OTHER ASSETS

12 Months Ended

Sep. 30, 2019

Other assets are summarized as follows (in millions):



	September 30,
	2019		2018
Investments in non-consolidated joint ventures (see Note 15)	$	110	$	102
Asbestos-related recoveries (see Note 25)	55		76
Unamortized revolver debt issuance costs	7		7
Capitalized software costs, net ⁽¹⁾	20		26
Deferred income tax assets (see Note 24)	122		140
Assets for uncertain tax positions (see Note 24)	55		53
Prepaid pension costs (see Note 23)	149		152
Intangible assets ⁽²⁾	50		18
Other	38		22
Other assets	$	606	$	596


(1)	In accordance with FASB ASC Topic 350-40, costs relating to internally developed or purchased software in the preliminary project stage and the post-implementation stage are expensed as incurred. Costs in the application development stage that meet the criteria for capitalization are capitalized and amortized using the straight-line basis over the estimated economic useful life of the software.


(2)	Primarily relates to customer relationships. As of September 30, 2019, the gross carrying value was $56 million and the accumulated amortization was $6 million. As of September 30, 2018, the gross carrying value was $22 million and the accumulated amortization was $4 million. The weighted average amortization periods for customer relationships is approximately 15 years.

The company holds a variable interest in a joint venture that is a variable interest entity ("VIE") accounted for under the equity method of accounting. The joint venture manufactures components for commercial vehicle applications primarily on behalf of the company. The variable interest relates to a supply arrangement between the company and the joint venture whereby the company supplies certain components to the joint venture on a cost-plus basis. The company is not the primary beneficiary of the joint venture, as the joint venture partner has shared or absolute control over key manufacturing operations, labor relationships, financing activities and certain other functions of the joint venture. Therefore, the company does not consolidate the joint venture. At September 30, 2019 and September 30, 2018, the company’s investment in the joint venture was $69 million and $63 million, respectively.

AAG Business

During fiscal year 2019, the company determined it had an impairment trigger related to its AAG business, and by performing the recoverability test, the company concluded that the undiscounted future cash flows could not recover the net assets of the business. The company then determined that the carrying value of the business exceeded its fair value. As a result, an impairment charge of $9 million was recorded within Other operating expense, net in the Aftermarket, Industrial and Trailer reportable segment. Earlier in fiscal year 2019, an unrelated $1 million of other long-lived asset impairment charges were recorded.

TransPower

Meritor completed $3 million strategic investments in Transportation Power, Inc. ("TransPower") in each of the first and third quarters of fiscal year 2019. Investments of $3 million in TransPower were also made in each of the first and third quarters of fiscal year 2018. The company holds a variable interest in TransPower, a VIE. TransPower develops electrical drive solutions and supplies integrated drive systems, full electric truck solutions and energy-storage subsystems to major manufacturers of trucks, school buses, refuse vehicles and terminal tractors. The company is not the primary beneficiary of TransPower, as other owners have control over the significant activities of TransPower, including the development of intellectual property and manufacturing.

Therefore, the company does not consolidate TransPower. At September 30, 2019 and 2018, the company’s investment in TransPower was $12 million and $6 million, respectively, representing the company’s maximum exposure to loss.