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Acquisition | 6 Months Ended
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Mar. 31, 2022
Business Combinations [Abstract] |
Acquisition | C. Acquisition Tokai Carbon (Tianjin) Co. On February 28, 2022, the Company purchased 100% of the registered capital of Tokai Carbon, a carbon black manufacturing facility, from Tokai Carbon Group for a net purchase price of $9 million, consisting of cash consideration payable of $14 million, including customary post-closing adjustments, and net of $5 million of cash acquired. The provisional estimates of the fair value of assets and liabilities acquired as of February 28, 2022 are set forth below along with the calculation of the Gain on bargain purchase of a business based on the cash consideration payable.
|  | (In millions) |
Fair value of asset acquired |  |  |  |
Cash |  | $ | 5 |
Accounts and notes receivable |  |  | 5 |
Inventories |  |  | 11 |
Prepaid expenses and other current assets |  |  | 7 |
Property, plant and equipment |  |  | 12 |
Amounts attributable to assets acquired |  |  | 40 |
Fair value of liabilities assumed |  |  |  |
Accounts payable and accrued liabilities |  |  | (2 | )
Amounts attributable to liabilities assumed |  |  | (2 | )
Total identifiable net assets |  |  | 38 |
Cash consideration payable |  |  | 14 |
Gain on bargain purchase of a business |  | $ | 24 |
The excess of the fair value of the net assets over the purchase price was recorded as a gain of $24 million for the period ended March 31, 2022. The Gain on bargain purchase of a business arose primarily due to necessary equipment upgrades that will be required after the purchase to continue to utilize the existing assets. The payment of $14 million of cash consideration for the acquisition is expected to occur in the third quarter of fiscal 2022 and at March 31, 2022, was included in Accounts payable and accrued liabilities in the Consolidated Balances Sheets.

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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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- References No definition available. + Details
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