to Internal Revenue Code Section 338(h)(10) | 23 |
Total cash consideration | 801 |
Fair value of settlement of a pre-existing relationship | (20) |
Total purchase consideration | $ | 781 |
We made certain elections under Section 338(h)(10) of the Internal Revenue Code with respect to entities acquired in connection with the FPT Acquisition that were finalized during the third quarter of 2022, which changed the final cash consideration. Valuation Assumption and Purchase Price Allocation We estimated fair values at November 18, 2021 for the preliminary allocation of consideration to the net tangible and intangible assets acquired and liabilities assumed in connection with the FPT Acquisition. During the measurement period, we will continue to obtain information to assist in finalizing the fair value of assets acquired and liabilities assumed, which may differ materially from these preliminary estimates. If we determine any measurement period adjustments are material, we will apply those adjustments, including any related impacts to net income, in the reporting period in which the adjustments are determined. We are in the process of conducting a valuation of the assets acquired and liabilities assumed related to the FPT Acquisition, most notably, deferred taxes and environmental obligations, and the final allocation will be made when completed, including the result of any identified goodwill. Accordingly, the provisional measurements noted below are preliminary and subject to modification in the future. The preliminary purchase price allocation to assets acquired and liabilities assumed in the FPT Acquisition was:
| (In Millions)
| Initial Allocation of Consideration |  | Measurement Period Adjustments |  | Updated Allocation
Cash and cash equivalents | $ | 9 |  |  | $ | — |  |  | $ | 9 |
Accounts receivable, net | 233 |  |  | 2 |  |  | 235 |
Inventories | 137 |  |  | (1) |  |  | 136 |
Other current assets | 4 |  |  | — |  |  | 4 |
Property, plant and equipment | 179 |  |  | 12 |  |  | 191 |
Other non-current assets | 74 |  |  | (11) |  |  | 63 |
Accounts payable | (122) |  |  | — |  |  | (122) |
Accrued employment costs | (8) |  |  | — |  |  | (8) |
Other current liabilities | (9) |  |  | — |  |  | (9) |
Other non-current liabilities | (21) |  |  | (1) |  |  | (22) |
Net identifiable assets acquired | 476 |  |  | 1 |  |  | 477 |
Goodwill | 279 |  |  | 25 |  |  | 304 |
Total net assets acquired | $ | 755 |  |  | $ | 26 |  |  | $ | 781 |
The goodwill resulting from the FPT Acquisition primarily represents the incremental benefit of providing substantial access to prime scrap for our vertically integrated steelmaking business, as well as any synergistic benefits to be realized from the FPT Acquisition within our Steelmaking segment. The preliminary purchase price allocated to identifiable intangible assets acquired was:
| (In Millions) |  | Weighted Average Life (In Years)
Customer relationships | $ | 13 |  |  | 15
Supplier relationships | 21 |  |  | 18
Trade names and trademarks | 7 |  |  | 15
Total identifiable intangible assets | $ | 41 |  |  | 17
Intangible assets are classified as Other non-current assets on the Statements of Unaudited Condensed Consolidated Financial Position.

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- Definition The entire disclosure for business combinations, including leverage buyout transactions (as applicable), and divestitures. This may include a description of a business combination or divestiture (or series of individually immaterial business combinations or divestitures) completed during the period, including background, timing, and assets and liabilities recognized and reclassified or sold. This element does not include fixed asset sales and plant closings. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI https://asc.fasb.org/topic&trid=2303972 + Details
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