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Acquisition and Divestiture
 6 Months Ended
Mar. 31, 2018
Business Combinations [Abstract]  
Acquisition and Divestiture
Acquisition and Divestiture
Acquisition of Fabco Business
On August 31, 2017, the company acquired certain assets, including the product portfolio and related technologies of Fabco Holdings, Inc., and its subsidiaries ("Fabco") and assumed certain liabilities, for a cash purchase price of $34 million. The Fabco acquisition was accounted for as a business combination.

Since completion of initial estimates in the fourth quarter of fiscal year 2017, the company recorded a net $1 million measurement period adjustment to increase the provisional fair value of identifiable net assets acquired in the Fabco transaction, resulting in a corresponding $1 million decrease to goodwill. This adjustment was made to reflect additional available information and updated preliminary valuation results, which included valuation of trademarks, technology and customer relationships. The company is reviewing and may record other additional measurement period adjustments in fiscal year 2018. All goodwill resulting from the acquisition of Fabco was assigned to the Aftermarket and Industrial reportable segment.

 
 
Estimated Fair Value
 
 
As of September 30, 2017
 
Measurement Period Adjustments
 
As of March 31, 2018
Purchase price
$
34

 
$
—

 
$
34

 
 
 
 
 
 

Acquired assets and liabilities
 
 
 
 

 
Receivables
5

 
—

 
5

 
Inventories
13

 
(1
)
 
12

 
Property, plant and equipment
9

 
(2
)
 
7

 
Intangible assets
—

 
3

 
3

 
Accounts payable
(6
)
 
—

 
(6
)
 
Other current liabilities
(6
)
 
1

 
(5
)
Total identifiable net assets acquired
15

 
1

 
16

 
 
 
 
 
 

Goodwill resulting from the acquisition of Fabco
19

 
(1
)
 
18

 
 
$
34

 
$
—

 
$
34



Divestiture of MHBC
On February 7, 2018, Meritor completed the sale of its equity interest in MHBC. All assets and liabilities of the business were transferred at closing. As a result of the divestiture and prior period held for sale classification, a pretax impairment charge of $3 million previously recorded within other operating expense, net in the company’s condensed consolidated statement of operations for fiscal year 2017.